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.