There are many factors that affect entrepreneurship development and they have either negative or positive effects! Discover the 7 most important factors you should know about!
In order to talk about the factors that affect entrepreneurship, it is important to definite entrepreneurship and entrepreneur first.
Entrepreneurship is the process of creating, launching, developing, and running a new business company. The process could start as offering a certain product or service for sale. The entrepreneurship decreases stagnation and unemployment in the economy. At the same time, increases the growth and competitiveness of businesses.
The entrepreneur on the other side is a person who starts and runs the business, takes actions, and assumes the risks and rewards of a certain business company. The entrepreneur is seen as an innovator of new business processes and ideas and a business leader who is responsible for managing the employees.
Entrepreneurship or business development refers to the actions of enhancing business skills and knowledge through structured programs and training. The entrepreneurship development focuses on people who want to start a business or they want to expand a certain business. In other words, entrepreneurship focuses on innovation and growth, persuading more and more individuals to become entrepreneurs.
Additional Reading: WHY BRANDING IS CRUCIAL WHEN IT COMES TO MARKETING
The success of entrepreneurship and your business in any society depends on various factors, besides having the characteristics of successful entrepreneurs.
Here are the 7 most important factors that affect entrepreneurship:
- Individual factors – We are referring to the ability to capitalize ideas, creativity and knowledge, parental influence and background, opportunities, ability to plan, hard work and persistence, funding, and ability to manage and minimize risk.
- Psychological factors – The need for achievement, perception and motivation, and idea driven.
- Economic factors – Industrial and fiscal policy, market network, labour, capital, and raw materials.
- Social factors – The social factors that affect entrepreneurship are: legitimacy of entrepreneurship, society values, social mobility, security, role models, social pressure, respect and status.
- Legal factors – The legal factors are: Income tax law, wage law, and labour law.
- Political factors – The ideology and policies of government, political stability, change in government, and government actions.
- Cultural factors – The 3 cultural factors are: values, behaviour, and lifestyle.
These are the factors that affect entrepreneurship and have either negative or positive effects. The positive effects contribute to the improvement and development of entrepreneurship in any society. Are you familiar with other factors that affect entrepreneurship? If you do, please share!
— online business step (@business_steps) 19 de junio de 2017