30 Factors Influencing Entrepreneurship - CareerCliff (2023)

(Last updated on: April 18, 2021)

What factors influence entrepreneurship? Entrepreneurship is influenced by four different factors: economic development, culture, technological development and education. Where these factors are present, you can expect strong and consistent business growth. This article discusses various factors that influence entrepreneurship.

These conditions can have both positive and negative effects on entrepreneurship education. While positive effects create favorable and supportive conditions for business creation, negative effects impede business creation.

Entrepreneurship is defined as the ability to make and implement decisions that affect the creation, operation and development of a business.

Entrepreneurs express various possibilities and powers, e.g. B. Forecasting economic opportunities and organizing different sources and production strategy strategies.

Factors affecting entrepreneurship

There are many unavoidable factors that affect entrepreneurship. Entrepreneurs play an important role in shaping the future of the country's economy. By starting businesses and initiatives, they ensure that the prosperity of nations increases. Likewise, by exporting goods and services, they ensure that countries earn important valuable foreign exchange to import necessary goods and services. In addition, by creating jobs, they ensure that people of the nations are economically employed.

In addition, they implement sustainability, social justice and environmental responsibility through the implementation of their social causes and public efforts. Perhaps the greatest contribution these posts have or the underlying issues are the latest force of their innovation that ensures the rapid and efficient development of the countries and their economies. We will discuss the differences between the success of the novelty nation and its economy and failure in the next section.

The following is the factor affecting entrepreneurial development.

desire and attitude

Everyone acts and behaves according to their wishes and attitudes. Desire and attitude are one of the influential factors affecting entrepreneurship.

Highly ambitious people help themselves become great entrepreneurs. Likewise, a person who has the attitude to work as an entrepreneur can only succeed.

Personal reasons

A person's personal motives also affect their entrepreneurship spirit.

Enthusiastic entrepreneurs who achieve skills like imagination, maturity, optimism, prudence, risk tolerance, ability, confidence, leadership, dynamic thinking, hard work, honesty, etc. are sure to succeed.

family circumstances

Everyone has different family situations. It is often seen that family non-cooperation is frustrated by business, but a person can become a successful entrepreneur with a family business. The family environment is one of the influencing factors on entrepreneurship.

Government Policy, Benefits and Encouragement

Various government policies such as economic policy, tax policy, import-export policy, and license policy affect the development of entrepreneurs or entrepreneurs.

If the government provides basic infrastructure facilities such as electricity, transportation, banking, insurance, communications, water, raw materials, and storage facilities, it will surely become an entrepreneur or develop entrepreneurs.

Social and cultural factors

Social institutions, heritage, level of education, personal behavior, situational situation, race or classroom, family education and other social and cultural elements of society affect the growth of entrepreneurs or entrepreneurs.

In addition, the country's political environment also affects entrepreneurship and entrepreneurial development.

Innovations are the key to success

Innovation is one of the factors influencing entrepreneurship. To understand the importance of adoption and innovation, consider how Europe and China advanced India through the “Great Separation” during the first industrial revolution in the late 18th and early 19th centuries. Previously, Asia was the dominant economic player worldwide. But with the advent of the first industrial revolution, European economies were largely shut down.

This was due to the continent's innovative use of technology and technology, which was responsible for its aggressive growth and subsequent dominance. Therefore, this aspect, which highlights the importance of innovation, is the greatest contribution of entrepreneurs to the country's development. In fact, the First Industrial Revolution is the result of personal hard work, collective inventions, and national reconstruction agreements because of the amazing courage and initiative shown by the entrepreneurs.

How some grow and others fail

Returning to the aftermath of World War I, when countries were to be rebuilt and economies developed, it is actually the fact that entrepreneurs in some countries were convinced that those countries were being rescued from the rubble by the same qualities mentioned above. And chaos to success.

We are talking about some Asian countries like Germany, Japan and South Korea where the entrepreneurial spirit has ensured that some of the governments and the government are ahead of others like China and India.

In fact, government and state at least do not stand in the way of entrepreneurs and hinder their creativity and innovation when they cannot afford and empower them. We will discuss in the next section, once China has recognized this aspect of India, then it also calculates the differences between these countries' development.

cultural values

Cultural values ​​are influencing factors that influence entrepreneurship. Meaningful action inspires men. Entrepreneurial growth requires appropriate goals such as profit, respect and social recognition. Aspiring and talented men will take risks and innovate when that purpose is strong.

The strengths of these goals depend on the culture of the society. When the culture is based economically or daily, entrepreneurs are valued and valued; Accumulating wealth as a way of life would be appreciated. In less developed countries, people are not economically motivated. Financial incentives have less appeal.

There are many ways to achieve social difference through non-economic programs. Men with organizational skills are therefore not drawn into the business. They use their talents for non-commercial purposes.

The role of the state

As already mentioned, with the advent of entrepreneurship and mobility, alongside innovation, the role of the state is growing where it needs to provide the infrastructure or hardware for entrepreneurial success. Software Software is like a computer that sits on top of it when the hardware succeeds only in creating the necessary software.

In fact, realizing that the Chinese government and leadership's achievements were late, they were able to take the risk of the economy and their country became an economic superpower. Like India, it has recognized that it's just a matter of ensuring entrepreneurs' strength has been reduced, meaning it's the resort and way to emerge from the flat hinterland.

The attitude of society

A related aspect is society's attitude towards entrepreneurs. Some societies encourage innovation and innovation, and thus endorse the actions of entrepreneurs and reward them as gain. Some others do not tolerate change, and entrepreneurship cannot take root and grow in this situation. Similarly, some societies have a fundamental dislike of making money of any kind.

It is said that Russian entrepreneurs in the nineteenth century did not like it. For them, farming the land means a good life. They believed that Rand belonged to God and that the origin of the earth was nothing but the blessing of God. During this period, Russian folklore, proverbs, and songs convey the message that creating wealth through business is not right.

Entrepreneurs move on in business

In recent years, some experts have said that it is an entrepreneur who destroys countries for social and political reasons. Imagine how a normal day starts and plays out in our daily life. No matter what happened the day before, what you get in the morning is mainly milk and everyday products, as well as important newspapers and other everyday necessities. It is one of the factors influencing entrepreneurship.

Those who provide all of these things, come rain or shine, are the entrepreneurs who feed and grease millions of people into their daily lives and shape the country's economic growth. In fact, it is entrepreneurs who continue to destroy the country, becomes clear when one considers how countries like India emerge from a crisis and only walk away lazily when there is a social or political event that threatens the socio-economic economy. Either. From the nation.

progressivity and tradition

Societal and family traditions have a significant impact on a person's work style. Even today in society, different parts of the Vaishya community better understand the complexities of business and are better suited to the business. Progress is one of the influential factors affecting entrepreneurship.

Although advances and traditions change over time, those traditions still endure.

The attitude of the great entrepreneurs

Great entrepreneurs can inspire and inspire small entrepreneurs with success and prosperity. Plus, the positivity of big business owners is inspiring for small business owners too.

Great entrepreneurs can boost the morale of small entrepreneurs by giving them knowledge about laws, buildings, raw materials, strategy and marketing, and so on. attitude is everything. It is one of the factors influencing entrepreneurship.

business competition

When the healthy competition in society improves, the entrepreneur or entrepreneur will develop, but the unhealthy competition prevents the entrepreneur or entrepreneur from developing.

In addition to major industries, various industries can also be upgraded. The government can create healthy competitive conditions through its policies and various laws.

Economic and business environment

The economic and business environment of the country also influences the growth of entrepreneurs or entrepreneurs.

Such adjustment of the basic infrastructure facilities, industrial zone and land, raw materials, labor, transportation, communications, insurance and financial facilities, value level, trade cycle, economic stability and investment positions are such motivating factors that drive growth influenced by entrepreneurs. Or entrepreneur

family background

This factor includes family size, family type, and family economic status. A study by Hadimani found that the Zamindar family helped gain access to political power and displayed a high level of entrepreneurship.

The production provides a source of an entrepreneur with a family background. The dynamics of the professional and social status of the family are affected. There are some situations where very few people need be wrong. For example, where the community's collective family system is in place, the joint family, who earn their wealth through their hard work, are denied the opportunity to enjoy the fruits of their labor as they must share their wealth with other members of their family.

Training

Education provides the basic knowledge and skills to understand the outside world and deal with everyday problems. The education system plays an important role in upholding corporate values ​​in any society.

In India, before the 20th century, the education system was based on religion. This rigid system prevents a critical and questioning attitude towards society.

The nation is strengthened by education and fruitful professional structures such as education. It promoted the idea that business is not a respectful profession. Later, when the British came to our country, they introduced an education system to create clerks and accountants for the East India Company, like the establishment of a system, as you can see, there are many entrepreneurs.

In some countries, the method of education has not changed significantly even today. Rather than identifying those who are able to stand on their own two feet, the focus is on preparing students for an ideal job.

support system

The availability of support systems such as specific financial resources, advisory services, research and investigations, etc. also plays a role in the development of entrepreneurs or entrepreneurs. It is one of the factors influencing entrepreneurship.

Entrepreneur-oriented education and training

Education and training as an important role in entrepreneurship development. Entrepreneurs are not born, they grow with the right education, training and advice.

Potential entrepreneurs are educated and trained through entrepreneurship or entrepreneurship development programs by various professional and managerial organizations.

These organizations provide in-depth training on feasibility reports, industry surveys, project reports, etc.

Role of banks and financial institutions

Banks and financial institutions have also played an important role in the development of entrepreneurs or entrepreneurs.

These organizations are quick to approve projects submitted by entrepreneurs, but they encourage the creation of business and industrial ventures.

psychological factors

Many entrepreneurs have promoted entrepreneurial theories that focus specifically on mental factors. as follows:

1. Must be achieved

The main psychological theory of entrepreneurship was introduced by David McClelland in the early 1960s. McClelland's social purpose is to identify successful entrepreneurs by "meeting needs," particularly when reinforced by cultural factors. He had this trait for certain types of people, especially those who became entrepreneurs.

In addition, some societies continue to reproduce a greater percentage with higher "required benefits" than other societies. McClelland is responsible for social reasons. The differences between societies and individuals are viewed as “reachability requirements” in some societies and less so in others.

The theory states that people with high needs are different in many ways. They like to take risks and this risk stimulates them to try harder. This type of theory identifies the factors that produce such people. Initially, McClelland credited his parents, particularly the mother, with forcing his son or daughter to be efficient and self-reliant.

He later emphasized the relationship between parents and children and gave importance to social and cultural issues. He concludes that 'essential achievements' are driven by parental influence and social and cultural reinforcement rather than related problems.

2. Respect status

There are many researchers who have tried to understand the psychological roots of entrepreneurship. One such person is Everett Hagen, who emphasizes the psychological consequences of societal change. Hagen says that many social groups are at times experiencing a fundamental loss of status. Hagen attributed the disrespect to a group's position in the formation of the company.

Hedge believes that the initial state of entrepreneurial behavior in the initial state is the rate of a group position. She posted that she can create four types of event status withdrawals:

I am The group can be forced through;
Aa It may have denigrated its precious mark;
III. It can bring status inconsistencies into a situation; And
E. The expected level of immigration into a new society cannot be accepted.

3. Purpose

Entrepreneurship Other psychological theories emphasize the purpose or goal of entrepreneurship. Cole believes that entrepreneurs without resources seek power, prestige, security and service to society. Stepanek draws particular attention to non-financial aspects such as freedom, self-esteem, power and society.

On the same subject, Evans distinguishes the motives of the three types of entrepreneurs

The management of entrepreneurs whose main purpose is safety.
Incentives are entrepreneurs who are only interested in enthusiasm.
Control entrepreneurs who want power and authority, especially otter purpose.

Finally, Rostov examined the growing changes within the entrepreneurial family. He believes that the first generation seeks wealth, the second seeks talent, and the third seeks art and beauty.

4. Miscellaneous

Thomas Begley and David P. Boyd extensively explored the psychological roots of entrepreneurship in the mid-1980s. They concluded that, based on psychological considerations, there are five levels of entrepreneurial attitudes:

The first, described by McClelland, comes from "need-achievement". High performance orientation is always present in all studies of successful entrepreneurs.

Beginning and Boyd names "Control Locations" in the second control. This means that the entrepreneur can control his life himself and is not influenced by factors such as fate, fortune, etc. Having needs right means that people can control their lives themselves and are not influenced by external forces.

The third level is risk taking. These two researchers conclude that entrepreneurs who take moderate risks generate higher returns on their assets than those who take no risks or take additional risks.

Tolerance The next stage of this study. Very few decisions have been made with complete information. Therefore, there must be a certain tolerance for ambiguity for all leaders.

Finally, what psychologists call "Type A" behavior. This is nothing more than a "continuous, endless struggle to achieve more in less and less time". Entrepreneurs are characterized by the presence of “Type A” behaviors in all their ventures.

economic factor

The business environment is the practice of entrepreneurship with the most direct and immediate impact. People become entrepreneurs because they don't need to have another job or opportunity.

The economic factors that affect the growth of entrepreneurs are as follows:

1. Capital

One of the most important reasons for starting a business is capital. Increasing capital investments in viable projects increases the level of profits, which helps speed up the process of capital formation. Entrepreneurial activity also increases with the ease of financing investments.

Combine entrepreneurs to gain access to the capital market, another machine, and another to gather raw materials so they can be integrated to manufacture products. Capital is therefore regarded as a lubricant in the production process.

France and Russia, for example, are concerned about how the lack of capital for industry is disrupting the entrepreneurship process and ensuring an adequate supply of capital.

2. work

The availability of the right kind of labor is also the effect of the entrepreneur. Quality over quantity of work affects the rise and growth of entrepreneurs. The problem of labor unrest can be solved by providing infrastructure with effective transportation.

The amount of work, not the amount of work, is another factor affecting the rise of entrepreneurs. Labor rich countries in less developed countries due to frequent and steady population growth. But when there is a mobile and flexible workforce, entrepreneurship is encouraged. And the potential benefits of cheap labor are controlled by the adverse effects of labor unrest. Taking into account economic and psychological security hampers labor mobility. Entrepreneurs often find it difficult to find enough workers.

3. Raw material

The need for raw materials does not emphasize industrial activity and its impact on the rise of industrialization. Without raw materials, no company can be founded and no entrepreneur can emerge.

It is one of the basic ingredients needed for production. Raw material absorption, on the other hand, can contribute to the entrepreneurial environment. Without an adequate supply of raw materials, no industry can be properly influenced and can hamper the advancement of entrepreneurs.

In fact, this does not affect the supply of raw materials, but depends on the conditions of other opportunities. The more favorable these conditions are, the higher the raw material for entrepreneurial emergence is likely to be.

4. Market

The role and importance of market and marketing in business growth is very important. In today's competitive world, without the latest insights into the market and various marketing strategies, an entrepreneur can think of survival.

In fact, market potential remains the most important determinant of potential rewards from corporate roles. Honestly if the Proof of the Pudding is demonstrably consumed then all products are proof such as: B.Marketing.

The market size and structure of both entrepreneurs influence their own paths. In fact, a given product monopoly in a market becomes more influential for the entrepreneur than a competitive market.

However, the disadvantages of the competitive market can be eliminated to some extent by improving the transportation system, increasing the mobility of raw materials and finished products, and increasing the demand for manufactured products.

5. Infrastructure

Business expansion rightly requires improved communication and transport options. It not only contributes to the growth of the market but also expands the business horizon. For example, the establishment of a postal and telegraph system in India and the construction of roads and highways. It facilitated many entrepreneurial activities that took place in the 1850s.

In addition to the above reasons, trade/business associations, business schools, libraries, etc. also add value to the entrepreneur for the development and continued existence of the economy. You can collect any information you want from this agency. They serve as a forum for communication and joint action.

social factors

Social factors can go a long way in promoting entrepreneurship. In fact, it was a very supportive society that brought great success to the industrial revolution in Europe. Contributes greatly to the growth of the entrepreneur, which affects the behavior of the entrepreneur. The social environment in which people grow up shapes their core beliefs, values ​​and values.

The main components of the social factors affecting entrepreneurship are as follows:

1. The race factor

Every society has some cultural practices and values ​​that “influence how people act”. These practices and values ​​have been developed over hundreds of years. For example, consider the color scheme (color system) among the Hindus in India. It is divided into four sections based on population. It sets the limits of the social mobility of individuals: Brahman (priest), Kshatriya (warrior), Vaishya (craft) and Shudra (artist).

By social mobility we mean the freedom to move from one nation to another. The caste system does not allow a person who gives birth to a Shraddha to enter the higher castes. Thus, the commercial activities were exclusive to Vaisnavas.

The members of the three Hindu castes were not interested in commerce and founding, even when India had extensive commercial links with many other countries. Entrepreneurship is a worldwide phenomenon of certain ethnic group authority

Getting away

We have discussed influencing factors that influence entrepreneurship. As the founder of modern economics, Adam Smith, writes, it provides the financial impetus for the entrepreneurs who put bread on the table every morning. In other words, when he goes into his business, the entrepreneur is not well advised. Instead, it is selfishness to make a profit that contributes to the economies of nations.

It simplifies the policies and procedures for the provision of credit and credit and also offers the benefits of research and investigation, resulting in the development of entrepreneurs or entrepreneurs that would otherwise not be readily possible.

Therefore, one must realize that profit is not a bad word, and once everyone agrees that the economics will continue, we will all benefit as we think rationally and impartially about the need to create an ecosystem for ourselves, and therefore for ourselves to create the nation.

contribution to economic development. In short, let's celebrate the wonderful entrepreneurial attitude between us and others, and instead of creating obstacles, we encourage ourselves and others to empower and empower others, to stimulate creativity and innovation. learn more aboutthe characteristics of an entrepreneur.

More interesting articles

• Paid time off for salary and commission according to law
• Regular night shift work – what and how?
• Part-time work vs. contract work at the workplace
• What is a work contract?
• Employee stress Vacation from work - employer rights
• Minimum hourly time between shifts for workers
• Receive holiday accrual if you quit a job without notice
• Gender Inequality in the Workplace – Civil Rights Act
• Healthcare jobs on the rise with bright careers
• Example of a compelling lead generation sales email
• 15 tips for effective email communication in the workplace
• How to permanently overcome typos
• What is a temporary job?
• Create weekly work schedules for 30 employees
• Are employer-provided adoption benefits taxable?
• What if my employer fires me because of my medical problem?
• Advanced Practice Nurse without a master's degree
• Benefits for part-time employees in organizations
• Do police officers take an oath to swear their patriotism?
• National median income for a garbage man