External influences on

entrepreneurship development

Presented by,
Niran Mandanna
Introduction
Environment plays a very important role in
supply and development of
entrepreneurship. The growth of
entrepreneurship in any country is the result
of several environmental factors such as
social, economic, cultural, personal and
political.
1. Economic factors
Factors which effect the entrepreneurial
growth are:
 Shortage of capital
 Shortage of working capital
 Non availability of skilled and efficient
labour
 Non availability of basic infrastructure
2. Social factors
 Rational behavior encourages
entrepreneurship.
 Non-rational behavior discourages
entrepreneurship.
 Other factors:
The family system
The social set up - caste system, heredity etc.
3. Cultural factors
Depends on the existing value system
This value system decides desirable and
acceptable motives and actions of people
The motives like profit sharing, doing
productive work, acquisition of prestige and
status in the society may lead to growth of
entrepreneurship.
4. Personal factors
Personality
Prestige, personal self esteem , power etc
will activate an entrepreneur
5. Political factors
Infrastructural facilities
Tax concessions
Economic incentives
Thank you