Topic Essay

261 WordsJul 23, 20142 Pages
Topic: Economic Factors Affecting In Entrepreneurial Growth Entrepreneurship is not random but influenced by four distinct factors : economic development, culture, technological development and education. In areas where these factors are present. You can expect to see strong and consistent. Entrepreneurial growth in areas where they are lacking. Entrepreneurship is likely to stagnate. One of the most important factors affecting entrepreneurship is economic environment. Economic Factors : One of the most important factor affecting entrepreneurship is economic environment. It comprises of * Capital * Labor * Raw - Material * Market Demand 1) Capital : Is one of the most important factor of production for the establishment of an enterprise . increase in capital investment in variable projects result in increase in profits which help in accelerating the process of capital formation. Entrepreneurship activity too gets a boost with the easy availability of funds for investment. 2) Labor : Easy availability of right type of workers also effect entrepreneurship. The quality rather than quantity of labor influences the emergence and growth of entrepreneurship. the problem of labor immobility can be solved by providing infrastructural facilities including efficient transportation. 3) Raw – Materials : It is one of the basic ingredient required for production shortage of raw material can adversely affect entrepreneurial environment. without adequate supply of raw materials no industry can function properly and emergence of entrepreneurship to is adversely affected. 4) Market Demand : The role and importance of market and marketing is very important for the growth of entrepreneurship. In modern competitive world no entrepreneur can think of surviving in the absence of latest knowledge about market and various marketing

More about Topic Essay

Open Document