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MBA 0933 EntrepreneurEnvironment_Economic

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Entrepreneurship Development

29 (7th & 8th hour) March 2010

M.Karunakaran


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Review of previous class

Approaches to Entrepreneur Development


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Today's topic

Entrepreneur Environment

Entrepreneurship and Economic Development


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Today's News

Entrepreneur aims to start company to stop bribeshttp://www.blonnet.com/2009/11/09/stories/2009110950691300.htm


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Entrepreneur Environment- The dynamics of Entrepreneurial Development and Management- Vasanth Desai

MBA 0933

Entrepreneur

Environment_EconomicDevelopment

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Introduction Entrepreneur Environment

Entrepreneur Environment includes more than just your family and so it canalso be said that if there is a strong entrepreneurial community where you arebrought up your home town, or even a cluster of towns in your area than thiscan also encourage you to think of becoming entrepreneur yourself.


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The Entrepreneur Environment is broadly classified in to six importantsegments

Political Environment

Economic Environment

Social EnvironmentTechnological Environment

Legal Environment

Cultural Environment


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Political Environment

Affects the entrepreneurial growth

Accelerate the process of economic activity

Law and order is of high priority

Promotion of entrepreneurship

Followed by incentives, encouragement and right institutional structure


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Economic Environment

Growth and development is also governed by economic environment

4 Ps affect the economic environment

Marketing techniques

Japan Rapid improvement in the market


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Social Environment

Social environment strongly affect the entrepreneurial behavior which contribute to

entrepreneurial growth

1. Family background

2. Kith and kins (relatives, friends and teachers)

3. Religion

4. Social status

5. Social mobility

6. Social Marginality


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Technological Environment

Application of scientific knowledge for practical purposes

Acts as a catalytic agent in promotion of entrepreneurship growth.

Cultural changes as well as quality of life

Knowledge revolution has made it possible to routine processes a shift from the

traditional manual control of conventional machinery for using the computer brain to

operate the machinery


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Legal Environment

Various Rules and regulations applicable to different groups of industries.

Registration, licensing, pollution, location, acquisition, payment of wages, labor

related laws pollution and environment rules, etc

150 Legal requirements an entrepreneur has to take care of.

Traditional geocentric way of industrial operations are being replaced by innovative,

multi location industrial operations tapping the synergies of outsiders from different

countries.


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Cultural Environment

Every organization has an invisible quality a certain style, a character, a way of

doing things that may be more powerful than the dictates of any person or a formal

system.

This quality (Corporate culture) decides how effective the organization in the marketplace

Max Weber emphasizes that cultural factors have a crippling effect of entrepreneurial

growth Tangible man made objects like furniture, buildings etc

Intangible concepts like laws, morals, knowledge etc

Values and behavior acceptable within the society


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Entrepreneurship and Economic Development- The Dynamics of Entrepreneurial Development and Management Vasanth Desai


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The existence of uncertainty in the economic call for the attention of environment

means that there are limits to planning. These limitations call for the attention of

entrepreneurs to play a leading role in the growth process.

Risk involved in1. Individual entrepreneurs

2. Public entrepreneurs

3. Private entrepreneurs


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1. Individual entrepreneurs

Continually face risks

Farmers

Manufacturing

Construction

Transport Whole sale enterprises


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2. Public entrepreneurs

Public enterprises tend to be risk averters

Offer incentives to boost their efficiency

+ like bonus

- like budget and operational controls


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3. Private entrepreneurs

To compete to survive

Appropriate policy these enterprises can function smoothly


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Entrepreneur and Economic Development

More Entrepreneurs

More Risks

More Employments opportunities

Low failure

More Economic Growth


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Entrepreneur and Economic Development

Entrepreneurs are low in illiterate, poverty and ignorance areas

Basic needs are not fully satisfied

They dont use the opportunities

They resist to change

Therefore in developing an environment and changing the life situation, we take the firststep to develop entrepreneurship


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Entrepreneurship plays a key role in the economic

development of a country


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MBA 0933 EntrepreneurEnvironment Economic

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Overview of today's class



Thank you for staying awake

1.Entrepreneur Environment_Entrepreneurship and Economic Development (1)

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