Entrepreneurship Theory

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2010, pg 90) Functions/applications of theory Theories are used for several purposes. Different researchers and authors from different organize them and describe them differently. The following are the various functions of theory. Decision Making Theories usually help leaders in making decisions by giving those views from different perspectives. An administrator is able to compare the observations against theories that they have combined and synthesized, using the experience of others (Hisrich, Robert. 2011, pg 184). An educational leader can use his knowledge of theories when his interpretation of the facts of a given situation limits him to overcome this by gaining a wider perspective and re-examining the information available in the context. Predicting Behaviour Using theories, educational leaders are able to predict the outcomes of their decisions. They are able to examine relevant theories and ideas that they have, to know the reactions and outcomes they expect from certain actions or policies. For example, a school leader can use the theory of planned behaviour to decide if it is worthwhile to provide professional development to a team of teachers struggling in the English department. In order to determine whether a person has an intention to involve himself in a specific behaviour, the theory of planned behaviour considers his attitudes and perceived abilities (Gasparski et al. 2010, pg 45). Using the observations of the teacher’s attitudes and self-efficacy, a principal is able to know whether the teachers are likely to adapt the new teaching behaviours they learn in from the expensive training (Hisrich, Robert. 2011, pg 130). Organizational Control Leaders can communicate more clearly and maintain more consistent focus and message using theories as models. They can discuss the objectives of their organization using unambiguous terminologies. Educational administrators use theories to shape their personal leadership and communication styles and benefit from the expertise of others while comparing themselves. Future Functions Policy makers provide succinct explanation, evidence and solutions for a given problem using theories. Theories usually provide ideals or models on which to base initiatives. In addition, when a theory does not exist, or it is not adequate to address the matter in hand, the models provided by theory assists the researcher in educational administration by revealing the needed areas of research. Entrepreneurship Entrepreneurship necessarily involves the task of sensing opportunities and innovating products and services. The concept of entrepreneurship was first established in the 1700s, and the concept has been evolving. It is mostly equated with one-person business. However, economists believe it is more than that. To some economists, the entrepreneur is a person who initiates a business idea, and he is willing to bear the risk of implementing his idea if there is a possibility of making profits (Baron Robert.2012, pg 115). An entrepreneur’s role is also emphasized as an innovator who markets his own innovation. Other economists suggest that entrepreneurs develop new goods or processes that are currently not being provided/supplied in the market. In the 20th century, economist Joseph Schumpeter (1883-1950) focused on how change can be created by the entrepreneur’s drive for innovation and improvement (Gasparski et al.