Theory of Entrepreneurship

Theory

A generalization that explains a set of facts or phenomena; can be supported by observation or proven otherwise.

Innovation Theory

Economic development as the product of structural change or innovation, contributed by Joseph Schumpeter.

Keynesian Theory

Emphasizes the role of government in entrepreneurial and economic development, especially during times of depression, developed by John Maynard Keynes.

Alfred Marshal Theory

Asserts that there are four factors of production: land, labor, capital, and organization; entrepreneurship is the driving element behind organization.

Risk & Uncertainty-Bearing Theory

Conceptualized by Frank Hyneman Knight, views entrepreneurs as agents connecting producers and consumers, with risk-taking as a distinguishing factor.

Weber’s Sociological Theory

Asserts that social cultures significantly contribute to entrepreneurship.

Kaldor’s Technological Theory

Gives importance to the advancement of technology as an element of production.

Leibenstein’s Gap Filling Theory

Advocates that entrepreneurship fills gaps in economic activity.

Kizner’s Learning Alertness Theory

Focuses on learning and alertness as the primary attributes of entrepreneurship.