004 Entrepreneurial Environment - PART 4

Economic Environment
Economic conditions, economic policies and economic systems are the important external factors that constitute the economic environment of a business.
the economic conditions of a country,
the nature of the economy
, the stage of development of the economy, economic resources,
the level of income,
the distribution of income and assets etc. are among very important determinants of business strategies.

Technological Environment
Stages of development,
Change and rate of change in technology
Research and development affect marketing strategies.
The cost of technology acquisition,
Impact of technology on human beings
The environmental effects of technology affect marketing decisions.

Political environment
Political environment is composed of laws, government agencies and pressure groups that influence and limit various organizations and individuals in a society. The main political trends are:
(a)    Substantial amount of legislation regulating business.
(b)   Growth of public interest groups and
(c)    Changing government agency enforcement.

Socio-cultural environment
The basic beliefs, values and norms shape the society and its people.
Even when people of different cultures use the same basic product, the mode of consumption, condition of use, purpose of use or the perception of the product attributes may
Even the value and beliefs associated with colour vary significantly between different cultures.

Legal environment
Entrepreneurship and developing countries
The potential of economic development remains dormant because of undeveloped or underdeveloped human resources.

In fact, man is much more crucial to development than any other economic factors. The sufficiency of other resources alone, does not lead us anywhere.

Resources to be developed may exist in plenty but if development-linked human minds are absent, hardly any economic development will take place.

While human skills include manufacturing, technical, supervisory, managerial, administrative and entrepreneurial competence, it is the entrepreneurial quality, which is a key ingredient.

It often sets the limit to the degree of industrial development and the speed with which it can be achieved in a particular country or region.