THEORIES OF

ENTREPRENUERSHIP
GROUP 4
 Economic
Sociological
Psychological
Opportunity-based
Resource-based
 ECONOMIC
In economics, entrepreneurship
is closely related to the land,
labour, natural resources and
capital that can help to
generate profit.
An entrepreneurial vision
involves discovery and risk-
taking that are critical for
nations in order to succeed in
the ever-changing and
competitive global
marketplace (McFarlane, 2016).
DIFFERENT TIME PERIODS

 The sociological theory is the third of

SOCIOLOGICAL the major entrepreneurship theories.
Sociological enterprise focuses on the
social context .In other words, in the
sociological theories the level of analysis
is traditionally the society (Landstrom,
1998). Reynolds (1991) has identified
four social contexts that relates to
entrepreneurial opportunity.
 PSYCHOLOGICAL
Put emphasis on the emotional and
mental aspects of the individuals that
drive their entrepreneurial activities
 5 FEATURES OF
PSYCHOLOGICAL
Entrepreneural Capacity
Entrepreneural Belief
Entrepreneurial consciousness
Entrepreneurial motivation
Entrepreneurial determination
Entrepreneurs do not cause change but
exploit the opportunities that create change
(Drucker, 1985). He further described that
entrepreneurs always search for change,
respond to it and exploit it as an
opportunity.
Also grab of any opportunity they come
across. These opportunities are made
available through changes in technology,
society, or culture. Notably, as these changes
occur, consumers change their preferences.
OPPORTUNITY-BASED
What is Entrepreneurial opportunity?
In the field of entrepreneurship, specific
criteria need to be met to move from an
idea into an opportunity. There are two
ways to recognise opportunities,
discovering or creating. The Entrepreneurial
opportunity is the point at which
identifiable consumer demand meets the
feasibility of satisfying the requested
product or service.
 RESOURCE-BASED
The Resource-based theory of entrepreneurship
argues that access to resources by founders is an
important predictor of opportunity based
entrepreneurship and new venture growth. This
theory stresses the importance of financial, social
and human. Thus, access to resources enhances the
individual’s ability to detect and act upon discovered
opportunities. Financial, social and human capital
represents three classes of theories under the
resource – based entrepreneurship theories.
 THREE CLASSES OF THEORIES
UNDER THE RESOURCE-BASED

FINANCIAL SOCIAL CAPITAL OR HUMAN CAPITAL

CAPITAL/LIQUIDITY SOCIAL NETWORK ENTREPRENEURSHIP
THEORY THEORY THEORY

Thank you!