L2 Entrepreneur Environment PDF

Prepared by: Sir JC Leones  Create Define Identify awareness to Entrepreneurial young Environment the layers entrepreneurs of about the...

Prepared by: Sir JC Leones  Create Define Identify awareness to Entrepreneurial young Environment the layers entrepreneurs of about the of a different business entrepreneurial factors in the venture environment environment that can affect your business  HOWARD STEVENSON can be defined as a place where there is a strong emphasis on identifying and pursuing opportunities, along with a willingness to take calculated risks to create value.  WILLIAM GARTNER a set of conditions that include access to resources, networks, and cultural support for entrepreneurial activities. He emphasized the social and contextual aspects of entrepreneurship. 1. Physical Environment 2. Societal Environment 3. Industry Environment The first layer known to be the natural environment. It is composed of the natural elements that are inherent in the earth.  1. Climate 2. Physical Resources 3. Wildlife Climate The weather conditions prevailing in an area in general or over a long period. Physical Resources Availability of raw materials in an area that can be used by a business. Wildlife Undomesticated animals and uncultivated plant species which can exist in their natural habitat Web of social, cultural, and legal influences shapes everything from consumer preferences to the way businesses function. Includes patterns and trends  PESTEL ANALYSIS 1. Political Forces 2. Economic Forces 3. Socio-cultural Forces 4. Technological Forces 5. Environmental Forces 5. Legal Forces Political Forces Pertains to certain policies or political views of the government. Political Forces 1. Business registration 2. Trade restrictions 3. Labor management 4. Contract administration 5. Taxation 6. Election practices Economic Forces Pertains to economic conditions relevant to generate profits. Economic Forces 1. Demand and supply 2. Purchasing power 3. Interest, inflation, unemployment, tax, and currency exchange rates. Socio-cultural Forces Influence the thoughts, behavior attitude, lifestyle, actions and even beliefs and customs of the people Socio-cultural Forces 1. Norms, customs, and tradition 2. Demographics 3. Level of education 4. Changes in preferences 5. Life expectancy rate 6. Buying habits Technological Forces Trends and development in computer information technology that have impact on business Technological Forces 1. RND 2. Licensing 3. Automation 4. Internet Environmental Forces Influence of the surrounding environment and ecological aspects that affect business operation. Environmental Forces 1. CSR 2. Recycling procedures 3. Waste disposal Legal Forces Elements and bodies that are directly involved in the legislation interpretation of laws and ordinance. Legal Forces 1. Wages and salary 2. Health and safety standards 3. Copyright and patent laws 4. Consumer Protection Act-1986 5. Factories Act-1948  The business itself in which changes are easily and immediately felt by the business  1. Customers 2. Competitors 3. Employees 4. Suppliers 5. Shareholders 6. Government 7. Media 1. Customers- are the buyers of goods or services produced or rendered by the business. 2. Competitors- produce, sell or render products which are similar to those of the business.  3. Employees- are the workers of the business who are highly responsible for the production of goods or delivery of services to the customer. 4. Suppliers- individual persons or companies that provide the required materials.  5. Shareholders- engaged in the lending of money to the borrower usually for a fee. 6. Government- refers to the system or institution that handles the affairs of a particular country 7. Media- communication channels through which we disseminate news, music, movies, education, promotional messages, and other data.