Entrepreneurial Theory

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1. PERSONAL CHARACTERISTICS The concept of entrepreneurial individuals with distinguishing characteristics is central to entrepreneurial theory. The characteristics are as follows: I. THE NEED TO ACHIEVE It is the motive to do well and to achieve a goal to a set of standards. In his work in economic development, McClelland identified the need for achievement as a personality trait. (Dollinger 1995: 48-49). McClelland proposed that achievement motivation is the key to entrepreneurial behavior. Early research has found that the need to achieve was the principal determinant of entrepreneurial behavioral orientation. It also reflects on an individual’s orientation, willingness and drive for satisfaction or a sense of accomplishment. This is demonstrated…show more content…
First, when engaging in entrepreneurial activities, the family constitutes a very a very specific type of entrepreneurial team. Strong ties in terms of kinship relationships between family members bind the family closer together than any other type of entrepreneurial team (Discuacruz, Howorth, & Hamilton, 2013). Further, the family also “reveals a certain form of organization governing the transmission of practices and cultural value, and linking family and work.” (Segalen, 1986, p.22) Therefore, the family provides its members with behavioral guidelines that contribute to the family’s unity and stability. (Cherlin, 1978). Feelings of solidarity and cooperation within the family results in highly motivated group efforts to support potential entrepreneurs (Sanders & Nee, 1996). Second, the family provides the entrepreneur with a diverse set of resources (Dyer & Handler, 1994; Sirmon & Hitt, 2003), which have the ability to impact the individual entrepreneur as well as the family business. Research in entrepreneurship has shown that self-employed family members pass on their resources such as knowledge, financial capital, and access to markets, suppliers or certain technologies to other family members. (Dum & Holtz-Eakin, 2000; Dyer & Handler,…show more content…
1. Capital Increase in capital investment in viable projects results in increase in profits which help in accelerating the process of capital formation. 2. Labor The quality rather than quantity of labor influences the emergence and growth of entrepreneurship. It more likely to be encouraged if there is a mobile and flexible labor force. 3. Raw Materials In the absence of raw materials, neither any enterprise can be established nor can an entrepreneur be engaged. Shortage of raw materials adversely affects entrepreneurial environment. Without adequate supply of raw materials no industry functions properly. 4. Market The size and composition of market influences entrepreneurship in their own ways. Monopoly in a particular product in a market becomes more influential for entrepreneurship than a competitive market. The disadvantage of a competitive market can be cancelled by improvement in transportation systems facilitating the movement of raw materials and finished goods and thus increasing
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