Factors affecting entrepreneurial growth

In a study conducted in India [1986], Rao and his team identified three sets of factors behind entrepreneurial growth. Thus factors affecting entrepreneurial growth are as under:

Factors affecting entrepreneurial growth

1. Ambition-related Factors

1. To make money
2. To continue the family heritage
3. To gain social prestige
4. Other ambitions pleasure of doing something creative, creating employment for others, etc
5. To make self- employment
6. To fulfill self or others’ desire

2. Compelling Factors

1. Unemployment
2. Dissatisfaction in existing job/occupation
3. Family pressure
4. Revival abandoned /sick units owned by the parental or wife’s family
5. Make use of idle funds
6. Make use of available -technical or professional

3. Facilitating Factors

1. Success stories
2. Previous experience in the line of activity
3. Influence or encouragement of the powerful quarters
4. Association as apprentices/ sleeping partners
5. Previous employment in the line of activity
6. Inherited business

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