Harvey Leibenstein propounded the theory of X-efficiency which is popularly called Gap Filling Theory. The behaviour of individual can be made enterprising by affecting the main elements of demand structure. The traditional notion of an entrepreneur is that he brings together the factor inputs and organises productive activity. In practice, entrepreneurship is also governed by the specific combination of circumstances which are generally not available in the environment. It is implied in need for achievement process. Few authors like Schumpeter, McClelland, Hagen and John Kunkell have expressed their opinion about psychological factors affecting entrepreneurship. However, despite the above criticisms, this theory is regarded as one of the best theories in the history of entrepreneurial development. In this way, an entrepreneur is an innovator. Researcher Sally Caird calls it calculated risk taking and describes it this way: Calculated risk-taking is operationally defined as the ability to deal with incomplete information and act on a risky option, that requires skill, to actualize challenging but realistic goals., Academics aside, experienced entrepreneurs realize success only comes when taking a leap of faith. J.P. Gour of Jai Prakash Industries and Sunil Mittal of Bharti group etc. c. When group is having sound and more institutional resources rather than other groups. The studies further show that Hinduism is not averse to the spirit of capitalism and to adventurous spirit. According to Weber, A person who lives in which community, religion and follows the conventions and religious values.. Schumpeters theory of entrepreneurship is a pioneering work of economic development. i. Everett E. Hagen has also given a particular concept about an entrepreneurship. At last but not the least, we conclude that all the authors i.e., Frank Young, B. F. Hoselitz, Max Weber, Cochran has given their own opinion on the concept of sociological theory. This is where the fun part begins. c. Individuals bear uncertainty not risk. An entrepreneur is neither technical man nor a capitalist but simply an innovator. He has developed the theory of withdrawal of status. iv. This item is part of a JSTOR Collection. Economic Theory 13. So, are entrepreneurs risk-takers? According to this theory, the entrepreneurs emerges because of individuals having certain psychological elements i.e., will power, self-intuitions, tolerance capacity. I believe this. So it is better to develop n-achievement among individuals to ensure high scale of economic development. While this can help, many unique ideas fall flat upon execution. Heres an example: Would you run across a busy 7-lane interstate for a dollar? How An Entrepreneur Is A Risk Taker - SQ ii. These characteristics are formed during the individuals upbringing which stress on standards of excellence, self-reliance and low father dominance. Rather than capital intensive, labour intensive will serve our interest in a better manner. The supporters of sociological theory says that the entrepreneurial activities is affected from social status hierarchy and values. Further if different prices prevail in the same market, there in an opportunity for profitable arbitrage between two segments. Schumpeters entrepreneur is a large scale businessman, who is rarely found in developing countries, where entrepreneurs are small scale businessmen who need to imitate rather than innovate. So expected results are not valid in all cases. Professor Marshall Ketchum eyed the young graduate student. Hagens theory laid more stress on technological changes which is the result as individuals creativity. They strived to get concrete and frequent feedback. To search and evaluate economic opportunities. Articles published in the journal are clearly relevant to management theory and practice and identify both a compelling practical management issue and a strong theoretical framework for addressing it. He emphasized the role of culturally marginally groups like Jews and the Greeks in medieval Europe, the Chinese in South Africa and Indians in East Africa in promoting economic developments. And, if the latter, do they ride willy-nilly down the rabbit hole of unconstrained thought, or do they contemplate what the path of least resistance looks like? Marginal groups are having the ability of innovation. At the same time many theoretical insights have come from economics, including a rediscovery of the work of Schumpeter. Theres rarely a guaranteed outcome in business. According to Schumpeter, entrepreneur is basically an innovator and innovator is one who introduces new combinations. iv. Why do you need to develop a business plan? Various writers have developed variety theories on entrepreneurship and popularized the concept among the common people. Do they aspire to conformity, or are they constantly searching for the coming thing? According to him, innovation occurs when the entrepreneur: ii. The supporters of this theory, profit motive is the prime driving force that change an individual into an entrepreneur. He is motivated by establishing his psychological power. Many have missed their Golden Ring opportunity because they have been too afraid to make a decision when theyre in the Red Zone. This theory approaches three assumptions in entrepreneurship, which are as follows: a. If you can tolerate the worst thing that could happen, and the risk has a potential great benefit to your company, then the risk is probably worth taking. The Academy of Management (the Academy; AOM) is a leading professional association for scholars dedicated to creating and disseminating knowledge about management and organizations. Even need for achievement starts from profit making process. This structure affect the development of an entrepreneur. This theory is developed by Everett E. Hagen. The important elements of Webers theory are described further: i. This tendency creates the spirit of economic development. Introduces a new methods of production, iv. By seeing entrepreneurship in this light, you become far more likely to adopt behaviors that set your business up for success and avoid those that facilitate failure. Protestant ethic According to Max Webber the spirit of capitalism can be grown only when the mental attitude in the society is favourable to capitalism. According to him, the former is influenced by the strict discipline whereas the latter is affected by free force of impulse. Hoselitz opined that entrepreneurship can develop in a society where its culture permits a variety of choices and where social processes are not rigid. Risks can be calculated Smart entrepreneurs understand that there is a difference between taking a risk and gambling. are thoroughly effected to entrepreneurship development. Weber says that the religious beliefs and moral values are basically affected to peoples attitude, view trust and thinking pattern and peoples selected occupational pursuits as per earlier things. Opportunities are subjective in nature. When you talk to people about what it takes to be an entrepreneur, most people will say you need to be a risk taker. Regardless of job titles or descriptive characteristics, entrepreneurship has a universal appeal for how people think and engage with the world.
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