ENTREPRENEURIAL ENVIRONMENT

Entrepreneurship Environment refers to the various facets within which enterprises big,
medium and small and others have to operate.
The environment influences the enterprise
The environment is created by Social, cultural, economic, legal, ecological, political and
technological forces
Environmental scanning
Environmental scanning is a concept from business management by which businesses
gather information from the environment, to better achieve a sustainable competitive
advantage. To sustain competitive advantage the company must also respond to the
information gathered from environmental scanning by altering its strategies and plans
when the need arises.
Socio cultural Factors

Culture/Sub culture
Caste/colour/race scenario
Gender equation issue
Religion
Consumer attitudes
Lifestyles
Buyer motivation

Economic conditions
Capital System
Labour system
State and stage of economy
Money markets and liquidity issues
Banking and investment sector
Tariffs
Subsidies
Demand Conditions
Legal Environment
Legislative-Fiscal , monetary policy and reservations
Judiciary-Tax Laws, regulations like consumer protection

Ecological environment
Natural environment-Biotic and abiotic components
National resource disparity among nations
Pollution and ecological degradation issues
Eco friendly groups
Political environment
Social groups/Parties
Secular parties
Nationalist
Fundamentalist
Communist parties
Backward politics
Regional parties/issues
Leadership issues
Stability issues
Vested interest
Technological environment
Fundamental research
Applied research
Rate of obsolesces
Technological risk
Competitors technology
Infrastructure technology-communication and transportation
Suppliers technology
Innovations and upgrading rate
SLEPT analysis
An investigation of the Social, Legal, Economic, Political, and Technological influences
on a business.
SWOT Analysis
Constant monitoring of the environment is necessary to identify the emerging
opportunities and threats
To understand to what extent a firm will be able to exploit the opportunities and fight the
threats it is necessary to evaluate the strengths and weaknesses of the firm

Strength: attributes of the organization that are helpful to achieving the objective.
Weaknesses: attributes of the organization that are harmful to achieving the objective.
Opportunities: external conditions that are helpful to achieving the objective.
Threats: external conditions that are harmful to achieving the objective.
SWOTs are used as inputs to the creative generation of possible strategies, by asking and
answering the following four questions:
1. How can we Use each Strength?
2. How can we Stop each Weakness?
3. How can we Exploit each Opportunity?
4. How can we Defend/Destroy against each Threat?

Strengths and weaknesses

Helps Company to decide whether the company should continue in a business ,take up
new lines as well as the strategy to be employed in doing so
Done by functional audit (Quantity and quality of skills) of different areas like marketing,
finance etc and also infrastructure support
Opportunities and threats
Monitoring the environmental changes is necessary to shape the companys business and
products
Examples:Strengths and Weaknesses
Resources: financial, intellectual, locational ,Customer service ,Efficiency ,Competitive
advantages ,Infrastructure ,Quality ,Staff ,Management ,Price ,Delivery time ,Cost
,Capacity ,Relationships with key industry customers ,Brand and Reputation in the
Market ,Local Language Knowledge
Examples :Opportunities and Threats
Political/Legal ,Market Trends ,Economic condition ,Expectations of stakeholders
,Technology ,Public expectations ,Competitors and competitive actions .

PEST analysis
PEST analysis stands for "Political, Economic, Social, and Technological analysis" and
describes a framework of macroenvironmental factors used in environmental scanning. It
is also referred to as the STEP, STEEP or PESTLE analysis (Political, Economic, Sociocultural, Technological, Legal, Environmental). Recently it was even further extended to
STEEPLED, including ethics and demographics.
Sectoral Analysis
It is evaluating of business opportunity on the sector in which it is accomodated
Sectors
Agro and allied,Irrigation
andpower,Industry and
communication,Social service,IT,Biotech and Miscellaneous
Parameters Studied
Government Priority, Incentives/Fiscal/tax
growth/Output restrictions/Control
Licenses /permit required
Environmental ban
Subsidies
Government discouragement
Export promotion
Social reluctance

benfits,

mining,Transport

regional

and

Restrictions,

Classification of industry
Sunrise Industry
Immense profit potential
Uncertain growth
Complex requirements
Established or mature industry
Face environmental issues
Less dyamic
Prictable
Less complex
Examples: hydrogen fuel production, space travel for tourism and online
encyclopedias.

Fragmented Industry
No one company has market domination
Low barriers to entry.
Lack of standardization, or lack of need for it.
Examples: Landscaping and plant nurseries, Auto repair, Restaurant industry ,
Clothing retailers etc