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Entrepreneurship is a function of environment and the concept of entrepreneurship changes with change in environment. Consequently, there is a need to examine the influence of environment on the concept of entrepreneurship. For this purpose it is necessary to consider separately the effect of the two components of the environment-the internal and the external. The internal environment signifies the climate of production within an organization and the external environment signifies the socio-economic and legal conditions under which the organization has to function. The external environment may further he bifurcated as economic and non-economic.