As an entrepreneur, you are the first line of defense for bearing risks. But no attempts were made by economists for formulating systematic theory of entrepreneurship. According to M. Kirzner, the chief role of entrepreneur is based upon the adjustment of price in the market. There are different theories of entrepreneurship, based on the assumptions of various management experts. According to Patel, entrepreneurs must: Importantly, Patel writes, entrepreneurs must be willing to take calculated risks for their business. I always find it fascinating that some people remain uncomfortably comfortableperhaps masking their unfulfillment with various things; whereas, some of us (especially entrepreneurs) are willing to get uncomfortablein some ways, we live there, says Mollie Krengel, Founder of Wild Bum in Minneapolis. (ii) Emphasis on entrepreneurial function Schumpeter has given emphasis on the role or entrepreneurial functions in economic development. Sure, theyre not afraid of risk, but they seek to diminish it by managing it. Risk Theory of Profit: This theory is associated with American economist Hawley. Entrepreneurship Theory and Practice, 12 (2), 47-68. According to him psychological and sociological variables are the main determinants for the emergence of entrepreneurs. The person with high need achievement needs great concern for exercising influence and control. Profit is the most important factor for encouraging entrepreneur to assume risky behaviour. Nobel Prize winner Harry Markowitz is credited with first articulating this. Hagen postulates four types of events which can produce status withdrawal: (i) Displacement of a traditional elite group from its previous status by another traditional group by physical force. Salient features of these theories are as follows: This theory was propounded by J.A. (iii) The achievement motivation had a positive impact on the performance of the participants. According to this theory, set of supporting instructions are the primary determinant factors of entrepreneurship development. Hagens theory laid more stress on technological changes which is the result as individuals creativity. The program includes courses on data analytics, finance, idea-generation, market research and business models. According to him, non-convents groups are those groups who gives pressure on capitalism, money rationality and thinking. Risk-taking shows a team that the entrepreneur is a true business visionary and leader who believes in the potential reward on the other side. All these things completely affect by their professional life, energy, livelihood and enthusiasm. The main psychological theories are as follows: According to Joseph A. Schumpeter, the effective function of an entrepreneur is to start innovation in venture. But, an innovator is one who applies inventions and discoveries in order to make now combinations. High achievers want immediate feedback on their power performances. This aspect seems to have been subsumed within innovation which has been studied more as the change or newness associated with the term rather pro-activeness. McClelland theory is not free from criticism: 1. To be clear, risk did factor into my calculus. (3) Inconsistency of status symbols with a changing distribution of economic power. Sociological Theory 12. My path to becoming an entrepreneur didnt follow convention. However because there is a lack of clarity about the theoretical assumptions that entrepreneurship scholars use in their work, assumptions from both individual opportunity recognition and economics, have been used as if they are interchangeable. Labour structure- The labour structure is directed by several factors such as source of livelihood, traditional outlook and life ambitions. According to Stokes, personal and societal opportunities and the presence of requisite psychological distributions may be seen as conditions for an individual movement to get changed into industrial entrepreneurship. To create or expand the firm or business enterprise. In this context, it is important to note that making profit is not enough to succeed in entrepreneurship. According to this theory, the entrepreneurs emerges because of individuals having certain psychological elements i.e., will power, self-intuitions, tolerance capacity. Ricardo included the term entrepreneurial ability as an independent factor of production and it is concerned with profit. Today, the Academy is the professional home for more than 18290 members from 103 nations. Conducted by McClelland in America, Mexico and Mumbai. The I/O model asserts that opportunities are discovered by scanning the business environment and analyzing the market and industry structure. Heres an example: Would you run across a busy 7-lane interstate for a dollar? The creation theory is opposite to I/O nexus. According to him, entrepreneurism is a function of religious beliefs and impact of religion shapes the entrepreneurial culture. But you should care. As the level of wealth increases, entrepreneurs invest in less risky projects. This structure affect the development of an entrepreneur. The elasticity of bank credit causes a disparity between the natural and market rate of interest. From my perspective, it can also be dangerous because it encourages aspiring entrepreneurs to develop bad habits, and it deters the risk-averse from this career path. It is quite true that marginal men or groups enjoying an ambiguous culture and social position having no bondage of tradition to inhibit them from entrepreneurship development. The studies further show that Hinduism is not averse to the spirit of capitalism and to adventurous spirit. Entrepreneur - New World Encyclopedia