Socio-Economic Factors Influencing Entrepreneurship Development: An Empirical Study Across the Small and Medium Enterprises of Chennai, State of Tamil Nadu, India

Abstract

Entrepreneurship Development makes a powerful impact on the economic development of the country. The success of the entrepreneur depends on the environmental factors such as social, economic, legal, political and technological factors which influence their activities thus leading to successful entrepreneurship. The socio-economic factors are the major key factors influencing the entrepreneurial behavior and operation of the business and thus the need for the study and the due influence. This paper analyzes the impact of socio-economic factors in relevance to entrepreneurship development of Small and Medium Enterprises (SMEs) across Chennai, Tamil Nadu State, India.This paper attempts to explain the infrastructure that has to be developed in order to cultivate the quality of leadership among potential enterprising young men. Attempts are being made to inculcate the spirit of entrepreneurship. Our empirical results reveal that most of the selected entrepreneurs of SMEs perceive the relevance of these factors to the highest degree. They are tempted to enter the entrepreneurship sector because of the perceived opportunities available to make appreciable profit. The study also reveals that the factors which are not considered to be of high importance in the bygone days, such as Education, Religion, Previous Experience, Family Type and Legal Status have significant influence on the entrepreneurial behavior and the operational performance of the selected SMEs’ business, in the recent period. Thus, there exists necessity for the Government and the related sponsoring institutions to look into these factors and encourage the young entrepreneurs who in turn will render their full support towards national economy.