Learning Outcomes:

1. Identify theories on entrepreneurship and

2. Cite the importance of the theories on entrepreneurship.
✓It is a generalization that explains a set of facts or
phenomenon.
✓it is not an absolute truth
✓It can be supported by another observation or proven to
be otherwise
1. Innovation Theory
2. Keynesian Theory
3. Alfred Marshall Theory
4. Risk and uncertainty-bearing Theory
5. Weber’s sociological Theory
6. Kaldor’s technological Theory
7. Leibenstein’s gap-filling Theory
8. Kirzner’s learning-alertness Theory
1. INNOVATION THEORY
➢Innovation theory on entrepreneurship was contributed by Joseph
Schumpeter, an Austrian economist and political scientist
➢Author of the book Theory of Economic Development.
➢This theory consider that innovation is the primary factor affecting
development
2. KEYNESIAN THEORY
➢Keynesian theory on entrepreneurship was developed by John
Maynard Keynes, a British economist.
➢Author of the book The General Theory of Employment, Interest
and Money
➢This theory emphasis on the role of government in entrepreneurial
and economic development, most especially during the Great
Depression
3. ALFRED MARSHAL THEORY
➢Entrepreneurship theory of Alfred Marshall, an English economist,
was introduced in his book, Principles of Economics
➢This theory generalizes that the organization plays the most
significant role among the different factors of production.
4. RISK AND UNCERTAINTY-BEARING
THEORY
➢Conceptualize by Frank Hyneman Knight, an American economist,
in his book, Risk, Uncertainty and Profit
➢This theory states that an entrepreneur faces the risk of uncertainty
in the process of connecting the supplier and the buyer
5. Weber’s Sociological theory
➢This theory asserts that culture has significant contributions to the
entrepreneurship
6. Kaldor’s Technology Theory
➢It gives importance to the advancement of technology as an element of
production
7. Leibenstein’s Gap-filling Theory
➢Advocates that entrepreneurships fills the gap in an economic activity
8. Kirzner’s Learning-alertness theory
➢Focuses on the learning and alertness as the primary attributes of
entrepreneurship