THEORIES OF ENTERPRENEURSHIP

DEVELOPMENT

PRESENTED BY- AJAY YADAVSEC- A

G.L.bajaj. institute of management and research greater noida

ENTREPRENEURSHIP

THEORIES...

THEORIES OF ENTREPRENEURSHIP CATEGORISED AS UNDER :-

SOCIOLOGICAL THEORY ECONOMICAL THEORY CULTURAL THEORY PSYCOLOGICAL THEORY

ECONOMIC THEORY Entrepreneurship and economic development areinterdependent.

Economic development takes place when acountry' real rational income increases overall period of timewherein the role of entrepreneurs is an integral part.

• Entrepreneurship and economic growth take place when

theeconomic conditions are favorable. • Economic incentives are the main motivators forentrepreneurial

activities. • Economic incentives include taxation policy, industrial policy,sources

of finance and raw material, infrastructureavailability, investment and marketing opportunities, accessto information about market conditions, technology etc.

PSYCHOLOGICAL THEORY

• Entrepreneurship gets a boost whensociety

has sufficient supply of individuals with necessary psychologicalcharacteristics.

•  The psychological characteristics

includeneed for high achievement, a vision orforesight, ability to face opposition.

CULTURAL THEORIES

Entrepreneurship is the product of culture.Entrepreneurial talents come from cultural valuesand cultural system embedded into the culturalenvironment.

Hoselitz’s Theory •  The supply of entrepreneurship is governed

bycultural factors, and culturally minority groups arethe spark-plugs of entrepreneurial and economicdevelopment. In many countries, entrepreneurshave emerged from a particular socio-economic class