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To aware the class about factors which affectthe entrepreneurial growth.


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DefinitionCharacteristics

Factor affecting Entrepreneurialgrowth1) Economic factors2) Non-Economic factorsConclusion


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According to A.H.ColeEntrepreneurship is the

purposeful activity of an individualor group of associated individuals,undertaken to initiate, maintain oraggrandize profit by production ordistribution of economic goods or

services.


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Long term involvementMotivatorCreativeModerate risk takerHigh energy levelGoal setter


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Self confidence

Problem solving

Initiative

Personal relationshipEffective communicator


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Lack of adequate overheadfacilities

Non availability of capitalGreat risk

Non availability of labor and skills


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Social factors

Cultural factors

Personality factors

Motivation factors

Family Tradition


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Psychological factors

Political factors

Economic Policies


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Society that is rational in decision making would befavorable for decision making . Education ,researchand training is given less importance in less developedcountries ; therefore there is very little verticalmobility of labor .For example Pakistan and Bangladesh are thecountries which gave very less importance toeducation and research simultaneously provide lessscope to entrepreneurial growth.


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Religious , social and cultural factors alsoinfluence the individual taking up anentrepreneurial career . In some culture andreligion people belief that high profit is earnthrough unethical means, this type of belief inhibits growth of entrepreneurship.

Also in some culture if people areeconomically or monetarily oriented thenentrepreneurship is applauded or praised.


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In less developed countriesentrepreneur is looked upon withsuspicion . People have a mind set thatentrepreneur are exploiter and profitmaker .

For example Satyam , PG&E Company of California extra


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Motivation is the act of stimulatingsomeone or oneself to get a desired result .Factors which motivate individual tocontribute for entrepreneurial growth areeducational background, family background, desire to work individual inmanufacturing line, extra.For example- Aditya Birla get motivatedthrough its family background and join itsfather business


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Individual who for some reasons initiate ,maintain , establish and expand new orexisting enterprise generateentrepreneurship in society . It is observedthat entrepreneurs grow in the tradition of their family and society and accept certain

values and norms from these sources .

For example Gujaratis and Marwari's

extra.


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The psychological factors like highneed for achievement , determinationof unique accomplishment , self confidence , vision , leadership extrapromote entrepreneurship among

individual and on the another handpsychological factors like security,conformity and compliance , extra

restrict growth of entrepreneurship


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Political stability of any country inf luencethe growth of any entrepreneurs . Thepolitical system which promotes free marketindividual freedom and private enterprise will promote entrepreneurship .

For example- India , U.S.A extra


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Economic policies of the government and otherfinancial institutions and the opportunitiesavailable in a society as a result of such policiesplay a crucial role in exerting direct influence onenterprise.For example- According to the HaphazardDevelopment of Economic Zone, government is

encouraging the entrepreneurs to establish theirbusiness in backward and tribal areas by providingsubsidized power tariff, raw material ortransportation cost extra to create employment

opportunities.


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An entrepreneur is a person whocreates and manages by the

recognition of opportunities anddevelops people and manageresources to take advantages of theresources to take the opportunitiesand create a ventures(profitablebusiness).


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