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Models of Entrepreneurial Development

Entrepreneurial development involves understanding various factors that contribute to entrepreneurial behavior and success. These models provide frameworks to comprehend the psychological, sociological, and integrated aspects of entrepreneurship. Below is an explanation of each model in Markdown (.md) format:

Psychological Models of Entrepreneurship

McClelland's Achievement Motivation Theory

  • Description: McClelland emphasizes the significance of entrepreneurial achievement motives.
  • Policy Measure: He suggests implementing motivational training programs to foster eagerness among entrepreneurs in seizing new opportunities.

Hagen's Theory of Social Change

  • Description: Hagen's theory links creative personality to entrepreneurial behavior, with status withdrawal as a determinant.
  • Causal Link: Creative personality is considered a crucial factor influencing entrepreneurial behavior.
  • Determinant: Status withdrawal plays a key role in shaping the creative personality and, consequently, entrepreneurial behavior.

Kunkel's Behaviorist Model

  • Description: Kunkel proposes a behaviorist model suggesting that entrepreneurial behavior is influenced by the social structure.
  • Influence: Economic and social initiatives within the surrounding social structure impact entrepreneurial behavior.
  • Manipulation: Kunkel suggests that manipulating these initiatives can affect entrepreneurial behavior.

Sociological Models

Young's Theory of Entrepreneurship

  • Description: Young's theory emphasizes societal incorporation of relative subgroups as a driver of entrepreneurship.
  • Relativeness: Relative subgroups with low status in society can exhibit entrepreneurial behavior if they possess better institutional resources.
  • Creation of Supporting Institutions: Young suggests establishing supporting institutions in society to foster entrepreneurship.

Integrated Models

Rao's Entrepreneurial Disposition

  • Factors Included:
  • Need for Motive: Prospective entrepreneurs are motivated by the possibility of achieving goals through specific activities.
  • Long-term Involvement: Entrepreneurship is viewed as a long-term commitment at both the thought and action levels.
  • Personal, Social, and Material Resources: Resources play a crucial role in entry and success in entrepreneurial endeavors.
  • Socio-political System: The perceived suitability of the socio-political system influences entrepreneurial establishment and development.

These models provide valuable insights into the diverse aspects of entrepreneurial development, including psychological motivations, societal influences, and integrated factors contributing to entrepreneurial success. Understanding these models can aid in designing effective policies and strategies to foster entrepreneurship and economic growth.

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