When you come across most successful entrepreneurs, there’s a huge diversity of schooling, backgrounds, and upbringings. However, there are some formal factors and skills that many of these prosperous entrepreneurs have developed before their success. That said, you can enjoy Spotify music after you buy Spotify plays.
Below are factors influencing entrepreneurship development.
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- Capital
Access to capital is one important factor that can improve and accelerate your entrepreneurship, as you will always require capital for research and growth, production, and marketing.
This is the reason why investment capitalists, supporter investors, entrepreneurial incubators and accelerators are around – to help you connect with the supportive investors who have the necessary capital and believe in the ideas they’re funding when you need money.
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- Labor
Availability and affordability of good labor is another aspect that affects entrepreneurship, as it can be difficult for you to find trained employees to work for your business. Labor, like access to capital, is another factor that is much less problematic these days.
However, the quality rather than the quantity of labor impact the emergence and growth of entrepreneurship. It has become much easier, faster, and inexpensive for your to o connect with highly skilled and qualified potential employees from all over the world
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- Marketing
The role and importance of market and marketing is very important in the growth of your entrepreneurship. You must find the ideal target market for your idea, service, or product if you have hopes of selling it and making any money.
Through the social networks, digital publications, and online groups locating and achieving a targeted market has never been easier or inexpensive. So, while there has to be a big adequate target market that has interest in your idea to certify its profitability, if that market is out there, reaching them should be much simpler today than it was a couple of years ago.
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- Family background
A family background in entrepreneurship is one of the best and most direct ways to immerse yourself in the entrepreneurial mindset and exemplify the benefits of starting and running your own business.
If you have a positive experience with your own family business, you may be more likely to pursue your ventures in the future. You may see the entrepreneurial route as more customary and less unconventional or risky.
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- Creativity and Ideas
Having creativity and new ideas play a big part in your entrepreneurial journey, as entrepreneurship often sparks creative innovation.
As an entrepreneur, you should encourage yourself to run your enterprise with your imagination and use it to think up new products, services, or improvements on current ones.
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- Risk Tolerance
As an entrepreneur, you have to be with at least a minimal level of patience to truly stick in and out because entrepreneurship is often naturally risky.
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- Raw Materials
The requirement of raw materials barely needs any emphasis for establishment of any industry activity and its impact in the emergency of entrepreneurship. With lack of raw materials, neither any enterprise can be formed nor can an entrepreneur emerge. It is the basic element required for production. Scarcity of raw materials can affect entrepreneurial development. Without, ample supply of raw materials no industry can function properly, and exposure of entrepreneurial ships is affected.
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- Cultural value
Entrepreneurial development requires proper motivation like profit making, accession of reputation and attainment of social status. If you are determined and talented you will take risks, and be innovative if these motives are powerful.
This depends on the culture of the society. If the culture is economically or budgetary oriented, entrepreneurship would be recommended and praised; wealth accumulation as a way of life would be recognized. In economically developing countries, people are not economically motivated.
9. Infrastructure
Development of entrepreneurship entails proper developed communication and transportation facilities. It does not only help to raise the market, by expanding the perimeter of the business too.
Conclusion
Entrepreneurship is important in the development of any economy. As an entrepreneur, you should be an individual who has vision, creativity, confidence, an opportunity seeker, a relation builder, and a risk-taker who is determined to ditch his lifestyle to start his businesses, taking on financial risks in the hope of profit.
Entrepreneurship is a complicated situation controlled by the interchange of various factors.
