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The entrepreneurial environment is full of challenges and full of risks and the entire team is bound to face them. Now the question is, what is more important, mind or money, as both are vital elements for an entrepreneur. Entrepreneurs have high-level minds and money.
For established entrepreneurs, the mind is more important than money as they have already invested as well as earned, and now they are in a division of development. New entrepreneurs choose money more with minds as they want to settle.
Money transforms ideas into actuality. We know ideas come from the mind; without a mind, money may not be properly utilized and distributed. Money consequences economic activities whereas the mind affects the activities of the firm.
Mind is the circuit of the creative idea, idea leads to innovation. An idea shows the mission and faculty whereas money displays the way to acquire that mission and vision.
Determinants of Entrepreneurial Success or Failure
Actuality as a successful entrepreneur means more than just starting a new business every other day. It means the right attitude towards the business and the determination, along with the barriers to be faced to achieve success.
To an entrepreneur, failure is a positive action that is considered as a challenge or opportunity for growth in the form of depend upon success, a profound teacher, a future value-adder, a provider of the new direction, an enhanced motivator, a path to achievement and even as a relieving liberator.
The success and Failure of an enterprise is dependent on two factors −
· External factors
· Internal factors
Internal Factors for Success
Internal Factors for success that affect the organization internally and contribute to the success of the firm are known as internal factors of success. This , good quality products, factors include efficient management, quality goods & services, good reputation, effective marketing, dedicated manpower, proper technology, low cast product, and proper time management and proper financing.
External Factors for Success
External factors for success is change the organization externally and contribute to the success of the firm are called external factors of success. these factors include the availability of applicable raw materials, low competition, government-quality manpower, high demand in the market, and government policy competition government.
Internal Factors for Failure
Internal factors for failure affect the organization internally and effort to the failure of the firm are known as internal factors of breakdown. These factors admit ineffective management, old technology,, ineffective marketing strategies, low quality of raw materials, poor financing, and poor leadership. low human relations.
External Factors for Failure
external factors for failure that affect the organization externally and are responsible for the failure of the firm are known as external factors of failure. These factors admit shortage of raw material, shortage of power, shortage of manpower, poor finance, change in technology, high competition, and. High competition, negative government policies, increase in supply, and availability of better substitutes.
Environmental Dynamics & Change
An enterprise remains within an environment. It is changed by various environmental factors. A good and favorable environment helps the company to be left and grow. That type of environment is dynamic in nature. It is copper because of different factors and conditions. This way further creates new challenges.
An organization should always be ready for everything and anything that the future controls. These changes may be desirable or undesirable. Some changes are made by the entrepreneur for self-benefit however these changes are not constant in nature