Tecent presentation about the roles and theories of entrepreneurship in the field of businesses so that it can help you with how you deal in your business life

1. LESSON 3:
ROLES AND THEORIES OF
ENTREPRENEURSHIP

2.  WHAT ARE THE ROLES AND THEORIES OF
ENTREPRENEURSHIP?
Entrepreneurship plays various roles in
the economy and society, and there are
several theories that help explain the
dynamic and motivations behind
entrepreneurial behavior.

3.  HOW DOES RAISING THE STANDARD OF LIVING
CONTRIBUTE TO ECONOMIC DEVELOPMENT?
One of the most significant benefits of
entrepreneurship in economic development, is
that it raises the standard of living. By creating
new businesses and jobs, entrepreneurship
improves the quality of life for both individuals
and communities, enabling paths for wealth
creation.

4.  WHAT IS THE ROLE OF ENTREPRENEURSHIP IN JOB
CREATION?
Entrepreneurship is a significant source of
job creation. By starting new businesses,
entrepreneursyment opportunities for
themselves and others. This helps to
reduce unemployment rates and improve
the overall economic well-being of the
community.

5.  CAN ENTREPRENEURSHIP HELP TO ELIMINATE
POVERTY IN LOCAL AREAS?
Entrepreneurship can help to
eliminate poverty in local areas. By
creating new businesses and jobs,
entrepreneurship provides
opportunities for people to improve
their financial situation.

6.  HOW DOES ENTREPRENEURSHIP HELP WITH THE
COMMUNITY DEVELOPMENT?
Entrepreneurship is important as it also plays a critical role in
community development. By creating new businesses,
entrepreneurs contribute to the economic vitality of their
communities. This can lead to increased investment in the
community, which can result in improved infrastructure,
services, and amenities.

7.  DOES ENTREPRENEURSHIP PROVIDE
ECONOMIC INDEPENDENCE?

Entrepreneurship provides economic
independence for individuals, towns, and
countries. By creating new businesses,
entrepreneurs are able to generate
income and contribute to the overall
economic well-being of their community.

8.  WHAT IS THE IMPORTANCE OF NEW STARTUPS
ENTERING THE MARKET?

Entrepreneurship encourages capital investment in both
cities and countries. By creating new businesses,
entrepreneurs attract investment from both local and
foreign sources. This can even unlock their ability to access
different labor markets and even enter foreign markets
further down the line.

9.  HOW CAN ENTREPRENEURSHIP ENCOURAGES
CAPITAL INVESTMENTS?
Entrepreneurship encourages capital investment in
both cities and countries. By creating new businesses,
entrepreneurs attract investment from both local and
foreign sources. This can even unlock their ability to
access different labor markets and even enter foreign
markets further down the line.

10.  HOW CAN NEW ENTRANTS DRIVE MARKET
INNOVATION?
Innovative entrepreneurship is the driving force behind
market innovation. Entrepreneurs are known for their
ability to identify gaps in the market and come up with
solutions to fill those gaps. This not only benefits the
entrepreneur but also the entire economy.

11.  WHAT IS THE IMPORTANCE OF OPTIMAL USE OF
RESOURCES?

Entrepreneurs are also responsible for the optimal use of
resources. By identifying new business opportunities and
introducing new production methods, entrepreneurs are able
to create more efficient systems for utilizing resources.

12. • HOW CAN WE INCREASE THE PER CAPITA
INCOME AND GROSS NATIONAL PRODUCT?
• Entrepreneurship is a key driver of economic growth and
development. By creating new businesses and jobs,
entrepreneurship leads to an increase in gross national
product and per capita income. This is particularly
important for developing countries, where poverty and
unemployment are major issues.

13. • WHO PROPOUNDED THE INNOVATION
THEORY?
This theory was propounded by
J.A. Schumpeter. According to
Schumpeter, entrepreneur is
basically an innovator and
innovator is one who introduces
new combinations.

14.  WHO DEVELOPED THE NEED FOR ACHIEVEMENT
THEORY?

This theory was developed by
David. C. McClelland. McClelland
concerned himself with
economic growth and the factors
that influence it.

15.  WHO WAS BEHIND THE STATUS WITHDRAWAL
THEORY?

E. Hagen attempted to formulate a theory
of social change. The theory of social
change explains that when members of
some social groups feel that their values
and status are not respected by the
society, they turn to innovation to get the
respect of the society.

16.  WHO IS THE FOUNDER OF SOCIAL CHANGE
THEORY?

It was Max Weber who first of all took the
stand that entrepreneurial growth was
dependent upon ethical value system of
the society concerned. The central figure
of the Weber’s theory of social change
consists in his treatment of the protestant
ethic and the spirit of capitalism.

17.  WHO PRESENTED THE SOCIAL BEHAVIOR
THEORY?
Kunkel presented a behavioural model of entrepreneurship.
Supply of entrepreneurs is a function of social, political and
economic structure. Behavioural model concerned with the
overtly expressed activities of individuals and their relations
to the previous and present surroundings, social structures
and physical conditions.

18.  WHO DEVELOPED THE THEORY OF LEADERSHIP?

According to Hoselitz, entrepreneurship is a
function of managerial skills and leadership.
Business also requires finance but that is of
secondary importance. He further explains
that a person who is to become an industrial
entrepreneur must have more than the drive
to earn profits and amass wealth.

19.  WHO PROPOUNDED THE MODEL PERSONALITY
THEORY?
 The theory of Cocharn is a sociological
theory of entrepreneurial supply. Cocharn
emphasises cultural values, role
expectations and social sanctions as the
key elements that determine the supply of
entrepreneurs.

20.  WHO DEVELOPED THE SYSTEMATIC THEORY?

Prof. Drucker has developed the theory of
systematic innovation. According to him
“Systematic innovation consists in the
purposeful and organised search for
changes and in the systematic analysis of
the opportunities such changes might
offer for economic or social innovation.”

21.  WHAT IS DISCOVERY THEORY?
It includes Individual/Opportunity (I/O) nexus view,
which lays emphasis on the identification, existence, and
exploitation of opportunities and their influence of
individuals. The individuals and the opportunities have
influence on each other.

22.  HOW DOES CREATION THEORY HELP IN
ENTREPRENEURSHIP?
Creation theory focuses on entrepreneurs and the
creation of enterprises. Similar to the
individual/opportunity nexus, the creation theory also
approaches three assumptions in entrepreneurship.

23.  WHY IS ENTREPRENEURSHIP RELATED TO
PSYCHOLOGICAL THEORY?


The entrepreneurship is termed as
psychological concept and process.
According to this theory,
psychological factors are the primary
source of entrepreneurship
development.

24.  WHAT IS SOCIOLOGICAL THEORY?
The supporters of sociological theory says that the
entrepreneurial activities is affected from social status
hierarchy and values. Individuals’ position, tradition, cultural
values, mobility and social status etc. are thoroughly effected
to entrepreneurship development.

25.  WHAT IS ECONOMIC THEORY OF
ENTREPRENEURSHIP?

According to this theory, an entrepreneur executes all
activities due to economic incentives. The supporters of this
theory, profit motive is the prime driving force that change
an individual into an entrepreneur. As such an entrepreneur
emerges due to incentives and economic profit.

26.  HOW CAN ENTREPRENEURSHIP CONTRIBUTE TO
INNOVATION?
Entrepreneurship fosters innovation by encouraging
individuals to identify opportunities and develop creative
solutions. An example is the iPhone introduced by Apple's
Steve Jobs, which revolutionized the smartphone industry
through innovative design and functionality.

27.  WHY IS EFFECTIVE RESOURCE MANAGEMENT
CRUCIAL FOR ENTREPRENEURS?
Effective resource management is crucial for
entrepreneurs as it optimizes assets, enhances
business viability, and supports sustained growth.

28.  WHAT IS THE ESSENCE OF ENVIRONMENTAL
CONSIDERATIONS IN ENTREPRENEURSHIP?
The essence of environmental considerations in
entrepreneurship is to promote sustainability,
minimize environmental impact, and embrace
eco-friendly practices.

29.  HOW CAN ENTREPRENEURS PROMOTE
SUSTAINABILITY IN THEIR VENTURES?
Entrepreneurs can promote sustainability by
adopting eco-friendly practices, using renewable
resources, reducing waste, and addressing
environmental concerns.

30.  IN WHAT WAYS CAN ENTREPRENEURSHIP
CONTRIBUTE TO THE ADAPTATION AND RESILIENCY
OF AN ECONOMY IN THE FACE OF CHANGE OR
CRISES?
Entrepreneurs are adaptable and resilient. They often lead
efforts to address changing market conditions and economic
challenges. During crises, entrepreneurs can drive recovery
efforts by introducing innovative solutions and adapting
business models to new circumstances.

31.  HOW DO ENTREPRENEURS IDENTIFY AND
EVALUATE BUSINESS OPPORTUNITIES IN THE
MARKET?
Entrepreneurs identify business opportunities by analyzing
market trends, consumer needs, and gaps in the market.
They conduct market research, assess competition, and
evaluate the feasibility of their ideas. By spotting unmet
needs and opportunities for innovation, they can create
unique value propositions.

32.  WHY ROLES AND THEORIES OF
ENTREPRENEURSHIP IMPORTANT?
The roles and theories of
entrepreneurship provide valuable
insights and knowledge that are essential
for individuals looking to engage in
entrepreneurship, researchers studying
the field, and policymakers aiming to
foster economic growth and innovation.