Evolution and Theories of Entrepreneurship : A Critical Review on t he Kenyan Perspective
Bula, H. O.
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This paper attempts to give a critical review of various theories of entrepreneurship and also shows how the theories can be applied in the developing countries with emphasis on East Africa but focus ing Kenya’s entrepreneurial culture and practices. All these approaches are critically analyzed and both strong sides and shortcomings are introduced in terms of their implications This paper focuses on various approaches of entrepreneurships such as clas sical theorists like Richard Cantillon - the entrepreneur who equilibrates supply and demand in the economy by bearing risks or uncertainty; Jean Baptiste Say who portrays the entrepreneur as a manager being an agent of production in the economy rather th an a risk taker; the neoclassical theories of Alfred Marshall who introduced an innovation function of an entrepreneur by continuously seeking opportunities to minimize costs and ultimately maintaining equilibrium in the economy through perfect competit ion; Schumpeterian approach as the creative destroyer of equilibrium through innovation and discovery of opportunities by introducing new products or new processes; Kirzner who introduced the entrepreneur alert and a creation of economic shock and the resp onse of the alert entrepreneur to the same; Knightian entrepreneur as a residual claimant and risk taker in the environment of uncertainty, the approach of Schutz of using information revealed to react to opportunities through change of behavior and action and other recent theorists. A review is also done on the sociological aspects of entrepreneurship with a view to solve social issues (social entrepreneurship); biological theories which brings in the gender differences in the start - up and operation of en trepreneurial ventures with an emphasis on risk taking; an analysis of entrepreneurship as a team concept rather than an individualistic issue and the benefits that arise from it due t supportive mechanisms such as culture and policies.