The impact of psychological and sociological factors on small scale entrepreneurs refers to how individual and societal factors affect the success or failure of small business ventures. Psychological factors such as self-efficacy, motivation, personality traits, stress, fear of failure, perceived control, goal setting, and emotional intelligence can influence an entrepreneur's decision-making process, risk-taking behavior, and ability to adapt to changing circumstances.
Sociological factors such as social norms, culture, social support, family influence, education, government policies, economic conditions, and networking can impact an entrepreneur's access to resources, market opportunities, and social capital.
Understanding how these factors interact with each other and impact the entrepreneurial process can provide insights for policymakers, educators, and practitioners to support small business development and promote economic growth. Additionally, by understanding these factors, entrepreneurs can identify potential barriers to success and develop strategies to overcome them, leading to more successful and sustainable ventures.
The economic development of any country is dependable on accumulation and availability
of resources like human, land, capital and innovative technology. The relatively higher
growth of population has led to increase in the volume of unemployment and
under employment. Due to recession, fluctuation in international trade and high unemployment,
the interest of industrialized countries are constantly suffering. To sustain increasing
demand and to generate employment opportunities there is a need of entrepreneur, who bring
something new with his ability, can utilize and initiate economic opportunity. The process of
integrating resources to create value and utility to end users is known as entrepreneurship.
Entrepreneurship is multidimensional and evolving concept consisting of economic,
psychological, sociological, political and management perspectives. The basic element of
entrepreneurship is to pick-out opportunities, utility creation and mobilization of
resources. Entrepreneurship is defined as pre-start, start-up and post-start-up phase of
entrepreneurial process with the prime objective of inspiring people to start the
business. Due to interest shown by governments all over the world the entrepreneurship policy is
attracting, encouraging and retaining entrepreneurs for socio-economic benefits.
