Theories and Qualities of an Entrepreneur Education Essay

Personal Essay
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Personal Essay
Theories and Qualities of an Entrepreneur
Theories
There are different theories that help to explain the idea of entrepreneurship. Each covers a different perspective of entrepreneurship, but each has its own set of weaknesses or criticisms that limit its application and widespread use. In this section, the most important entrepreneurship theories that will be addressed include social behavior theory, the need for achievement theory, and the innovation theory.
John Kunkel is the man behind the theory of social behavior. In this theory, he explains that entrepreneurs’ existence and presence is a function of the economic, political, and social structures of society (Virtanen, 1998). His theory concerned itself with individuals’ behaviors in accordance with or in relation to the economic, political, and social structures present. Kunkel explained that people seeking to be entrepreneurs often engage themselves in some activities which the society scrutinizes and rewards the ones that it deems beneficial for the society. Rewards then give rise to the motivation to want to do or engage in an activity again, and in the end, a pattern is invented. Kunkel also explained that entrepreneurship is dependent on certain structures, including the limitation structure, demand structure, the labor structure, and the opportunity structure. However, the above statement also forms this theory’s biggest criticism because of the assumption that there are ideal structures that influence entrepreneurs' existence.
The need for achievement theory is also an important entrepreneurship theory because it helps to explain the incessant need for humanity to want to achieve or produce. This theory was developed by David McClelland, whose focus was on the human factors that could or that drive people to want to exploit their surroundings (Jha, 2010). In this theory, humanity’s need to explore and not be confined to their surrounding is one that spearheads entrepreneurship. I believe that this theory is crucial as it explains the need for people to achieve. Having already felt the said need, I believe that it is a crucial factor and one that comes close to explaining why people do what they do. Another factor that makes me consider this theory as crucial for entrepreneurship is the characteristics that McClelland identifies: the need to excel or do things better and the resolve to make decisions even under uncertain terms. These truly exemplify a person who is ready to challenge the status quo and make decisions that will help steer their ideas forward.
The last theory is known as the innovation theory, which I believe tells the story of a world that is willing to do anything to change or enhance its way of living. J. Schumpeter is the main behind this theory, and he sought to showcase an entrepreneur as a person who is willing to go against the grain in the hope of some gains (Sledzik, 2013). For example, he believed that an entrepreneur is a person who introduces new goods, comes up with new methods of production, exploits opportunities in the market, and one who goes out of their way to discover opportunities that put them above the rest. In the current world...