Presented by, Niran Mandanna

Environment plays a very important role in supply and development of entrepreneurship. The growth of entrepreneurship in any country is the result of several environmental factors such as social, economic, cultural, personal and political.

1. Economic factors
Factors which effect the entrepreneurial growth are:  Shortage of capital  Shortage of working capital  Non availability of skilled and efficient labour  Non availability of basic infrastructure

2. Social factors 
Rational behavior encourages

entrepreneurship.  Non-rational behavior discourages entrepreneurship.  Other factors:
y The family system y The social set up - caste system, heredity etc.

3. Cultural factors
y Depends on the existing value system y This value system decides desirable and

acceptable motives and actions of people y The motives like profit sharing, doing productive work, acquisition of prestige and status in the society may lead to growth of entrepreneurship.

4. Personal factors
y Personality y Prestige, personal self esteem , power etc

will activate an entrepreneur

5. Political factors
y Infrastructural facilities y Tax concessions y Economic incentives

Sign up to vote on this title
UsefulNot useful