In areas where these factors are present, you can expect to see strong and consistent entrepreneurial growth In areas where they are lacking, entrepreneurship is likely to stagnate One of the most important factors affecting entrepreneurship is economic environment It comprises of capital, labor, raw material and market demand 2 3 Entrepreneurial Growth Economic Factors Entrepreneurial Growth Non Economic Factors •Social Condition •Psychological Factors Government Action 3 4 From a strictly economic viewpoint, it can be said that the same factors which promote economic development account for the emergence of entrepreneurship alsoType of venture Some political and legal, and economic factors have been found to influence commercial and sustainabilityoriented entrepreneurs differently, while other economic and social factors rather determine differences between nonprofit and forprofit oriented entrepreneurs This study contributes to theories regarding the influence
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Non economic factors influencing entrepreneurship
Non economic factors influencing entrepreneurship-Labour The quality rather the quantity of labour is another factor which influences the emergence of entrepreneurship Raw materials Raw materials influence the emergence of entrepreneurship in the absence of raw materials, entrepreneurship development is not possible Market The size and composition of market influence entrepreneurship Actually, monopoly market is more NonEconomic Factors 1 Education Education enables one to understand the outside world and equips him with the basic knowledge and skills to deal with daytoday problems In any society, the system of education has a significant role
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Economic Factors Economic factors also influence the growth of entrepreneurship The important economic factors are (A)Infrastructural Facilities Entrepreneurship development requires certain basic infrastructure like power, transportation, communication, technical information etc These provide external economies and improve the The traditional economic perspective has also struggled to explain emergence of new types of entrepreneurial phenomenon, social entrepreneurship, which has noneconomic factors at its core (Miller et al 12; Cultural values are influential factors affecting entrepreneurship Purpose action inspires men Entrepreneurial growth requires appropriate objectives such as making a profit, earning respect, and gaining social status Aspiring and talented men will take risks and innovate if this purpose is strong
Psychological Factors The majority of times psychological factors are mistaken with personal factors However, the reality is pretty different, and they also play an important role in success The most vital psychological factor in the field of entrepreneurship is how much an entrepreneur wants to succeedRural economic development Entrepreneurship is an attitude that reflects an individual's motivation and capacity to identify an non awareness of facilities provided by the institutions, competition with large scale units, and problems related to marketing are Influencing factors has been operational zed as the degree to which a women The Government by its actions or failure to act also does influence both the economic and noneconomic factors for entrepreneurship Any interested Government in economic development can help through its clearly expressed industrial policy;
Economic Factors Economic factors play a very vital role in the economic growth of an entrepreneur No matter what, for every in imagination toThe social factors, culture, government policies, political system, technology, economic conditions, laws, etc influence the growth of entrepreneurship InFamily background e Education background f Occupational experience g Assistance from financial institution h Other factors OTHER FACTORS INFLUENCING ENTREPRENEURSHIP The factors that influence the emergence of entrepreneurs in a society is also dependent upon interlinked economic, psychological, religious, cultural, political & social
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Effects of NonEconomic Factors on the Development of Entrepreneurship Social Conditions The proponents of noneconomic factors give emphasis to the relevance of a system of norms and Social Mobility Social mobility involves the degree of mobility, both social and geographical, and the natureEconomic environment exercises the most direct and immediate influence on entrepreneurial development Capital, labour, market and raw materials, Tariff Policy and subsidies are the main economic factors Social factors can go a long way in encouraging entrepreneurship Entrepreneurial development has much to do with social attitudes, social status, social mobility,Factors Affecting Entrepreneurial Growth Economic Factors Capital Labour Raw Materials Market NonEconomic Factors
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Entrepreneurship development and economic growth takes place whenever certain economic conditions are favourable 6 Mark Casson Theory (Economic Theory) Mark Casson's theory is an original synthesis of other approaches Mark Casson in his book 'The entrepreneur An Economic Theory', published in 19, talks about the entrepreneurEntrepreneurs introduce innovations and induce economic growth Entrepreneurs often create new technologies, develop new products or process innovations, and open up new markets There are many examples of radical innovations introduced by entrepreneurs such as Pierre Omidyar (eBay), Larry Page and Sergey Brin (Google), Larry Ellison (Oracle), Dietmar Hopp and HassoThe interest on entrepreneurship has grown across economic regions and sectors, among others, due to its potential of rejuvenating the economic and social development of a country Since entrepreneurship is very much related to the external environment, scrutinizing contextual factors in a research is deemed exceptionally critical to
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This focus on noneconomic factors isn't meant to downplay economy's ongoing influence In fact, it's almost as if parts of last year's annual SN category roundup could have beenThis means noneconomic factors need to be pondered more in modern economics Trade and financial assets in their own way make countries dependent (such as in a group of Latin American countries), what explains dependency theory (Kay & Gwynne, 00) 3 Influence of economic and noneconomic factors on productivity of work, Social factors can go a long way in encouraging entrepreneurship In fact it was the highly helpful society that made the industrial revolution a glorious success in Europe Strongly affect the entrepreneurial behavior, which contribute to entrepreneurial growth
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Economic factor is definitely not the main motivating factors for individuals to engage in sustainable entrepreneurship Noneconomic factors such as sociocultural factors have well been accepted as influential drivers for entrepreneurship (Shivani et al, 06) Indeed, Thornton et al (11) have also delineated that both3 23 Factors Affecting EntrepreneurialFactors Affecting Entrepreneurial GrowthGrowth m@hfuz 11 NonEconomic FactorsNonEconomic Factors a)a) Social ConditionSocial Condition • Legitimacy of EntrepreneurshipLegitimacy of Entrepreneurship • Social MobilitySocial Mobility • MarginalityMarginality • SecuritySecurity 4 24 2Promote entrepreneurship in one way or other
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