Political Factors Affecting Business in India: A football player can have extraordinary talent. However, his contribution to the nation and the world of sports will be negligible if his performance is limited to the courtyard of his home. He needs a football field to practice and resources to buy goods.
There are many external environmental factors that can affect your business. And it is common for managers to assess each of these factors closely. But the objective is always to make better decisions for the progress of the firm. And some common factors are social, economic, political, and technical “known as pest analysis”. These companies also study environmental, legal, ethical, and demographic factors. But here I am going to give a guide to the political factors affecting business in India.
Political Factors Affecting Business
He also needs encouragement and support from those in authority so that he can play openly with others and prove his talent. In the same way, an entrepreneur, however, creative / he may be, cannot function without the supporting functions. Government. It is for the government/society to ensure the availability of necessary resources for entrepreneurs and also ensure their access. This is because the successful entrepreneur contributes to the well being of society.
Policies related to various economic aspects such as price, capital, labor, and availability of other investments, demand structure, taxation, income distribution, etc. affect the development of entrepreneurship to a large extent. Government activities such as incentives and subsidies contribute significantly to entrepreneurial performance. At the same time, government policies such as licenses, regulations, favoritism, government monopolies, etc. are undesirable for the growth of business enterprises.
Above all, a government that is politically stable and united can influence entrepreneurial activities in a significant way. Is there a business entrepreneur in your neighborhood? For example, try to gather information about their views about various government policies on taxation, finance, labor, etc. Also, ask them about the opportunities and growth prospects of a business unit. Write your handwriting.
My observations are:
India, all the above environmental forces, has turned in favor of enterprising men and women. There is a visible shift for the better in the highly passive entrepreneurial sector in the country. The tight grip of ideas and practices, religious and traditional, has begun to loosen. Dogmas (settled Rai) and superstitions have lost the grip they had before. It is encouraging non-commercial ‘sections to consider economic opportunities more sympathetically.
Consequently, a business division based on the caste system has tremendously reduced traditional activities, social approval, etc. More important now, are economic factors such as access to capital and entrepreneurial attitudes and knowledge of business i. Development of infrastructure, changes in government policies in favor of trade and industry, and of course, an increase in demand for manufactured products are some of the other factors that have inspired Indian entrepreneurs to seek new business opportunities.
- Discuss the environmental factors which influence entrepreneurship.
- What are the important ‘economic factors affecting entrepreneurial growth? Discuss.
What are the inimical factors that are retarding the growth of entrepreneurs in less developed countries? Explain.
Business management expert and Leadership Consultant and Business Coach, who writes her blog, Jay’s Trends, focused on helping small business owners understand trends in Business management. Other posts by Jayprakash Prajapati»