The emergence and development of entrepreneurship is not a spontaneous or sudden matter. It is dependent upon various phenomenons like economic, social, political, psychological factors. The entrepreneurial development cycle is the combination of all support activities and assistance that are conducted and provided continuously for the development of entrepreneurship. It generates entrepreneurial awareness in the community through well-planned publicity.
These are supporting conditions for entrepreneurship development. These conditions may have both positive and negative influences on the emergence of entrepreneurship.
Economic factors
- Capital: Availability of capital helps the entrepreneurs to bring together the necessary resources and to combine them to produce goods.
- Labour: The quality rather the quantity of labour is another factor which influences the emergence of entrepreneurship.
- Raw materials: Raw materials influence the emergence of entrepreneurship. in the absence of raw materials, entrepreneurship development is not possible.
- Market: The size and composition of market influence entrepreneurship. Actually, monopoly market is more influential for entrepreneurship than the competitive market.
Non-economic factors
- The legitimacy of entrepreneurship: Legitimacy of entrepreneurship means appropriate social climate for entrepreneurship. It also plays an important role in the emergence of entrepreneurship.
- Social mobility: Social mobility involves both social and geographical mobility; a high degree of mobility is conducive to entrepreneurship.
- Security: Security is an important factor for entrepreneurship development. If individuals fell unsecured then they will not be inclined to take an entrepreneurial initiative.
Psychological factors
- Need achievement: Need achievement refers to an individual’s need to be recognized. This need achievement is a major determinant of entrepreneurship development.
- Withdrawal of Status Respect: Withdrawal of expected status respect from the society also plays an important role in the emergence of entrepreneurship. Social status is the level at which an individual is viewed by society.
Government actions
Government actions also play a vital role in the growth of entrepreneurs. Government’s industrial, policy, tax policy, general facilities, advisory service; incentives and concessions, training programs, credit facilities, a supply of gas, water electricity, development of infrastructure etc. are influential for entrepreneurship development.
So, those are the factors that influence the emergence and development of entrepreneurship.
