review

Notes on theories

· Key points, authors, dates, examples, models, concepts

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Theory 1

· Explanation

· Author and date

· Key point 1 (can add more if needed)

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· Key argument 1 (can add more if needed)

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· Example

· Use or uses

· Important concepts

Innovation theory

J.A. Schumpeter put out this hypothesis in 1911s. It is a startup's job to be an innovation, and Schumpeter defines an innovator as "someone who creates novel combinations." When it comes to becoming an entrepreneur, you need to be able to think beyond the box and anticipate the future. A well-known economic theory developed by Joseph Alois Schumpeter has profoundly affected how business people see their work. In Schumpeter's view, entrepreneurs elevate a country's stagnant economy by injecting their brand of creativity into the mix (Alonso & Bressan, 2016).

New ideas are central to Schumpeterian thought. He explains the difference between an entrepreneur and an inventor. Inventors, as per him, develop new techniques and new materials. An innovator, on the other hand, is a person who utilizes scientific breakthroughs and innovations to create previously unimaginable arrangements. More unique and better products are made with these novel combinations, which provide both happiness and profit to the customer (Alonso & Bressan,2016).

Entrepreneurs play a critical role in economic growth, helping keep expansion moving steadily. Entrepreneurs make the fundamental adjustments essential for growth. As a result, economic growth is facilitated by the development of the entrepreneurial sector.

A broad concept of entrepreneurship is what Schumpeter has in mind. Entrepreneurship is not limited to sole proprietors or small-business owners but also extends to executives and senior executives who are charged with implementing new ideas (Alonso & Bressan, 2016).

Limitation

It does not include those who just run an existing firm without contributing anything new to its operations.

The most dynamic sort of company is that of the innovator.

The problem is that this sort of entrepreneur does not exist in underdeveloped nations such as India.

It placed an excessive amount of attention on new features. However, it overlooks the need to take risks and organize a team (Alonso & Bressan, 2016).

Theory 2

· Explanation

· Author and date

· Key point 1 (can add more if needed)

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Need for Achievement Theory

David C. McClelland is credited with coming up with this idea in 1967. McClelland was interested in the development of the economy and the elements that have an impact on it. "Human values and reasons" are what he is looking for in this context, "to seize possibilities, to reap the benefits of advantageous trading circumstances." For this reason, he values the entrepreneurial role's capacity for innovation. Entrepreneurs are driven by a desire to succeed (Saif & Ghania,2020).

"A drive to perform well, not for social acclaim or status, but for an inner sensation of personal success" is what psychologists term achievement.

Entrepreneurs are motivated by the desire to attain n-achievement—those with high n-achievement show entrepreneurial behavior. To assure a high level of economic growth, it is essential to cultivate n-achievement among people. Child upbringing approaches emphasizing high standards, material comfort, self-reliance, education, and low paternal authority instill n-achievement motivation in children (Saif & Ghania,2020).

Entrepreneurs, according to McClelland, have two traits. To begin, find a new and improved method of doing things. Second, making decisions in an uncertain environment.

The inclination to seek success in settings where one's performance is evaluated according to some degree of quality is what we mean when we talk about this motivation. Entrepreneurs with a strong desire for success are more likely to succeed.

As stated by McClelland, those with solid needs for accomplishment will not be driven by money but will be inspired by the symbolism that money might provide. Their primary focus is on themselves, and they don't care much about what others think of them or what they think. This is why McClelland recommends that families establish expectations for students to increase their drive for academic success (Saif & Ghania,2020).

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Theory 3

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Herzberg's theory

Behavioral scientist Frederick Herzberg came up with the motivator-hygiene idea in 1959. Job elements that lead to contentment and those that prevent discontent have been identified by Herzberg (Prasad Kotnim & Karumuri, 2018). 

Herzberg's motivational theories refer to the idea that work pleasure and unhappiness exist on two distinct levels within each unique set of elements. Work satisfaction and sadness are not linked, as is often believed, according to the standard definition of job satisfaction.

When Herzberg and his colleagues conducted their initial research, they looked at fourteen aspects of work fulfillment and divided them into two categories: hygiene and incentive factors. The existence of motivational and hygienic aspects prevents work unhappiness (Prasad Kotnim & Karumuri, 2018).

Hygiene considerations are those aspects of a profession that are necessary to keep employees motivated. These don't provide long-term happiness. However, if these elements are missing or non-existent in the workplace, it might lead to employee unhappiness. To put it another way, hygiene considerations are those aspects of a work that, when appropriate or acceptable, keep people happy and prevent them from becoming unhappy. These are aspects that are not intrinsic to the success of a project. Hygiene factors are sometimes known as dissatisfiers or intrinsic motivators to prevent unhappiness. These criteria characterize the workplace/scenario in which you work.

Herzberg argues that motivation cannot be derived from considerations of personal cleanliness. Positive feelings of contentment are the result of the motivating elements. All of these factors are necessary for success. These aspects encourage people to go above and above in their work. These are known as satisfiers. These are aspects of the work that must be considered. It's a win-win situation for everyone (Prasad Kotnim & Karumuri, 2018).

Theory 4

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Economic Entrepreneurship theory

In 1755, Richard Cantillon introduced this thesis, arguing that entrepreneurialism directly impacted the economy (McFarlane, 2016). In the early days of economic innovation, Richard Cantillon was one of the most influential thinkers in the field. According to Richard, entrepreneurs are risk-takers who acquire and sell at various prices, taking on the danger of losing money if they don't meet expectations (McFarlane, 2016). If an individual has an unreliable source of income, they are considered an entrepreneur, according to Centillion's risk model of profit. As stated by Cantillon, entrepreneurs are both makers and exchanges of goods and services. An entrepreneur's actions significantly impact the supply chain of raw materials that are gathered and transformed into finished goods for customers. Unlike earlier theories of business, Cantillon considered everyone, from beggars to restaurant owners, to be entrepreneurial since they all had a source of unrepaired revenue. This helped his idea stand out from the crowd.

When it comes to the study of business, the economic models have a long and distinguished history. It may also be described as the skill or willingness to start a company and manage the risks to generate a profit. It is important to note that entrepreneurs are tightly linked to the assets available to make a profit in business.

For countries to flourish in the ever-changing and aggressive global economy, they must have an ambitious vision (McFarlane, 2016). Various schools of thought have emerged regarding entrepreneurship ideas in psychology, sociology, and culture. Economic considerations may influence or enable entrepreneurial behavior, as explained by economic theory.