Main Important Social Factors: Social factors can go a long way in encouraging entrepreneurship. In fact, it was a highly helpful society that made the industrial revolution a glorious success in Europe. It is determined by a combination of factors including family background, income, wealth, occupation, education, power, and reputation. Like Joe’s culture, it influences consumer behavior by shaping consumers’ needs and perceptions about their needs. The 4 main special components of the social environment are as follows.
1. Caste Factor:
There are certain cultural practices and values in every society that influences the’ actions of individuals. These practices and values have evolved over hundreds of years. For instance, consider the caste system (the varna system) among the Hindus in India. It has divided the population on the basis of caste into four divisions. The Brahmana (priest), the Kshatriya (warrior), the Vaishya (trade), and the Shudra (artisan): It has also defined limits to the social mobility of individuals. By social mobility’ we mean the freedom to move from one caste to another.
The caste system does not permit an individual who is born a Shridra to move to a higher caste. Thus, commercial activities were the monopoly of the Vaishyas. Members of the three other Hindu varnas were not interested in trade and commerce, even when India had extensive commercial relations with many foreign countries. The dominance of some ethnic groups in entrepreneurship is a global phenomenon.
There are concerns about the opposing morality in the West, the Samurai in Japan, the business class in America, and the family business in France. Distinguished themselves as entrepreneurs.
2. Family background:
This factor includes the size of the family, type of family, and the economic status of the family. In a study by Hadimani, it has been revealed that the Zamindar family helped to gain access to political power and exhibit a higher level of entrepreneurship. The background of a family in manufacturing provided a source of industrial entrepreneurship. The occupational and social status of the family influenced mobility. There are certain circumstances where very few people would have to be venturesome.
For example in a society where the joint family system is in vogue, those members of a joint family who gain wealth by their hard work denied the opportunity to enjoy the fruits of their labor because they have to share their wealth with the other members of the family.
Education enables a person to understand the outside world and equips him with basic knowledge and skills to deal with it day by day. Problem. In any society, the education system has an important role in raising the values of entrepreneurship. In India, the education system prior to the 20th century was based on religion. In this rigid system, the critical and questionable attitude towards society was discouraged. This type of education strengthened the caste system and the resulting geographical structure. This promoted the idea that business is not a respectable business.
Later, when the British came to our country, they introduced an education system, just for the East India Company to produce clerks and accountants, the basis of such a system, as you can well see, very hostile. It is an entrepreneur. The unfortunate result of this is that young men and women in our country have developed a taste for service only. His talents and abilities have not been much utilized. It’s rather ruined In doing regular traditional work. Our educational methods have not changed much even today. The emphasis is still on preparing students for standard jobs rather than being competent enough to stand on their own feet.
4. Society’s attitude:
One aspect related to these is society’s attitude towards entrepreneurship. Some societies encourage innovations and novelties and thus approve the rewards of entrepreneurs’ actions and profits. Some other people do not tolerate changes and under such circumstances, entrepreneurship cannot and will not take root. Likewise, some societies have an inherent dislike for any money-making activity. It is said that in Russia, in the nineteenth century, the upper classes did not like entrepreneurs. For him, cultivating the land meant a good life. He believed that Rand belonged to God and that the production of land was nothing but God’s blessing.
Russian folklore, proverbs, and songs during this period gave the message that earning money through the business was not right. Can you think of examples from your own community or someone else you know? If you can, write a few lines here.
5. Cultural Value:
Motives impel men to action. Entrepreneurial growth requires proper motives like profit-making, acquisition of prestige, and attainment of social status. Ambitious and talented men would take risks and innovate if these motives are strong. The strength of these motives depends upon the culture of the society. If the culture is economically or monetarily oriented, entrepreneurship would be applauded and praised; wealth accumulation as a way of life would be appreciated. In less developed countries, people are not economically motivated.
Monetary incentives have relatively less attraction. People have ample opportunities of attaining social distinction through non-economic pursuits. Men with organizational abilities are, therefore, not c dragged into the business. They use their talents for non-economic ends. The absence of proper economic motives is a general characteristic of agrarian societies in which people do not attach great value to business talents, industrial leadership, etc.
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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»