Theories of Entrepreneurship.

1. NAME: Manik
Class: BTM 3rd
ROLL NO:
2975110011

2. My today’s topic
Theories of
entrepreneuship.

3. Entrepreneur:
A person who creates a new
business or venture by bearing
most of the risks and enjoying
most of its rewards. The process
of setting up a new business is
known as entrepreneurship.

4. Some famed Entrepreneurs of
India:

5. Differentiate between:
An entrepreneur:
 Self growth as well
as growth of society.
 Knowledge sharing
and long term
vision.
 Focus on returns.
 Beliefs in changes.
 Try to be best not
to be 1st .
Businessman:
 Full control over it.
 Only know Profit
and loss.
 No matter is good
or bad for society
only P&L.
 No change.

6. Theory:
Economic
principles.
Psychological
principles.
Sociological
principles.

7. An Economic Theory by Mark
Casson:
Qualities of Entrepreneur:
Co-ordination of Scarce
resources.
 Motivated by Self Interest.

8. Risk bearing theory of Knight
based on economic principles.
 Entrepreneur earns profits because he
undertakes risk.
 The main function of an entrepreneur
is to act in prediction of future.

9. Evaluation of Knights Theory:
Entrepreneur has to cope with the various
challenges
which is at once unknown and unpredictable
there
lies uncertainty.

10. Innovation theory of
Schumpeter:
• Introducing new techniques or
commodity
• Improving organization.
• Development resources.

11. TYPE OF INNOVATIONS:
 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.

12. Evaluation Schumpeter’s
Theory
Entrepreneur is prime mover of
economic
development.

13. Theory of Change by Young.
According to it entrepreneurs have
tendency to:
 Describe situation as problem.
 Awareness of effort.
 Confidence in ability.

14. Theory of Cultural Values by
Thomas Cochran.
Entrepreneurs are not super normal individual
but they are role model of the society.

15. Menger’s Theory of Value
Added
Transformation of Resources
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.

16. CONCLUSION:
Every theory has looked by the theorist on
entrepreneur and entrepreneurship on the
basis of his perception.No view is right or
wrong.