Determinants of Entrepreneurship B.com final year

Determinants of Entrepreneurship B.com final year

1. DETERMINANTS OF ENTREPRENEURSHIP TORAN LAL VERMA DHSGU, SAGAR

2. DETERMINANTS OF ENTREPRENEURSHIP Internal Determinants External Determinants

3. INTERNAL DETERMINANTS Ambition : An ambitious person is likely to turn to entrepreneurship more than an ordinary person. A highly ambitious person tries to become an entrepreneur for earning money, prestige and respect in society, for working independently and for creating employment for himself and others . Self-reliance: The tendency of independence motivates a person towards entrepreneurs. These persons are their own bosses. They do not like to take orders from other persons. Instead of becoming ‘servant’ they want to become entrepreneur. Success of other entrepreneurs: The stories of successful entrepreneurs in the surroundings motivate persons to follow the route of entrepreneurship. These successful entrepreneurs are role models for the potential entrepreneurs, for example, a young computer software engineer is motivated by Bill Gates of Microsoft, and Narayan Moorthy of Infosys

4. Professional experience: After working in a particular field for a number of years, some persons want to start their own enterprise. They feel confident to overcome the difficulties and problems in the business because of their rich experience. Supportive factors: A person gets financial and mental support from his family members, friends, and relatives to start an enterprise . The family background of a person either induces one to become an entrepreneur or discourages him from doing so. In certain communities like Marwaris , Parshis , Sindhis , entrepreneurship is encouraged from childhood and hence most of the people from these communities turn to entrepreneurship.

5. Compelling factors: Sometimes a person is compelled to become an entrepreneur because of adverse conditions, unemployment problem, job dissatisfaction, untimely death of family head etc. Under these circumstances there is no choice before a person than to become an entrepreneur.

6. EXTERNAL DETERMINANTS Economic factors: of people encourage persons to start new enterprises and Favorable economic condition, ample natural and physical resources availability, rising income make money by providing goods and services for fulfilling the increased demands of people. Investment in shopping malls, hotels, tourism, health centers, entertainment industry, increases. Social factors: Entrepreneurship is influenced by the customs, traditions and values of a society. The materialistic attitude of society stimulates entrepreneurship. Entrepreneurship is developed significantly in a society where the activities of entrepreneur are recognized, respected and rewarded and where the religious values do not prohibit business activities and wealth formation.

7. Technological factors: Technological advancements and cheap availability of technology induce a person to introduce new products, improve the quality of existing products and start high-tech enterprises. For example, due to technological advancements entrepreneurship has flourished in the sectors like infrastructure, non-conventional energy, construction, automobiles, information technology. Political factors: Political stability, attitude and policy of the government towards business, stable policy, maintenance of law and order and such political factors stimulates entrepreneurship, attract domestic and foreign entrepreneurs in various fields. For example, stable and democratic government, feeling of security, rule of raw have attracted huge foreign investments. The liberalization, privatization and globalization policy in the country has provided greater scope to private sector to establish, expand and diversify the enterprises. Steps like incentives, tax holiday benefits, cheap credit facility, export promotion measures and assistance for technological up-gradation have given impetus to entrepreneurial development in the country.

8. International factors: Entrepreneurship is influenced by the international environment. Free global trade policy and need of international co-operation, have encouraged entrepreneurs to take their activities on international level, install production facilities abroad and tap new foreign markets. Favorable international environment has increased foreign investment

9. Reference https://www.slideshare.net/RameshLakshmanan7/b-com-part-ii-fundamentals-of-entrepreneurship-english-version

10. Commercestudyguide.com