Entrepreneurship and Governance Q. Briefly explain the personal and social factors affecting entrepreneurship?

1. Q briefly explain the
personal and social
factors affecting
entrepreneurship?

2. FACTORS AFFECTING GROWTH OF
ENTREPRENEURSHIP
Entrepreneurship is a complex
phenomenon influenced by the
interplay of a wide variety of factors.
The entrepreneurial activity at any time
is dependent upon a complex and
changing combination of economic,
social, political, psychological and other
factors. These factors may have been
both positive and negative influences
on the emergence of entrepreneurship.

4. An entrepreneur possesses many traits with the help of which he can perform
successfully. Personality traits such as courage to start new venture,
calculated risk taker, good judgement, initiative, skillful, competent, family
environment, level of education, age, experience etc. are significant personal
characteristics that affect entrepreneurship. Individuals who are desirous of
working independently, willing to work hard and take risk are likely to be
more successful as entrepreneurs than those do not possess these qualities.
Personal Factors, becoming core competencies of entrepreneurs include:
1. Swift Action : Entrepreneurs that become successful don't procrastinate,
they take the bull by the horns. One thing is certain, if something needs doing
they will do it and not even think about the obstacles. They focus on getting
things done and completed.
2. Ability to Communicate : An idea has no power at all if it cannot be
communicated clearly and effectively. Entrepreneurs that are successful
have the common ability of communicating their ideas in such a way that
everyone gets it. .
3. Manage Money and Assets : Business enterprises only survive when the
money in the company is managed properly. Every successful entrepreneur
needs to have the ability and the discipline to manage the money and assets
of the business.
4. Networking : According to Susan, "networking is a mutually beneficial
process whereby we share ideas, knowledge, leads support and the list goes
on." Be around and be surrounded by people that you can share with, whether
it is a support or advice.
5. Planning for Success : Business without a vision soon fade out and
disappear. Success may be accidental but it's been proven that most
successful entrepreneurs start out with definite plans about what they want
to do and where they want to go. Plans give us a sense of direction and people
can derive motivation from them.
6. Do what They Absolutely Love : One of the biggest recipes for success in
business is to love what you do, that way you never get bored and everyday is
a joy. What you love, what you do, the passion translated shows in the results
or the product.
7. Knowledge of Chosen Field : Running a business will require the
entrepreneur to know the field they are venturing in to. The failure of a lot of
businesses is that the owners don't have enough knowledge and they are not
willing to learn from those who do.

5. 8. Never Take no for an Answer: When Thomas Edison the light bulb, it is said that he
got to know over a 1000 other ways a light bulb would not work, Succem only comes
when a 'No' becomes a temporary obstacle to a permanent succema story
9. Decision-Making : Decision-making in a challenging skill and sometimes it takes
experience to become accomplished. However, some of the best entrepreneurs are
there that are not afraid to make decisions and they gather all the facts they need to
make informed decisions. Decisions are what shapes the path of a succemful
enterprise,
: 10. Risk-Taking : No entrepreneur is ever guaranteed success in whatever they start
or join it, It is rightly said that an entrepreneur is someone who owng and organizes a
business venture to create wealth and assumes the risk for it.
11. Making a Difference: A genuine belief in making difference either to the way we see
the world or for humankind, is what motivates a great number of successful
entrepreneurs.
12. Highly Creative and Innovative : Entrepreneurs that have a hunger for success
have an uncanny ability to look around themselves and be creative enough to change
anything around them.
13. Ability to Instruct and Inspire : The main function of an entrepreneur is to direct
and guide the workers ; therefore to be a successful entrepreneur he should have the
ability to instruct and inspire his people. A good entrepreneur should know how to
instruct his workers, how to assign them work, how to maintain discipline, how to
evaluate their performance, how to settle their grievances, how to reward them
suitably so as to provide job satisfaction.
14. Ability to Listen : To be a good communicator, one has to be good listener.
Entrepreneur has to listen to the complaint, grievances, suggestions of the workers;
he should have patience and ability to listen. Even the in genuine grievances have to
be listened and tackled intelligently :
15. Ability to Secure Co-operation : An entrepreneur should be able to develop a team-
spirit in his workers. He cannot succeed in his job unless he is able to secure
cooperation from the workers.
16. Leadership Qualities : An entrepreneur has to act as a friend, philosopher and
guide to the workers. He should be able to boost up the morale of his sub ordinates
and lead his team of workers.
17. Physical Qualities : Entrepreneur must always be physically energetic and mentally
alert so as to enable him to accomplish his heavy responsibilities towards the
achievement of enterprise object.
18. Other Qualities : An entrepreneur must have certain other qualities such as he
should be able to avoid disputes between management and workers, able to develop
human relations, be respectful to others, intelligent enough to take right decisions at
right times, etc.

6. SOCIAL FACTORS
Social environment is very comprehensive because it
may include the total social factors within which a
business enterprise operates. Social environment
includes people's attitude, family background,
religion, education etc. Traditions, customs and
social attitudes have changed the attitudes and
belief of the persons which have their effect on
entrepreneurial environment.

7. 1. Pluralistic Society. Indian society is a pluralistic society with a
complex social order characterised by a multitude of ethnic,
linguistic, religious and caste divisions. Hindu constitute about
82% Muslims are concentrated in J and K, Assam, Bihar, U.P.,
Kerala and West Bengal. Christians are concentrated in the small
states of North-East like Nagaland, Meghalaya, Arunachal
Pradesh, Mizoram and the Sikhs are concentrated in Punjab.
These distributions have an important bearing upon the politics
of these areas. The Muslimconcentrated areas are communal
riots areas, the concentration of Sikhs in Punjab is a determinant
of politics in Punjab.
2. Rural Society. About 70% of the Indian people live in villages
and Indian villages continue to be under- developed even
backward. Lack of civic amenities, employment opportunities,
roads, transport facilities, electricity, hospitals and schools in
rural areas is a hard reality. Urban-rural gap is a reality of our
society. The rural feel that though agriculture accounts for a
major part of India's national income, the rural areas continue to
lag behind because of the governmental policies which favour
the urban. In the democratic political process, the rural people by
virtue of their large majority play an active an dominant role and
yet the leadership in India continues to be in the hands of the
urban elite. Of late, the government of India has started giving
due importance to the objective of rural development. IRDP,
NREP, Panchyati Raj etc. are all designed to achieve this
objective. The growing awareness among the rural people and
their increasing participation in the politics process are healthy
signs yet the process continues to be slow.
3. Poverty. Poverty of the masses is an important feature of Indian
social system. Despite the fact of having made considerable
progress in the fields of agriculture and industrialisation,

8. India continues to be an economically backward country. It still remains world's 15th poorest
nation. A large number of Indians continue to live below the poverty line. The economic
development of the society through organised plans and all round industrial and technological
development constitutes the biggest and most challenging objective of the Indian polity. The
objective of economic upliftment of at least 90% of the people by the end of 8th Five Year Plan
period is indeed laudable, yet chances of achieving it appears to be weak.
4. Illiteracy and Ignorance. Illiterates constitute a major part of Indian social system. A large
number of Indians are still illiterate. Nearly 64% of the population continues to be illiterate. The
faulty system of education has compounded the evil of illiteracy. Even the literates have failed
to keep away from casteism, communalism, factionalism, regionalism, indiscipline and
corruption. Illiteracy creates so many social problems. The need is for more determined
governmental action and strong social support in this respect.
5. Linguistic Diversity. Linguistic Diversity is another factor which is polluting the social
environment of India. On the basis of language, Indian society stands divided into linguistic
groups. The Constitution of India recognises as many as 15 languages.
6. Caste and Casteism. Caste and casteism has been the pre- dominant feature of Indian social
system. Castes like Jains Banyas vishyas and Khatris are major sources of entrepreneurship.
The Constitution in abolishing untouchability and in providing for no discrimination on the
basis of caste and creed. But in the actual process of Indian soci caste and casteism continue to
be major factors. Caste membership and caste loyalties continue to influence the popular
participation in politics. Even the constitution provisions for reservation of seats and jobs for
the people belonging to Scheduled Castes and Tribes has failed to produce the desired
integrative effect. Caste system has deep historical roots and hence cannot be abolished. It
has helped the formation of social groupings in an otherwise vast and heterogeneous
population. Hence what is needed is not its abolition but the cultivation of the ability to limit its
role and prevent it from acting as a source of communalism, regionalism and parochialism.
7. Communalism. The presence of communal tension and the periodic outbreak of communal
riots have been the bone of Indian social system. The existence of some regional and
communal political parties adds fuel to the fire. Exploitation in the name of religion, election
campaigns based on communal lines and use of religion as a pressure group are practised by
political parties, which prefers secularism and also those which are based on a particular
religion. Communalism remains a big strain on India's efforts towards nationalism. The menace
of communalism constitutes a big danger to the unity and integrity of the nation. Even the
spread of literacy and operationalisation of several control mechanism have produced little
success towards the elimination of this menace. The rejection of communal electorates and
the implementation of a communal electrode too have failed to produce the desired results.
Each year the State has to spread a huge amount of money for preventing and controlling riots
and providing assistance to riot affected people. All this seriously limits the capabilities of
Indian social system.
8. Regionalism. Religious, linguistic, cultural and caste diversities prevailing in the Indian
society have together strengthened the forces of regionalism. The adoption of federal
structure presupposes the existence of some regionalism due to which the division of power is
done between the federal government and the federating units. India is not an exception of
generalisation.