Theories and Practice of Entrepreneurship, Enterprise and Innovation

Making it happen

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Theories and practice of entrepreneurship, enterprise and innovation........................................2
Opportunities for entrepreneurial activity in local, national and global economy......................3
Describing behaviors, characteristics, competencies and personalities of a range of
entrepreneurs................................................................................................................................4
Presenting internal and external factor affecting development and creation of entrepreneurial
culture..........................................................................................................................................6
Process of business start-up.........................................................................................................7
Factors that impact on the growth and sustainability on an idea.................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is an activity of setting up a business or taking financial risk with a
hope of earning profit. Whereas, the activity is successful when entrepreneurs undertake analysis
of environment and also take risk. They also possess strong ability and skills in order to execute
the business idea. Similarly, the present report based upon new idea of e-ticketing which is
entirely based upon advance technology and also helps in the global economy as well. The entire
report will shed a light upon importance of enterprise and entrepreneurship. For that, report will
describe the theories of entrepreneurship that also support company to make better decision.
Further, it also examine whether the new business idea is feasible for entrepreneurial activity in
local, national and global economy. Moreover, it is describe behavior, characteristic of
entrepreneur and define internal and external factor that affect development and creation of
entrepreneurial culture.
Theories and practice of entrepreneurship, enterprise and innovation
An entrepreneur is that individual who creates a new business and able to take all
financial risk in order to set up a business for the company. Thus, there are variety of theories
developed from past years in order to demonstrate entrepreneur and provide deep understanding
of entrepreneurship.
Sociological theory:
Theory of religious belief: The theory is suggested by Max Webber who was concerned
within sociology of religion as well as moral behavior in different historical situations. He also
suggested that ethics plays an important role to develop countries economy and that is why, he
develop a theory that describes how far particular set of religion can influence economic
behavior of its followers (Leuciuc and Şuşu, 2020). The theory also supports that entrepreneurial
energies come from an external factors which allows sociological to motivate themselves in
order to generate huge profit.
Theory of social change: It is coined by Everett E Hagen who focused upon all human
personalities in societies is either authoritarian or innovational. In this, a disturbing event occur
which disrupt traditional societies. Along with this, it is also identified that economic growth is

resulted due to social and political change. That is why, entrepreneurs should be creative and
they act as a driving force behind social as well as economic growth.
Economic theory of entrepreneurship:
Schumpeter’s theory: It play a central role in economic development as it belongs to
innovative theory. As this the current theory, entrepreneurs are the major drivers of change who
undertake opportunity to present the idea in an innovative way. Theory also support that
innovation have a crucial role in the success of developing new business with improved quality,
new source of raw material (Warnecke, 2018). For example, E-ticketing is a new idea that
completely eliminate need of third party retailers who charge high commission. So, this new idea
is depend upon innovation and that is why, assist in economic development as well.
Psychological theory:
As per the Peter Drucker who stated that entrepreneur as a unique agent of change and
write that they are always search for change and then responds it to grab the opportunity. As per
the view of author, there are mainly two elements who lead towards entrepreneurship i.e.
innovation and resource. Thus, it can be stated that only innovation effectively creates resource
which lead towards generating economic value. Also, entrepreneur must focus on activities
instead of examining organizational make-up. This helps to maintain overall business
performance and execute the business idea in well manner as well.
So, overall it is stated that with the help of such theories, entrepreneur take an advantage
of opportunity and also proceed with required resources in order to launch a new business. This
in turn helps to build success and manage growth in order to ensure long term success
(Shimazaki, 2018). Also, there are many external as well as internal factors which might affect
the overall new business, but entrepreneurs have enough abilities and skills in order to manage
the change and cope with a situation as well.
Opportunities for entrepreneurial activity in local, national and global economy
There are many entrepreneurial opportunities available for entrepreneurs for new
business idea or existing one. This might be arise from a variety of sources, but entrepreneurs
must have enough knowledge and understanding to understand the changing nature of people