Assignment Sample on Promote or Constrain Entrepreneuria Practice
Introduction
The essay addresses the importance of environmental factors and the innovational and market factors of There are two types of entrepreneurship that can be seen such as small and new entrepreneurship that help the business to flourish and nourish in the corporate world. Entrepreneurship is a concept of development and managing the business in such a manner so that it could help to bring profitability for the business by taking several of the risk factors in the business world. Two types of entrepreneurship can be seen as small and new entrepreneurship. However, it is recognized as a willingness to start a novel business. Entrepreneurship played a crucial role in the economic development of the country. However, the success of entrepreneurship requires hunting for opportunities and grabbing them to develop the business. However, the skills that are essential for entrepreneurship are the ability to generate new ideas and thoughts for the business and the innovation that can promote the business venture with efficiency. At the same time, the innovation needs to flourish the new or small business and grab the market value for its product or service. Good qualities of leadership management environmental and contextual factors that affect it are also included in the discussion of the essay to have a better understanding.
Body
After thorough studies and research work, it has found that environmental factors and contextual factors are playing a significant role in the business opportunity and the development of the business of entrepreneurship. However, the success of entrepreneurship depends on a suitable and sustainable market strategy by which the goal and the objective of the business can be illustrated effectively. There are macro and micro environmental factors that affect entrepreneurship (He et al. 2020). Macro environments often influence external environment factors such as political, economical, social, cultural, legal, technological and environmental factors that can affect the operational and promotional practices of entrepreneurship. On the other hand, microenvironments illustrate the internal factors such as employees and managers, money, resource, company and cultural factors. In this essay, the PESTLE framework has conducted to analyse the environmental factors in the
Political factors
Political and regulatory factors are recognized as the external factors that can promote the business practices of entrepreneurs. State government, local bodies or federal government can set up such rules and restrictions for the business activities. The prior objective of these types of rules and regulation is to protect business and consumers. For example, in the tobacco business, the entrepreneur practices can be restricted and the government can ban advertisements on TV and radio. In this context, political regulations such as taxation and trade policies can appear as the major environmental factor for the entrepreneurial practices that can be affected by both positive and negative. If the policies are in favour of entrepreneurship then it enhances a positive result for them (Begeç and Arun, 2020). For example, if the government offers relaxation on trade and taxation then it brings opportunities for entrepreneurship so that they can secure the business profitability. On the other hand, Politics decide the market character such as capitalism, liberal or can be a mixed economy. It also promotes entrepreneurial practices as these three markets have their feature of implementation. However, a breakthrough innovation has been approached by capitalism that means entrepreneurs need to connect well with political bodies to ensure their success. Therefore, it has been seen that entrepreneurship has flourished in those geographical areas where the capitalist economy is existing.
Legal factors
The fairness and the strength of the legal system of a nation can be appar as the major factor for the success of entrepreneurial practices as they need to fulfil a large scale of legal services to conduct their operational activities. For example, entrepreneurs need the legal support of courts to enforce contracts held between two parties but in many cases in many countries, it has been seen that these contracts are not enforced effectively. Thus, the entrepreneurs need to go again to the court for the protection of contracts. In many cases, it has also been found that entrepreneurs have faced bankruptcy due to legal negligence (Ahadi and Kasraie, 2020). Therefore, the legal factors are majorly effective environmental factors that affect entrepreneurial practices. If the legal system of a country is favourable for entrepreneurs, then it will help them to flourish and nourish their business or otherwise it can approach a negative result to sustain their new business in the market. For example, the US legal system is recognised as most favourable for entrepreneurship that strictly protects the entrepreneurial development in its country.
Economic factors services to functionalised the
The success of entrepreneurial practices all depends on the degree of capital market of the nation they belong to. The pattern of the capital market plays a huge role in the development of entrepreneurship as it secures the flow of capital for them. In the initial period, the entrepreneurs need a huge amount of money so that they can take the risk of a new venture. At the same time, they also require instant money to scale up the infrastructure for the quick development of a certain business idea. If the nation is not capable of providing such an amount of money then it has become very challenging for the entrepreneurs to sustain and determine the business idea (Abdelfattah and Aboud, 2020). In this context, the well-developed countries, which can provide capital at every stage, can be favourable for entrepreneurial practices. For example, venture capital, private equity, developed bond and the stock market and seed capital can help entrepreneurs to proceed with their new business idea towards success. On the other hand, the labour market is also recognized as another major environmental factor that can interrupt the success of entrepreneurial practice to promote the business idea. Skilled and experienced employees are the requirement for conducting the new business idea. In many countries, the labour market is very high and the high range of labour wedges can affect the entrepreneurial practices to proceed with their business. For example, in India. The wedge of employees is lower than the labour market of the US so the success of entrepreneurship depends on these factors too.
Raw material and infrastructure
The raw material is recognized as the important resources that can help entrepreneurs to determine their business idea effectively. However, in many countries, it has been seen that the flow of raw material is good and the price of raw materials are fair. However, in many cases, seller cartels control the raw material and it causes a high price. Furthermore, they control the natural resources that disrupt the profitability of entrepreneurs and they cannot reach their business goals (Aparici et al. 2021). Therefore, in the countries where the supply of raw material is not good, entrepreneurial practices can be affected and success can be diminished. On the other hand, infrastructure is another major factor that can affect the overall entrepreneurial practices. It has observed that to conduct a new business idea it requires to approach transport, electricity and other infrastructure services to flourish and nourish the business opportunities. These are the prior factors for entrepreneurship to conduct its business effectively. Therefore, the government body of those nations who pay attention to increase these infrastructure services, the range of entrepreneurship development has become high. For example, the entrepreneurship growth rate is 17.7% in the US due to its good infrastructure services. On the other hand, the growth rate is low in India due to the same reason.
Social
Social factors highly affect entrepreneurial practices and encourage startup businessperson to grow their business towards success. However, the behavioural approach of customers also depends on the social and cultural norms that can affect majorly entrepreneurial practice. There are several factors such as caste factor, the attitude of the society and cultural value can affect the entrepreneurial practice.
Social attitude
The success of entrepreneurial practices is dependent on social attitude. It has been observed that in certain societies, the behaviour of the people is very positive towards the entrepreneurs and they can encourage them to approach novel and innovative business ideas. For example, the social norms and attitude of Europe are always favourable for entrepreneurship. However, a positive social attitude often helps entrepreneurs to develop their new business idea effectively and encourages them to involve themselves in new risks. It helps them to grow certain and desirable profitability for their business. On the other hand, in some societies, it is also seen that they have a negative attitude towards any moneymaker and that is not a good aspect in the context of entrepreneurial practice and it can create obstacles in the success path of entrepreneurship (Mahfud et al.2020). For example, in the nineteenth century, upper-class people disliked entrepreneurship and they believe that cultivation is the best professional as it is linked with God. At the same time, cultural norms and the educational factor also play a significant role in the effectiveness of entrepreneurial practice. It has seen that self-sufficiency, work ethnicity and some other factors are also affected by the cultural norms as the behavioural attitude depends on the education system and traditional factors.
Technological
Technological factors are also a major factor that controls over entrepreneurial practices. In the present context, technological assessment such as digital marketing systems and the equipment of information technology can majorly affect the success of any entrepreneurship. Most companies pay attention to include new technology to grow their products and secure their profitability (Welter, 2011). Several new ventures have approached communication and information technology. Therefore, entrepreneurial practices can be affected positively by the market where the technology is easily available.
Environmental factor
Entrepreneurial practice is also affected by the environmental factor. In many countries, the government has approached several environmental acts for the corporate world that they are strictly instructed to abide by. In this context, the entrepreneur’s needs to focus on the green agenda of the government if they do not consider the factor it might affect their business and its further activities.
Competition from other business
Competition from other businesses is also a major factor that can affect entrepreneurial practices. In the present context, the market is highly competitive and that can affect entrepreneurial practice. If they cannot move their business idea towards innovation then it can create major problems for them to sustain their business effectively and they cannot compete over their competitors (Chavez et al.2020). For Example, if the entrepreneur of a certain company has approached retail business then he needs to move their action towards digital market otherwise, they cannot compete with other companies who approach this technology to enhance customer satisfaction towards their business. Therefore, the business idea needs to be unique for the entrepreneur so that it could help them to reduce the range of competition from other businesses.
Customer and suppliers
Customers and suppliers are the most effective people that can play a greater role to move the direction of entrepreneurial practice. The overall business profitability depends on the behavioural approach of customers towards the product addressed by the certain entrepreneur so it has become a prior factor that needed to consider by the strategic policy of them. On the other hand, the supplier’s attitude is effective for the pricing strategy in entrepreneurship as the cost of supplies adds to the cost of the product. If the entrepreneurs can manage a proper negotiation with their supplies then it could not help them to approach such benefits if they want to grow a certain level of profitability for their business (Tajeddini et al.2020). For example, if the entrepreneur of a coffee company cannot deal with a proper negotiation with their farmers then they cannot pay a marginal price for their customers and that leads them to provide scope to their competitor to lead over the market.
Internal factors
Employee and managers
Employees and the relationship between the management and employees is one of the major factors that can affect entrepreneurial practice. Employees are recognized as the core factor in the business and the productivity and profitability of the organisation. In this context, the entrepreneurial practice needs to include motivational activities for employees and a good salary structure and reward system for employees needs to increase employees towards the organizational goals for entrepreneurs (Santoro et al. 2020). On the other hand, employees need to be good in their job role whether they are involved in the production or selling department. However, the manager also needs to coordinate with them otherwise; the success path of the entrepreneurial practices cannot be possible for the success of entrepreneurship. At the same time, the management needs to manage the lower level of employees to enhance the success of their new business idea. Furthermore, the management also needs to take care of other factors such as internal factors and conflict issues in the organizational premises so that they can implement the entrepreneurial practice.
Money and resources
The entrepreneurs may have belonged to capitalist economies but if they have limited funds then it can affect their entrepreneurial practice and they cannot manage to hire skilled and experienced employees for them that require them to visualize their business idea in certain circumstances. At the same time, it can also affect the quality equipment of the business. However, it also affects the promotional activities of the company, as they cannot invest such an amount of money in their advertisement. Perhaps it can affect the desirable profitability that they want for their startup business. Therefore, entrepreneurs need to focus on the flow of cash so that they can be more flexible and can approach a growing business in a certain economy.
Culture of the company
After a thorough observation, it has also found that the cultural environment of the firm can majorly affect the success of entrepreneurial practice as it helps them to increase employee involvement in the organization. However, it has become very important for the entrepreneurial practice to approach a suitable cultural environment that requires collaborative teamwork that enhances the success path of the entrepreneurs. However, the employee’s motivation and involvement also depend on the cultural environment of the organization so that they can play a significant role to achieve the organizational goals.
Conclusion
It is concluded that the success of entrepreneurial practice depends on several environmental factors. The entrepreneurs need to focus on political, economical, environmental, legal, competitive factors and contextual factors such as community norms and cultural behaviour of nations that can affect their entrepreneurial practice. The conclusion reveals the factors that the success factors of entrepreneurial practices also depend on the money and resources internal factors such as the cultural environment of the company, money and resources of the company that affects the desirable profitability of the certain entrepreneur and its business idea. Therefore, entrepreneurs need to identify the opportunities to nourish and flourish their business idea.
References
Ahadi, S. and Kasraie, S., 2020. Contextual factors of entrepreneurship intention in manufacturing SMEs: the case study of Iran. Journal of Small Business and Enterprise Development.
Aparicio, S., Audretsch, D. and Urbano, D., 2021. Why is export-oriented entrepreneurship more prevalent in some countries than others? Contextual antecedents and economic consequences. Journal of World Business, 56(3), p.101177.
Begeç, S. and Arun, K., 2020. The bottleneck of intrapreneurship: are social positions and held expectations constraints in organizations’ entrepreneur process? A conceptual view. Journal of Entrepreneurship in Emerging Economies.
Chavez, R., Yu, W., Sadiq Jajja, M.S., Lecuna, A. and Fynes, B., 2020. Can entrepreneurial orientation improve sustainable development through leveraging internal lean practices?. Business Strategy and the Environment, 29(6), pp.2211-2225.
He, J., Nazari, M., Zhang, Y. and Cai, N., 2020. Opportunity-based entrepreneurship and environmental quality of sustainable development: A resource and institutional perspective. Journal of Cleaner Production, 256, p.120390.
Mahfud, T., Triyono, M.B., Sudira, P. and Mulyani, Y., 2020. The influence of social capital and entrepreneurial attitude orientation on entrepreneurial intentions: the mediating role of psychological capital. European Research on Management and Business Economics, 26(1), pp.33-39.
Santoro, G., Quaglia, R., Pellicelli, A.C. and De Bernardi, P., 2020. The interplay among entrepreneur, employees, and firm level factors in explaining SMEs openness: A qualitative micro-foundational approach. Technological Forecasting and Social Change, 151, p.119820.
Tajeddini, K., Martin, E. and Ali, A., 2020. Enhancing hospitality business performance: The role of entrepreneurial orientation and networking ties in a dynamic environment. International Journal of Hospitality Management, 90, p.102605.
Welter, F., 2017. Contextualizing entrepreneurship—conceptual challenges and ways forward. Entrepreneurship theory and Practice, 35(1), pp.165-184.
Know more about UniqueSubmission’s other writing services:
I do not even know how I ended up here, but I thought this post was great. I do not know who you are but certainly you’re going to a famous blogger if you are not already 😉 Cheers!