Economic theory of Entrepreneurship

Its the thoeory of economists. They think that entrepreneurship and economic growth will take place in those cases where particular economic conditions take place favourable. Main economists in the theory of G.F. PAPANEK and J.R. HARIS. They hold the view that the economic incentives are the main drive for the entrepreneurial activities. In some cases, individuals, innerdrives have been associated with economic gains. Therefore these incentives and gains are regarded as sufficient condition for the emergence of indutrial entrepreneurship.

Economic Factors:

1. the market incentives which present themselves in the form of new social needs and wants,
2. the existence of sufficient stock of capital to finance new enterprise,
3. the occurence of institutions, such as development banks, so as to direct the capital to those who want to use it for entrepreneurial projects.