Factors influencing the growth of Entrepreneurship

It is believed that entrepreneurs are born and not made. For some extent it is true but it has also been proved by foreign experience of one and half decade span that with the right type of training and follow-up support and assistant, one can develop one-self as an entrepreneur. It is widely accepted that entrepreneurship can be developed through well conceived and well integrated entrepreneurial training programmes. So it has developed in a systematic way since the beginning of industrial revolution in Europe.

In western countries, entrepreneurs played very important role in accelerating the pace of development and made the people of underdeveloped countries very much conscious of the importance of entrepreneurship in the programme of rapid economic development. Developing nations have to realize that for achieving the objectives on the process of development, it is necessary to increase quantity and quality of entrepreneurship in the country. The degree and quality of entrepreneurship differ from entrepreneur to entrepreneur. But there are certain cogent factors, which influence the development and growth of entrepreneurship in the country. The influencing factors of entrepreneurship are.

i) Profit making

Profit induces the prospective industrial entrepreneur to get into the business and start new commercial activities or expanding the existing industrial ventures. Therefore profit is a factor which induces the entrepreneurs to organize and utilize the factors of production for development.

ii) Social factors

Better and appropriate social climate plays a very important role in the development of skill of entrepreneurship as well as in the process of industrialization of any region. The Government of India along with state governments has been trying to provide adequate infrastructural facilities to cover a wide spectrum of services like road, rail, water and Air transportation, power generation, transmission and distribution, telecommunication, port handing facilities, water supply and sewage disposal, urban mass transport system and other urban infrastructure facilities like medical education and other primary services.

iii) Incentive System

Incentive and motivational forces improve productive result in entrepreneurship. They enable the entrepreneurs to take appropriate decisions and provide moral support to implement them. Incentives may be either financial or non financial. These incentives are necessary to encourage entrepreneurial activity and achieving their goals. Financial incentive involves subsidy given by government at a lump sum payment to an entrepreneur for compensating excess cost over administered price for a particular product or service. Non-financial incentives involve concessions or relaxations in policies and guidelines. There may be certain freedom from restrictions imposed by the government from time to time.

iv) Entrepreneurial Training

Entrepreneurship can also be developed with the right type of Entrepreneurial training activities. National Institute for Entrepreneurship and small Business Development at New Delhi is its glaring example. This institute has been established with a view to promote the locally available entrepreneurial talents, skills and abilities.

v) Follow up Support

The entrepreneurs who have established their own ventures after getting entrepreneurial training must get follow-up support in formal and informal ways in order to make them viable entrepreneurs. The incentives and follow up works promote the spirit, talent, skill and ingredients of successful entrepreneurship.

vi) Technology Development

Technology is an art of converting the natural resources into goods and services more beneficial to the society in general and consumers in particular. The technological innovation brings extreme social changes. While changing the pattern of society, it creates congenial infrastructure for the rapid development and advancement of entrepreneurship in the country.

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