Theory on Entrepreneurship Flashcards
theory on Entrepreneurship
entrepreneur is basically an innovator and inventor and s the one who introduces new combinations (theory)
Innovator Theory
theory on Entrepreneurship
> An individual is an entrepreneur only when he actually carries out new combinations and ceases to be an entrepreneur the moment, he settles down to running the established business.
Entrepreneurial development brings economic development.
(theory)
Innovator Theory
theory on Entrepreneurship
who created the Innovator Theory?
Joseph A. Schumpeter
theory on Entrepreneurship
what is the Keynesian Theory
> the product of great depression
he believes that expenditure was the key to economic situation
suggests that for an economy to expand and be stable, the government needs to intervene actively. This is especially during a [period of recession or depression where money is scarce and there is a high rate of unemployment.
theory on Entrepreneurship
He suggests that governments must make a strong intervention in the entrepreneurial
role played by the private sector by pouring more money to the economy and creating
jobs and projects for communities. (theory)
John Maynard Keynes (Keynesian Theory)
theory on Entrepreneurship
what was John Maynard Keynes theory?
Keynesian theory
theory on Entrepreneurship
held that land, labor, capital and
organization as the four factors of production, and considered entrepreneurship as the driving factor that brings these four factors together. (theory)
Alfred Marshall Theory
theory on Entrepreneurship
He regarded the entrepreneurs as the prime movers in the organization.
Alfred Marshall Theory
theory on Entrepreneurship
The characteristics of a successful entrepreneur include:
thorough understanding of the industry
good leadership skill
foresee possible demand and supply changes and
must possess the necessary skills to be an entrepreneur. (theory)
Alfred Marshall Theory
theory on Entrepreneurship
who created Risk and uncertainty-bearing theory in the 1920’s?
Frank Hyneman Knight
theory on Entrepreneurship
Risk and Uncertainty-bearing Theory
bearing business uncertainty creates profit and the more uncertainty taken on, the more profit can be gained. The relationship between uncertainty and gain may be linear, or even exponential, where there are bigger payoffs on the right-hand side of the chart.
