LAMINERO, SHIELA MAE O.

BEED 3-D

ACTIVITY 1
Directions: Make an essay and give your understanding in the following theories.
-Economic Theory of Entrepreneurship.
-Sociological Theory of Entrepreneurship.
-Psychological Theory of Entrepreneurship.
-Opportunity based Entrepreneurship theory.
-Resource-based Entrepreneurship theory.
-Anthropological Entrepreneurship theory.
-Process of Stage of Entrepreneurship theory.

According to Wikipedia, Entrepreneurship is the creation or extraction of economic value.

Entrepreneurship is a big source of income of everyone. It will help our economy to increase as well. In
teaching Edukasyong Pantahanan at Pangkabuhayan in Elementary grades, you will be tackling
Entrepreneurship. Therefore, you need to learn the topics in Entrepreneurship including its theories. So
that, you will have a deeply understanding about it.

Based on the video lesson, there are seven (7) theories of Entrepreneurship, these are the
following;
1. Economic Theory of Entrepreneurship. This theory was proposed by Richard Cantillon.
According to him, the entrepreneurs perform dual roles which are “producers” and “exchangers”.
I think, they are producers, because they produce products and goods. They are the one who
create what we buy every day. And, they are called exchangers, because to have a new product
they exports and imports the products in other countries. Also, Cantillon stated that everyone can
be an entrepreneur, they just to switch their works into a businessman. But, do remember that you
need to be open-minded and have courage to become one.
2. Sociological Theory of Entrepreneurship. This theory supported by Max Weber. He stated that
entrepreneurs should accept the system of our society, because it will help to develop or improve
themselves as entrepreneurs. This theory deals with social aspects such as social taboos, customs,
culture, and other religious belief that should meet the customers expectations. Being
entrepreneur, you need to consider a lot of things on your customers. Because, it will help you to
be successful in your field, and once you get their taste you will earn more customers.
3. Psychological Theory of Entrepreneurship. This theory is helpful in every entrepreneur,
because this will help them to think, or traits as well. In this theory, there are three things you
 need to remember: first, locus of control, it has something to do with entrepreneurs’ internal
abilities and external support. Second, theory of personality traits, it deals on the characteristics
of the entrepreneur. It simply means that the person has the traits to become an entrepreneur.
Lastly, theory of need for achievement, it reflects that the entrepreneur have motivation of what
he/she is doing, he/she wants successful results that’s why he is doing his best.
4. Opportunity based Entrepreneurship theory. This theory is supported by Peter Druckers. He
stated that the entrepreneur is constantly on the lookout for change, responding to it, and
capitalizing on it as an opportunity. As an entrepreneur, it is required that you are looking for
change, that you have plans for the betterment of your business. Being entrepreneur, you need to
keep up with the changing world, because it will keep you standing in your field.
5. Resource-based Entrepreneurship theory. This theory tells that as an entrepreneur, you need
resources to start building your business. This is the primary things that you need to consider
when building business, money and other resources will help you to be successful in business.
6. Anthropological Entrepreneurship theory. This theory deals with the cultural model of
entrepreneurs. It stated that you being entrepreneur, you need to look the society, including the
past and present. For example, through observations and research, you found out that Salon didn’t
clicked on that place. And, as a smart entrepreneur, you’re not going to build that kind of
business. It reflects that being observant is a good trait of being entrepreneur which will help you
to avoid mistakes and problems.
7. Process of Stage of Entrepreneurship theory. In this theory, it will define the development
journey of an entrepreneur. According to this theory, there are five stages development of an
entrepreneur which are Entrepreneurship Stimulation through Simulation, Identifying
Entrepreneurial Abilities and Capacities, Expansion and Development Stage, Promotion/
Foundation for Public Relations, and Feedback. These five stages will help the entrepreneur of
his/her journey in business.