Q.Explain the economic factors that affect entrepreneurial growth.

Whether enterprises can be set up and grow depends heavily on the availability of resources and markets.

Economic factors relate to the resources and markets an enterprise needs:

1. Capital — adequate finance is the lifeblood of enterprise; easy access to funds encourages more ventures.
2. Labour — availability of skilled, trainable workers at reasonable cost supports industrial activity.
3. Raw materials — an assured supply of good-quality raw materials at fair prices is essential for manufacturing.
4. Market — a large and growing market, with buyers who have purchasing power, makes ventures viable and worth expanding.
5. Infrastructure — roads, power, water, transport, communication and banking reduce costs and make it easier to set up and run an enterprise. …

Mixing economic factors with non-economic ones (such as social attitudes or education). Economic factors are specifically about resources and marke …