FACTORS AFFECTING

ENTREPRENEURSHIP
 Personal Factors
 Environmental Factors
ENVIRONMENTAL FACTORS
AFFECTING
ENTREPRENEURSHIP
POLITICAL
 1. POLITICAL
Government policies and stability
affect business operations and
investment climates.
1. POLITICAL
Sudden changes in government
policies can create uncertainty or
opportunities.

Entrepreneurs need to stay

informed to adapt their strategies
based on political decisions
affecting market conditions and
trade.
CLIMATE CONDITIONS
2. CLIMATE CONDITIONS
Environmental factors such as
weather patterns, natural
disasters, and climate change
2. CLIMATE CONDITIONS
weather patterns
and disasters
impact industries
like agriculture and
energy, affecting
supply chains.
LEGAL SYSTEM
 3. LEGAL SYSTEM
The legal framework,
including laws, regulations,
and judicial systems.
3. LEGAL SYSTEM
Compliance with
laws affects
market entry,
product
development, and
trade practices.
ECONOMIC CONDITIONS
4. ECONOMIC CONDITIONS
It encompasses various factors that
collectively describe the overall
health and performance of an
economy.
 4. ECONOMIC CONDITIONS
Factors like
inflation, interest
rates, and GDP
growth influence
consumer spending
and market stability.
SOCIAL CONDITIONS
5. SOCIAL CONDITIONS
Socio-cultural aspects like
demographics, lifestyle trends,
consumer behavior
 5. SOCIAL CONDITIONS
Demographics, lifestyle trends, and societal
values shape market demand and consumer
behavior.
MARKET SITUATIONS
6. MARKET SITUATIONS
Competitive forces, market trends,
customer preferences, and
technological advancements
6. MARKET SITUATIONS
Competition, trends,
and technology
affect industries,
driving product
innovation and
marketing strategies
 RECAP
Provided are examples of factors
that may affect entrepreneurship,
and you will identify as to which
environmental factor it belongs.
1. Race, culture, Social
lifestyle Conditions

2. Laws, documentary
Legal System
recquirements
3. Inflations,
Economic
interest rates conditions
4. Consumer needs, Market
competition Situations
5. El nino, La nina Climate Conditions
6. Government
policies Political Factors
 EVALUATION
Identify the environmental factors
afffecting entrepreneurhsip from the
given situations below and discuss
the factor BRIEFLY and concisely. (5
points each)
1. Company X faced intense competition in a saturated
market, making it challenging to gain market share despite
offering a high-quality product, impacting their growth and
necessitating innovative marketing strategies to stand out.
2. Juan Dela Cruz, the CEO of a tech company saw a surge
in demand for its mental health app following increased
societal awareness and discussion about mental well-being,
leading to rapid growth and market expansion.
3. A retail business experienced a decline in sales during an
economic recession, as consumers reduced discretionary
spending, affecting their profitability and necessitating cost-
cutting measures.
4.Jeepney drivers struggled to comply with new industry-
specific regulations introduced by the government, which
required expensive equipment upgrades, impacting their
operational costs.
5. A farming business suffered losses when unexpected
heavy rainfall destroyed a signif ic ant portion of their
crops, affecting their yield and revenue for the year.
6. A company faced uncertainty and fluctuations in its
market due to sudden changes in government policies
affecting import/export taxes, impacting their
international trade and profit margins.
 ASSIGNMENT
Study for a quiz next meeting.
(ABM - Tue , STEM2- Wed)
COVERAGE: TYPE OF TEST
 Introduction to  Modified True or
Entrepreneurship False
 Factors affecting  Providing examples
entrepreneurship  Essay