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 SEGMENT
 Political environment- political atmosphere, quality of
leadership
 Economic environment- economic
policies,labour,trade,tariffs,incentives, subsidies
 Social environment- consumer, labour,
attitudes,opinions,motive.,
 Technological Environment-
competition,risk,efficiency,productivity,profitability
 Legal environment-Rules,regulation
 Cultural environment- Structure aspiration and values
POLITICAL ENVIRONMENT
 Law and order is of high priority
 Government policies should be followed
 Frequent updation of political condition are needed
ECONOMIC ENVIRONMENT

It comprises of
 Land
 Availability of raw materials
 Skilled labour
 Infrastructure
 Machinery
 Capital
SOCIAL ENVIRONMENT
 Family background
 Kith and kin's(Relatives, friends and teachers)
 Religion
 Social status
 Social mobility
 Social marginality
LEGAL ENVIRONMENT
 Registration
 Licensing
 Location
 Acquisition
 Payment of wages
 Taxes
 Environmental rules
CULTURAL ENVIRONMENT
Corporate 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 ENVIRONMENT
Selection 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 Pradesh
 Political 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