Entrepreneurship Development

29 (7th & 8th

hour)

March 2010

M.Karunakaran

MBA 0933

Entrepreneur Environment_Economic

Review of previous class

Approaches to Entrepreneur Development

MBA 0933

Entrepreneur Environment_Economic

Today's topic

Entrepreneur Environment Entrepreneurship and Economic Development

MBA 0933

Entrepreneur Environment_Economic

Today's News

Entrepreneur aims to start company to stop bribes

http://www.blonnet.com/2009/11/09/stories/2009110950691300.htm

MBA 0933

Entrepreneur Environment_Economic

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

MBA 0933

Entrepreneur Environment_Economic Development

Introduction Entrepreneur Environment

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

MBA 0933

Entrepreneur Environment_Economic

Entrepreneur Environment
The Entrepreneur Environment is broadly classified in to six important segments Political Environment Economic Environment Social Environment Technological Environment Legal Environment Cultural Environment

MBA 0933

Entrepreneur Environment_Economic

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

MBA 0933

Entrepreneur Environment_Economic

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

MBA 0933

Entrepreneur Environment_Economic

Social Environment
Social environment strongly affect the entrepreneurial behavior which contribute to entrepreneurial growth
1. 2. 3. 4. 5. 6. Family background Kith and kins (relatives, friends and teachers) Religion Social status Social mobility Social Marginality

MBA 0933

Entrepreneur Environment_Economic

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 market place 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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Entrepreneur Environment_Economic

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Entrepreneurship and Economic Development

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 in 1. 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 first step to develop entrepreneurship

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Entrepreneurship plays a key role in the economic development of a country

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Overview of today's class

Entrepreneur Environment Entrepreneurship and Economic Development

Thank you for staying awake

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