Page 112 - Computer - 9(A&B)

The entrepreneurship development process has following stages:
Identifi cation and evaluation of the opportunity

Development of the business plan

Create a new venture, product, or market

Determining of the required resources

Management of the resulting enterprise

Adaptation with time

Factors that Effect Entrepreneurship Growth

Entrepreneurship growth is affected by the following three factors:

Economic
Factors Social Factors
Growth
Factors

Psychological
Factors
Economic Factors
Economic environment has direct and immediate infl uence on entrepreneurship. People often turn to entrepreneur
ship when jobs are not easily available or because there is an opportunity for growth.

The economic factors that affect the growth of entrepreneurship are:

Economic Factors

Capital Labour Raw Material Market Infrastructure Others
 Capital: It is one of the most important factors for the establishment of an enterprise. Entrepreneurship
activity becomes easier when there is availability of funds for investment.
 Labour: It is the easy availability of the right type of workers that helps in the growth of entrepreneurship.

 Raw Material: It is one of the basic ingredients required for production. Without suffi cient supply of raw
material, no industry can function properly.

 Market: It comprises potential customers as well as competitors. Knowledge of customers and their needs
helps in setting up new business.

 Infrastructure: Well developed transportation facilities help to enlarge the market and expand the horizons
of business.

 Other Factors: The institutions, government policies, business schools and libraries also make valuable
contributions towards promoting and sustaining entrepreneurship.

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