2. 1. Economic theory.  According to this theory,  All the changes in the economy are set off by the entrepreneur.  these changes work through economic system in form of business cycle.  Entrepreneurship & economic growth will take in those situation where particular economic conditions are most favourable. 2. Sociological theory.  Entrepreneurs exist not only in the economy but also in other spheres of society as well.  His performance depend upon his own attitude toward his occupation..

3. 3. Psychological theory Acc. to this theory entrepreneur is motivated by 3 things a) desire for power & independence b) To succeed c) Satisfaction of getting thing done

4. 4. Need for achievement theory  Acc. To this theory the strong desire for high achievement is one of the motivation factors among successful entrepreneurs.  Desire to do something more efficiently than it was done before  3 motivational need required to be successful entrepreneur. a) Need for power : Like to order other Demand obedience. b) Need for affiliation : maintain friendly relation with their employees involve their employees in decision making give credit for the success. c) Need for achievement :

5. 5. Innovation theory  Innovation quality is one of the most important quality. Like -introduction of new product -new method of production -finds a new market -finds a new source of supply of raw material

6. 6. Leadership theory  Entrepreneurship is a function of managerial skills & leadership  It direct the people to attain entrepreneurial goals  It influences works team. 7. Theory of social behavior  success of an entrepreneurship depend on behavior of an entrepreneur under different social systems & structure & physical conditions.  It directly affect the supply of entrepreneurship.

7. 8. Status with drawl theory Status is the social rank of an individual It is a symbol of honor, acceptance given to a person When the deserve respect is not given to a person by a social group to whom he belong,it is known as stage of status with- drawl. So to get status & respect in society he will turn to innovation.

8. 9. Harvard school theory  It is based on the that any purposeful activity which lead to a profit generation activity in interaction with internal environment & external environment is termed as entrepreneurship 10. Theory of profit  According to this theory “entrepreneur is a person of pure profit”.  Pure profit leads to bear the cost of uncertainty & risk.  It the real profit which motivate a person to adopt entrepreneurship as career.

9. 11. Anthropological theory  This theory was developed by fredrik berth  Entrepreneurship to with connecting two spheres in the society, between which there exists a difference in value.  Something which is cheap in one sphere may be expensive in another sphere

10. Different management thoughts used in Entrepreneurship. 1) ROBERT OWEN (1771-1858). He introduced many social reforms He was known as father of modern personnel He worked for better personal relations Acc. to him, the environment at work place greatly influence d the performance of workers. He pleaded for improvement of working conditions, reduction of working hours, providing necessities to workers on subsidised rates.

11. 2) Charles babbage (1792-1871) Introduction  He was ‘a British Mathematician’  He found that manufactures were using traditional methods of work,relying more on guess work & based decisions on old opinions.  So,he insist the use of sci. & mathematics in improving manufacturing operations.  By dividing the work & assigning the duties.  Decision should be based on investigation.  He stressed to reduced the cost by introducing improved method of work.  He emphasis on work measurement,optimum utilization of machines.

12. 3) James Watt JR. AND Mathew Boulton (1796-1848) They had developed a number of management techniques like ; I. Market research & forecasting II. Planned machine layout for better flow of work III. Production planning IV. Standardization of products V. Method of calculating cost and planning

13. 4) Hawthorne studies  A number of experiment were conducted on workers to find out the impact of different situation on their efficiency.  Acc to this theory, the increase in productivity of the worker is not a single factor of changing hours of work & working conditions but several other also.  Manager should adopt a more people oriented approach.

14. 5) Mary parker follett (1868- 1933)  She also stressed on human relations  She found the managers also facing the same problems as faced by public administrators.  She favoured the participation of worker in decision making process  Follet advocated that integration not domination should be follow.  She use tool of psychology to answer various questions

15. 6) Behavioural sciences movement  It is further related to human relations  It cover the aspects in inter personal roles & responsibilities  Motivation of employees for improving the productivity  Enterprise as a social system  Leadership study of entrepreneurship behaviour  Communication

16. 7) Abraham Maslow  He gave known as NEED HIERACHY THEORY  ACC. To him people have a wide range of need which motivate to them to work  He classified need as follow; I. Physiological need II. Safety need III. Social need IV. Ego or Esteem need V. Self fulfilment need.

17. 8) Douglas-McGregor (1906-1964)  He was known for the development of theory on motivation..he named it as theory X & Y.  Theory X represents the traditional & narrow view of human nature.  It assume that the average worker are lazy &dislike the work.  Theory Y, workers are not lazy,they are ready to accept the responsibility under proper conditions.

18. 9) Rensis likert (1903-1972)  He classified management styles into the following categories ; I. Exploitative autocratic II. Benevolent autocratic III. Participative IV. Democratic

19. 10) Chester I.Bernard(1886-1961)  He adopted a theory of sociological approach  He emphasised the importance of leadership & communication.  He divided the org. into FORMAL & INFORMAL  He divided the function of executives into three categories : I. Providing a system of communication II. Securing effects III. Formulating & defining purpose.