Theories of Entrepreneurship Quiz

Study Notes

Scholars propose various theories to understand entrepreneurial behavior and success factors.
These theories examine environmental and individual characteristics influencing entrepreneurial decisions.

Proposed by Joseph Schumpeter (1934).
Emphasizes innovation as the driving force behind entrepreneurship.
Highlights the role of innovation in products, processes, or business models.
This innovation disrupts existing markets and fosters economic growth.
"Creative destruction" is a term coined to describe the replacement of outdated practices through innovation.

Founded by Jay Barney and Birger Wernerfelt (1980s).
Focuses on resources and capabilities in entrepreneurship.
Entrepreneurs with unique resources or skills gain a competitive advantage.
Entrepreneurs leverage resources to create value and attain a sustainable competitive edge.

Founded by Andrew Corbett and Jeffery McMullen (2007).
Examines personality traits that differentiate entrepreneurs.
Traits like risk-taking propensity, achievement, self-confidence, and locus of control are associated with entrepreneurial behavior.

Founded by James Coleman and Barry Wellman (20th century, evolving).
Social networks are vital in entrepreneurship.
Entrepreneurs with strong social networks access resources, information, and support necessary for venture creation and growth.

Prof. Knight and John Stuart Mill considered risk-bearing a key function of entrepreneurs.
Risk creates profit because entrepreneurs undertake risks.
The degree of risk varies across industries.
Profit serves as a reward for risk-taking, also a cost of production.
Entrepreneur's income is uncertain due to the unpredictable nature of outcomes.

Entrepreneurship theories provide a better understanding of entrepreneurial behavior.
Theories help understand the need for entrepreneurship and why some are more entrepreneurial.
They explore the various approaches and perceptions held by entrepreneurial individuals.
Theories reveal that the desire for entrepreneurship is both innate and environmentally influenced.
Theories inspire entrepreneurs to be innovative and develop novel solutions.
Theories encourage exploring new ideas and approaches.

Skills for identifying marketplace opportunities and capitalizing on them appropriately.
Entrepreneurial thinking involves problem-solving and pursuing solutions.
Entrepreneurial thinking isn't inherently fixed, but rather a state of mind that can be nurtured and developed.
It's about seeing things differently, and understanding new learning opportunities to continuously grow professionally through harnessing experiences and insights.
It's about recognizing possibilities and taking advantage of them at the right moment.

Critical thinking is closely related to problem-solving.
Critical thinking involves looking at multiple problem solutions before adopting one.
Critical thinking is about the organized and rational evaluation of ideas and facts.
It's akin to "thinking about thinking" – recognizing its own flaws to improve outcomes.

Reflective thinking involves self-awareness of knowledge, assumptions, and past experiences.
It's a dynamic process connecting prior experiences to future challenges.
Reflective thinking helps in evaluating and interpreting experiences for better decision-making in the future as well as improving problem-solving abilities.

Creative thinking is critical for generating new ideas to help entrepreneurs develop more innovative ideas and processes,
Creative thinking encourages thinking outside the traditional box to overcome challenges through unique perspectives.
It's about finding innovative ways to solve problems.