Entrepreneurial Environment

ENTREPRENEURSHIP DEVELOPMENT

SEMINAR

BY M.SOUNDARRAJAN(MBA

953) N.PREMKUMAR(MBA 942)

ENTREPRENEURSHIP ENVIRONMENT

It refers to various factors within which the enterprises-big,medium,small and others have to operate. Entrepreneurship is influenced by an environment created by political, social, economic, national ,legal forces, etc.,

SIX IMPORTANT SEGMENTPolitical environment- political atmosphere,

quality of leadershipEconomic environment- economic

policies,labour,trade,tariffs,incentives, subsidiesSocial environment- consumer, labour,

attitudes,opinions,motive.,Technological Environment-

competition,risk,efficiency,productivity,profitability

Legal environment-Rules,regulationCultural environment- Structure aspiration and

values

POLITICAL ENVIRONMENT

Law and order is of high priorityGovernment policies should be followedFrequent updation of political condition are

needed

ECONOMIC ENVIRONMENT

It comprises of LandAvailability of raw materialsSkilled labourInfrastructureMachineryCapital

SOCIAL ENVIRONMENTFamily backgroundKith and kin's(Relatives, friends and

teachers)ReligionSocial statusSocial mobilitySocial marginality

LEGAL ENVIRONMENTRegistrationLicensingLocationAcquisitionPayment of wagesTaxesEnvironmental rules

CULTURAL ENVIRONMENTCorporate culture is an invisible quality which decide how effective the organization is in the market place. Cultural consists of

• Tangible man-made objects like furniture, buildings etc.,

• Intangible concepts like Law, morals, knowledge.

• Values and behavior acceptable by the society.

TECHNOLOGICAL ENVIRONMENTSelection of proper technology. leads to higher productivity.Reduction of cost.Upgradation enables business

community to cope up with rapid growth.

It gives competitive advantage.

Contd..Product and process realities.Quality.Environmental safety.Innovation.

ENVIRONMENTAL FACTORS AFFECTING ENTREPRENEURSHIP

ENTREPRENEURIAL ENVIRONMENT

It is essential for entrepreneurship is the presence of a favourable business environment.

It is dynamic.Impact depends on degree to which

organization depends on environment.It affects the performance of the

organization.

FACTORS HINDER ORGANIZATIONAL GROWTH

Sudden changes in government policy. e.g.- If policy in US is changed it affects the

Indian exporters. Outbreak of war or regional conflicts. e.g. –telengana issue in Andhra PradeshPolitical instability or hostile government attitude

towards the industry.

Contd..Excessive redtapism and corruption among

government agencies.Ideological and social conflicts.Unreliable supply of power, materials,

finance, labour and other inputs.Rise in cost of input.Unfavorable market fluctuations.Non-co-operative attitude of banks and

financial institutions.

THANK YOU