Académique Documents
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Culture Documents
• Sociological Theories
• Economic Theories
• Cultural Theories
• Psychological Theories
Sociological Theories
The following theories explain how sociological factors
accelerate the growth of entrepreneurship:
leave it.
• Entrepreneur is a creative problem shooter, who brings about economic development; mingled
• The historic shift caused some group of lesser elite class from different caste and communities
in bringing progress.
Theory of Social Change- E. E. Hagen
• Withdrawal of Status respect- The role of Lesser Samurai in Japan is
Entrepreneurial initiative is a function of group level pattern. This theory suggested a causal
solely.
• The test revealed the tendency to depict the situation as a problem to be solved.
• Willingness to take the views of each individual in turn and analyze the situation as
Young incorporated the idea of reactive subgroups which plays an important role in
• The group has better institutional resources than other group in the society at the
same level.
ECONOMIC THEORIES
• Schumpeter’s Theory of Innovation
• Leibenstein’s Theory of X-efficiency
• Mark Casson’s Theory
• Papanek and Haris’ Theory
• Harvard School Theory
• M. Kirzner’s Theory
• David McClelland’s Theory of Achievement
• Knight’s Theory of Profit
• Hayek’s Theory of Market Equilibrium
• Schumpeter’s Theory of Innovation
New Source
Introduction of New method The New
New Market of Supply of
New Goods of Production Organization
Raw Material
Leibenstein’s Theory of X-efficiency
(Harvey Leibenstein)
Routine New
Twin Roles of X-efficiency
Entrepreneurs Entrepreneurs
Entrepreneur Factor
hip hip
Types of
Entrepreneurship Degree of
inefficiency in the
use of inputs
within the Firm
Mark Casson’s Theory
He was a renowned Economist, propagated a functional definition of an
Entrepreneur
Demand & Supply Relationship Identification of some
qualities
Demand of Entrepreneurial ship
1 stems from the need to adjust to 2 An Entrepreneur is a person
change who specialize in taking
judgmental decisions about
Supply is limited by the scarcity of the the coordination of scarce
resources
desired personal qualities
Papanek and Haris’ Theory
“ When certain economic conditions are favorable,
entrepreneurship and economic growth will take place.”
Economic incentives Economic Development= f(EI)
Entrepreneurial functions
Emphasis on two type of
Entrepreneurial activities The responsiveness to the
environmental conditions