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    BA5014 Entrepreneurship Development

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    Raja .S
    Knowledge of the business environment provides several benefits to entrepreneurs: 1. It allows them to successfully conduct business operations by minimizing losses and withstanding competition in the long run. 2. Understanding the environment opens up new opportunities for business expansion when economic conditions are favorable. 3. It keeps entrepreneurs alert to changing conditions and dynamic in their approach, helping businesses adapt and maintain harmony. 4. Identifying with shifting situations provides chances for business growth and development through popular support. 5. Grasping the nature and influence of the environment ultimately enables businesses to exercise some control over external factors, ensuring smooth operations over time.

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    BA5014 Entrepreneurship Development

    Uploaded by

    Raja .S
    680 views1 page
    Knowledge of the business environment provides several benefits to entrepreneurs: 1. It allows them to successfully conduct business operations by minimizing losses and withstanding competition in the long run. 2. Understanding the environment opens up new opportunities for business expansion when economic conditions are favorable. 3. It keeps entrepreneurs alert to changing conditions and dynamic in their approach, helping businesses adapt and maintain harmony. 4. Identifying with shifting situations provides chances for business growth and development through popular support. 5. Grasping the nature and influence of the environment ultimately enables businesses to exercise some control over external factors, ensuring smooth operations over time.

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    Knowledge of the business environment provides several benefits to entrepreneurs: 1. It allows them to successfully conduct business operations by minimizing losses and withstanding competition in the long run. 2. Understanding the environment opens up new opportunities for business expansion when economic conditions are favorable. 3. It keeps entrepreneurs alert to changing conditions and dynamic in their approach, helping businesses adapt and maintain harmony. 4. Identifying with shifting situations provides chances for business growth and development through popular support. 5. Grasping the nature and influence of the environment ultimately enables businesses to exercise some control over external factors, ensuring smooth operations over time.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    680 views1 page

    BA5014 Entrepreneurship Development

    Uploaded by

    Raja .S
    Knowledge of the business environment provides several benefits to entrepreneurs: 1. It allows them to successfully conduct business operations by minimizing losses and withstanding competition in the long run. 2. Understanding the environment opens up new opportunities for business expansion when economic conditions are favorable. 3. It keeps entrepreneurs alert to changing conditions and dynamic in their approach, helping businesses adapt and maintain harmony. 4. Identifying with shifting situations provides chances for business growth and development through popular support. 5. Grasping the nature and influence of the environment ultimately enables businesses to exercise some control over external factors, ensuring smooth operations over time.

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    of 1

    Q.

    No Unit - II - Part - B – Question


    (i) How does knowledge of the business environment benefit the
    1 entrepreneur? ENTREPRENEURSHIP DEVELOPMENT
    (8 marks) UNIT-II

    Failure to understand the environmental factors for business shall create number of
    problems, which in fact are difficult to solve. It will reduce the profit margin and
    will make the opportunities for expansion to slip. But a proper appreciation of the
    environmental factors will bring many benefits. They are as follows:

    1. Successful Conduct of Business


    The business executive can successfully conduct the business operation. Since
    chances for losses are minimized, the firm can withstand in the long run, widen its
    financial base and face competition more effectively. All these finally lead the
    business venture to a grand success.

    2. Opening of New Avenues


    Environment opens fresh avenues for the expansion of new entrepreneurial
    operations. When the business climate is favorable, new ideas, schemes and
    ventures may be put into action. The firm can utilize its resources advantageously
    and derive the maximum benefits.

    3. Dynamism in Approach
    Business enterprise is essentially a dynamic endeavor. Hence the business executive
    should be a dynamic personality. Acquisition of knowledge about the changing
    environment will keep the businessmen always alert and dynamic in his approach.
    His dynamic approach in turn will help the firm to avoid ecological stresses and to
    maintain harmony with the environment.

    4. Chances for Growth


    By identifying itself with the changing situations and environment, the firm can gain
    the popular support and win the confidence of the consumers and others. This
    popular support will produce many chances for growth and development of the firm.

    5. Control over Environment


    We all know that environment exercises vital control over the scope and
    performance of a business firm. A proper understanding of the nature, character and
    influence of the environment over the activities of the firm and its continued efforts
    to identify with the changing economic conditions will at one stage enable the
    business firm to exercise control over the environment itself. This will result in a
    smooth and successful running of the venture in the short run as well as in the long
    run.

    ii) Explain the social and legal environment and their impact on business(5
    marks)

    Social environment
    The country’s social environment affects the functioning of the business since
    it determines the value system of the society. Sociological factors establish the
    culture of work, labor mobility, work groups1 etc, hence, business operation of an
    enterprise. These factors include cost structure, customs and conventions, cultural
    heritage, peoples’ view towards wealth and income and scientific methods, seniority
    respect, mobility of labor (Shaikh 2010). All these factors have big impact on the

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