Entrepreneurship Factors Analysis: HND Business Management Unit 9

This report examines the various factors that influence entrepreneurship and small business management. It covers personal background and skills, highlighting the impact of parental characteristics, education, and essential skills like communication, leadership, and risk-taking. The report further analyzes external environmental factors, including the political, economic, social, technological, and legal landscapes, emphasizing how each can significantly affect business operations. Case studies, such as Wang Jialin's government interactions and Infosys' technological adaptations, illustrate the practical implications of these factors. The analysis draws from cited references to support its findings.

PERSONAL BACKGROUND,
SKILLS &ENVIRONMENTAL
FACTORS

 Personal background factors which
affects entrepreneurship includes;
parental characteristics, shared
genes, level of parental
entrepreneurship, need of
entrepreneurs to be self employed
and lastly the level of income and
education received from parents.
Personal background and skills
affects entrepreneurship success

 Personal skills also affects the level of
entrepreneurship in the society. Some
of the skills which the entrepreneurship
should possess involves;
communication skills, interpersonal
skills, leadership skills and also have
the intuition to look beyond the normal
idea. He or she should be able to be
resourceful and able to take risks.
Personal skills

 Any business is affected by the political
environment to a great extent. The political
environment entails political environment, the
government ideology, the bureaucracy, political
stability, political policies, image of the country
both local and international (Down,2010). If a
government restricts multinationals growth
then it will limit the business operations .
Political Environ.

 Also the issues of licensing on exportation
and importation greatly affects busineses.For
example in the case study Wang Jialin
formed a greater interaction with the
government hence he was able to do
business with the government well.
Cont.

Economic
There are economic factors also affect the enterprises in
business environment. These factors involves the
economic policies, structures and how the market of the
country is organized. If a business is able to examine the
external factors that affects it then it is able to minimize
the costs while they are maximizing the profit. It is hard to
control the economic factors by through diversification
then everything is made possible.

 There are also social factors that affects
greatly the activities of a business. The way
the community works and relates affects the
operations of the business. Some of these
factors involved include; work groups, labor
mobility, cultures, tastes and preferences,
wealth and business operations (Read, 2016).
Social environment

All the above factors have big impact on the
operation of the business. For example, the
demand of different products by the customers
will determine the quality of products the
company will produce. On the case study there
was great demand on housing with specific
design hence Wang had to develop quality
products.
Cont.

 Technological factors affects business in the
case of investment in technology, application
of the technology and lastly the effect of the
technology on the market. The type and
quality of products produced will depend on
the type of technology used in the business.
Technological environment

 A company or business will be adversely
affected by the change of technology in the
industry. When a company adapts up to date
technology then it will be able to produce
quality products hence attracting more
customers.
Cont.

 In the case study given of Infosys company,
Nandan had to adapt to the new technology
to attract more customers and
expand. Therefore, any technological
advancement affects the business in a
country (Down,2010).
Cont.

 The business is also affected by the factors
surrounding the legal environment. The most
affected are the shareholders and the
managers since they focus on the operations
of the business.The legal factors may involve
adherence to the laws and legal rules set up
by the government and also the legal
decisions made by the courts.
Legal Environment