Author: Amat Alsalam H. Al-Matari Entrepreneurs are visionary, creative, confident, opportunity seeker, relation builder, and risktaker individuals who decided to ditch the nine-to-five lifestyle to set up their own businesses, taking on financial risks in the hope for profit. But what is the making of such
individuals? What factors play behind the scenes to produce them? Entrepreneurship, in fact, is a complex phenomenon influenced by the interplay of many distinct factors. Economic FactorsThe economic environment exercises the most direct and immediate influence on entrepreneurship. This is likely because people become entrepreneurs due to necessity when there are no jobs. “In countries where the economy is poorer, or where unemployment rates are high, citizens
turn to starting their own small
Psychological FactorsThey say entrepreneurship is not for the faint of heart. But then for whom is it! What does it take for an individual to become an entrepreneur? While there isn’t a single “ideal” entrepreneurial personality, one thing remains constant: an entrepreneurial spirit. This type of spirit entails many traits and characters that make 400 million entrepreneurs out of 7 billion people worldwide.(1)
Social FactorsSocial factors can go a long way in boosting entrepreneurship. In fact, it was the highly helpful society that made the industrial revolution a glorious success in Europe. Such factors strongly affect the entrepreneurial behavior, which contributes to entrepreneurial growth. The main components of the social environment include:
Training & Entrepreneurship DevelopmentAlthough entrepreneurship education is very important, it’s been found that training is more effective in creating entrepreneurial skills. Studies found a strong relationship between entrepreneurship training and business creation on the long and short-term horizons, perceived entrepreneurial ability, and entrepreneurial mindset and thinking. (3) The world is greatly indebted to entrepreneurs whose ideas and ventures have changed the way we live and work to the better; creating jobs, growth, and the conditions for a flourishing society. Entrepreneurs are therefore a national asset to be refined, motivated and remunerated to the greatest possible extent through learning the exact influences that impact their development and thus supporting them. Sources:
What are the nonNon-economic environment includes political system, government policies, legal framework social system, cultural values, demographic factors, technological development and natural environment of the country. Intact, all these factors are very relevant to the present business.
Which one of the following is NOT a nonHuman Resource is not taken as a factor among the non-economic factors which contribute to economic growth.
Which of the following is an economic factors affecting entrepreneurial growth?Capital is one of the most important factors of production for the establishment of an enterprise. Increase in capital investment in viable projects results in an increase in profits which help in accelerating the process of capital formation.
Which of the following factors affect the growth of entrepreneurship?Factors such as availability of finance, labor, land, accessibility of customers, suppliers are the factors that stimulate entrepreneurship.
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