Factors affecting
entrepreneurship
Lesson 2
Two main types of factors
1. Personality Factors
(internal)
2. Environmental factors
(external)
Personality
a. Initiative- this means doing something without
being told. factors
b. Proactive- meaning he can classify opportunities
and seize it.
c. Problem solver- someone who can identify
problems and come up with effective solutions
which is critical for managing business.
d. Perseverance- he will pursue things to get done
regardless of challenges.
PERSONALITY FACTORS
E. Persuasion- that he can entice
people to buy even if they don’t
want to.
F. A Planner-he makes plans before
doing things and does not fail to
monitor it.
G. Risk Taker- which means that he
is willing to gamble but he will
calculate it
first.
Environmental
A. Political- stability of the government,
factors
government policies, and support for business
B. Climate- Physical environment or even regional
weather.
C. Legal system- Laws and regulations around
starting and running a business, such as permits,
labor laws, or business registration processes.
ENVIRONMENTAL
D. Economic Conditions- the overall
state of theFACTORS
economy affects the
consumer spending and investment.
F. Social Conditions- cultural norms,
life style trends, education levels, and
demographics can influence what can
of business can successful.
G. Market situations- the demand for
the product or services, level of
competition
And customer behavior all shape
SUMMARY
To succeed in entrepreneurship, a
person needs the right personal
qualities and must also
navigate the external factors.
Both sets of factors play a major
role in shaping a successful
entrepreneur.
Activity#2: true/false
DIRECTION: Write T if the statement is True, and F if it is False.
1. Entrepreneurs who are proactive tend to wait for market trends to
become clear before taking action.
2. Risk-taking in entrepreneurship should always involve a detailed
assessment before decisions are made.
3. Environmental factors are entirely within the entrepreneur’s
control.
4. An entrepreneur who creates a business plan, sets goals, and
monitors progress is showing good planning skills.
5. A person’s personality traits can influence how they respond to
challenges in their business.
6. Legal systems, such as business registration laws, have no impact
how entrepreneurs start a business.
7. Persuasion is an essential skill for attracting customers, investors, or even motivating
a team.
8. A problem solver is likely to avoid difficult situations and hope they fix themselves
over time.
9. Perseverance means continuing to work through difficulties rather than giving up
easily.
10. The economic condition of a country is an environmental factor that can affect the
success of new businesses.
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