Implication of Indian Social, Political, and Economic Systems on Entrepreneurial Decision Making
India's socio-cultural environment, influenced by religious, cultural, and social factors, plays a significant role in shaping entrepreneurial behavior and business practices. Factors such as religion, cultural values, and government policies impact various aspects of society, including poverty alleviation, labor, education, and empowerment of disadvantaged groups. Understanding these variables is crucial for entrepreneurs in navigating the complex Indian business landscape.
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Indian Social, Political and Economic Systems: Implication for decision making by individual entrepreneurs Entrepreneurship Development and Industrial Consultancy (DBM-421) A. K. Jha
Indian Social, Political & Economic Systems India is a secular country. Religion is one of the cultural variables. Religion shapes the values and beliefs of a person It also has an influence on entrepreneurial behaviour Type of business and Women s participation in business.
Socio-cultural Environment Socio-cultural environment encompasses all the variables which are not included in economic or political environment. The socio cultural environment include whole range of behaviors and relationships in which people engage in their private and personal lives including the characteristic of population, age, sex, race, class values and attitudes, lifestyle and relationships.
Cultural factors Culture is a phenomena exhibited by groups and this can mean society as a whole (national culture), groups within society (sub culture) or even groups of societies and nations (trans national culture). For example, many times the word "Indian culture " is used. This implies that there are certain values and way of life that Indian societies might be sharing. Social factors It includes programmes and policies of the government aimed at improving the living standards of the people of that country by better availability of public services.
Different aspects of social environment: Poverty and its alleviation programs Labor and employment Women and children development Education Health Population and family welfare Empowerment of disadvantageous groups Public committees in rural and urban areas
Major Socio Cultural Variables of Indian Culture Socio cultural variable Characteristics Administrative Existence of impersonal bureaucratic social relations, mistrust of fellow workers, highly centralized administration, more emphasis on hierarchical status in decision making, Bureaucratic delay, less amount of delegation, dissatisfied employees Attitude towards work and goals General and deep seated apathy, separation of work from its results, performance of tasks without any dedication, pride or interest Discipline and order Lack of discipline at all levels, Lack of trust on authority, Poor superior subordinate relationships Group Harmony Assumption of inequality of human beings, self centered behavior, suspecting fellow employees, lack of cooperation and teamwork Mostly indifferent and highly ambiva Education
Micro Environmental Factors Business influence on micro environmental forces as compared to macro environmental forces. This includes factors like: Market Organization Market intermediaries Suppliers of raw material Employees,etc. organization exert some
Micro Environmental Factors Business organizations sell their products with the help of market intermediaries, which include wholesalers, distributors, retailers and all other middleman. It is possible to control the activities of marketing intermediaries by providing appropriate commissions, training, other financial support etc. Suppliers are individuals and organizations that provide necessary resources for manufacturing goods or providing services. They are critical to an organization s marketing success and an important link in its value delivery system.
Environmental factors in decision making The success of any enterprise depends upon managerial decisions. Manager s decisions are also affected by environmental factors. It is, therefore, necessary that managers understand and evaluate the impact of environmental factors on their decisions.
