Get premium membership and access questions with answers, video lessons as well as revision papers.
(i) Political stability: Political stability and general peace in an economy always lead to increased levels of entrepreneurial development because whenever there is general peace in the economy people can trade peacefully.
(ii) Natural factors: Like rainfall,temperatures,earthquakes, pests, wind and drought usually influence the type of businesses carried out in an area. Whenever there is adequate rainfall businesses dealing with horticultural practices will be established, whereas areas that experience long spells and constant pest outbreak may have limited businesses for lack of the output/ farm produce to trade.
(iii) Good infrastructural development in an economy: Whenever there is good transport network, developed water systems, proper buildings and good security in a country, the levels of entrepreneurial development will increase greatly.
(iv) Favourable government policy: Whenever the government increases taxes on the factors of production, the rate of entrepreneurial development decreases because, taxes usually reduce the profits of the entrepreneurs and whenever the government lowers the taxes on the factor inputs a large number of entrepreneurs usually join business practice.
(v) Increased levels of education and skills in the economy: Wherever people in an economy get educated they acquire the relevant skills and knowledge, training and experience and can therefore engage in entrepreneurial practices in the economy.
(vi) Availability of market for goods and services: Availability of adequate market in goods and services always acts as a 'pull'. Factors to the growth of businesses, as more entrepreneurs will start businesses in order to provide goods and services to the already existing market.
(vii) Availability of resources: Availability of adequate resources that is, labour, capital, physical resources and modern technology always facilitates entrepreneurial development in an area.
(viii) Reduced levels of competition: Entrepreneurs will start businesses in areas where the levels of competition are low in order to attain higher profits.
maurice.mutuku answered the question on August 4, 2017 at 09:25
- In what ways does communication enhance trading activities?(Solved)
Give ways in which communication enhances trading activities.
Date posted: August 4, 2017. Answers (1)
- What are the emerging issues in office practice today?(Solved)
Highlight the emerging issues in office practice today.
Date posted: August 4, 2017. Answers (1)
- What are the features of a hypermarket?(Solved)
List the features of a hypermarket.
Date posted: August 4, 2017. Answers (1)
- What are the functions of money?(Solved)
Highlight the functions of money.
Date posted: July 29, 2017. Answers (1)
- Apart from demand and supply, what are the other methods of determining the price of a product?(Solved)
Apart from demand and supply, list other methods of determining the price of a product.
Date posted: July 29, 2017. Answers (1)
- What are the advantages of publicity to a firm?(Solved)
Highlight the advantages of publicity to a firm.
Date posted: July 29, 2017. Answers (1)
- What are the characteristics of a life assurance policy?(Solved)
List the characteristics of a life assurance policy.
Date posted: July 29, 2017. Answers (1)
- Why does the government train business people?(Solved)
Give reasons why the government trains business people.
Date posted: July 29, 2017. Answers (1)
- What are the goals of Economic Development?(Solved)
List the goals of Economic Development.
Date posted: July 29, 2017. Answers (1)
- What may make buyers to shy off from buying goods through hire purchase?(Solved)
Give reasons that may make buyers to shy off from buying goods through hire purchase.
Date posted: July 29, 2017. Answers (1)
- What are the features of capital as a factor of production?(Solved)
Outline the characteristics of capital as a factor of production.
Date posted: July 29, 2017. Answers (2)
- What challenges may be faced by a consumer who buys goods from intermediaries?(Solved)
List the challenges that may be faced by a consumer who buys goods from intermediaries.
Date posted: July 29, 2017. Answers (1)
- What are the roles played by equipment in an office?(Solved)
Highlight the roles played by equipment in an office.
Date posted: July 29, 2017. Answers (1)
- Why may one want to start a business?(Solved)
Give reasons why one may want to start a business.
Date posted: July 27, 2017. Answers (1)
- What are the reasons for compiling income statistics?(Solved)
List the reasons for compiling income statistics.
Date posted: July 27, 2017. Answers (1)
- What are the roles of insurance in the development of economy?(Solved)
Discuss the roles of insurance in the development of economy.
Date posted: July 27, 2017. Answers (1)
- What are the characteristics of successful entrepreneurs?(Solved)
Highlight the characteristics of successful entrepreneurs.
Date posted: July 27, 2017. Answers (1)
- What are the uses of general journal?(Solved)
List the uses of general journal.
Date posted: July 27, 2017. Answers (1)
- What factors influence on what goods/ services to produce?(Solved)
Explain factors influencing on what goods/ services to produce.
Date posted: July 27, 2017. Answers (1)
- What factors should be considered when choosing a channel of distribution?(Solved)
Explain factors to consider when choosing a channel of distribution.
Date posted: July 26, 2017. Answers (1)