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Exercises · Q8

Q.Discuss the non-economic factors that influence the growth of entrepreneurship.

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Non-economic factors are the social, cultural and psychological conditions of a society:

  1. Social attitudes and legitimacy of enterprise — a society that respects business and risk-taking produces more entrepreneurs than one that looks down on trade.
  2. Culture and social mobility — values that reward achievement, and a flexible social structure that lets people rise by merit, encourage enterprise.
  3. Education and training — education spreads knowledge, skills and awareness of opportunities, while specific entrepreneurship training builds competence.
  4. Family background and role models — coming from a business family, or seeing successful entrepreneurs, inspires others.
  5. Need for achievement and psychological drive — societies with strong achievement motivation tend to be more entrepreneurial. …

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