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12 Major Factors Affecting Entrepreneurship Development

Last Modified: 9 November, 2022 3 Comments

Entrepreneurship has been specified as the ability to make decisions regarding the establishment, operation, and development of any business, and implement the decisions.

factors affecting entrepreneurship development
factors affecting entrepreneurship development

Entrepreneurs reveal various opportunities and abilities like forecasting economic opportunities and the ability to organize various sources and techniques of production.

Factors Affecting Entrepreneurship Development

The following are the factors affecting entrepreneurship development:

1. Aspiration and Attitude

Every person acts and behaves according to his aspirations and attitude.

A person with high ambitions helps himself to become a big entrepreneur.

Similarly, if a person has the attitude to work as an entrepreneur, only then he can achieve success.

2. Personal Factors

The personal factors of an individual also influence his spirit of becoming an entrepreneur or not.

The entrepreneur having qualities of immense imagination, maturity, optimism, foresightedness, ability to bear risks, efficiency, self-confidence, leadership ability, dynamic thinking, hard work, honesty, etc. is sure to achieve success.

3. 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.

4. Government Policies, Facilities, and Incentives

Various government policies like the Economic policy, Taxation Policy, Import-Export Policy, 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, warehousing facilities, etc.

It certainly results in the development of entrepreneurship or entrepreneurial.

5. Social and Cultural Factors

Social organizations, traditions, level of education, personal behavior, situational circumstances, caste or class system, family training, and other ethical levels 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.

6. 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.

7. Business Competition

If healthy competitive conditions prevail in society, the development of entrepreneurship or entrepreneurial is sure, whereas unhealthy competition blocks the development of entrepreneurship or entrepreneurial.

Various ancillary small industries can be developed, along with big Industries.

The government may create conditions for healthy competition through its policies and various laws.

Related: Top 5 Basics of Successful Entrepreneurship (Must Know).

8. 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 materials, labour, transport, communication, Insurance, and financial facilities, price level, trade cycles, economic stability, and investment position in the country is such motivating elements that influence the development of entrepreneurship or entrepreneurial.

9. Support System

Availability of support systems, 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.

10. 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 the morale of small entrepreneurs by providing them with knowledge about law, building, raw materials, techniques, marketing, etc.

11. Entrepreneurship Oriented Education and Training

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

Entrepreneurs are not born but are developed as such, by way of proper education, training, and counseling.

In India also, 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.

Related: 10 Different Concepts of Entrepreneurship (Explained).

12. 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 provides facilities for Research and investigations, which results in the development of entrepreneurship or entrepreneurial, which otherwise is not easily possible.

Thus, now you know the factors affecting entrepreneurship development.

Read More:

  • 17 Scope and Importance of Macroeconomics (With Examples)
  • 9 Importance of Planning in Business Management (Explain)
  • 18 Nature and Characteristics of Entrepreneurship (Explained)
  • 10 Important Objectives of Demand Forecasting (With Examples)
  • 16 Need and Importance of Business Environment (Explain)

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3 Comments

Reader Interactions

Comments

  1. Kelvin Kimuyu says

    October 28, 2019 at 12:21 PM

    The answers are good.

    Reply
    • Manma says

      November 2, 2019 at 3:30 AM

      how can i help you

      Reply
  2. Yes Or no wheel says

    January 9, 2023 at 3:52 AM

    Great article! I’m a recent graduate with a degree in business administration and I’m interested in starting my own business. I’ve been reading a lot about entrepreneurship lately and this article has really helped me understand some of the key factors that affect

    Reply

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