Growth for the social sector and economic sector of the nation various forces are considered. For the development of entrepreneurship and entrepreneurs affected by economic or non-economic factors from start-up to high level. Affecting forces of socioeconomic growth create obstacles for business people and expand the business ratio.
7 Affecting Forces of Socio-economic Growth
Some forces affect socio-economic growth. It can be expressed as follows.
1. Human Resources
Human resources are one of the factors that influence entrepreneurship. Its number defines the availability of human labor. The quantity of human laborers and quality laborers are also important for the emergence of entrepreneurship. Skilled, trained, well-natured, and qualified human resources provide better success in the business sector.
They support their productivity in the venture from start-up to success level. Without their skilled efficiency quality goods and services could not be achieved. So, human resources hamper the socio-economic growth in various sectors.
2. Market
All the goods and services are introduced for customers or markets. The market is the place where entrepreneurs exchange their products with customers at different levels. As the market nature entrepreneurs produce proper goods as demand of the consumers. Market size and development of the market affect the development of entrepreneurship, and cause of that it influences the economic growth of the society.
Nowadays, customer demands quality products at an economical price. If national entrepreneurs cannot provide the demanded products at an economic price foreign products cover that market. Hence, for customer satisfaction and to make market status stable business person must produce quality products.
3. Government Policies
Government policies are another factor that affects entrepreneurship. The business person follows the different rules and regulations to run the venture. It helps to regulate the entrepreneurs but old and unsuitable policies hamper the business sector from running properly. Government policies considered trade policy, labor policy, VAT policy, tax policy, market policy, monetary policy, etc.
4. Technology and Innovation
Technology is used to produce goods and services in the market. It helps to increase the production of business. Nowadays, quality product is demanded by customers in that sense they will be introduced by useful and unique technology. To gain market status business person grabs modern technology as the labor base to make quality products in economic conditions. It helps to increase profit and reduce the cost of production.
5. Social Mobility
The high degree of mobility social and geographical affects business development. For better opportunities movement of people from rural to urban and even one country to another hamper the businesses. It creates challenges for business person to understand the market demands and customer satisfaction.
Changing environment, social acceptance, international markets, and people’s perception determines the market ratio. Hence, entrepreneurs must address social mobility otherwise it ruins the businesses.
Read more: Concept of socio-economic growth
6. Cultural and Social Norms
Based on the cultural and social norms, entrepreneurs produce various products. They accept desires and satisfaction of customers as behaviors and natures of them. Cultural and social things attracts the customers but it will be limited. It covers the minimum people. It provides creativity and innovation for the entrepreneurs but in other hand it gives social tensions, cultural issues, and hamper on cooperation.
7. Infrastructure Development
Business people use various types of infrastructures for the production of goods and services. Infrastructures include transportation, technology, energy, equipment, communications, etc. It supports the business people at the time of production. Infrastructures are necessary for any work, they reduce time lapses and help to timely production. Without such sources, business people could not achieve the time goal of their businesses. Unavailability demolishes the business career.
Adequate availability of infrastructures stimulates economic growth of businesses through making projects work and job description and on other sides reducing costs, timely production, and improving quality products and productivity.
Read more: Concept of entrepreneurship
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