Social Environment:
Social Environment: Social environment consists of some factors that affect the entrepreneurship growth. What would a man into an entrepreneur is the sociological and environmental factors during childhood, and at the school, personal experience in adult life at the college and job environments, the mobility, occupation and support from parents. The social factors include:
a. Legitimacy of Entrepreneurship: - System of norms and values within a socio – cultural setting is responsible for the emergence of entrepreneurship. The degree of approval or disapproval granted to entrepreneurial behavior will influence its emergence and its characteristics if it does emerge.
b. Security: Security can be a significant factor for entrepreneurship development. If individuals are fearful of losing their economic assets or of being subjected to various negative sanctions, they will not be inclined/tended to increase their insecurity by behaving entrepreneurially.
c. Social Marginality: When a group of people are deprived in any way, they will be integrated and try, initiate to establish or start a new business. In this way this group may emerge entrepreneurship.
Individuals or groups on the perimeter of a given social system or between two social systems provide the personnel to assume the entrepreneurial roles. Social marginality is likely to promote entrepreneurship are largely determined by two factors, namely the legitimacy of entrepreneurship and social mobility.
d. Social mobility: Social mobility affects much on growth of entrepreneurship. But there are too contrast opinions, one is in favor of mobility and another is against. So, it can be pointed out that the degree and nature of social mobility alone is not likely to influence entrepreneurship. But its influence is largely determined by other non-economic factors.
e. Family, Role Models and Association with Similar Type of Individuals: - If an individual has a supportive family, he or she is more likely to become an entrepreneur. Similarly, if an individual has role models who have been successful in entrepreneurship, certainly, he may be motivated to start ventures. If a person is in association with entrepreneurs, this may add to his or her desire of setting up a new venture. Reliance, Tata, Birla etc. are the industries depend upon family based inheritance. Roberts (1991) has developed the idea of the ‘entrepreneurial heritage ‘ to describe the importance of the family background for the entrepreneur. This heritage includes factors such as the father’s occupation, the family work ethic and religion, family size and the first born son, growing up experience and so on.
f. Caste System: Certain religions and caste encourage the growth of entrepreneurial talent. Some religious communities like the parsees, marwaris and sindhees seem to have an affinity for entrepreneurial activity. The caste system in Hindu society has promoted to the growth of business and professional skills.
g. Occupation : Those born in rich families with silver spoons in their mouth have not only an advantage of having financial resources for carrying out business but also learn the business skill by continuous interaction and contacts with parents, customers, employees and visitors in family shops, offices and homes.
h. Education and Technical Qualifications: Education is the best means of developing man’s resourcefulness which encompasses different dimensions of entrepreneurship. It may be expected that the high level of education may enable the entrepreneurs to exercise their entrepreneurial talent more efficiently and effectively.
i. Social Status: Every human being aspires for a high social status and once he achieves a reasonable level, his aspirations and desires for its start getting multiplied. People work hard to maintain their status as it also contributes to their entrepreneurial growth.
j. Social Responsibility: - It is the obligation to the society in which the business enterprise operates. An entrepreneur generates employment for others besides helping himself.
