theories of
WELL KNOWN THEORIES OF
ENTREPRENEURSHIP
1. Psychological Theories
 Focused on the diverse
elements of behaviour and
mental leaps of individual.
 What drives them.
 Focused on the individual, the
entrepreneur, they examine
what kind of characteristic this
person has
2. Sociological Theories
 Focused on the sociological
environment in which
entrepreneurship occurs.
3. Anthropological Theories
 The cultural environment.
4. Economic Theories
 Often criticised due to the lack
of recognizing the dynamics
and also the diverse
environment in which
entrepreneurship occurs.
5. Resource-based Theories
6. Opportunity-based Theories
 Peter Drucker – entrepreneurs
are excelling in recognizing the
opportunities that are created
in the social changes or
cultural changes along with the
technological changes.
THEORIES OF INNOVATION
 There is no entrepreneurship without
innovation.
HOW DO THE MAIN THEORIES
DIFFER?
 Entrepreneur – an individual who
takes action and accepts all the
associated risks in order to make
money.
o Howard Gardner –
entrepreneurs are special,
interdisciplinary, and
intellectual persons who are
able to recognize their own
strengths and at the same time
take action in order to achieve
something new.
SOCIAL ENTREPRENEURSHIP
 Different from ordinary
entrepreneurship because it’s aiming
to achieve some social goals.
 Social entrepreneurs trying to solve
social problems or environmental
problems.
 Has the same characteristics with
entrepreneurship but the
entrepreneurs are really engaged in
saving the world or community.
 They operate for the community.
o All the profit is returned to the
community.