Several theories have been developed to explain why entrepreneurs behave the way they do. There has been debate on whether entrepreneurs are born or made Born-hereditary, entrepreneurs are environmental influenced by where they are born.
These are;
Economic
The theory explains entrepreneurial behavior as influenced by economic factors through which.
- It is possible to introduce new methods
- It is possible to find new sources of materials
- It is possible to open new markets
- The economic prospective is important since they create enabling environment for the entrepreneur to combine the factors of production.
Psychological factors
The theory states that entrepreneurs have unique values, attitudes and needs within which drive them.
- It is mostly concerned with personality traits as the main determinants of entrepreneurial behavior
- People are likely to become entrepreneurs because of high liking of say.
- Independence
- Attitude
- Need to satisfy certain needs.
Sociological factors
- Maintains that environmental factors such as beliefs, culture, social structures determine entrepreneurial behavior.
Management factors
- Emphasizes on the organization of resources in a specific way to attain profits
- Leadership impacts on behavior and facilitates pioneership, achieving of goals and provides vision.
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