Factors that Influence Supply of Entrepreneurs

  • Availability of capital:-Entrepreneurship is always attracted by the supply of capital because business cannot start without capital. Other factors being constant, the larger the available capital stock, the higher the supply of entrepreneurs.
  • Existence of managerial skills: lf skilled manager are available, the supply of entrepreneurs is bound to be high and vice versa.
  • The size of population: The larger the size of the population, the higher will be' the demand for various products which will attract more entrepreneurship leading to a rise in their supply and vice versa.
  • The size of entrepreneurs in existence:-If the number of entrepreneurs already in existence is large, the supply of new entrepreneurs will be low and vice versa.
  • The level of uncertainty: lf the uncertainty element is high, profit expectations will be low and so is the supply of the entrepreneurs will be low arid vice versa.
  • Extent of income distribution:-If there is high income disparity, the supply of entrepreneurs will be high and vice versa '
  • Existing conditions in the society: Favourable macro-economic stability and economic conditions like legal framework. encourage high supply of entrepreneurs and vice versa.
  • Extent of industrial experience: lf the level of industrial experiences is high, the supply of entrepreneurs will also be high and vice versa.
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