ENTREPRENEURSHIP

DEVELOPMENT
SEMINAR

BY
M.SOUNDARRAJAN(MBA 953)
N.PREMKUMAR(MBA 942)
ENTREPRENEURSHIP
ENVIRONMENT
It refers to various factors within which the
enterprises-big,medium,small and others have to
operate. Entrepreneurship is influenced by an
environment created by political, social, economic,
national ,legal forces, etc.,
SIX IMPORTANT SEGMENT
Political environment- political atmosphere, quality
of leadership
Economic environment- economic
policies,labour,trade,tariffs,incentives, subsidies
Social environment- consumer, labour,
attitudes,opinions,motive.,
Technological Environment-
competition,risk,efficiency,productivity,profitability
Legal environment-Rules,regulation
Cultural environment- Structure aspiration and
values
POLITICAL ENVIRONMENT
Law and order is of high priority
Government policies should be followed
Frequent updation of political condition are needed
ECONOMIC ENVIRONMENT

It comprises of
Land
Availability of raw materials
Skilled labour
Infrastructure
Machinery
Capital
SOCIAL ENVIRONMENT
Family background
Kith and kin's(Relatives, friends and teachers)
Religion
Social status
Social mobility
Social marginality
LEGAL ENVIRONMENT
Registration
Licensing
Location
Acquisition
Payment of wages
Taxes
Environmental rules
CULTURAL ENVIRONMENT
Corporate culture is an invisible quality which decide
how effective the organization is in the market place.
Cultural consists of
• Tangible man-made objects like furniture, buildings
etc.,
• Intangible concepts like Law, morals, knowledge.
• Values and behavior acceptable by the society.
TECHNOLOGICAL ENVIRONMENT
Selection of proper technology.
 leads to higher productivity.
Reduction of cost.
Upgradation enables business community to
cope up with rapid growth.
It gives competitive advantage.
Contd..
Product and process realities.
Quality.
Environmental safety.
Innovation.
ENVIRONMENTAL FACTORS
AFFECTING
ENTREPRENEURSHIP
ENTREPRENEURIAL ENVIRONMENT

It is essential for entrepreneurship is the presence of a

favourable business environment.
It is dynamic.
Impact depends on degree to which organization
depends on environment.
It affects the performance of the organization.
 FACTORS HINDER ORGANIZATIONAL GROWTH

Sudden changes in government policy.

e.g.- If policy in US is changed it affects the Indian
exporters.

Outbreak of war or regional conflicts.

e.g. –telengana issue in Andhra Pradesh
Political instability or hostile government attitude towards the
industry.
Contd..
Excessive redtapism and corruption among
government agencies.
Ideological and social conflicts.
Unreliable supply of power, materials, finance, labour
and other inputs.
Rise in cost of input.
Unfavorable market fluctuations.
Non-co-operative attitude of banks and financial
institutions.
THANK YOU