CHARACTERISTICS OF ENTREPRENEURIAL ENVIRONMENT

 Entrepreneurial environment refers to a combination of external factors and their organic integration which make an impact in the business startup process by the entrepreneurs.

CHARACTERISTICS OF ENTREPRENEURIAL ENVIRONMENT

1. Resource scarcity/limited resources

These include inputs like land, capital and labor. The scarcity of these resources affects the ability of new firms to enter into this environment.

2. Opportunity orientation

This is the ability to recognize and analyze market opportunities. Entrepreneurs search for or create opportunities all the time and shape themselves to seize and quickly take advantage of opportunities before they are lost.

3. Uncertainty

This environment is full of unknowns or risks. Entrepreneurs demonstrate an ability to accommodate uncertain situations. This allows them to act without full information and clarity about situations. By tolerating uncertainty, entrepreneur’s perception of risk that may otherwise impede action is decreased allowing them to explore in uncertain environments.

4. Flexibility

Entrepreneurial environment is fluid in nature, presents diverse opportunities which may not remain open for long. To suit this kind of environment, entrepreneurs do not insist on one best solution but adopt successive approximations to solve immediate problems as they occur. This calls for constant improvisation in response to challenges in an ever changing entrepreneurial environment.