ed session7
TRANSCRIPT
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Promotion of Entrepreneurship
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Entrepreneurial Environment Political-
Political atmosphere
Quality of leadership
Legal
Rules and regulations
Economic
Policies
Labour
Trade tariffs Incentives
Subsidies
Social
Consumer- labour attitudes, opinions and motives
Technological
Competition & Risk
Efficiency
Productivity and profitability
Cultural
Structure Aspirations and values
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The theoretical background
Sociological theories
Psychological theories
Economic theories Cultural theories
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Sociological theories
Theory of religious beliefs (Max Weber)- Entrepreneurship
is a function of religious beliefs and religion to a largeextent shapes the entrepreneurial culture.
Theory of social change (Hagen)- Achievement motivationvaries between societies and their classes and strata. Intraditional societies the status of individuals is fixed.Children learn to act according to established norms, anddeviations (initiative !) are punished. If by externalinfluences a new group gains power, the status of the oldelite is challenged and weakened. Children tend to become
dissatisfied with the society and readily accept new values.In time, they become innovative personalities. If thesepersons become dominant groups in the society, thiscauses economic development.
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Sociological theories
a) Max Webers Theory
Spirit of Capitalism is highlighted
Adventurous spirit facilitate taking risk
Protestant ethic embodying rebellion is conducive
Inducement of profit b) E.E. Hagens Theory
Reveals general model of the social- interrelationshipamong physical environment, social structure, personality
and culture. Political & social change catalyst for entrepreneurs.
Rejects followers syndrome imitating western technology.Technology is an integral part of socio- cultural complex .
Historic shift as a factor initiates change
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Psychological theories
THE TRAIT APPROACH Need for Achievement Locus of Control Risk-taking Innovation and creativity General Personality Scales 16PF, The Big Five
CONSTRUCTION OF THE TRAIT APPROACH
Biased towards Western culture Gender-biased, Ethnocentric (Chell, 2001)
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Economic theories
Schumpeters Theory of innovation
Development implies carrying one of newcombinations of entrepreneurship.Entrepreneur. is an innovator who carry new
combination of: New goods/ services.
New method of production.
New market.
New source of supply of raw materials.
New organization.
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Economic theories
French tradition - the Physiocrats Cantillon (1755) Foresight to assume uncertainty Reacts to profit opportunities Bears uncertainty Brings about a balance between supplies & demand
Kirzner (1973) The entrepreneur as a coordinating agent who is capable
of exploiting unnoticed opportunities due to his/herspecialalertness.
Has knowledge not available to everybody which leads tocreative discoveries
Facilitates exchange between suppliers and customers Profit as reward for recognising a market opportunity &
acting as middleman
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Cultural theories
Hozelitzs theory- the supply of Entrepreneurship is governed bycultural factors & culturally minority groups are the spark plugs ofentrepreneurial economic development.
i) Marginal men - Reservoir of entrepreneurial development .Ambiguous positions from a cultural or social statement make them
creative. ii) Emphasis on skills Who possess extra-ordinary skills. Function
of managerial additional personal traits & leadership skills.Additional personal traits. Exportation of profit Ability to lend.
iii) Contribution of social classes -Socio-economic background ofspecific classes make them entrepreneurs. Family patterns inFrance, Protestants in UK/USA & Parsees in India
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HBS ( Harvard Business School)
Entrepreneurship is the outcome of the combination ofinternal and external Forces.
Internal forcesIndividuals traits and qualities viz : Intelligence
Skill Knowledge
Intuition
Exposure & Experience
External forcesSurroundings conditions viz : Economic Political
Social & Cultural
Legal frame-work
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Conceptual framework
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Conceptual framework
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How to Foster Entrepreneurship
Policies for boosting entrepreneurial capacity
at the macro level
Programmes that offer a behavioural
approach to entrepreneurship that promote
attitudes, skills and actions of individual
entrepreneurs
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Main policy domains for fostering
entrepreneurial framework conditions
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Web learning & Tests
www.gemconsortium.org/
Take an E Quiz from
http://wps.pearsoned.co.uk/ema_uk_he_naylor_management_2/19/4940/1264711.cw/content/index.html
http://cws.cengage.co.uk/stokes5/students/mcqs.htm
http://www.gemconsortium.org/http://www.gemconsortium.org/http://www.gemconsortium.org/http://wps.pearsoned.co.uk/ema_uk_he_naylor_management_2/19/4940/1264711.cw/content/index.htmlhttp://wps.pearsoned.co.uk/ema_uk_he_naylor_management_2/19/4940/1264711.cw/content/index.htmlhttp://wps.pearsoned.co.uk/ema_uk_he_naylor_management_2/19/4940/1264711.cw/content/index.htmlhttp://cws.cengage.co.uk/stokes5/students/mcqs.htmhttp://cws.cengage.co.uk/stokes5/students/mcqs.htmhttp://cws.cengage.co.uk/stokes5/students/mcqs.htmhttp://cws.cengage.co.uk/stokes5/students/mcqs.htmhttp://wps.pearsoned.co.uk/ema_uk_he_naylor_management_2/19/4940/1264711.cw/content/index.htmlhttp://wps.pearsoned.co.uk/ema_uk_he_naylor_management_2/19/4940/1264711.cw/content/index.htmlhttp://wps.pearsoned.co.uk/ema_uk_he_naylor_management_2/19/4940/1264711.cw/content/index.htmlhttp://www.gemconsortium.org/http://www.gemconsortium.org/http://www.gemconsortium.org/