the following factors affecting the entrepreneurial growth.
1. ECONOMIC FACTORS
a) Lack of adequate overhead facilities:
Profitable innovations require basic facilities like transportation, communication power supply etc. They reduce cost of production and increase profit.
b) Non availability of capital
Inventions are capital oriented. In less developed countries most capital equipment have to be imported which involves foreign exchange which acts as a difficult problem.
c) Great risk
Risk is high in case of less developed countries as there is lack of reliable information, markets for good and services is small etc.
d) Non availability of labor and skills
Though there is abundant labor supply there is generally scarcity of skills at all levels.’
2. SOCIAL FACTORS
A society that is rational in decision making would be favorable for decision making. Education, research and training is given less importance in less developed countries therefore there is very little vertical mobility of labor.
3. CULTURAL FACTORS
If the culture is economically or monetarily oriented entrepreneurship would be applauded and praised. In less developed countries people are not economically motivated. People have ample opportunities of attaining social distinction by non economic pursuits.
4. PERSONALITY FACTORS
In less developed countries the entrepreneur is looked upon with suspicion. Public opinion in the less developed nations sees in the entrepreneur only a profit maker and exploited.