Entrepreneur Theory Essay

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There are several theories has been developed by different scholars for entrepreneurship development since couple of decades. A consistent universal theory does not present in entrepreneurship, but rather it contains of several approaches such as economics, psychology, sociology, anthropology, regional science. All theories has explored the rationality with the emergence of new entrepreneurs and theirs contribution in socio-economic development of a country (Sexton, 1997). Many of these studies assume that all entrepreneurs are similar including the owner of small enterprises and high growth innovative ventures. The following section some of theories explained and finding the literature gap and selecting the appropriate theory for this study.…show more content…
Entrepreneurs should have strong need for achievement (McClelland & Winter, 1971). Lachman (1980) explained that the individual, who possess the same traits as entrepreneurs, will have a higher possibility to perform entrepreneurial acts than individual do not posses such traits. Hornaday (1982) developed a list of entrepreneurial traits though surveys and intensive interview such as self confidence and optimistic, able to calculated risk, flexible and able to adopt, respond positively to change, knowledge of markets, able to get along well with others, independent minded, versatile knowledge, energetic and diligent, creative need to achieve, dynamic leader, responsible to suggestions take initiatives, resourceful and preserving and perceptive with foresight, responsive to…show more content…
An entrepreneurial success will depend on some determinants such as attitudes, behaviors, management skill and know how etc. Drucker (1985) explored entrepreneurs are exclusive individuals with pre-determined features. He strongly supports the behavioral approach by ignoring the psychological approach to entrepreneurship. He argued that entrepreneurship is a behavioral pattern rather than a personality trait and something that an individual can be learned so that they can, indeed, learn how to behave entrepreneurially. Entrepreneurs are taking risk through decision making. Barkam, (1989); Henry, (2003) they also agreed views of Drucker and Schultz of behavioral approach. Gartner (1989) also criticized the traits approach to entrepreneurship and claimed that entrepreneurs creates an organization where as non-entrepreneur does not. He vies personality traits of traits as ancillary to his /her behavior. Entrepreneurship is still all about the creation of an organization, they performing series of actions which ultimately result in the set up a new venture. He also recommends that researcher should observe managerial behaviors (mintzberg, 1973) and entrepreneurs in the process of creating organization and specific roles which are performed during the actions. Entrepreneurs should have good managerial skills
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