Human Aspect of Entrepreneurship: Personality and Theories PDF

HUMAN ASPECT OF ENTREPRENEURSHIP: PERSONALITY AND THEORIES  1 2 3 4 5 Money Flexibility of Control over Pick your own Legacy being your own decision people boss making TOP 5 REA...

HUMAN ASPECT OF ENTREPRENEURSHIP: PERSONALITY AND THEORIES  1 2 3 4 5 Money Flexibility of Control over Pick your own Legacy being your own decision people boss making TOP 5 REASONS WHY PEOPLE BECOME ENTREPRENEUR  RELEVANCE OF THEORIES IN EXPLAINING ENTREPRENEURIAL MOTIVATION Represent various Underline the Justified entrepreneurship factors that can importance of and its causal relationship lead to strengthening systems with psychological, entrepreneurship. that can lead to more economic, and entrepreneurs in a social variables in a society/economy. society/economy. Schumpeter’s Innovation theory of Entrepreneurship EFFICIENCY MODEL IMPERFECT COMPETITION/NOT WELL ESTABLISHED MARKET LEIBENSTEIN’S X- GAP FILLER ROLE INPUT COLLECTOR ROLE TRANSFORMING FILLS THE GAP IN THE AVAILABLE INPUTS THAT IMPERFECT MARKET TO TRANSFORM THE PUT THE ENTERPRISE IN EFFICIENCY OF THE MOTION EXISTING METHOD  Risk Bearing Theory Risk bearing is a key element of entrepreneurship Risk creates Profit: According to the risk-bearing theory, the entrepreneur earns profits because he undertakes risks. More Risk More Gain: The degree of risk varies in different industries. Entrepreneurs undertake different degrees of risk according to their ability and inclination. The risk theory proposes that the more risky the nature of business, the greater must be the profit earned by it. CONT...... Risk Bearing Theory Risk bearing is a key element of entrepreneurship Profit as Reward and Cost:Profit is the reward of entrepreneur for assuming risks. Hence, itis also treated as a part of the normal cost of production. Entrepreneur’s Income is Uncertain: Knight identifies uncertainty with a situation where the probabilities of alterative outcomes cannot be determined either by a priori reasoning or by statistical inference.  Theory of Entrepreneurial Growth-Max Weber Religion has a large impact Some religions have basic This lies in a ‘spirit of The spirit of capitalism will on entrepreneurial beliefs to earn and acquire capitalism’ and be generated when mental development. money and some have less ‘adventurous spirit’. attitude in the society is of it. favourable to capitalism. Theory of Entrepreneurial Growth Driving entrepreneurial energies are generated by the Adoption of exogenously-supplied religious beliefs. It is these beliefs which produce intensive exertion in occupational pursuits, the systematic ordering of means to ends, and the accumulation of assets. This theory suggests the belief systems of Hinduism, Buddhism and Islam do not encourage entrepreneurship.  Max Weber’s Theory Entreprene Religious urial beliefs Growth Specific Value Orientation  Theory of Cultural Values The key proportions are cultural values, role expectations and social sanctions. The entrepreneur represents society’s model personality. Entrepreneurs performance is influenced by his own attitudes towards his occupation, expectations held by sanctioning groups, operational requirements of the job. CONT.....  Theory of Cultural Values Society’s values are great determinants. Changes in environmental contextual factors will impinge on the role structure by creating new operational needs. In most countries, entrepreneurs have emerged from a particular socio- economic class. The Protestant ethic of the West is said to have contributed to the emergence of a new class of industrialists. Exposure Theory of Entrepreneurship  Political System Theory of Entrepreneurial Growth Creation of favourable business climate Entrpreneurial Commitment Growth in the of political country system Enhancement of creative and entrepreneurial ability CONT..... Japanese entrepreneurs could flourish because their political system was able to properly integrate with various sectors such as the industrial and agricultural, large, small and handicraft industries, labor intensive and capital intensive technology, traditional and modem social structure. According to Boulding “political structure was the decisive factor in entrepreneurial growth of France and Russia. Political system should provide sufficient incentives and security to entrpreneurs.  THANK YOU [email protected]