Vol: 2, Issue: 4 2012

Page: 1-9

Study on Factors Influencing Entrepreneurship

Ramesh Singh

Received Date: 2012-08-04

Accepted Date: 2012-09-03

Published Date: 2012-10-01

Developing economies like India, China, Pakistan, Sri Lanka, Malaysia and many other South Asian countries have always considered small business sector as an important sector of the economy. A broad assumption that there are similarities in economic development process through entrepreneurship and small enterprise development across developed and developing countries could seem to be both ethnocentric and unsubstantiated. Most of the developing countries suffer from non-availability of authentic economic data. In fact, collection of sophisticated economic data in such countries is rather impossible in near future. Plaschka and Welsch (1990), for example, have suggested that the development of entrepreneurship is the result of co-ordination of internal and external components. Internal components include factors such as individual characteristics of employees, financial resources, and the firm characteristics like systems of production, organization, and marketing. External components include factors like government, taxes, laws, regulations, free trade policies, location, infrastructure and the existence of enterprise zones, the availability of skilled labour force, the presence of venture capital, government loans and grants, and the presence of supporting institutions and systems, including universities research facilities, public and private partnerships, networking and cooperative support between entrepreneurs. The favourability and unfavourability of internal and external components can influence entrepreneurs’ ability to create viable organizations

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