Question

Describe the development of entrepreneurship theory using relevant examples

Answer 1

It is a universal fact that entrepreneurship is an important factor in economic development. An Entrepreneur is the risk bearer and works under uncertainty. But no attempts were made by economists for formulating systematic theory of entrepreneurship.

Different theoretical assumptions of entrepreneurship focus on three major aspects of entrepreneurship. These three aspects are nature of opportunities, the nature of entrepreneurs, and the nature of decision making framework within which an entrepreneur functions. These three aspects give rise to two logical, consistent theories of entrepreneurship, namely, discovery theory and creative theory.