Factors affecting Entrepreneurship


 

Individual/ personal factor

Personal /individual factors derive from the ability to solve problems, initiate an idea, plan ahead of a situation, persevere, and being proactive are some personal factors, which influence the entrepreneur to start a business.

Occupational background- the person was engaged in some form of  occupation and obtained vast amounts of knowledge in this capacity and started a new business in that same area, e.g. a person works at a bakery for a number of years after gaining a lot of knowledge he resigns and starts his own bakery.

Educational background – the person obtains formal education where he or she is trained with the necessary skills in a particular occupation, thus he/she starts a business in that field.

Parental background – children carry on their family business, which is offered to them by their parents. They will bring in some changes to the business such as new machinery, expertise, products, process and services. These entrepreneurs are called new generation entrepreneurs.

Psychological factors are 

  • Freedom 

  • Challenge

  • Vision

  • Aspiration 

  • Family background 

  • Market opportunity

  • Idea driven

  • Need for achievement

  • Profit making

 

Economic factors

People become entrepreneurs because there are no jobs available or because of available opportunities. Some economic factors, which affect entrepreneurs, are the availability of labour, capital (financial, human and physical), the demand and the market for the type of products and services

References:

http://www.simplynotes.in/factors-affecting-entrepreneurship/

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