Factors Affecting Entrepreneurship Development

Name:-Shreyas Shenoy

Registration Number :- A/E190702003

Factors will be key to entrepreneurial success: creativity, tolerance for risk, responsiveness to
opportunities, leadership and the ability to take advantage of the rights afforded to you.

Creativity and Accumulation of Ideas

Do not be dissuaded by the challenge to be creative. You need not be the original wheel creator
to improve upon a stone cylinder. By standing on the shoulders of giants, you can take existing
ideas and make small improvements upon them. Your best ideas may come to you as you are
falling asleep or while you are taking a shower. Recognize when you have a fresh idea and do
not let them get away from you. Write them down! Not every idea has to be a home run. By
accumulating your ideas, you will be able to distill the great ones from the rest and be ready to
run with the best.

Risk Tolerance and Taking Advantage of Opportunity

Rewards rarely come without risk. Your ability to take advantage of an opportunity will depend,
in part, on your tolerance for risk. As the founder of a start-up, investors will expect you to have
a vested interest in your business. If you will not bet on your idea, why should anybody else?

If you cannot afford the risk, financially or emotionally, then you might make decisions that are
too tepid to be successful. To do well, an entrepreneur needs the strong sense of self-efficacy to
believe the risk will be surmountable.

Responsiveness to Opportunity

Opportunity can leave quickly. With the internet, the spread of information and ideas has led to
deeper, faster competition to be the first mover. The ability to respond to the market and new
business opportunities can be the difference between a successful entrepreneur and a failed
business model.

To be responsive, an entrepreneur must have the flexibility of mind and resources necessary to
see and take advantage of new and upcoming possibilities. Learning from your mistakes and
those of others to implement change can keep businesses afloat. Calcifying rigidity, on the other
hand, can turn a start-up into dust.

Leadership and Inspiring Others

It is up to the entrepreneur to marshal assets. Leaders are challenged with taking possibilities
and turning them into inspiring visions for others. You will inevitably have to sell either your idea
or your product to begin your entrepreneurship. It will be up to the entrepreneur to take the idea
and turn it into actions and products to capitalize on the opportunity. Leadership can come in
many forms, but it is nevertheless essential to entrepreneurship. You must take the lead for your
ideas to come to fruition.

Intellectual Property Rights

Intellectual property laws can provide you with exclusive business rights to your ideas. If you do
not protect your ideas, they may be copied – cheaply. Once an idea is in the public domain, it
may no longer be possible to use that idea as a competitive advantage. Society values ideas
being shared.

In exchange for sharing ideas, governments provide limited monopolies that will allow you to
capitalize on them for a period, making up in part for the costs you have incurred in research
and development. Intellectual property professionals can aid you in seeking such rights.

Aspiration and Attitude

Every person acts and behaves according to his aspirations and attitude.A person with high
ambitions helps himself to become an entrepreneur and Similarly, if a person has the attitude to
work as an entrepreneur, only then he can achieve success.

Personal Factors

The personal factors of an individual also influence his spirit of becoming an entrepreneur or
not. The entrepreneur having qualities of immense imaginations, maturity, optimism,
foresightedness, ability to bear risks, efficiency, self-confidence, leadership ability, dynamic
thinking, hard work, honesty, etc. is sure to achieve success.

Family Circumstances

Every person has different family circumstances.It is often observed that due to family non-
cooperation enterprises get frustrated, whereas a person becomes a successful entrepreneur
with a family Corporation.

Government Policies, Facilities, and Incentives

Various government policies like the Economic policy, Taxation Policy, Import-Export Policy,
and Licensing Policy, etc.Effect the development of entrepreneurship or entrepreneurial.If the
government provides basic infrastructural facilities, like electricity, transport, banking, insurance,
communication, water, raw materials, and warehousing facilities, etc.It certainly results in the
development of entrepreneurship or entrepreneurial.
Social and Cultural Factors
Social organizations, traditions, level of education, personal behavior, situational circumstances,
caste or class system, family training and another ethical level of the society are such social and
cultural elements, which affect the development of entrepreneurship or entrepreneurial.In
addition, the political environment of the country also affects the development of
entrepreneurship or entrepreneurial.

Progeny and Traditions

Traditions of society and family have a substantial impact on the working style of an individual.
Even today, in our society, various sections of the Vaishya community better understand the
intricacies of business and are more suited to business.Although in a change in times, progeny
and traditions are also changing, these traditions still exist.

Business Competition

If healthy competitive conditions prevail in society, the development of entrepreneurship or

entrepreneurial is sure, whereas the unhealthy competition blocks the development of
entrepreneurship or entrepreneurial.Various ancillary small industries can be developed, along
with big Industries.The government may create the conditions of healthy competition by its
policies and various laws.

Economic and Business Environment

The economic and business environment of the country also affects the development of
entrepreneurship or entrepreneurial.
  factors affecting entrepreneurship development
 factors affecting entrepreneurship development

Availability of basic infrastructural facilities, industrial areas and estates, raw material, labour,
transport, communication, Insurance and financial facilities, price level, trade cycles, economic
stability, and investment position in the country are such motivating elements that influence the
development of entrepreneurship or entrepreneurial.

Support System

Availability of support system, like specific Financial Institutions, advisory services, and
expenditure on research and investigations, etc.have also there owned a role in the
development of entrepreneurship or entrepreneurial class.

Attitude of Big Entrepreneurs

Big entrepreneurs may motivate and inspire small entrepreneurs with success and
prosperity.Besides, the positive attitude of big entrepreneurs is also inspiring for small
entrepreneurs. Big entrepreneurs may boost up the morale of small entrepreneurs by providing
them knowledge about law, building, raw materials, techniques, and marketing, etc.

Entrepreneurship Oriented Education and Training

Education and training as an important role in the development of entrepreneurship.The

entrepreneurs are not born but are developed as such, by way of proper education, training, and
counseling. In India also, the prospective entrepreneurs are educated and trained through
entrepreneurial or entrepreneurship development programs, by various technical and
management Institutions. These institutions provide details training about feasibility reports,
industrial surveys, project reports, etc.

Role of Banks and Financial Institutions

Banks and Financial Institutions have also played an important role in the development of
entrepreneurship or entrepreneurial.If these Institutions quickly approve the projects submitted
by the entrepreneurs, it provides encouragement for the establishment of Business and
Industrial Enterprises.It also simplifies the policies and procedures for providing loans and
credit, and also provide facilities for Research and investigations, which results in the
development of entrepreneurship or entrepreneurial, which otherwise is not easily possible.