ECONOMIC AND SOCIAL FACTORS AFFECTING ENTREPRENEURIAL GROWTHThe emergency and development of entrepreneurship is not a spontaneous one but a dependent phenomenon of economic, social, political, psychological factors often nomenclatures assupporting conditions to the entrepreneurship development. These conditions may have both positive and negative influences on the emergence of entrepreneurship. Positive influenceconstitute facilitate and conducive conditions for the emergence of entrepreneurship, whereasnegative influences create inhabiting milieu to the emergence of entrepreneurship. There arecertain factors, which works as “supportive conditions”. These factors are broadly classified intoeconomic and non-economic factors. While economic factors consist of capital, labor, rawmaterial and market; non-economic factors include social and psychological factors likelegitimacy of entrepreneurship, social mobility, marginality, security, need achievement,withdrawal of status respect, etc. the government actions also influence the emergence anddevelopment of entrepreneurship in a economy.
ECONOMIC FACTORSFrom a strictly economic viewpoint, it can be said that the same factors, which promote economic development, account for the emergence of entrepreneurship also. Some of these factors are discussed in below:1.Capital: Capital is one of the most important prerequisites to establish anenterprise. Availability of capital facilitates the entrepreneur to bring together theland of one, machine of another and raw material of yet another to combine them to produce goods. Capital is, therefore, regarded as lubricant to the process of production. Our accumulated experience suggests that with an increase in capitalinvestment, capital-output ratio also tends to increase. This results in increase in profit, which ultimately goes to capital formation. This suggests that as capitalsupply increases entrepreneurship also increases.Labor: the quality rather quantity of labor is another factor, which influences the emergence of entrepreneurship. It is noticed that cheap labor is often less mobile or even immobile. Inaddition, the potential advantages of low-cost labor negated by the deleterious effect of labor immobility. Division of labor is an important element in economic development. Division of labor which itself depends upon size of the market leads to improvement in the productivecapacities of labor due to an increase in the dexterity of labor. Notwithstanding, it appears thatthe labor problem clearlyMOBILITY OF ENTREPRENEURSHIP Since human life between two poles- movement and settlement. Movementof entrepreneurs from one location to another and one occupation to another has certaindistinct features of its own kind which affect the pace and pattern of entrepreneurshipdevelopment. Various factors like one’s education and experience, availability of facilities, political conditions, etc. Influence the entrepreneurs to move from onelocation and occupation to another. Occupational mobility takes place in the forms of ‘inter-generation occupational mobility’ and ‘intra-generation occupational mobility’.Given the limited resources and information, the entrepreneurs tend to establish their units at their own places, i.e., homelands. With increase in their resources andinformation flows, the spatial horizons of the entrepreneurial mobility tend to expendfrom local to regional, national and international arena. The major factors influencingmobility and its types are discussed below.
Factors infusing mobility