The document discusses various sociological and economic theories of entrepreneurship that have developed over the past few centuries. It notes that entrepreneurship is difficult to define under a single theory given its interdisciplinary nature. Some of the key theories discussed include Richard Cantillon's recognition of entrepreneurs' economic role in 1755, Joseph Schumpeter's emphasis on innovation in 1934, and sociological perspectives seeing entrepreneurship as a social movement. The document concludes that no single theory is complete and that an integration of internal and external factors influences whether an individual becomes an entrepreneur.

1. Submitted by:
BanashreeNayak, SthitaPrajnaMoharana
Submitted by:
BanashreeNayak, SthitaPrajnaMoharana

2. A presentation
on
Sociological and economic theories of
entrepreneurship
A presentation
on
Sociological and economic theories of
entrepreneurship

3. *Entrepreneurial history is felt to be
interdisciplinary in approach and thus, it
is difficult to label entrepreneurship as
purely a theory of economics or
sociology or psychology or a
anthropology.
*Entrepreneurial history is felt to be
interdisciplinary in approach and thus, it
is difficult to label entrepreneurship as
purely a theory of economics or
sociology or psychology or a
anthropology.

4. *The concept of
entrepreneurship is as
old as civilization while
theories of
entrepreneurship have
been evolved from over
a period of more than
two centuries.
*The concept of
entrepreneurship is as
old as civilization while
theories of
entrepreneurship have
been evolved from over
a period of more than
two centuries.

6. * Richard Cantillion (1755) was the
first person to recognize the role
of entrepreneurs in economic
theory.
*He stated that , “the farmer is an
entrepreneur who promises to pay
the land owner for his farm or land,
a fixed sum of money without
assurance for the profit he will
derive from his enterprise”.
*Hence entrepreneur is always at
risk of bearing losses if he would
unable to sell the goods at a higher
price
* Richard Cantillion (1755) was the
first person to recognize the role
of entrepreneurs in economic
theory.
*He stated that , “the farmer is an
entrepreneur who promises to pay
the land owner for his farm or land,
a fixed sum of money without
assurance for the profit he will
derive from his enterprise”.
*Hence entrepreneur is always at
risk of bearing losses if he would
unable to sell the goods at a higher
price

7. *J.Schumpeter (1994) added the
concept of innovation to the theory of
entrepreneurship . He visualized the
entrepreneurs as the key figure in the
economic development because of
his role in introducing innovations.
*For Schumpeter, the ability to
identify new opportunities in the
market is a central entrepreneurial
activity which creates disequilibrium
In the economy
*J.Schumpeter (1994) added the
concept of innovation to the theory of
entrepreneurship . He visualized the
entrepreneurs as the key figure in the
economic development because of
his role in introducing innovations.
*For Schumpeter, the ability to
identify new opportunities in the
market is a central entrepreneurial
activity which creates disequilibrium
In the economy
J.Schumpeter

8. *G.F Papanek and J.R.
Harris
Economic incentives bring
forward a favorable drive
for entrepreneurial
activities. A desire to have
more economic gain sparks
the entrepreneurial
instinct.
Lack of incentives ,
unattractive economic
polices and unfavorable
market conditions tend to
reduce the vigor of
entrepreneurship
*G.F Papanek and J.R.
Harris
Economic incentives bring
forward a favorable drive
for entrepreneurial
activities. A desire to have
more economic gain sparks
the entrepreneurial
instinct.
Lack of incentives ,
unattractive economic
polices and unfavorable
market conditions tend to
reduce the vigor of
entrepreneurship

9. *Sociologists suggests that
the entrepreneurship can
conceptualized as a social
movements and
entrepreneurs exist not only
in the economy but in other
spheres of society as well.
*Sociologists suggests that
the entrepreneurship can
conceptualized as a social
movements and
entrepreneurs exist not only
in the economy but in other
spheres of society as well.

10. S.M Lipset argues that
cultural values deeply
effects entrepreneurship
and the level of economic
development.
Mark Granovetter points
that family ties may create
an obstacle for a
businessman.
S.M Lipset argues that
cultural values deeply
effects entrepreneurship
and the level of economic
development.
Mark Granovetter points
that family ties may create
an obstacle for a
businessman.
S.M Lipset

11. *According to Hoselitz, the
approach which emphasizes
the theory of deviance
assumes that those who
introduce changes must be
deviants since they reject
the traditional elite’s way of
doing things.
* For example , in Latin
America , recent
immigrants , members of
minority groups have
formed a considerable
section emerging business
*According to Hoselitz, the
approach which emphasizes
the theory of deviance
assumes that those who
introduce changes must be
deviants since they reject
the traditional elite’s way of
doing things.
* For example , in Latin
America , recent
immigrants , members of
minority groups have
formed a considerable
section emerging business
Hoselit

12. *A great land mark in
entrepreneurial studies is
represented by study conducted
at Harvard University (1948-
1958). A journal of the center
Explorations in Entrepreneurial
History, states that
entrepreneurship should not be
studied by focusing on
individual entrepreneur but
rather by looking enterprise .
Special attention was often paid
to the social relations within the
enterprise and to the relations
between the enterprise and its
surroundings.
*A great land mark in
entrepreneurial studies is
represented by study conducted
at Harvard University (1948-
1958). A journal of the center
Explorations in Entrepreneurial
History, states that
entrepreneurship should not be
studied by focusing on
individual entrepreneur but
rather by looking enterprise .
Special attention was often paid
to the social relations within the
enterprise and to the relations
between the enterprise and its
surroundings.

13. Joseph Schumpeter states that the entrepreneur
is mainly motivated and driven by three things:
a.“The dream and the will to found a private
kingdom.”
b.“The will to conquer.”
c.“The joy of creating.”
Joseph Schumpeter states that the entrepreneur
is mainly motivated and driven by three things:
a.“The dream and the will to found a private
kingdom.”
b.“The will to conquer.”
c.“The joy of creating.”

14. J.Schumpeter formulation can be
translated as:
a) the desire of power and
independence ;
b)The will to succeed;
c)The satisfaction of getting things
done.
d) According to him , money is
not what ultimately motivates the
entrepreneur. Thus he supports
the psychological theory and not
the economic theory. He asserts
that what matters is the behavior
and not the actors.
J.Schumpeter formulation can be
translated as:
a) the desire of power and
independence ;
b)The will to succeed;
c)The satisfaction of getting things
done.
d) According to him , money is
not what ultimately motivates the
entrepreneur. Thus he supports
the psychological theory and not
the economic theory. He asserts
that what matters is the behavior
and not the actors.

15. Barth on of the leading
anthropologist of the world , states
that entrepreneurial behavior means
to connect two different spheres in
the society, between which huge
discrepancy in value. Something
which is cheap in one sphere may be
expensive in another.
Barth on of the leading
anthropologist of the world , states
that entrepreneurial behavior means
to connect two different spheres in
the society, between which huge
discrepancy in value. Something
which is cheap in one sphere may be
expensive in another.

16. Each of the above theories is incomplete
and none of them is right or wrong.
Theories of entrepreneurship are inter-
disciplinary and are influenced by
multitude of factors. It is the integration
of external environment ,achievement
motivation, ability and ambition which
largely determines whether an individual
become an entrepreneur.
Each of the above theories is incomplete
and none of them is right or wrong.
Theories of entrepreneurship are inter-
disciplinary and are influenced by
multitude of factors. It is the integration
of external environment ,achievement
motivation, ability and ambition which
largely determines whether an individual
become an entrepreneur.