Analysis of Business External Factors that Impact the Growth of IT Entrepreneurship

the aim of this study is to find out the impact of business External factors towards the business growth for IT entrepreneurships in Bangalore. Sample is collected from 200 individuals associated with IT entrepreneurships of Bangalore. We have undertaken the External factors like social acceptance of business, economic condition, technological factor, local culture, Legalities, competitive factor, role of local political environment, media, supply of work force, demography, business location, climate, low and order, corruptions. We have taken business growth for 3 years as measurement of success factors for the business. During study it was identified that business External factors i.e. economic condition, media, competitive factor has significant impact on business success.


Introduction
During Entrepreneurship development and formulation, there are multiple analysis undergoes to identify the strength of the business. Every business ecosystem has two forces acting, one from business inside and another from external. The success of the business depends upon how business leaders understand and creatively exploit the ecosystem external factors. Business external factors plays major role during Idea development, creation of simplified business process, business model development which intern become the DNA of business and leadership strategy. Understanding external factor help any business to streamline the business strategy. An effective business strategy and leadership always focus on reduction of Risk, Rework and winning competitive market through right quality of solution. This does help in increasing productivity, reliability and ensure a stronger return on investment.

Pic 1: Business External Factor's relationship with business
During the study we have identified 14 business external factors which has variant impact in entrepreneurships and related ecosystem.

Pic 2: 14 in scope Business External factors
The magnitude of effect of each factor depends upon the perceived impact each company is facing during business executing and previous experience of handling the same.

Literature review
The external factor analysis for any business identify the entrepreneur's external environment as suggested by Boardman et al. (2004). Suggested that, the external environment is divided into macro-environment and microenvironment. The factors of such environments are having varying perceived impact to the business potential. To create the business strategy it is important to identify the strategic behaviors and it is necessary to conduct macro and micro analysis of every business ecosystem.  The combination of micro and macro factors  are depending upon the market where the business is being  operated.  While evaluating the business external factors which will  have impact on business performance and success, we have  undertaken the Economic, Psychological, Sociological,  Anthropological, Opportunity-Based, Resource-Based theories to identify the factors effecting ecosystem. Based on the classical theory extolled the virtues of free trade, specialization, and competition (Ricardo, 1817; Smith, 1776).The theory was the result of Britain's industrial revolution which took place in the mid 1700 and lasted until the 1830s.The classical movement described the directing role of the entrepreneur in the context of production and distribution of goods in a competitive marketplace (Say, 1803). Classical theorists articulated three modes of production: land; capital; and labor In the Technology Entrepreneurship Ecosystem in India: Findings from a Survey by Ruchita Gupta1 ,Karuna Jain1 ,AnandKusre2 , Kirankumar S. Momaya of National Institute of Industrial Engineering (NITIE), In this journal, the researchers identified environmental ( creating change to provide jobs, being own boss, exploration of talent, eagerness to earn high income, passion, location of the business, market of the solution offered ) and individual factors (leadership, networking, risk taking ability, business and technical knowledge) affecting the technology entrepreneurships success. The environmental and individual factors have a strong impact on the motive of building an entrepreneurship as need to be seen as a socio improvement and betterment of life. The individual factors help an entrepreneur to shape up the strategy, approach for the business and building an ability to delivery right solution for business market. Though this analysis didn't show the correlation of the business factors of success. In the book "Why Startups Fail And What You Can Do To Beat the odds"…by Meszaros, George identified that not one reason behind the unsuccessful startup, but multiple reasons contributes the failure of a startup. • Sometime too many or too few founders are the biggest possible reasons, in ideal case they should complement to each other in skill set and should be able to leverage the competencies.

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Creation of business without an involvement of customer base and competition.

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Business without a robust system (marketing, production, training, quality, service) in place • Not having right resources who can be the best fit for job and a good performer • Usage of right investment, from right investor for right cause (with a strategic partnership) • Creation and judge under uneven competition • Good mentorship & leadership In the book of "WHY STARTUPS FAIL AND HOW YOURS CAN SUCCEED" by David Feinleib This book describe that a market fit product is very much important to ensure the success of the solution, Identifying the right balance between the consumer expectation and the product is always done through right understanding by the team. Targeting small markets, not analyzing correct data from market, uneven thesis, taking too much time to reach market and going against wave will hurt any entrepreneurship. This book also discussed that, focus should be creation of right product with a strong and futuristic vision, and with a strong user base. This will help product to evolve faster and better for right market. An entrepreneur should have a strong market sense with a right vision, should have ability to create a new market or change a market with innovative idea, should be able to deliver on time addressing the need of time and market. A quick learner from market and failures. Sales and marketing play a major role to project right solution to consumer face. Usage of innovative sales and creation of brand reputation play major role in overall success. Sales should be an integral part of company's mission. Strong communication to market the entrepreneurship and it's brand value play vital role in consumer acceptance. The project execution, right time entry to market plays a very vital role for success. John Rampton expressed the possible reason where entrepreneurs will lose out of ground in • Product or solution Problem In the above cases either small market or no market is an potential issue for aligning product to consumer base. And business models trying to access customers easily gives them a Hardaway to move forward. In many cases the cost of acquiring the customer (CAC) is actually higher than the lifetime value of that customer (LTV). Poor management team fails to identify right market and handle the risk of nonpenetrating market or create right strategy. Due to which they might run out of cash or might not have spent in right format for all the business areas based on importance of cash allocation. And the rest turnout to be not having right solution/product for actual consumer base and/or developed wrong product. Methodology: The aim was to analyze the business External factors which has impact on IT business performance and success. Following the objective, the below hypothesis was made Ho: There is no influence of business External factors on growth of IT entrepreneurship Ha: There is strong influence of External factors on growth of IT entrepreneurship During the research, confidence level of 95% is identified from population. It was identified that 200 should be the sample size for analysis. Data collected from senior stakeholder of companies from operation, management, founder groups. We identified the factors which has influence on entrepreneurships are • Social acceptance of business: bringing the combination of solution to be a meaningful contribution to society • Economic condition: this is a set of macro variables (GDP, Inflation, employment/unemployment rate/monetary policy etc.) which decide the state and trend of an economy • Technological factor: this defines the set of practices (automation, GUI support etc.), equipment, which are used for any solution development, • Local cultural factor: Understanding this factor helps understanding the values, need, want, acceptance, preferences which has strong influence over building company and/or understanding consumer behaviour • Legal factor: Understanding this factor helps to knows the law protecting securities, asset, consumer, contract, employment, health and environment, wages etc.

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Competitive factor: Understanding this factor will help understanding the current competitors offers, the value additions, market wants, need and other expectations. Which helps any company to create unique selling feature into its product or services to attract the consumer base.

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Political factor: local government policy on public service, infrastructure, taxation, future vision help all companies to create strategic plan to get max benefit out of government policies and avoid unwanted hazard.
• Media: Media play major role to promote companies' vision, product, offers to demographic base, based on age, income, education etc. This also seen as a strong tool for consumer relation management and marketing/promotion. • Supply of workforce: Supply of labor is the base for any company's long-term vision of serving a economy.
Potential labor arability help company to build its support/work force. • Demography: understanding the consumer demography, it's size, composition, distribution, migration etc. help creating the solution/ offering to a business ecosystem.

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Business location: business location plays major role to connect to it's consumer for B2B or B2C. The nearest to consumer base help understanding and providing solution faster time frame. Right location also helps accessing the govt. facilities, labor, infrastructure etc.

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Local climate: Local climate plays major role to attract labors from other place, creating sustainable infrastructure, predictable deliveries, growth. • Law & Order: Understanding local law and order help companies to build protocol aligned to govt. regulations, policies and rule for local socio culture.
• Corruption: Corruption in business involves misappropriation of funds, bribery, misuse of office by company officials and dishonesty in financial matters. High corruption hurts the growth of economy and the sustainability towards employment, company mission. been identified to collect the data. Likert scale-based survey is conducted through telephonic and email communication. Data collected using MS Excel and analysis processed we used SPSS.

Research Methodology
During the data collection we have taken data from 200 senior business stakeholder individuals of IT entrepreneurship companies. The position of the stakeholder's play major role in our analysis. We have chosen only senior stakeholder of the business as they have more visibility, understanding and control over formation of business, operation / execution. So, we have taken people from business, consulting, Human resource and operation, solution delivery, head of IT. The dependent variables are tested against 14 parameters separately to identify if there is a significant relationship between them. The overall goal of the multiple regression is to validate if there are some factors which has more significant over others on companies' growth. Ever traditional business, we consider the business growth as measurement of performance and core fundamental of a business health. In our first analysis, we did the significance analysis of 14 External factors on Business Growth (DV). R-squared measures the proportion of the variation in our dependent variable (DV) by our independent variables for a linear regression model. Adjusted R-squared adjusts the statistic based on the number of independent variables in the model. When we did regression analysis, we found the below result. In the above Anova and regression table the p-value is less than 0.05 for the bold values indicating that it is significant so we conclude that there is influence of business External factors on business growth over the past three years. In our second analysis, we did the significance analysis of 11 External factors on Business growth (DV).

Model Summary
When we did regression analysis, we found the below result. Impact of competitive factor (0.088) On the above factors apart from economic condition other two factors have lean relationship with business growth. It means stronger economic factor has strong influence over business performance The below factors having negative impact of significance towards the growth of business, 1.
Local Climate (-0.065) Since the technological, legal and climate is having >0.3 impact, so they have very narrow and linear relationship with business growth.

Conclusion
For every entrepreneurship it is important to understand the ecosystem and identify the external factors which has max impact towards the formation of business strategy. In this study we have seen economic factor plays a major role on employment, wages, inflation, customer confidence. The factor of media plays major role on business promotion, marketing and consumer centric relationship. Competitive factor helps any entrepreneurships to understand the position of their solution of product compared to other enterprises offering similar solution. The competitive factor plays major role on shape up solution, customization, price and branding.