‘Scanning of environment’ is the first step in the sensing of entrepreneurial opportunity. It is required to ensure that the identified entrepreneurial opportunity is compatible with various environmental factors as described below.
1. Developmental and institutional factors:
The encouragement and guidance of various governmental and non-governmental institutions plays a vital role in the setting up of an enterprise.
2. Economic Factors:
The vital economic factors like demand and supply will determine the size of the enterprize. The health of the economy will also determine the various means of financing the business.
3. Financial Factors:
The fnnds required for starting up an enterprise requires a close examination of the available financial institutions and other sources of funding.
4. Social and cultural factors: Evaluating the social and cultural factors is essential before implementing a business concept. This will ensure that the product or service is compatible with the needs of the population living in a specific region.
5. Legal factors:
Starting an enterprise involves fulfilment of various legal requirements. Thus the environment has to closely scanned for legal factors.
6. Political Factors:
Various govermental policies prevailing in the society will affect the setting up of the enterprise. Thus a thorough scanning of the political factors is required.