The environment plays a key role in shaping entrepreneurship. Factors like parents, friends, teachers, society, and the local community influence whether someone becomes an entrepreneur. Successful entrepreneurship depends on general conditions like legal and institutional frameworks, skilled labor, suppliers and customers, competition, and supportive government policies. Country-specific conditions also matter, like access to financial resources, large urban areas, and universities. Public policy can further support entrepreneurship through funding, incentives, intellectual property protection, education, and reducing barriers to entry. Developing strong infrastructure is important to the entrepreneurial environment, including transportation, communications, utilities, and access to skilled workers and research institutions.

1. Significance
and role of
Environment on
ED

2.  Entrepreneurs are not born…….they are
made right from the childhood
 The environment around the entrepreneur
makes an entrepreneur

3. Environmental factors
 Parents
 Friends
 Teachers
 School atmosphere
 Neighbourhood
 Society around him

4.  Entrepreneurship is the result of the
interaction and assimilation of different
social and environmental factors

5. Entrepreneurial Environment
 Entrepreneurial Environment is a combination
of factors that play a role in the development
of entrepreneurship.
 First, it refers to the overall economic, socio-
cultural, and political factors that influence
people’s willingness and ability to undertake
entrepreneurial activities.
 Second, it refers to the availability of
assistance and support services that facilitate
the start-up process.

6.  The available literature on entrepreneurial
environments can be grouped into three
broad streams:
 general environmental conditions for
entrepreneurship;
 environmental conditions of a particular
country or region; and
 the role of public policy in shaping the
entrepreneurial environments.

7. General Environmental
Conditions
 General environmental conditions that may
influence entrepreneurship include:
 legal and institutional frameworks for efficient
functioning of private enterprises
 presence of experienced entrepreneurs and
skilled labor force
 accessibility of suppliers and customers or new
markets
 high degree of competition among firms
 favorable government policies
 provision of training and support services
 supportive infrastructure

8.  In addition, the literature suggests that the
characteristics of people, their skills,
experience, and motivation, play
important roles in new venture creation

9. Country/Region Specific
Environmental Conditions
 Countries that keep rules and regulations at a
minimum, offer tax and other incentives, and
provide training and counselling services to
start-up entrepreneurs increase the likelihood
of new venture start-ups.
 Furthermore, factors such as availability of
financial resources, large size urban areas,
and presence of universities for training and
research are found to be very important to
increase the rate of new venture creation

10.  Studies also show that entrepreneurs face
several obstacles, such as lack of financial
assistance, lack of information on various
aspects of business, excessive taxation,
and high rate of inflation.

11. Role of Public Policy
 Scholars that focused on the role of public policy
suggest several policy options for developing
entrepreneurship.
 These policy options include provision of
 venture capital funds
 tax-based incentives, and government procurement
programs
 protection of proprietary ideas and innovations
 investment in education and research
 explicit recognition of, and support for, entrepreneurship by
government agencies
 fostering of entrepreneurship by educational institutions
 and minimization of entry barriers.

12. Environmental Analysis
Positive environment
Encourages entrepreneurial development
and growth
This is called entrepreneurial motivation

13. Greatest Motivation……
Money
But………
It is not alone that inspire an entrepreneur

14. Other motivating factors are:
 Internal
 External

15. Internal factors
 Family background
 Education background
 Training and work experience
 Desire for achievement
 Desire to head a unit

16. External Factors
 Availability of inputs or raw materials
 Demand of the product and large profits
 Availability of infrastructure and finances
 Availability of technology
 Short supply of the product
 Government initiative and assistance
 Ready availability of sick units

17. Entrepreneurial motivation
Classified in three categories
 Factors of Compulsion
 Facilitating factors
 Entrepreneurial ambitions

18. Role of Infrastructural Network

19.  The basic infrastructure at the place of
the project help in
 speedy implementation of the project
 Reduce costs
 Increase profitability

20.  Better or rapidly improving infrastructure in
a particular area may attract more
entrepreneurs and see enhanced
entrepreneurial activities

21. Basic infrastructure requirements
Certain infrastructural elements seem to make
substantial impact on the entrepreneurial
environment.
 modern transport and communication facilities
that provide easy access to suppliers and
customers
 Road Network
 Connected to Rail
 Ports
 Airport

22.  location decisions of based on the
community’s ability to supply trained and
capable workers and on the proximity to
research and development institutions

23.  existence of universities and research and
development programs
 a well-educated and technically skilled
labor force, and

24.  Supporting industries
 Climatic conditions
 Logistic support
 Electricity
 water

25. Role of Infrastructural Network
 Most commercial operations such as venture
capital firms and commercial banks tend to
exhibit greater interest in concentrated,
urban areas that usually have a well-
developed infrastructure and concentrated
demand for funds
 They also favour areas where businesses are
easier to supervise and monitor and the cost
of supervising and monitoring loans is
relatively low