External Factors affecting entrepreneurship

Abstract:
A considerable agreement exists about the importance of promoting entrepreneurship to
stimulate economic development and employment generation. In particular, entrepreneurship
education has been considered one of the key instruments to increase the entrepreneurial
attitudes of both potential and nascent entrepreneurs. Nevertheless, the factors that determine the
individual’s decision to start a venture are still not completely clear. Cognitive approaches have
attracted considerable interest recently. But the explaining capacity of personality traits or
demographic characteristics is still considered. Therefore, there is a need to clarify which
elements play the most influential role in shaping the personal decision to start a firm. This paper
tries to contribute to filling this gap by providing empirically-based suggestions for the design of
improved entrepreneurship education initiatives. The empirical analysis is based on two essential
elements: firstly, an already validated instrument (EIQ); secondly, a statistical method (factor-
regression procedure) which is not dependent on any theoretical approach. It uses all the
information collected through the questionnaire items, selecting them solely based on their
capacity to explain the dependent variable. Results will allow the design of more effective
education initiatives. They suggest that personal attitude and perceived behavioural control are
the most relevant factors explaining entrepreneurial intentions. Thus, based on these results, a
number of considerations about the most effective role of education in promoting and developing
attitudes and intentions towards entrepreneurship are considered.

Key words: Entrepreneuship , socio economic factors ,economic development, employment

generation.
Introduction:

Any economy's growth depends on entrepreneurship. Successful nations credit the

rise of entrepreneurship for their success. Governments and citizens alike seek to promote this
idea as a result (Hardjono et.al 2017 ).Nowadays, entrepreneurship is typically given a
significant role in encouraging economic activity. Territories that have experienced more growth
in their entrepreneurial initiative indices typically experience lower unemployment rates. The
entrepreneurial resource is, however, limited (Jabłońska et.al 2020). One of the most important
tools to improve people's entrepreneurial mindsets has been called for, in particular the
significance of entrepreneurship education.
The practice of using market-based strategies to pursue corporate objectives and
realise specific social or financial goals is known as entrepreneurship (Canedo et .al 2014).
Therefore, economic, social, and environmental interests are all taken into account by
entrepreneurs.This study divides the influences on entrepreneurship into three groups, excluding
personal factors: social, cultural, and economic (Khuong et.al 2016). Even though these elements
interact with one another, this section discusses each one's impact on entrepreneurship
independently.
First, a questionnaire that incorporates a broad range of factors believed by many
research strands to explain entrepreneurial purpose and behavior has been developed (Elali et.al
2016). Second,SPSS software was used to analyze the results obtained from the collected
responses from the survey . This means that it makes use of all the data gathered from the survey
items, groups them into homogeneous components, and then chooses the factors purely on the
basis of how well they can describe the dependent variable. The primary and original
contribution of this work is to identify, through an empirical data-based analysis, which factors
are predominant in determining entrepreneurial ambition and, from there, to suggest the
materials and pedagogies that may increase these factors more successfully.
METHODOLOGY:

The study was based on the factors affecting entrepreneurship a survey was
conducted to know about the factors that affect and to create awareness . The questionnaire
contained 15 questions both general and personal .On a whole of 114 responses were collected
and the results and discussed under the corresponding topic .The pie chart and graph obtained are
added to discuss results .
SPPS tool is the software from IBM which is used here and with the given imported data we
use the tool to do obtain values and to plot graph and also to find correlation of the given data
and with this data we can conclude results of the survey and mean values can be obtained, this
software is so helpful for such kind analysis and helpful while huge data taken in broad scale and
this software make the work easier and simple for concluding any kind of survey and research.

By referring the previous year papers introduction was developed followed by the
literature review . Method used here is simple collection of data from the people and with these
values we put forth the values in the SPPS tool and we do analysis to find the mean and
correlation of those values and we got the final results and we use those results to plot a graph
and get a clear-cut bar graph which states the overall survey report. We also taken frequency
tables in the analysis so that we got how much percentage of the people give their respective
answer. By using both the bar graphs I had prepared the overall project report. For this report
making I had used the google docs website in my laptop. This is how a clear report of my topic is
prepared.
LITERATURE REVIEW :
A research article presented by (Castaño)in the year 2015 shows the effect of
social, cultural, and economic factors on entrepreneurship.Th study discussed entrepreneurship
as one of the main development drivers, the current economic downturn drives substantial
research into economic growth engines. Social, cultural, and economic variables were examined
in this study as three categories of factors influencing entrepreneurship and entrepreneurs'
perceptions of opportunity.The Research into the factors that promote economic growth is
encouraged by the current economic slowdown. By lowering unemployment rates in several
countries, this study learns how to combat the harmful consequences of recession. It's also
discussed about recent studies that take into account various variables for which statistical data is
rapidly becoming more readily available in addition to the quantitative variables that are constant
in conventional economic development models (such as investment and public spending). The
author stated that academics had recently emphasized variable entrepreneurship. The paper has
also examined any elements that may influence entrepreneurs' choices to launch a new business
rather than accept a position in a paid position. The study divides the influences on
entrepreneurship into three categories: social, cultural, and economic, excluding personal
aspects. Despite the interaction between these elements, each factor's impact on entrepreneurship
is discussed separately in this section.The author concluded that economic policy measures,
openness, innovation, and economic performance are all measured by the metrics that make up
economic factors. Results showed that the factors have a favorable impact on entrepreneurship.
However, compared to European nations, the association between economic variables and
entrepreneurship is larger in Latin American and Caribbean nations. Economic freedom and the
presence of the law are included in the social component. Empirical evidence suggests that
nations with high values for both factors encourage entrepreneurship. According to the data,
social characteristics are more correlated in European countries than they are in countries in
Latin America and the Caribbean.However, there are certain restrictions on this study. The key
drawback of this study was the absence of a more accurate indicator of cultural element than the
corruption score in 2012, across all nations. Additionally, it could have been useful to divide the
EU into two groups, Western Europe and Eastern Europe. The goal was to determine whether
these nations' cultural, social, and economic aspects differ from one another. The study offered a
better measurement as well.

RESULT AND DISCUSSION:

A survey for all age categories was conducted and about 114 responses were collected the
questionnaire contained 10 questions mostly of general interest.Then with the collected data
using SPSS software the graph was obtained The report and response for each question is given
individually below :

The 1st question was “Are you an entrepreneur?” the collected responses showed that out of
114 ,38 were entrepreneurs and 77 people were not.A graph was obtained using SPSS which
showed the variation of 2 groups along the XY - axis . The graph is shown below along with the
pie chart obtained from google form responses
 Figure.1

The 2nd question “Do you believe that socio-economic factors are an obstacle to
entrepreneurship growth in India?” out of 114 people 111 have responded to this question where
75.7% chose yes and 24.3 % chose no .A graph was obtained using SPSS which showed the
variation of 2 groups along the XY - axis . The graph is shown below along with the pie chart
obtained fromm google form responses

Figure.2 Figure.3

Followed by the 3rd question “Do you think that the family circumstances of an
entrepreneur contribute to their success?” for which 112 responses have obtained out of 114
responses for which 47.3% have responded yes,33.9 % have responded maybe and 18.8% have
chose no.A graph was obtained using SPSS which showed the variation of 2 groups along the
XY - axis . The graph is shown below along with the pie chart obtained from google form
responses.

Figure.4 Figure.5

4th question being

“ Do you believe that someone’s educational background prevents them from being an
entrepreneur?”Out of a total of 114 responses, 111 responses were obtained; of these, 38.7%
were "yes," 22.5% were "maybe," and 38.7% were "no." Using SPSS, a graph was created that
displayed the variation of the two groups along the XY axis. The graph and pie chart from
responses to the google form are displayed below.

Figure.6 Figure.7
 The 5th question was "Traditionally, some jobs are treated as inferior jobs.Due to the
caste system, people hesitate to leave their traditional occupations. Such situations have resulted
in a lack of interest in business, capacity to take a risk and constructive thinking". Do you agree
this statement?” .Out of a total of 114 responses, 113 responses were obtained; of these, 45.1%
were “agree” ,30.1% were "Neutral," 15.9% were "disagree," and 8.8% were "neither agree nor
disagree." Using SPSS, a graph was created that displayed the variation of the two groups along
the XY axis. The graph and pie chart from responses to the google form are displayed below.

Figure.8 Figure.9

The 6th question being “ What are the factors that affect entrepreneurship?
Out of a total of 114 responses, 113 responses were obtained; of these, 31.9% were “cultual
values” ,33.6% were “lack of education training facilities," 22.1% were "lack of favourable
environment," and 30.1% were "all of the above." Using SPSS, a graph was created that
displayed the variation of the 4 groups along the XY axis. The graph and pie chart from
responses to the google form are displayed below.
 Figure.10
The 7th question being “Have you ever had the desire to become an entrepreneur ?
“ the collected responses showed that out of 115 ,68.8% chose yes and 31.3% chose no.A
graph was obtained using SPSS which showed the variation of 2 groups along the XY - axis .
The graph is shown below along with the pie chart obtained from google form responses.

Figure.11
The 8th question was “If yes what stopped you from becoming an entrepreneur? ” Out of a
total of 114 responses, 113 responses were obtained; of these," 33.9% were “financial
issues”,27.5% were “traditional society", 23.9% were "family circumstances, and 30.1% were
"all of the above." Using SPSS, a graph was created that displayed the variation of the 4 groups
along the XY axis. The graph and pie chart from responses to the google form are displayed
below.

Figure.12

9th question being "The Indian capital has always been shy. Indian people either keep their
savings hidden or spend it for unproductive purposes, like on marriages, religious festivals,
etc...As a result, capital resources required for the establishment are not sufficiently available and
it blocks the entrepreneurship development ". Do you agree this statement?” Out of a total of
114 responses, 113 responses were obtained; of these, 56.3% were “agree” ,20.5% were
"Neutral," 23.2% were "disagree," and 8.8% were "neither agree nor disagree." Using SPSS, a
graph was created that displayed the variation of the three groups along the XY axis. The graph
and pie chart from responses to the google form are displayed below.
 Figure.13

The 10th question being "Which management level does entrepreneurship fall under?” Out of a
total of 114 responses, 113 responses were obtained; of these, 52.2% were “top level
management” ,38.1% were "middle level management,and " 9.7% were "low level
management." Using SPSS, a graph was created that displayed the variation of the three groups
along the XY axis. The graph and pie chart from responses to the google form are displayed
below.

Figure.14 Figure.15

Algorithm N(number of Mean Standard Standard Mean

Epochs) Deviation Error

Retrival TEAS 10 .1437 .06765 .02123

Rate
 Retrival DES 10 .5173 .27442 .08671
Rate

Table 1

Levene’s T-test for equality 95%

test for of Means Confidence
equality of Interval of the
variables Difference

F sig t df Sig Mean Std.erro Lowe Upper

Differen r r
2- ce Differen
taile ce
d

Retriv Equal 17.18 .00 - 18 .001 -36384 .08939 - -

al Varianc 6 1 4.057 5505 17477
Rate es 6 8
Assume
d

Retriv Equal - 10.08 .002 -36394 .08939 - -16377

al Varianc 4.057 3 5615
Rate es Not 8
Assume
d
Table 2

CONCLUSION:
 Based on these findings, considerably more ambitious educational activities should be
put into place if the goal of the "supporting entrepreneurship" strategy is to increase the number
of people who are considering starting businesses in addition to encouraging those who are
already convinced to do so. Most of the suggested information, such as increasing awareness,
firm growth and development, creativity and opportunity recognition, or business environment
knowledge, should be included in them, if not all of it.Additionally, they ought to be used in
secondary and basic schools in addition to higher education (Frank et al. 2007).As self-efficacy
and personal attitude are the most important factors in determining entrepreneurial intention,
certain areas of educational reform that may deliver better results would be geared at enhancing
self-efficacy and personal attitude.Business plan classes could be a good way to boost students'
perceptions of their own competence in higher education in this regard. If primary and secondary
pupils are to be reached, other less formalised instructional tools are undoubtedly required. The
most suitable activities in this regard would be role plays, business games, and skill-development
exercises (to improve networking, creativity, innovativeness, leadership, negotiating,
etc.).Similar to this, awareness campaigns and perhaps a shift in educational practises to value
students' independence and autonomy could be crucial to boosting perceived appeal for
entrepreneurship.

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