Entrepreneurship & small

Business Management(ESBM)

Presented By-
Mr. Rasmi Ranjan Mishra
U.N (A) College of Sc.& Tech.
 ENTREPRENEURIAL ENVIRONMENT
Entrepreneurship environment refers to the various
facets within which enterprises- big, medium, small
and other have to operate. The environment
therefore, influences the enterprise. By and large, an
environment created by political, social, economic,
national, legal forces, etc influences entrepreneurship.
Entrepreneurial environment is broadly classified into
six important segments, namely, (1) Political
environment, (2) Economic environment, (3) Social
environment, (4) Technological environment, (5) Legal
environment, and (6) Cultural environment
 (1) Political environment
Political environment affects the entrepreneurial
growth and accelerate the process of economic
activity. Law and order is of high priority, followed
by Govt. policies in regard to promotion of
entrepreneurship, followed by incentives ,
encouragement and right institutional structure
will go a long way in fostering entrepreneurship.
 (2) Economic environment
The entrepreneurial growth and development is also
governed by the economic environment. It
encompass a wide spectrum of items, namely land,
availability of raw mat., skilled labour, infrastructure,
machinery, capital and so on.
shortage of raw material can much adversely affect
the entrepreneurial env. And it has been affecting
many industries. Shortage of raw-mat, inferior quality,
high price resulting in high cost of production are
bringing bad name to the small industry. The more
favorable the conditions of raw-mats are , better
would be its influence on entrepreneurial emergence.
The role and importance of mkt and marketing should
never be under estimated for the up rise of
entrepreneurship. If the entrepreneur does not
possess knowledge and various marketing
techniques , he is unlikely to survive. The size and
composition of market both influence
entrepreneurship in their own ways.
 (3) Social environment
Social environment strongly affects the entrepreneurial
behavior which contribute to entrepreneurial growth. The
social factors can be (i) family background (ii) relatives,
friends (iii)religion (iv) social status (v) social mobility (vi)
Social marginality.
Family background greatly affects the entrepreneurial env.
And maintenance of social system. Joint family or nuclear
families have their own benefits and disadvantages. There
is more sentimental attachment of joint family as
compared to nuclear family. The environment of the family
also influences the entrepreneurship. If the father is a
professional or businessman or the like, the son is more
likely to adopt the same occupation because of certain
Advantages by virtue of his father being in the similar
line.
The reference also affects the environment. A person
is likely to adopt the guidelines or rules of the
reference group to which he belongs. The prospective
entrepreneur would discuss his ideas with them and
seek their advice while starting a new business.
Social status has its own role to play. Every human
being aspires a high social status and once he
achieves a reasonable level, his aspirations and
desires for it start getting multiplied. People therefore
become quite responsible in the wake of protecting
and developing their status.
Caste and religion of entrepreneur are the contributory
factors of entrepreneurial growth. History reveals that
the entrepreneurial traits do not belong to a specific
caste rather the entrepreneur emerge from varied
communities.
Social mobility is the movement of individuals,
families, households, or other categories of people
within or between social starta in a society. It is a
change in social status relative to one's current social
location within a given society. The movement can be
in a downward or upward direction. " Social mobility
is any change in social position." It can be vertical and
horizontal in nature. Any change in the physical
If a bank manager is transferred from one branch to
another, it is horizontal mobility as the social status of
the person is not changing. Markers for social
mobility, such as education and class, are used to
predict, discuss, and learn more about an individual or
a group's mobility in society.
Social marginality also positively influences
entrepreneurship. A person belonging to a social group
traditionally constrained to enter economic activity
and barred from many other activities by the society is
expected to choose the owner-manager role in a small
industry.
The cultural environment represents values and
beliefs of the society. These beliefs mould the
attitudes of people and help business enterprises
determine their need perception. The socio-cultural
environment helps firms support the social and
cultural values of society by encouraging fine arts
projects, sports, communication media, donations
to educational, religious and charitable institutions,
counseling centers, vocational and technical training
centres etc.
• Technical environment:
Technology refers to application of scientific and
organised knowledge to organisational tasks. It
includes inventions and innovations regarding
techniques of production. Technology is changing at
a fast pace and technical environment is
dramatically affecting the business environment
either because of easy import policies or because of
technology upgradation as a result of research and
development within the country.
The technological advances have introduced products
like robots, telecommunication facilities, medicines,
equipment’s etc. Business firms adapt to the fast
changing technical environment. Though
technological changes can produce harmful effects
also for the enterprises, firms try to reduce these
effects and use technological changes in the best
interest of firms and society.
• Legal Environment
Various laws are made to regulate the functions of business
enterprises. They relate to standards of product, packaging
of products, protection of environmental and ecological
balance, ban on advertisement of certain products (liquor),
advertisement of certain products with statutory warning
(cigarette) etc.
There are laws to prevent restrictive trade practices and
concentration of economic power in few hands. Regulations
promote entry of firms in backward areas and products are
reserved for small-scale sector. Liberalisation policies have
allowed the Indian industries to operate in international
markets and foreign companies to operate in Indian
markets. This allows growth and diversification of markets
and access to advanced science and technology for Indian
 Entrepreneurship training
Training is the systematic instruction of staff at all
levels in new attitudes and new skills. The term
implies a scheme of instruction which is more or less
formal and on-going , which is planned, systematic,
consistent and monitored to measure its effectiveness.
Entrepreneurial Development Training Program
(EDTP) is created to provide an alternate route to
gainful employment for economically disadvantaged
individuals through the establishment of their own
business.
Why should we train staff?
 Importance of Training
(i) Advantages of standardization (ii) Increasing
organisational stability and flexibility (iii) Heightened
morale (iv) Reduced supervision and direction (v)
Economical use of resources (vi) Increase in
productivity (vii) Minimizes excessive scraps, wastages
and defectives in production process. (viii) Better
industrial relations (ix) Reduced accidents at
workplace (x) Reduced learning time (xi) A trained
worker does not feel the need to join other factories
and thus reduces the labour turnover. (xii) New
technology can be adopted in a factory where trained
employees are available.
 Objectives of Training
(i) To provide job related knowledge to the workers.
(ii) To impart skills among the workers systematically
so that they may learn quickly.
(iii) To bring about change in the attitudes of the
workers towards fellow workers, supervisor and the
organization.
(iv) To improve the productivity of the workers and
the organization.
(v) To reduce the number of accidents by providing
safety training to the workers,
(vi) To make the workers handle materials, machines
and equipment efficiently and thus to check wastage
of time and resources.
(vii) To prepare workers for promotion to higher jobs
by imparting them advanced skills.
(viii) Training should be of reasonably long duration so
as to enable the workers understand the theory and
develop skills for managing the job accurately.
(ix) Training should consist not only of theory , it
should be supplemented by practical training and
made interesting to all participants.
(x) To impart knowledge of the marketing goods.
Designing an Entrepreneurship Training Programme
There are three processes involved in designing the
training programme:
Setting Training objectives: It make up the frame
work of the programme on which other training
decisions, including the course content as well as the
method to be used. Training objectives are the
statements that describe what the trainees will be
able to do upon completion of training. Once the
entrepreneur clearly decided where he wants to go,
then it will be reasonably easy to determine how to
achieve the goals.
Developing course content: After objectives have
been clearly set, the course content can be
developed. While the training objectives serve as the
skeletal framework of the course, the content
represents its flesh and blood. It embodies the subject
matter or learning points that will be put across to
enable the trainees to attain the training objectives.
Choosing appropriate Training Methods: After the
course content developed, the trainer implement the
appropriate methods of training for the trainee. Using
the appropriate method can help the employee to
develop their skill and knowledge in their areas.