S.5 The Entrepreneurship Environment Caltec S.5

1 THE ENT REPRENEUR SHIP ENVIRONMENT Entrepreneurial environment refers to the combination of external factors and their organic integration which make an impact on the startup process of the business by the entrepreneur . Features /Characteristics o f the Entrepre neur Environment/ Aspects t hat characterize t he Entrepreneurship Environment 1. Flexibility . Entrepreneurs do not base on one best solution but they usually improvise the response to the changing environment . 2. Opportunity Orientation . This refers to the ability to identify and analyze market opportunities which individuals take advantage of they always l ook for opportunities and exploit them. 3. Uncertainty . It refers to a possib ility of un expected risks. The entrepreneur ial environment is full of risks which entre preneurs do not fear exploit and lead in uncertainty 4. Resource scarcity . It refers to limited resources like time finance, skills and others . This affects new firms but entrepreneurs see it as a chance to exploit . Types /Forms o 1f Entrepreneurial Environment  Economic Environment  Social Cultural Environment  Political Environment  Global Environment  Technological Environment  Demographic Environment ECONOMIC ENVIRONMENT This refers to the nature of economic systems of a particul ar society that directly affect the level of entrepreneurial development or business startup process . Economic factors that influence Entrepreneurial attitudes and intentions  Economic policy . Favourable economic policy inform of a free market economy encourages entrepreneurship development while unfavourable economic policy inform of restrictive market economy discourages entrepreneurship development .  Administrative system . Presence of short procedures for business registration and licensing promotes entrepreneurship development while long procedures for business registration and licensing limits entrepreneurship development.  Nature of infrastructure . Developed infrastructure like good roads promotes transport thus promoting entrepreneurship while under developed infrastructure limits …