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Social Factors

Social factors affect the entrepreneurial behaviour of people. The social environment in which people grow,
shapes their basic beliefs values, and norms. The social factors that infl uence the growth of entrepreneurial are
as follows:

Social Factors

Social Mobility Family Background Education Attitude of the Society Cultural Value

 Social Mobility: It is the freedom to move from one socio-economic strata to another.
 Family Background: It greatly infl uences entrepreneurship. Youngsters who belong to business families
often join their family business. They learn business skills from their elders.
 Education: It enables people to understand the outside world and equips them with the basic knowledge
and skills to stand on their feet. In any society, education plays a key role in inculcating entrepreneurial
skills.

 Attitude of the Society: Certain societies are more progressive and encourage innovations and novel
ideas for earning a livelihood. They encourage young entrepreneurs. Some societies do not encourage
changes in the established way of life. In such circumstances, entrepreneurship cannot grow. So,
attitude of the society is an important factor.
 Cultural Value: Some socio-cultural groups or business communities are more money-oriented than
others. Here, entrepreneurship would be encouraged and praised. Wealth accumulation as a way of life
would be appreciated. However, in some other socio-cultural groups, people are easily satisfi ed with what
they have. People from such sections of society do not strive for economic gains and therefore, lack the
motivation to start up a new venture.

Psychological Factors
The psychological affecting entrepreneurial development factors are as follows:
Psychological Factors

Need for Achievement Loss of Status Motives

 Need for Achievement: It refers to the innate drive to aim high and achieve success. The presence of this
factor makes individuals highly motivated to overcome obstacles. This promotes entrepreneurship among
individuals.
 Loss of Status: People who are displaced from their native place due to confl icts or political disturbances,
and migrate to new places may turn entrepreneurs and take up new ventures to earn a living.
 Motives: The desires and goals of the entrepreneur play an important role in the development of
entrepreneurship. Besides wealth, entrepreneurs may also seek power, prestige, security, and service to
society.

Distinguishing Characteristics of Entrepreneurship
The entrepreneurs do not have any age limit. They may be youngsters in their teens or mature adults in middle
age. They may be formally educated or self-educated. They may be male or female. They may belong to any
country or background. But all entrepreneurs have one characteristic in common – they recognize business

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