Cultural Environment in Business and Factors

What is Cultural Environment in Business?

General perception about entrepreneurship development is that it is based on cultural and ethical values. People generally believe that success or failure of an individual or an enterprise is totally governed by the mercy and pleasure of some special God. It is also believed that status is inherited, it is not earned.

It is considered that casteism and certain occupations are meant for members of a particular caste, religion or sex. All this results in considerable immobility and inflexibility ad thus labor wasted as custom is still very powerful in such conditions. In this context, cultural structure and cultural aspirations are important parts of the entrepreneurial environment.


Factors of Cultural Environment in Business

These are the cultural environment in business:

  1. Cultural Structure
  2. Cultural Aspirations
Factors of Cultural Environment in Business
Factors of Cultural Environment in Business

Cultural Structure

Supply of entrepreneurs is determined by the cultural structure. Demographic characteristics also describe the population and its behavior in regions where an enterprise is located. Family background, level of education, economic conditions of the family etc. also affect the supply of entrepreneurs.

Cultural Aspirations

Regulation of entrepreneurial trend is also possible through cultural aspirations. If social constraints are being removed it means there is no entry barrier for other castes to enter the business field and supply of entrepreneurs is possible from any source.

Change in value system ensures change in the cultural expectations. Now it is possible due to change in the cultural heritage of the country that any person from any caste can enter the field of entrepreneurship.


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