Question

Exploring the entrepreneurial context includes scanning the economic, political/legal, social, and work environment. True False

Answer 1

True Entrepreneurs are required to be updated with current situations in the social, political, economic and work environments. The political environment and the legal laws may affect the company operations for example a law could restrict the amount of selling price of a product or control the amount of production of a product the company sells.

Economic environment is very vital for a company to understand because it has to know the economic capability of the consumers to purchase the product or service the company sells. The economic situations keeps changing and the company should be updated on this and device its strategies by forecasting the sales and controlling its selling price to survive in case of low economic growth.

Social and work environment is a place where the company understands the belief of the consumers and as well as employees. The beliefs as well as culture should be respected and the company should strive to add value to the consumer either by pleasing in terms of social benefit the product or service contributes or through activities which amount to corporate social responsibilities. Employees expectations and good culture should be developed in the organization so that their attrition rate will be low and the company progresses. Entrepreneurs should understand the expectations of employee and create such favorable environment for various benefits of the company.

Note: In the above explanation assume that the entrepreneur owns a company.