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THEORIES OF ENTREPRENEURSHIP
thorough understanding of the industry good leadership skills foresight on demand and supply changes and the willingness to act on such risky foresights
Success of an entrepreneur however depends not on possession of these skills, but on the economic situations in which they attempt their endeavors. Many economists have modified Marshalls theory to consider the entrepreneur as the fourth factor itself instead of organization, and which coordinates the other three factors.
taxation policy industrial policy easy availability of raw materials easy access to finance on favorable terms access to information about market conditions availability of technology and infrastructure marketing opportunities
creates a new product introduces a new way to make a product discovers a new market for a product finds a new source of raw material finds new way of making things or organization
Schumpeters innovation theory however ignores the entrepreneurs risk taking ability and organizational skills, and place undue importance on innovation. This theory applies to large-scale businesses, but economic conditions force small entrepreneurs to imitate rather than innovate. Other economists have added a dimension to imitating and adapting to innovation. This entails successful imitation by adapting a product to a niche in a better way than the original product innovators innovation
1. increase in value or satisfaction to the customer from the resource 2. creation of new values 3. combination of existing materials or resources in a new productive combination Read more: http://www.brighthub.com/office/entrepreneurs/articles/78364.aspx#ixzz1bIthJcJJ