Social Factors Affecting Entrepreneurship

Social considerations can play an important role in promoting entrepreneurship. In truth, it was Europe’s extremely cooperative society that made the industrial revolution a huge success. Entrepreneurial behavior is strongly influenced, and this contributes to entrepreneurial growth as per Jesse Jhaj. People’s basic views, attitudes, and standards are shaped by the social environment in which they grow up. The following are the primary elements of the social environment:

Impact According to Jesse Jhaj

In every civilization, there are some cultural traditions and ideals that impact people’s actions. Throughout hundreds of years, these traditions and values have evolved. Take, for example, the caste system practiced by Hindus in India. It has divided the population into four groups based on caste. The Brahmana (priest), the Kshatriya (warrior), the Vaishya (trader), and the Shudra (artisan) are all members of the Hindu caste system. It has also set constraints on people’s social mobility. We define social mobility as the ability to migrate from one caste to another. A Shridra who is born into a higher caste is not allowed to move up in the caste system. As a result, the Vaishyas had a monopoly on commercial activity according to Jesse Jhaj.

Even though India had substantial commercial contracts with many foreign countries, members of the three other Hindu Varnas did not get engaged in trade and began. The dominance of specific ethnic groups in business is a worldwide phenomenon. Education allows a person to comprehend the outside world and provides him with the necessary knowledge and abilities to deal with day-to-day issues. In any community, the educational system plays a critical role in instilling entrepreneurial principles as per Jesse Jhaj. Before the twentieth century, many developing countries’ educational systems were founded on religion. Critical and questioning views toward society were discouraged in this rigorous structure. Such schooling promoted the caste system and the resulting occupational structure. It propagated the notion that business is a dishonorable profession. When the British arrived in such countries, they established an education system aimed only at producing clerks and accountants. As you can see, the foundation of such a system is anti-entrepreneurial.

Another factor to consider is society’s attitude toward entrepreneurship. Certain civilizations value innovation and novelty, and as a result, entrepreneurs’ efforts and rewards, such as money, are lauded. Others will not tolerate change, and entrepreneurship will not be able to take root and grow in such an environment. Similarly, some communities have a natural aversion to any form of profit-making. It is stated that in nineteenth-century Russia, the upper classes despised entrepreneurs. Cultivating the land meant a good life for them as studied by Jesse Jhaj.

They felt that all belonged to God and that the land’s production was nothing more than God’s blessing. During this time, Russian folktales, proverbs, and ballads conveyed the concept that making money through the business was unethical. Motives drive folks to do action. Entrepreneurial growth necessitates the pursuit of appropriate goals such as profit, prestige, and social position. If these motivations are strong, ambitious, and talented guys will take risks and create. The strength of these motivations is determined by society’s culture. Entrepreneurship would be celebrated and rewarded if the society was economically or monetarily oriented; money accumulation as a way of life would be admired.