The document discusses 8 theories on entrepreneurship: 1) Innovation theory focuses on structural change and innovation as the primary factor for development. 2) Keynesian Theory emphasizes the government's role in entrepreneurship, especially during economic depression. 3) Alfred Marshal Theory sees entrepreneurs as prime movers in organization. 4) Risk and uncertainty-bearing theory states entrepreneurs must anticipate random events while shouldering risk. 5) Weber’s sociological theory sees social cultures as primary drivers. 6) Kaldor’s technological theory considers modern technology essential. 7) Leibenstein’s gap-filling theory says entrepreneurs fill existing gaps. 8) Kirzner’s learning-alertness theory identifies spontaneous learning and alertness as key
The document discusses 8 theories on entrepreneurship: 1) Innovation theory focuses on structural change and innovation as the primary factor for development. 2) Keynesian Theory emphasizes the government's role in entrepreneurship, especially during economic depression. 3) Alfred Marshal Theory sees entrepreneurs as prime movers in organization. 4) Risk and uncertainty-bearing theory states entrepreneurs must anticipate random events while shouldering risk. 5) Weber’s sociological theory sees social cultures as primary drivers. 6) Kaldor’s technological theory considers modern technology essential. 7) Leibenstein’s gap-filling theory says entrepreneurs fill existing gaps. 8) Kirzner’s learning-alertness theory identifies spontaneous learning and alertness as key
The document discusses 8 theories on entrepreneurship: 1) Innovation theory focuses on structural change and innovation as the primary factor for development. 2) Keynesian Theory emphasizes the government's role in entrepreneurship, especially during economic depression. 3) Alfred Marshal Theory sees entrepreneurs as prime movers in organization. 4) Risk and uncertainty-bearing theory states entrepreneurs must anticipate random events while shouldering risk. 5) Weber’s sociological theory sees social cultures as primary drivers. 6) Kaldor’s technological theory considers modern technology essential. 7) Leibenstein’s gap-filling theory says entrepreneurs fill existing gaps. 8) Kirzner’s learning-alertness theory identifies spontaneous learning and alertness as key
LESSON 3 – THEORIES ON ENTREPRENEURSHIP 8 THEORIES ON ENTREPRENEURSHIP
1. Innovation theory – it was contributed by Joseph
Schumpeter, an Austrian economist and political scientist.
- It regards economic development as the product of
structural change or innovation.
- It is considered as the primary factor affecting
development. 2. Keynesian Theory – it was developed by John Maynard Keynes, a British economist.
- This put so much emphasis on the role of the government
in entrepreneurial and economic development, most especially when the economy was experiencing depression.
- It attributes economic growth especially during depression
to the government. 3. Alfred Marshal Theory – he was an English economist who introduced the book Principles of Economics.
- He regarded the entrepreneurs as the prime movers in the
organization.
- He generalizes that the organization plays the most
significant role among the different factors of production. 4. Risk and uncertainty-bearing theory – Frank Hyneman Knight, and Amercian economist, conceptualized the risk and uncertainty bearing theory of entrepeneuship
- He believed that the entrepreneur must anticipate possible
random events to happen while shouldering the risk at the same time.
- It states that an entrepreneur faces the risk of uncertainty
in the process of connecting the supplier and the buyer. 5. Weber’s sociological theory – Max Weber stressed that social cultures are the primary driving elements of entrepreneurship. - The entrepreneur is expected to perform the role of a good constituent by executing his entrepreneurial activities in line with good customs and tradition, religious beliefs and morals. 6. Kaldor’s technological theory – it was developed by Nicholas Kaldor who considered modern technology as an essential factor in production. - Proper application of modern technology will promote efficiency in the production of goods and services. 3. Leibenstein’s gap-filling theory – Henry Leibenstein proposed that the primary role of entreprenuership in any economic activity is to fill the existing gap.
- He must extend assistance to entrepreneurial venture experiencing
failures and deficiencies.
4. Kirzner’s learning-alertness theory – Israel Kirzner was the main
proponent of this theory.
- He pointed out spontaneous learning and alertness as the two major
attributes of entrepreneurship in any given economy.