Indigenous Theories
To avoid confusion here, there also exists theories about "Indigenous Entrepreneurship", where Indigenous refers to descendants of people inhabiting a land prior to colonization. However this page is not about that, its about theories that are indigenous to the field of entrepreneurship.
Indigenous entrepreneurship theories are created to explain entrepreneurial phenomena and not borrowed from another domain (e.g., economics or psychology). Thus an indigenous theory is the opposite of a borrowed theory. Here are some:
This
theory proposes that opportunities are real but they are mere
propensities that are worthless unless found and exploited with the
right care and skills.
Alertness Theory
This
theory argues that entrepreneurial alertness allows entrepreneurs to
balance supply and demand by detecting market imperfections and
exploiting them.
This theory suggest that entrepreneurs create ventures from resources at hand.
This theory suggest how entrepreneurs go about creating ventures as iterative process.'
What if entrepreneurship is enabled by changes and supports provided by their environments?
Individual-Opportunity Nexus Theory
This theory suggests that it is the constant pivoting of entrepreneurs that land them an opportunity that exists. This is one of the newer theories and continues to be debated.
Jack-of-All Trades
The
jack of all trades theory is controversial because it suggests people
should vary their experiences to attain entrepreneurial skills, but
evidence suggests that this may be bad advice.
Necessity Versus Opportunity Theory
There are two different types of entrepreneurs with different incentives and consequences.
This
theory suggests that immigrant start businesses because they are unable
to secure lucrative employment in their host countries.
Strategic Disagreements Theory
Uncertainty-Bearing Theory
Strategic
disagreements theory explains spinouts as the interplay between the
preferences of employees and their parent organizations.
This theory suggests that bearing more business uncertainty creates more profits. It also looks at ways in which entrepreneurs can bear different levels of uncertainty.
