Evolution and Theories of Entrepreneurship : A Critical Review on t he Kenyan Perspective
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Date
2012-07
Authors
Bula, H. O.
Journal Title
Journal ISSN
Volume Title
Publisher
Asian Society of Business and Commerce Research
Abstract
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.
Description
Keywords
Theories of entrepreneurships, Approaches, Culture, Practices, Human capital, Profits, Equilibrium.
Citation
International Journal of Business and Commerce Vol. 1, No.11: Jul 2012[ 8 1 - 96 ]