Source | Entrepreneur
Entrepreneurs are the drivers of innovation and every day their determination touches billions of lives and creates employment opportunities needed for economic growth.
They’re focused on a material, economic problem. Their platform is pre-emptive, proprietary, pivotal and scalable. They carefully craft a brand, culture and a talent-management approach which supports the mission. They focus on a rigorously defined set of value-creating metrics to guide which have direct and immediate influence on entrepreneurship.
Capital is a key factor for the establishment of an enterprise. Increase in capital investment is directly proportional to increase in profits helping in the process of capital formation.
The most important role is played by the market and marketing is key to the growth of entrepreneurship. No entrepreneur can survive without a thorough and updated knowledge about market and techniques.
It is basic necessity for establishing any industrial activity and it helps in the emergence of entrepreneurship.
Easy availability of right type of workers also effect entrepreneurship. The availability of labour determines the growth of entrepreneurship.
Expansion of entrepreneurship presupposes properly developed communication and transportation facilities. It not only helps to enlarge the market, but expand the horizons of business too.
Factors such as family background, education, social environment and even caste system, as in India, also play important roles.
A very interesting study on psychological theories of entrepreneurship was put forward by David McClelland. He said ‘need achievement’ is social motive to excel a typical characteristic of successful entrepreneurs. Other factors included loss of social respect/status and motives.
Entrepreneurial opportunities also depend on the institutional context. For instance, researchers have documented that changes in policy regime and changes in the law can have a dramatic impact on entrepreneurial opportunities. Entrepreneurial education and training is again directly proportional to growth and business creation. Surveys suggest that almost 20% of students, who participate in a mini-company programme in secondary school, later tend to start their own company, a figure that is about three to five times that for the general population.