Different Views on Entrepreneurship
These are the different views on entrepreneurship by scholars:
- Schumpeter’s View on Entrepreneurship
- Walker’s View on Entrepreneurship
- Drucker’s View on Entrepreneur
Schumpeter’s View on Entrepreneurship
According to him, entrepreneurship is essentially a creative activity. It consists of doing such things as are generally not done in the ordinary course of business. An entrepreneur is one who innovates i.e., carries out new combinations of enterprise.
Entrepreneurs are an especially motivated and talented class of people and key figures in development. Schumpeter stressed the role of the entrepreneurial function in economic development. He recognized that development was more than putting money into the bank and watching it grow.
Development requires basic changes and the entrepreneurs carry out the required changes. Then entrepreneurs lead the means of production into productive channels. Schmpeter’s innovating entrepreneur represents the most vigorous type of enterprise, but this type of entrepreneur is a rare species in developing countries.
Schumpeter only pointed out that entrepreneurs are not a class in themselves like capitalists and workers. An individual is an entrepreneur only when he actually carries out new combinations and ceases to be an entrepreneur, the moment he settles down to running the established business.
Walker’s View on Entrepreneurship
According to Walker, an entrepreneur is an organizer and coordinator of the various factors of production. The true entrepreneur is one who is endowed with the above-mentioned ability for organization and coordination.
He is a pioneer and a Captain of industry. However, in practice, entrepreneurs possess different degrees of organizational skill and coordinating capacity.
Drucker’s View on Entrepreneur
An entrepreneur is one who always searches for changes, responds to them, and exploits them as an opportunity. So according to him the aim of entrepreneurship is to increase the value and satisfaction obtained from resources by the consumer.
Successful entrepreneurs convert the material into resources or combine existing resources in a new or more productive configuration. The concept of entrepreneurship is as old as civilization while the theories of entrepreneurship have evolved over a period of more than two centuries. Theories of entrepreneurship can broadly be classified into four categories:
- The Economist’s View
- The Psychologist’s View
- The Sociologist’s View
- The Anthropologist’s View.