Global Perspectives of Entrepreneurial Environment
Keywords:
Ease of doing Business, Entrepreneurial environment, Growth of new venture, Sustainability measure of enterpriseAbstract
Micro, Small and Medium Enterprises (MSME) have been identified as one of the crucial driving force for the economic growth of any country. MSMEs (Micro, Small & Medium Enterprises), constitute a major source of employment and generate significant domestic and export earnings in developed, developing and underdeveloped countries. SMEs are alleviating poverty around the world as well as increasing the social and economic participation of women, youth and minorities. The increasing importance of MSME sector has been complemented with higher budget allocations and external aid for the SME sector. The performance of the small business sector is affected by environmental factors. Numerous opportunities and challenges have been opened up for this sector and to understand this it is essential to have an overall knowledge of the environment within which entrepreneur operating their business. The purpose of this study is to determine the critical factors of environment which influence the overall performance of Micro-Small-Medium Enterprises (MSMEs). This may be conjectured that entry and exit from small & medium industries in any country is determined by the overall environmental mapping which is explicitly reflected through several parameters such as entrepreneurial financing, government support & policies for business incubation, governmental programmes, taxes and bureaucracy, basic-school entrepreneurial education and training, post-school entrepreneurial education and training, research and development transfer, commercial and professional infrastructure, internal market dynamics, internal market openness, physical and services infrastructure and cultural and social norms. In the conclusion this study shows the role of some important parameters in creating favourable environment for small business and this may further be used for indexing the entrepreneurial mapping in global perspective. The research is based on the longitudinal study of Global Entrepreneurship Monitor (GEM) of 66 countries of the year 2015. The objective of the present research study is to develop a model to examine the nature of relationship between environment and growth rate of new venture as well as the sustenance of Micro-Small-Medium Enterprises.
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