1. FACTOR AFFECTING ENTRREPRENEURSHIP GROWTH

2. FACTOR AFFECTING ENTRREPRENEURSHIP GROWTH
Development of entrepreneurship is not a spontaneous one but a dependent of phenomenon of economic, social, political, psychological factors supporting conditions to entrepreneurship development

3. FACTOR AFFECTING ENTRREPRENEURSHIP GROWTH
Economic Factor
-Economic environment exercises the most direct and immediate influence on entrepreneurship.
Capital
factors of production
Increase in capital investment in viable projects results in increase in profits
too gets a boost with the easy availability of funds for investment
Bank loan

4. Labor
-Easy availability of right type of workers also effect entrepreneurship
-The quality rather than quantity of labor influences the emergence and growth of entrepreneurship.
-low-cost labor
Raw Materials
-In the absence of raw materials, neither any enterprise can be established nor can an entrepreneur be emerged
-basic ingredients required for production
-Shortage of raw material can adversely affect entrepreneurial environment.

5. Market
- The role and importance of market and marketing is very important for the growth of entrepreneurship
- modern competitive world no entrepreneur can think of surviving in the absence of latest knowledge about market and various marketing techniques.
- The size and composition of market both influence entrepreneurship in their own ways.

6. Infrastructure
-Expansion of entrepreneurship presupposes properly developed communication and transportation facilities
Post and telegram substitute by s- before use birds

7. Non Economic Factor Social Factors Caste Factor/Family Background
-cultural practices and values in every society which influence the’ actions of individuals.
-The Brahmana (priest), the Kshatriya (warrior), the Vaishya (trade) and the Shudra (artisan):
-social mobility
-type of family and economic status of family -

8. Education
-Education enables one to understand the outside world and equips him with the basic knowledge and skills to deal with day-to-day problems.
-Certain societies encourage innovations
Cultural Value
-Entrepreneurial growth requires proper motives like acquisition of prestige and attainment of social status.
-strength of these motives depends upon the culture of the society.

9. Psychological Factors
Need Achievement
Need for achievement (N-Ach) refers to an individual's desire for significant accomplishment, mastering of skills, control, or high standards.
need achievement’ is social motive to excel that tends to characterize successful entrepreneurs i.e entrepreneurs, had this characteristic
-Moreover, some societies tend to reproduce a larger percentage of people with high ‘need achievement’ than other societies- singapore
-that people with high need-achievement are distinctive in several ways.

10. Status Respect/Attitude of the Society
-There are several other researchers who have tried to understand the psychological roots of entrepreneurship
-Motives

11. Government Policies
Role of Government in Entrepreneurship Development/ Growth
Government Policies
Effect of Government Policies

12. Role of Government in Entrepreneurship Development/ Growth
Creates conducive business environment-PEST
Promote financial help via venture capitals
Promoting establishment of incubators.(providing a controlled environment for the care and protection of premature or unusually small babies)
Develop entrepreneurial ecosystem

13. Role of Government in Entrepreneurship Development/ Growth
Attractive investment
Infrastructure
Easy taxation
Fund raising
research
business friendly laws and a function

14. Government policies Entrepreneurship Economic Development

15. Government Policies Economic reforms Industrial Policies
Financial sector reforms

16. Economic reforms
A serious financial crisis in the mid-1980s brought the IMF and World Bank to the rescue with conditional economic
economic reform comprises policies directed to achieve improvements in economic efficiency
Requires gradual reduction in import and increase in export- tax free
reforming economy-wide policies such as tax policy and competition policy

17. Economic reforms Liberalization Privatization Globalization
Shows the direction, making the economy more market and service oriented and expanding the role of private and foreign investment
-freedom to import technology
- Action plan for information technology and software development

18. Privatization
Shows the path; process under which state/public assets were transferred to the private sector
Transferring ownership of a business, enterprises, agency from public sector to private sector
Increase efficiency in the delivery of programs and service
Provide competition in market place which transfer the lower price and greater choice for the consumer

19. Globalization
Shows the ultimate goal , unrestricted cross border movements of goods and services, capital and the labor force
“ the intensifications of world wide social relations which link distinct localities in such a way that local happening are shaped by events occurring miles away.
Culture
Economy
Political
Technical

20. Industrial Policies
First established in 1991 which was focused on economic development through agriculture
Industrial sector contribute nearly 20% in Nepal economy
Government reviewed in 2011
- special provisions for women entrepreneurship
- classification of district according to least developed , under developed
- special attention for development of cottage and small scale industrial

21. Financial sector reforms
The financial sector is a category of stocks containing firms that provide financial services to commercial and retail customers
Nepal adopted a liberal policy in the banking sector in particular and overall financial sector in general during the mid-1980s
this sector includes banks, investment funds, insurance companies and real estate, provident fund

22. Financial sector is regarded as the backbone or engine of growth of any
economy whether developed or developing or in transition or emerging
Financial sector reforms refer to the reforms in the banking system and capital market.
Financial companies provide loans for businesses, mortgages to homeowners and insurance to consumers.

23. Financial sector reforms
An efficient banking system and a well-functioning capital market are essential to mobilize savings of the households and channel them to productive uses
Maximize the asset value of insolvent and bankrupt firms
Promote entrepreneurship and availability of credit
Establishing an insolvency and bankruptcy fund
Foreign exchange service
Investment services
Insurance

24. Social entrepreneurship
Social entrepreneurship is the use of the techniques by start up companies and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental issues
social entrepreneurs are either non-profits or blend for-profit goals with generating a positive "return to society"
Social entrepreneurship is the activity of establishing new business ventures to achieve social change. The business utilize creativity and innovation to bring social, financial, service , educational or other community benefits.

25. Social entrepreneurship create innovation solutions to immediate social problems and mobilizes the ideas, capacities, resources and social arrangement required for sustainable social transformation
associated with the voluntary sector in areas such as poverty alleviation, health care and community development
For example, an organization that aims to provide housing and employment to the homeless may operate a restaurant, both to raise money and to provide employment for the homeless
Create sustainable solution that change society for the better

26. Eg : extend banking facilities to poor men and women who otherwise would not get bank loans
Fair trade

27. Function of social entrepreneurship
To create and maintain a stable level of employment
Create jobs and provide support to social vulnerable groups
Promotes development of entrepreneurial skills

29. Tax reforms
It is known that government needs more revenue mobilization for overall economic development and state welfare.
Tax is a key source for revenue generation and mobilization.
Tax is the compulsory contribution from a person to the government to expenses incurred in the common interest of all without reference to special benefit conferred.”