SlideShare une entreprise Scribd logo
1  sur  27
THEORIES
OF ENTREPRENEURSHIP
1
AGENDA
2
 Classification
 An economic theory
 Risk bearing theory of Knight
 Innovation theory of Schumpeter
 Leibenstein X-efficiency theory
 Harvard School theory
 Theory of Market Equilibrium by Hayek
 McClelland’s Achievement Motivation Theory
 Theory of Change
 Theory of Adjustment of Price
 Theory of Entrepreneurial Supply
 Theory of Personal Resourcefulness
 Theory of Cultural Values
 Conclusion
Classification
3
Theory
Economic
principles
Psychological
principles
Sociological
principles
An Economic Theory
4
 Given by Mark Casson in his book The Entrepreneur—An Economic
Theory
 Demand for entrepreneurship arise from the need to change and the
supply of entrepreneurship is limited.
 Four Qualities of Entrepreneur
1. Judgmental decisions.
2. Co-ordination of Scarce resources.
3. Motivated by Self Interest.
4. Imagination—entirely innate.
Risk bearing theory of Knight
5
 Prof. Knight’s theory is based on economic
principles .
According to Risk –Bearing theory
1. Entrepreneur earns profits because he undertakes risk
2. The main function of an entrepreneur is to act in anticipation of future
events.
3. Uncertainty-bearing is essential to production; therefore it is factor of
production and the reward for it is a part of normal cost of production.
4. Profit is a payment for the assumption of risks the entrepreneur
undertake.
Evaluation of Knights Theory
6
 Entrepreneur has to cope with the various challenges
which is at once unknown and unpredictable i.e there
lies uncertainty.
Innovation theory of Schumpeter(1949)
7
Entrepreneur is a man who sees opportunity for
 Introducing new techniques or commodity
 Improving organization.
 Development resources.
 Entrepreneur embarks upon new combination of factors of production
resulting in new product--termed as innovator.
 Entrepreneur is Dynamic
TYPE OF INNOVATIONS
8
 The introduction of new product.
 The introduction of new method of production
 The opening of new market
 The conquest of new source of raw material
supply.
 Reorganization of any industry.
Features of Schumpeter Theory
9
 High degree of risk and uncertainty in Schumpeterian World.
 Highly motivated and talented individual.
 Profit is merely an part of objectives of entrepreneurs.
 Progress under capitalism is much slower than actually it is.
 It is leadership rather than ownership which matters.
Evaluation Schumpeter’s Theory
10
 It lays that entrepreneur played central part in rise of
modern capitalism.
 Entrepreneur is prime mover of economic
development.
Leibenstein X-efficiency Theory
11
“When an input is not used effectively the difference between the actual output and
the maximum output attributable to that input is measure of Degree of X—Efficiency.”
Types of Entrepreneurship
 Routine entrepreneurship
 Innovational entrepreneurship
Role of Entrepreneurship
 Input completion
 Gap filling
Entrepreneurs must be able to perceive
1.buying and selling opportunities in different markets.
2.the possibility of transforming input into output
3.determine the profitable activities
Evaluation of Leibenstein’s theory
12
 It analyzes role of entrepreneur in terms of efficiency.
 It tells us why growth rate is different in different
countries.
 This theory shows that a firm will achieve maximum
efficiency when the firm minimizes cost.
Harvard School theory
13
 Given by Cole (1949)
 Envisages entrepreneurship as purposeful activity that initiate, maintain
and develop a profit oriented business.
 Focus on two activities
--co-ordination activity
--sensitivity to the environment.
Theory of Market Eqilibrium by Hayek
14
According to Hayek “
 the absence of entrepreneurs in Neo –classical economics is intimately
associated with the assumption of market equilibrium.
 The ultimate cause of instability in the business world in the elasticity of bank
credit but the trace the consequences of this, not through the variations in
consumers expenditure ,but through the change in volume of real investment by
entrepreneurs.
Evaluation of Hayek theory
This theory tells us that sectoral balance in economic system is essential for
steady economic development.
McClelland’s Achievement Motivation Theory
15
 This is a psychological theory.
 Developed by David Mc Clelland as an Achievement motivation theory.
Mc Clelland proposed that there are three major needs or motives for
personnel accomplishments. They are as follows:
1. The need for achievement(nAch)
2. The need for affiliation.(nAff)
3. The need for power.(nPow)
Implications of Motives
 Need for affiliation and need for power are driving force towards
entrepreneurship.
 High level of achievement makes an entrepreneur.
 Dreams of entrepreneur appear to be not to ‘get rich’ but to ‘get big’.
Tenets of McClelland’s theory
16
1. Economic developments depends on vigorous activities
of a number of individuals who behave in an
entrepreneurial fashion.
2. Entrepreneurs are motivated by strong need for
achievement.
3. There is evidence is direct that this motivational
complex has been in shorter supply in poor countries
than in rich countries.
4. To improve the condition of poor countries
entrepreneurs are to be increased.
Evaluation of McClelland’s theory
17
 It produced reason for difference in economic condition
of rich and poor countries or developed and
underdeveloped countries.
 It called the nations leaders to build up ambition into
the minds of the young people.
Theory of Change
18
 Propounded by Young.
 According to it entrepreneurs have tendency to
i. Describe situation as problem
ii. Awareness of effort
iii. Confidence in ability
iv. Analyze the situation before decision making.
19
Theory of change is based on society's incorporation of
reactive subgroups.
 According to it group becomes reactive when following
three conditions coincide…..
a) When a group experiences low status recognition.
b) When denied to access to important social networks
c) When the group has better institutional resources than
other groups in society at the same level.
Theory of Change
Theory of Adjustment of Price
20
Given by Kirzner.
 According to him entrepreneur has following
characteristics
 Adjustment of price is the main role of entrepreneur.
 Alertness to disequilibrium.
 Entrepreneurs are unpredictable.
Evaluation
 This theory lays stress on the behavior of the
entrepreneurs and their quality of grabbing opportunities
in the market.
Theory of Entrepreneurial Supply
21
 It was propounded by John Kunkal in 1965.
 It is based upon experimental psychology and sociological variables.
 This behaviouristic model concerned with the activities of individuals
and their relations to both past, present and social structures and
physical condition.
Theory of Personal Resourcefulness
22
“Personal resourcefulness” is the belief in one’s own
capability for initiating actions directed towards creation
and growth of enterprise. Thus, it emphasize on
initiative rather than reaction.
Theory of Cultural Values
23
 Propounded by Thomas Cochran.
 Entrepreneurs are not super normal individual but they are society’s model
personality.
 Performance of entrepreneur influenced by three factors:
i. His own attitude towards his own occupation .
ii. Operational requirement of job.
iii. The role expectations held by the sanctioning groups/society.
Menger’s Theory of Value Added
Transformation of Resources
24
 According to Carl Menger of Australia (1871),
economic changes do not arise from the
circumstances but from the individual’s
awareness and understanding of the
circumstances. Entrepreneur transforms the
available resources into useful goods and
services.
25
Grain in field has
very low value
Bulk grain from
farmer has low
value
Intermediate steps in transformation
Milled flour for
baker has high
value
Bread at bakery for
sale has high value
Delivered baked
bread is highest-
value use
Menger’s Model of Value-Added
Transformation of Resources
Priority 8
Priority 7
Priority 3
Priority 2
Priority 1
CONCLUSION
26
 Every theorist has looked at the entrepreneur and
entrepreneurship on the basis of his perception,
and therefore ,can at best ,provide only a limited
view of entrepreneurial phenomenon. No view is
right or wrong or more or less .
Thank you…
27
“Don't die without fulfilling your purpose.”

Contenu connexe

Tendances

Business objectives
Business objectivesBusiness objectives
Business objectivesdeepu2000
 
Entrepreneurship notes
Entrepreneurship notesEntrepreneurship notes
Entrepreneurship notesShristi Gupta
 
Entrepreneurship (Introduction to Entrepreneurship)
Entrepreneurship (Introduction to Entrepreneurship)Entrepreneurship (Introduction to Entrepreneurship)
Entrepreneurship (Introduction to Entrepreneurship)Reshma Ramesh
 
Introduction of entrepreneurship
Introduction of entrepreneurshipIntroduction of entrepreneurship
Introduction of entrepreneurshipRoslinaAhmad
 
Entrepreneurship Lecture Notes Part 1
Entrepreneurship Lecture Notes Part 1Entrepreneurship Lecture Notes Part 1
Entrepreneurship Lecture Notes Part 1Odofin Caleb
 
Theories of entrepreneurship
Theories of entrepreneurshipTheories of entrepreneurship
Theories of entrepreneurshipDilpreet Bathla
 
Entrepreneurial Strategy for new business
Entrepreneurial Strategy for new businessEntrepreneurial Strategy for new business
Entrepreneurial Strategy for new businessMadhusudhanGoud
 
Role of entrepreneurs in economic development
Role of entrepreneurs in economic developmentRole of entrepreneurs in economic development
Role of entrepreneurs in economic developmentShanson Shaji
 
CHARACTERISTICS OF ENTREPRENEURS
CHARACTERISTICS OF ENTREPRENEURSCHARACTERISTICS OF ENTREPRENEURS
CHARACTERISTICS OF ENTREPRENEURSjenbooc03
 
Chapter 1 concept and nature of entrepreneurship
Chapter 1 concept and nature of entrepreneurshipChapter 1 concept and nature of entrepreneurship
Chapter 1 concept and nature of entrepreneurshipAlebachew Hailu
 
Concept of Entrepreneurship
Concept of EntrepreneurshipConcept of Entrepreneurship
Concept of Entrepreneurshipashok kumar
 
Concept of Entrepreneur and Entrepreneurship
Concept of Entrepreneur and EntrepreneurshipConcept of Entrepreneur and Entrepreneurship
Concept of Entrepreneur and EntrepreneurshipSheetal Wagh
 
Introduction To Entrepreneurship
Introduction To EntrepreneurshipIntroduction To Entrepreneurship
Introduction To EntrepreneurshipAbhishek Duttagupta
 
Traits of an entrepreneur
Traits of an entrepreneurTraits of an entrepreneur
Traits of an entrepreneurahmed Khan
 
Enterpreneurial-strategy
Enterpreneurial-strategyEnterpreneurial-strategy
Enterpreneurial-strategyHari Shrestha
 
Nature of Entrepreneurship
Nature of EntrepreneurshipNature of Entrepreneurship
Nature of EntrepreneurshipXophia Montawal
 

Tendances (20)

Entrepreneurship and economic development
Entrepreneurship and economic developmentEntrepreneurship and economic development
Entrepreneurship and economic development
 
Business objectives
Business objectivesBusiness objectives
Business objectives
 
Entrepreneurship notes
Entrepreneurship notesEntrepreneurship notes
Entrepreneurship notes
 
Entrepreneurship (Introduction to Entrepreneurship)
Entrepreneurship (Introduction to Entrepreneurship)Entrepreneurship (Introduction to Entrepreneurship)
Entrepreneurship (Introduction to Entrepreneurship)
 
Introduction of entrepreneurship
Introduction of entrepreneurshipIntroduction of entrepreneurship
Introduction of entrepreneurship
 
Entrepreneurship Lecture Notes Part 1
Entrepreneurship Lecture Notes Part 1Entrepreneurship Lecture Notes Part 1
Entrepreneurship Lecture Notes Part 1
 
Theories of entrepreneurship
Theories of entrepreneurshipTheories of entrepreneurship
Theories of entrepreneurship
 
Entrepreneurial Strategy for new business
Entrepreneurial Strategy for new businessEntrepreneurial Strategy for new business
Entrepreneurial Strategy for new business
 
Entrepreneurship
EntrepreneurshipEntrepreneurship
Entrepreneurship
 
Role of entrepreneurs in economic development
Role of entrepreneurs in economic developmentRole of entrepreneurs in economic development
Role of entrepreneurs in economic development
 
CHARACTERISTICS OF ENTREPRENEURS
CHARACTERISTICS OF ENTREPRENEURSCHARACTERISTICS OF ENTREPRENEURS
CHARACTERISTICS OF ENTREPRENEURS
 
Entrepreneurial process
Entrepreneurial processEntrepreneurial process
Entrepreneurial process
 
Chapter 1 concept and nature of entrepreneurship
Chapter 1 concept and nature of entrepreneurshipChapter 1 concept and nature of entrepreneurship
Chapter 1 concept and nature of entrepreneurship
 
Concept of Entrepreneurship
Concept of EntrepreneurshipConcept of Entrepreneurship
Concept of Entrepreneurship
 
Concept of Entrepreneur and Entrepreneurship
Concept of Entrepreneur and EntrepreneurshipConcept of Entrepreneur and Entrepreneurship
Concept of Entrepreneur and Entrepreneurship
 
Introduction To Entrepreneurship
Introduction To EntrepreneurshipIntroduction To Entrepreneurship
Introduction To Entrepreneurship
 
Traits of an entrepreneur
Traits of an entrepreneurTraits of an entrepreneur
Traits of an entrepreneur
 
Entreprenuership
EntreprenuershipEntreprenuership
Entreprenuership
 
Enterpreneurial-strategy
Enterpreneurial-strategyEnterpreneurial-strategy
Enterpreneurial-strategy
 
Nature of Entrepreneurship
Nature of EntrepreneurshipNature of Entrepreneurship
Nature of Entrepreneurship
 

En vedette

Theories of entrepreneurship
Theories of entrepreneurshipTheories of entrepreneurship
Theories of entrepreneurshipRenu Malra
 
Workshop: Value Chains - An introduction to value chains
Workshop: Value Chains - An introduction to value chainsWorkshop: Value Chains - An introduction to value chains
Workshop: Value Chains - An introduction to value chainsWorldFish
 
1 entreprenuership-chapter-1-the-nature-&-importance-of-entreprenurs
1 entreprenuership-chapter-1-the-nature-&-importance-of-entreprenurs1 entreprenuership-chapter-1-the-nature-&-importance-of-entreprenurs
1 entreprenuership-chapter-1-the-nature-&-importance-of-entreprenursRohit Sharma
 
entrepreneurship, innovation, creativity
entrepreneurship, innovation, creativityentrepreneurship, innovation, creativity
entrepreneurship, innovation, creativityMonika Maciuliene
 
Role of Entrepreneur
Role of EntrepreneurRole of Entrepreneur
Role of EntrepreneurNaveen Minj
 
Successful and Failed Entrepreneurs
Successful and Failed EntrepreneursSuccessful and Failed Entrepreneurs
Successful and Failed EntrepreneursVinay Prajapati
 
Famous Entrepreneurs ppt
Famous Entrepreneurs pptFamous Entrepreneurs ppt
Famous Entrepreneurs pptKishan Panchal
 
Creativity and innovation in entrepreneurship
Creativity and innovation  in entrepreneurshipCreativity and innovation  in entrepreneurship
Creativity and innovation in entrepreneurshipKunal Singh
 
Top 20 Entrpreneurs in India
Top 20 Entrpreneurs in IndiaTop 20 Entrpreneurs in India
Top 20 Entrpreneurs in IndiaSandra4Smiley
 

En vedette (13)

Ent300 module01
Ent300 module01Ent300 module01
Ent300 module01
 
Theories of entrepreneurship
Theories of entrepreneurshipTheories of entrepreneurship
Theories of entrepreneurship
 
263539 633925704903692500
263539 633925704903692500263539 633925704903692500
263539 633925704903692500
 
Entrepreneurship
EntrepreneurshipEntrepreneurship
Entrepreneurship
 
Workshop: Value Chains - An introduction to value chains
Workshop: Value Chains - An introduction to value chainsWorkshop: Value Chains - An introduction to value chains
Workshop: Value Chains - An introduction to value chains
 
1 entreprenuership-chapter-1-the-nature-&-importance-of-entreprenurs
1 entreprenuership-chapter-1-the-nature-&-importance-of-entreprenurs1 entreprenuership-chapter-1-the-nature-&-importance-of-entreprenurs
1 entreprenuership-chapter-1-the-nature-&-importance-of-entreprenurs
 
entrepreneurship, innovation, creativity
entrepreneurship, innovation, creativityentrepreneurship, innovation, creativity
entrepreneurship, innovation, creativity
 
Role of Entrepreneur
Role of EntrepreneurRole of Entrepreneur
Role of Entrepreneur
 
Successful and Failed Entrepreneurs
Successful and Failed EntrepreneursSuccessful and Failed Entrepreneurs
Successful and Failed Entrepreneurs
 
Famous Entrepreneurs ppt
Famous Entrepreneurs pptFamous Entrepreneurs ppt
Famous Entrepreneurs ppt
 
Creativity and innovation
Creativity and innovationCreativity and innovation
Creativity and innovation
 
Creativity and innovation in entrepreneurship
Creativity and innovation  in entrepreneurshipCreativity and innovation  in entrepreneurship
Creativity and innovation in entrepreneurship
 
Top 20 Entrpreneurs in India
Top 20 Entrpreneurs in IndiaTop 20 Entrpreneurs in India
Top 20 Entrpreneurs in India
 

Similaire à Theories of-entrepreneurship

Theories of Entrepreneurship.pptx
Theories of Entrepreneurship.pptxTheories of Entrepreneurship.pptx
Theories of Entrepreneurship.pptxDevanshuSharma75
 
Theories of entrepreneurship
Theories of entrepreneurshipTheories of entrepreneurship
Theories of entrepreneurshipRenu Malra
 
1. Entrepreneur, Entrepreneurship and Intrapreneur - 1.1 to 1.3.pptx
1. Entrepreneur, Entrepreneurship and Intrapreneur - 1.1 to 1.3.pptx1. Entrepreneur, Entrepreneurship and Intrapreneur - 1.1 to 1.3.pptx
1. Entrepreneur, Entrepreneurship and Intrapreneur - 1.1 to 1.3.pptxAbhijeetGadade5
 
Nirma Etp Theories Of Ent.
Nirma Etp Theories Of Ent.Nirma Etp Theories Of Ent.
Nirma Etp Theories Of Ent.guestad7667
 
Theories of Entrepreneurship
Theories of EntrepreneurshipTheories of Entrepreneurship
Theories of EntrepreneurshipVishal Gupta
 
2 intro(26 08,2-09-2011)
2 intro(26 08,2-09-2011)2 intro(26 08,2-09-2011)
2 intro(26 08,2-09-2011)Suyog Patil
 
Unit 1: Theories and models of Innovation and Entrepreneurship with Analysis....
Unit 1: Theories and models of Innovation and Entrepreneurship with Analysis....Unit 1: Theories and models of Innovation and Entrepreneurship with Analysis....
Unit 1: Theories and models of Innovation and Entrepreneurship with Analysis....VISHNUSRA21222040100
 
01 introducing the economic way of thinking
01 introducing the economic way of thinking01 introducing the economic way of thinking
01 introducing the economic way of thinkingNepDevWiki
 
Entrepreneurship development
Entrepreneurship developmentEntrepreneurship development
Entrepreneurship developmentVinishaGulati1
 
Module i.pptx Business planning and Entrepreneurial Management
Module i.pptx Business planning and Entrepreneurial ManagementModule i.pptx Business planning and Entrepreneurial Management
Module i.pptx Business planning and Entrepreneurial ManagementYogita Sawant
 
UNIT-I Theories.pptx
UNIT-I Theories.pptxUNIT-I Theories.pptx
UNIT-I Theories.pptxAnchalLuthra3
 
Nani mebd 1st module
Nani mebd 1st moduleNani mebd 1st module
Nani mebd 1st moduleVikram g b
 
Enterpreneurship theories and approaches of enterpreneurship
Enterpreneurship theories and approaches of enterpreneurshipEnterpreneurship theories and approaches of enterpreneurship
Enterpreneurship theories and approaches of enterpreneurshipDEPT OF AGRICULTURE JAMMU
 
Research articles1
Research articles1Research articles1
Research articles1Naga Avinash
 

Similaire à Theories of-entrepreneurship (20)

Theories of Entrepreneurship.pptx
Theories of Entrepreneurship.pptxTheories of Entrepreneurship.pptx
Theories of Entrepreneurship.pptx
 
Theories of entrepreneurship
Theories of entrepreneurshipTheories of entrepreneurship
Theories of entrepreneurship
 
Entrepreneurship
 Entrepreneurship  Entrepreneurship
Entrepreneurship
 
Entrepreneurship Development- Unit 2
Entrepreneurship Development- Unit 2Entrepreneurship Development- Unit 2
Entrepreneurship Development- Unit 2
 
1. Entrepreneur, Entrepreneurship and Intrapreneur - 1.1 to 1.3.pptx
1. Entrepreneur, Entrepreneurship and Intrapreneur - 1.1 to 1.3.pptx1. Entrepreneur, Entrepreneurship and Intrapreneur - 1.1 to 1.3.pptx
1. Entrepreneur, Entrepreneurship and Intrapreneur - 1.1 to 1.3.pptx
 
Nirma Etp Theories Of Ent.
Nirma Etp Theories Of Ent.Nirma Etp Theories Of Ent.
Nirma Etp Theories Of Ent.
 
Theories of Entrepreneurship
Theories of EntrepreneurshipTheories of Entrepreneurship
Theories of Entrepreneurship
 
2 intro(26 08,2-09-2011)
2 intro(26 08,2-09-2011)2 intro(26 08,2-09-2011)
2 intro(26 08,2-09-2011)
 
Unit 1: Theories and models of Innovation and Entrepreneurship with Analysis....
Unit 1: Theories and models of Innovation and Entrepreneurship with Analysis....Unit 1: Theories and models of Innovation and Entrepreneurship with Analysis....
Unit 1: Theories and models of Innovation and Entrepreneurship with Analysis....
 
fundamentals of economics
fundamentals of economicsfundamentals of economics
fundamentals of economics
 
01 introducing the economic way of thinking
01 introducing the economic way of thinking01 introducing the economic way of thinking
01 introducing the economic way of thinking
 
CH 02 Entrepreneurship.pptx
CH 02 Entrepreneurship.pptxCH 02 Entrepreneurship.pptx
CH 02 Entrepreneurship.pptx
 
Entrepreneurship development
Entrepreneurship developmentEntrepreneurship development
Entrepreneurship development
 
CH-1.pptx
CH-1.pptxCH-1.pptx
CH-1.pptx
 
Module i.pptx Business planning and Entrepreneurial Management
Module i.pptx Business planning and Entrepreneurial ManagementModule i.pptx Business planning and Entrepreneurial Management
Module i.pptx Business planning and Entrepreneurial Management
 
UNIT-I Theories.pptx
UNIT-I Theories.pptxUNIT-I Theories.pptx
UNIT-I Theories.pptx
 
Business planning unit 1
Business planning unit 1Business planning unit 1
Business planning unit 1
 
Nani mebd 1st module
Nani mebd 1st moduleNani mebd 1st module
Nani mebd 1st module
 
Enterpreneurship theories and approaches of enterpreneurship
Enterpreneurship theories and approaches of enterpreneurshipEnterpreneurship theories and approaches of enterpreneurship
Enterpreneurship theories and approaches of enterpreneurship
 
Research articles1
Research articles1Research articles1
Research articles1
 

Plus de shrinivas kulkarni

Establishing An Enterprise and Project Management.pptx
Establishing An Enterprise and Project Management.pptxEstablishing An Enterprise and Project Management.pptx
Establishing An Enterprise and Project Management.pptxshrinivas kulkarni
 
Institutions Supporting Small Business Enterprises.pptx
Institutions Supporting Small Business Enterprises.pptxInstitutions Supporting Small Business Enterprises.pptx
Institutions Supporting Small Business Enterprises.pptxshrinivas kulkarni
 
social enterpreneurship - Entrpreneurship.ppt
social enterpreneurship - Entrpreneurship.pptsocial enterpreneurship - Entrpreneurship.ppt
social enterpreneurship - Entrpreneurship.pptshrinivas kulkarni
 
Information technology in marketing
Information technology in marketingInformation technology in marketing
Information technology in marketingshrinivas kulkarni
 
Promotion, marketing and society
Promotion, marketing and societyPromotion, marketing and society
Promotion, marketing and societyshrinivas kulkarni
 
Marketing process, Mktg mix, NPD,PLC, STP, Distribution
Marketing process, Mktg mix, NPD,PLC, STP, DistributionMarketing process, Mktg mix, NPD,PLC, STP, Distribution
Marketing process, Mktg mix, NPD,PLC, STP, Distributionshrinivas kulkarni
 
Introduction to Marketing Management
Introduction to Marketing ManagementIntroduction to Marketing Management
Introduction to Marketing Managementshrinivas kulkarni
 
Corporate Social Responsibility
Corporate Social ResponsibilityCorporate Social Responsibility
Corporate Social Responsibilityshrinivas kulkarni
 
Sustainability Reporting- Business Ethics
Sustainability Reporting- Business EthicsSustainability Reporting- Business Ethics
Sustainability Reporting- Business Ethicsshrinivas kulkarni
 
Maintenance management- Production Management
Maintenance management- Production ManagementMaintenance management- Production Management
Maintenance management- Production Managementshrinivas kulkarni
 
Production Planning and Control
Production Planning and ControlProduction Planning and Control
Production Planning and Controlshrinivas kulkarni
 

Plus de shrinivas kulkarni (20)

Establishing An Enterprise and Project Management.pptx
Establishing An Enterprise and Project Management.pptxEstablishing An Enterprise and Project Management.pptx
Establishing An Enterprise and Project Management.pptx
 
Institutions Supporting Small Business Enterprises.pptx
Institutions Supporting Small Business Enterprises.pptxInstitutions Supporting Small Business Enterprises.pptx
Institutions Supporting Small Business Enterprises.pptx
 
social enterpreneurship - Entrpreneurship.ppt
social enterpreneurship - Entrpreneurship.pptsocial enterpreneurship - Entrpreneurship.ppt
social enterpreneurship - Entrpreneurship.ppt
 
Sales Management
Sales ManagementSales Management
Sales Management
 
Sustainability reporting
Sustainability reporting Sustainability reporting
Sustainability reporting
 
Ethics in finance
Ethics in financeEthics in finance
Ethics in finance
 
Bes lmr notes (1)
Bes lmr notes (1)Bes lmr notes (1)
Bes lmr notes (1)
 
International Finance
International FinanceInternational Finance
International Finance
 
Social venture creation
Social venture creationSocial venture creation
Social venture creation
 
Family business in india
Family business in indiaFamily business in india
Family business in india
 
Information technology in marketing
Information technology in marketingInformation technology in marketing
Information technology in marketing
 
Promotion, marketing and society
Promotion, marketing and societyPromotion, marketing and society
Promotion, marketing and society
 
Marketing process, Mktg mix, NPD,PLC, STP, Distribution
Marketing process, Mktg mix, NPD,PLC, STP, DistributionMarketing process, Mktg mix, NPD,PLC, STP, Distribution
Marketing process, Mktg mix, NPD,PLC, STP, Distribution
 
Introduction to Marketing Management
Introduction to Marketing ManagementIntroduction to Marketing Management
Introduction to Marketing Management
 
Corporate Social Responsibility
Corporate Social ResponsibilityCorporate Social Responsibility
Corporate Social Responsibility
 
Sustainability Reporting- Business Ethics
Sustainability Reporting- Business EthicsSustainability Reporting- Business Ethics
Sustainability Reporting- Business Ethics
 
Waste management-Production
Waste management-ProductionWaste management-Production
Waste management-Production
 
Maintenance management- Production Management
Maintenance management- Production ManagementMaintenance management- Production Management
Maintenance management- Production Management
 
Production Planning and Control
Production Planning and ControlProduction Planning and Control
Production Planning and Control
 
PhD Viva PPT
PhD Viva PPTPhD Viva PPT
PhD Viva PPT
 

Dernier

What is the Best Way to Track Employee Vacation Time?
What is the Best Way to Track Employee Vacation Time?What is the Best Way to Track Employee Vacation Time?
What is the Best Way to Track Employee Vacation Time?Managry
 
HDPE Pipe Fittings Manufacturer and Supplier
HDPE Pipe Fittings Manufacturer and SupplierHDPE Pipe Fittings Manufacturer and Supplier
HDPE Pipe Fittings Manufacturer and SupplierBhavin Kanani
 
Expense Management Maximizing Efficiency for Business Success
Expense Management Maximizing Efficiency for Business SuccessExpense Management Maximizing Efficiency for Business Success
Expense Management Maximizing Efficiency for Business SuccessManagry
 
How To Get Rich With Bitcoin Even If You Have No Clue About Technology
How To Get Rich With Bitcoin Even If You Have No Clue About TechnologyHow To Get Rich With Bitcoin Even If You Have No Clue About Technology
How To Get Rich With Bitcoin Even If You Have No Clue About Technologyzaidashadali00
 
Analysis Of FaarmTech | BBA | Business Plan
Analysis Of FaarmTech | BBA | Business PlanAnalysis Of FaarmTech | BBA | Business Plan
Analysis Of FaarmTech | BBA | Business Planmohsinrai101
 
How to track billable hours - a step-by-step guide
How to track billable hours - a step-by-step guideHow to track billable hours - a step-by-step guide
How to track billable hours - a step-by-step guideManagry
 
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdf
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdfPath to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdf
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdfContent Strategy Inc.
 
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and Compliance
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and CompliancePreventing Timesheet Fraud Strategies for Ensuring Accuracy and Compliance
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and ComplianceManagry
 

Dernier (8)

What is the Best Way to Track Employee Vacation Time?
What is the Best Way to Track Employee Vacation Time?What is the Best Way to Track Employee Vacation Time?
What is the Best Way to Track Employee Vacation Time?
 
HDPE Pipe Fittings Manufacturer and Supplier
HDPE Pipe Fittings Manufacturer and SupplierHDPE Pipe Fittings Manufacturer and Supplier
HDPE Pipe Fittings Manufacturer and Supplier
 
Expense Management Maximizing Efficiency for Business Success
Expense Management Maximizing Efficiency for Business SuccessExpense Management Maximizing Efficiency for Business Success
Expense Management Maximizing Efficiency for Business Success
 
How To Get Rich With Bitcoin Even If You Have No Clue About Technology
How To Get Rich With Bitcoin Even If You Have No Clue About TechnologyHow To Get Rich With Bitcoin Even If You Have No Clue About Technology
How To Get Rich With Bitcoin Even If You Have No Clue About Technology
 
Analysis Of FaarmTech | BBA | Business Plan
Analysis Of FaarmTech | BBA | Business PlanAnalysis Of FaarmTech | BBA | Business Plan
Analysis Of FaarmTech | BBA | Business Plan
 
How to track billable hours - a step-by-step guide
How to track billable hours - a step-by-step guideHow to track billable hours - a step-by-step guide
How to track billable hours - a step-by-step guide
 
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdf
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdfPath to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdf
Path to Traditional Pub - BookFest 2024 presentation - 03-23-2024.pdf
 
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and Compliance
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and CompliancePreventing Timesheet Fraud Strategies for Ensuring Accuracy and Compliance
Preventing Timesheet Fraud Strategies for Ensuring Accuracy and Compliance
 

Theories of-entrepreneurship

  • 2. AGENDA 2  Classification  An economic theory  Risk bearing theory of Knight  Innovation theory of Schumpeter  Leibenstein X-efficiency theory  Harvard School theory  Theory of Market Equilibrium by Hayek  McClelland’s Achievement Motivation Theory  Theory of Change  Theory of Adjustment of Price  Theory of Entrepreneurial Supply  Theory of Personal Resourcefulness  Theory of Cultural Values  Conclusion
  • 4. An Economic Theory 4  Given by Mark Casson in his book The Entrepreneur—An Economic Theory  Demand for entrepreneurship arise from the need to change and the supply of entrepreneurship is limited.  Four Qualities of Entrepreneur 1. Judgmental decisions. 2. Co-ordination of Scarce resources. 3. Motivated by Self Interest. 4. Imagination—entirely innate.
  • 5. Risk bearing theory of Knight 5  Prof. Knight’s theory is based on economic principles . According to Risk –Bearing theory 1. Entrepreneur earns profits because he undertakes risk 2. The main function of an entrepreneur is to act in anticipation of future events. 3. Uncertainty-bearing is essential to production; therefore it is factor of production and the reward for it is a part of normal cost of production. 4. Profit is a payment for the assumption of risks the entrepreneur undertake.
  • 6. Evaluation of Knights Theory 6  Entrepreneur has to cope with the various challenges which is at once unknown and unpredictable i.e there lies uncertainty.
  • 7. Innovation theory of Schumpeter(1949) 7 Entrepreneur is a man who sees opportunity for  Introducing new techniques or commodity  Improving organization.  Development resources.  Entrepreneur embarks upon new combination of factors of production resulting in new product--termed as innovator.  Entrepreneur is Dynamic
  • 8. TYPE OF INNOVATIONS 8  The introduction of new product.  The introduction of new method of production  The opening of new market  The conquest of new source of raw material supply.  Reorganization of any industry.
  • 9. Features of Schumpeter Theory 9  High degree of risk and uncertainty in Schumpeterian World.  Highly motivated and talented individual.  Profit is merely an part of objectives of entrepreneurs.  Progress under capitalism is much slower than actually it is.  It is leadership rather than ownership which matters.
  • 10. Evaluation Schumpeter’s Theory 10  It lays that entrepreneur played central part in rise of modern capitalism.  Entrepreneur is prime mover of economic development.
  • 11. Leibenstein X-efficiency Theory 11 “When an input is not used effectively the difference between the actual output and the maximum output attributable to that input is measure of Degree of X—Efficiency.” Types of Entrepreneurship  Routine entrepreneurship  Innovational entrepreneurship Role of Entrepreneurship  Input completion  Gap filling Entrepreneurs must be able to perceive 1.buying and selling opportunities in different markets. 2.the possibility of transforming input into output 3.determine the profitable activities
  • 12. Evaluation of Leibenstein’s theory 12  It analyzes role of entrepreneur in terms of efficiency.  It tells us why growth rate is different in different countries.  This theory shows that a firm will achieve maximum efficiency when the firm minimizes cost.
  • 13. Harvard School theory 13  Given by Cole (1949)  Envisages entrepreneurship as purposeful activity that initiate, maintain and develop a profit oriented business.  Focus on two activities --co-ordination activity --sensitivity to the environment.
  • 14. Theory of Market Eqilibrium by Hayek 14 According to Hayek “  the absence of entrepreneurs in Neo –classical economics is intimately associated with the assumption of market equilibrium.  The ultimate cause of instability in the business world in the elasticity of bank credit but the trace the consequences of this, not through the variations in consumers expenditure ,but through the change in volume of real investment by entrepreneurs. Evaluation of Hayek theory This theory tells us that sectoral balance in economic system is essential for steady economic development.
  • 15. McClelland’s Achievement Motivation Theory 15  This is a psychological theory.  Developed by David Mc Clelland as an Achievement motivation theory. Mc Clelland proposed that there are three major needs or motives for personnel accomplishments. They are as follows: 1. The need for achievement(nAch) 2. The need for affiliation.(nAff) 3. The need for power.(nPow) Implications of Motives  Need for affiliation and need for power are driving force towards entrepreneurship.  High level of achievement makes an entrepreneur.  Dreams of entrepreneur appear to be not to ‘get rich’ but to ‘get big’.
  • 16. Tenets of McClelland’s theory 16 1. Economic developments depends on vigorous activities of a number of individuals who behave in an entrepreneurial fashion. 2. Entrepreneurs are motivated by strong need for achievement. 3. There is evidence is direct that this motivational complex has been in shorter supply in poor countries than in rich countries. 4. To improve the condition of poor countries entrepreneurs are to be increased.
  • 17. Evaluation of McClelland’s theory 17  It produced reason for difference in economic condition of rich and poor countries or developed and underdeveloped countries.  It called the nations leaders to build up ambition into the minds of the young people.
  • 18. Theory of Change 18  Propounded by Young.  According to it entrepreneurs have tendency to i. Describe situation as problem ii. Awareness of effort iii. Confidence in ability iv. Analyze the situation before decision making.
  • 19. 19 Theory of change is based on society's incorporation of reactive subgroups.  According to it group becomes reactive when following three conditions coincide….. a) When a group experiences low status recognition. b) When denied to access to important social networks c) When the group has better institutional resources than other groups in society at the same level. Theory of Change
  • 20. Theory of Adjustment of Price 20 Given by Kirzner.  According to him entrepreneur has following characteristics  Adjustment of price is the main role of entrepreneur.  Alertness to disequilibrium.  Entrepreneurs are unpredictable. Evaluation  This theory lays stress on the behavior of the entrepreneurs and their quality of grabbing opportunities in the market.
  • 21. Theory of Entrepreneurial Supply 21  It was propounded by John Kunkal in 1965.  It is based upon experimental psychology and sociological variables.  This behaviouristic model concerned with the activities of individuals and their relations to both past, present and social structures and physical condition.
  • 22. Theory of Personal Resourcefulness 22 “Personal resourcefulness” is the belief in one’s own capability for initiating actions directed towards creation and growth of enterprise. Thus, it emphasize on initiative rather than reaction.
  • 23. Theory of Cultural Values 23  Propounded by Thomas Cochran.  Entrepreneurs are not super normal individual but they are society’s model personality.  Performance of entrepreneur influenced by three factors: i. His own attitude towards his own occupation . ii. Operational requirement of job. iii. The role expectations held by the sanctioning groups/society.
  • 24. Menger’s Theory of Value Added Transformation of Resources 24  According to Carl Menger of Australia (1871), economic changes do not arise from the circumstances but from the individual’s awareness and understanding of the circumstances. Entrepreneur transforms the available resources into useful goods and services.
  • 25. 25 Grain in field has very low value Bulk grain from farmer has low value Intermediate steps in transformation Milled flour for baker has high value Bread at bakery for sale has high value Delivered baked bread is highest- value use Menger’s Model of Value-Added Transformation of Resources Priority 8 Priority 7 Priority 3 Priority 2 Priority 1
  • 26. CONCLUSION 26  Every theorist has looked at the entrepreneur and entrepreneurship on the basis of his perception, and therefore ,can at best ,provide only a limited view of entrepreneurial phenomenon. No view is right or wrong or more or less .
  • 27. Thank you… 27 “Don't die without fulfilling your purpose.”