Population
It refers to a group of people living in a particular geographic region. A demographic group is a subset of the population and refers to the group’s age, gender, occupation, nationality, ethnic group, or sexual orientation. An individual may belong to several demographic groups.
Different demographic characteristics have both positive and negative impacts on entrepreneurship. First, various products and services appeal to a particular group of people, e.g., the younger population are fast consumers of high-tech products. Secondly, income level affects people purchasing power e,g premium products appeal to high-income earners. Lastly, Geographic regions also influence the buying pattern of the individuals living in that area. Those who meet the buyer’s requirements and needs are likely to have high sales and good profits.
Additionally, higher household incomes are correlated with higher levels of education, which drives the purchase choices. For example, highly nutritionally related groceries are associated with higher-income households.