Economic and Non-economic factors impacting Entrepreneurship
Entrepreneurship is an zeal to do something new , entrepreneurship is an idea and innovation to do a business in a new way or introduce a new product and business idea in the market. Entrepreneurship process the three stage designing, launching, and running a new business.Most of the entrepreneurship start with small one that slowly grows and get a high economic growth that make in huge Employment generation. Various factor that affect the entrepreneurship for developing affective policy and various support systems. The main influence factor are Economical factor and Non-economical factor
Economical factor related to money, finance, infrastructure, and market condition.
Non-Economical factors are social and environmental education , social status, economical factor refer to the major microeconomics condition that affect the feasibility and profitability of the starting business. This include capital availability for starting business infrastructure , market ,condition and physical policy , labor availability for entrepreneurship.
Economical factor
Finance is essential for entrepreneurship or set up a new business , sustainable finance condition is required to become an entrepreneur, this may come from various source like personal savings , bank loan, venture capital, investors sometime Government support also help for set up a new business infrastructure.
Infrastructure is the next important for new small business , this includes transportation network , communication system , power supply ,waters and sanitation, market accessibility, import export farm.High is this factor , more favorable for a new business
Market condition ,demand and supply of the goods must balance competition level of the product , consumer behavior and consumer awareness ,awareness program of the particular product. Size of the market an very important factor for entrepreneurship, because a big market can help a new entrepreneur to introduce a new product, entry level should be low and customer must be aware of the product with various kind of advertisement, online ,offline, electronic media.
Fiscal policy is an another important point for entrepreneurship , subsidies and investment incentives ,import export duties are the factor for entrepreneurship growth.
Availability of skill labor is another important factor of entrepreneurship.Human capital play a vital role for any industry , the availability of educated and skill labor effect the industry health and overall labor policy and productivity of a industry. Educated and skill labor reduce skills shortage problem and the problem of high labor cost and operational efficiency.
Economic stability is another important for set up a new business , inflammation currency stability , interest rate and political stability of is also play crucial role for entrepreneurship. If currency is not stable and country political stability is affected small business.
Cost of inputs & resources is another factor , this includes raw materials, energy, land, and labour.high input costs reduce margins and increase pricing risk, that leads frequent price spikes, supply bottlenecks, seasonal shortages, relocation of production to cheaper regions.
Non-Economical factors
Technology Advancement is also a part of entrepreneurship factor, Technology cal advancement create new industries and improve productivity, create new opportunity and reduce human effort . RND infrastructure Availability of skill labor is another important part of entrepreneurship.
Education is an tool to build knowledge ,education build skill and behavior of the community , it create critical thinking ,financial literacy ,exposure to entrepreneurship and Tec-savy man forece.
Social and Cultural norms are also a part of the factor , risk-taking is the main mindset for Entrepreneurship , accepting of failure , face controversies, adverse society an accept the growth of large factor for entrepreneurship. Family and community support is also a factor .Family may support to set up a new business , emotional encouragement , community network and strong social support system also encourage entrepreneurship.
Legal Framework is also a factor for entrepreneurship , easy of legalization of business ,contract enforcement ,corruption free society ,supportive regulated authority is the key factor for growth of entrepreneurship.
Media plays a transformative role in shaping the mindset of society, especially among the youth.
1)Documentaries and Films :Media can create documentaries and highlight the struggles, failures of entrepreneurs.They provide authentic path into the entrepreneurial journey, making it relatable for viewers.
2)Biographical books and media features on successful entrepreneurs give detailed accounts of how ordinary individuals achieved extraordinary results.
3)Television, radio, podcasts, and YouTube interviews with entrepreneurs provide a knowledge about a motivational entrepreneurs.It also provides practical tips on finance, market entry, product development, and scaling.
4)Creating Awareness Among the Youth ,Media campaigns can target young audiences to showcase entrepreneurship not just as a profession, but as a way to contribute to national development.
Cultural Attitudes Toward Failure & Risk is an important factor for developing entrepreneurship . In a society where failure is criticized may discourage entrepreneurship . Risk taking attitute differs by society to society and their norms while starting small and waiting for safe stability.
Gender & Social Equity is a great factor for developing entrepreneurship , both man and woman must have equal right and dignity , barriers to women entrepreneurs face access to financing, social norms, childcare responsibilities.
Behavior of competitors & market structure also effecttive facor developing entreprneurship .Degree of competition, dominance by large firms, informal/unfair competition, collusion is highly effective mater, monopoy business or high pricing can raise entry barriers , informal competitors able to avoid taxes can undercut formal firms , that creates price wars, dominant platform fees, many small vendors operating informally.
By :Ayan Banerjee
