Ed Session7

8/2/2019 Ed Session7

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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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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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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/

Ed Session7

Documents

Transcript of Ed Session7