Entrepreneurship Flashcards
What is the definition of entrepreneurship?
The transformation of innovation to market change by an individual. Innovation is the tool of entrepreneurs.
What are the 4 schools of theory on entrepreneurship?
- Economic.
- Psychological.
- Sociological.
- Opportunity-based.
Expand on economic theory:
J. Schumpeter described entrepreneurship as a driver of market based systems. Typically creativeness that is temporarily destructive (Netflix). Kirzner and Knight.
How did Kirzner define entrepreneurship?
Creativity and alertness to opportunity. Not necessarily the invention of something new but someone who can allocate resources to take advantage of an opportunity.
How did Kirzner define entrepreneurs?
Believes they are calculated risk takers.
Who were the main psychologists in the field?
McClelland, Rotter.
What did McClelland believe?
Type A behaviour, high self motivation and a positive attitude.
What did Rotter believe?
Strong internal locus of control (You make things happen). Self confident.
What do psychologists now believe?
Place more emphasis on how entrepreneurs think and antecedent influences shape entrepreneurs attitudes.
What is Ajzen’s theory of planned behaviour?
Combination of behavioural attitudes, how much they value others opinions and self confidence. These may or may not lead to entrepreneurial behaviour in day to day life.
What is attitude theory and how does it link with entrepreneurship?
Attitudes are open to change and change more over time than personality. It is believed entrepreneurs have a positive attitude to change which helps them innovate.
What do sociologists believe?
See entrepreneurs as a ‘practitioner’ seeking to navigate the world around them. They believe entrepreneurs can navigate a changing environment and tolerate uncertainty.
What is ‘entrepreneurial action’?
Behaviour in response to a judgement decision under uncertainty about a possible opportunity or profit.