https://www.slideshare.net/shrinivas1648/theories-ofentrepreneurship Innovative theory of entrepreneurship https://www.economicsdiscussion.net/entrepreneurship/theories-of-entrepreneurship/31823 Formulated by joseph Schumpeter Considered innovation as the main factor affecting development States that the primary role of an entrepreneur is to introduce a new product, new production method, new market, new supplier, and new industry structure. This theory is separated into two Categories: 1. All activities that reduce overall cost of production of a commodity 2. Increase demand for a certain commodity. Important to consider patents as after innovation, competition arises THEREFORE IP. Harvard School Theory entrepreneurship comprises any purposeful activity that initiates, maintains or develops a profit-oriented business in interaction with the internal situation of the business or with the economic, political and social circumstances surrounding the business. approach emphasised two types of activities – the organisation or coordination activity (involves managing resources, setting up processes, and ensuring the smooth functioning of the business), and the sensitivity to the environmental characteristics that affect decision making. Leibenstein, associated with the Harvard tradition, further highlighted specific entrepreneurial activities such as: Searching for and evaluating economic opportunities, Mobilizing resources needed for production, Connecting with different markets, and Creating or expanding the firm. Kirzner, a typical entrepreneur can be compared to an arbitrageur. An arbitrageur is someone who discovers opportunities to buy items at low prices and then sells them at higher prices due to differences in time and place demands. Theory of High Achievement McClelland identified two characteristics of entrepreneurship, namely, doing things in a new and better way and ‘decision-making under uncertainty. He stressed the need for achievement or achievement orientation as the most directly relevant factor. People having a high need for achievement are more likely to succeed as entrepreneurs. McClelland identified three key needs that influence entrepreneurial behavior: the need for achievement (nAch), the need for affiliation (nAff), and the need for power (nPow). People with high achievement (N-Ach) are not influenced by money rewards as compared to people with low achievement.
