Entrepreneurial environment & infrastructure

role of environment on entrepreneurship development

1. Significance and role of Environment on ED

2. Entrepreneurs are not born…….they are made right from the childhood The environment around the entrepreneur makes an entrepreneur

3. Environmental factors Parents Friends Teachers School atmosphere Neighbourhood Society around him

4. Entrepreneurship is the result of the interaction and assimilation of different social and environmental factors

5. Entrepreneurial Environment Entrepreneurial Environment is a combination of factors that play a role in the development of entrepreneurship. First, it refers to the overall economic, socio-cultural, and political factors that influence people’s willingness and ability to undertake entrepreneurial activities. Second, it refers to the availability of assistance and support services that facilitate the start-up process.

6. The available literature on entrepreneurial environments can be grouped into three broad streams: general environmental conditions for entrepreneurship; environmental conditions of a particular country or region; and the role of public policy in shaping the entrepreneurial environments.

7. General Environmental Conditions General environmental conditions that may influence entrepreneurship include: legal and institutional frameworks for efficient functioning of private enterprises presence of experienced entrepreneurs and skilled labor force accessibility of suppliers and customers or new markets high degree of competition among firms favorable government policies provision of training and support services supportive infrastructure

8. In addition, the literature suggests that the characteristics of people, their skills, experience, and motivation, play important roles in new venture creation

9. Country/Region Specific Environmental Conditions Countries that keep rules and regulations at a minimum, offer tax and other incentives, and provide training and counselling services to start-up entrepreneurs increase the likelihood of new venture start-ups. Furthermore, factors such as availability of financial resources, large size urban areas, and presence of universities for training and research are found to be very important to increase the rate of new venture creation

10. Studies also show that entrepreneurs face several obstacles, such as lack of financial assistance, lack of information on various aspects of business, excessive taxation, and high rate of inflation.

11. Role of Public Policy Scholars that focused on the role of public policy suggest several policy options for developing entrepreneurship. These policy options include provision of venture capital funds tax-based incentives, and government procurement programs protection of proprietary ideas and innovations investment in education and research explicit recognition of, and support for, entrepreneurship by government agencies fostering of entrepreneurship by educational institutions and minimization of entry barriers.

12. Environmental Analysis Positive environment Encourages entrepreneurial development and growth This is called entrepreneurial motivation

13. Greatest Motivation…… Money But……… It is not alone that inspire an entrepreneur

14. Other motivating factors are: Internal External

15. Internal factors Family background Education background Training and work experience Desire for achievement Desire to head a unit

16. External Factors Availability of inputs or raw materials Demand of the product and large profits Availability of infrastructure and finances Availability of technology Short supply of the product Government initiative and assistance Ready availability of sick units

17. Entrepreneurial motivation Classified in three categories Factors of Compulsion Facilitating factors Entrepreneurial ambitions

18. Role of Infrastructural Network

19. The basic infrastructure at the place of the project help in speedy implementation of the project Reduce costs Increase profitability

20. Better or rapidly improving infrastructure in a particular area may attract more entrepreneurs and see enhanced entrepreneurial activities

21. Basic infrastructure requirements Certain infrastructural elements seem to make substantial impact on the entrepreneurial environment. modern transport and communication facilities that provide easy access to suppliers and customers Road Network Connected to Rail Ports Airport

22. location decisions of based on the community’s ability to supply trained and capable workers and on the proximity to research and development institutions

23. existence of universities and research and development programs a well-educated and technically skilled labor force, and

24. Supporting industries Climatic conditions Logistic support Electricity water

25. Role of Infrastructural Network Most commercial operations such as venture capital firms and commercial banks tend to exhibit greater interest in concentrated, urban areas that usually have a well-developed infrastructure and concentrated demand for funds They also favour areas where businesses are easier to supervise and monitor and the cost of supervising and monitoring loans is relatively low