Entrepreneurship is dependent upon several economic, social, political, legal and other environmental factors. Careful monitoring of the environment for detecting early signs of opportunities and threats may influence current and future plans. This process is known as:

Environmental Scanning

The correct answer is option 3- Environmental Scanning.

Entrepreneurship is dependent upon several economic, social, political, legal and other environmental factors. Careful monitoring of the environment for detecting early signs of opportunities and threats may influence current and future plans. This process is known as Environmental Scanning.

Environmental Scanning is the process of monitoring, analyzing, and evaluating external and internal environmental factors to detect early signs of opportunities and threats that could impact an organization or an entrepreneur’s plans. It includes looking at Economic factors (e.g., inflation, interest rates), Social factors (e.g., demographics, cultural trends), Political and legal factors (e.g., government policies, regulations), Technological changes, Market trends.