QN: Areas of sociological theory leading to the influence of entrepreneurship successes, and Challenges of sociological theory to the success of entrepreneurship

TABLE OF CONTENTS

Entrepreneurship theories and research remain important to the development of the entrepreneurship field. There are six major entrepreneurship theories with underlying empirical studies. These are: Economic entrepreneurship theory, Psychological entrepreneurship theory, Sociological entrepreneurship theory, Anthropological entrepreneurship theory, Opportunity-Based entrepreneurship theory, and Resource-Based entrepreneurship theory. These theories offer us a fairly good opportunity to refocus our efforts at integrating the diverse viewpoints. Social entrepreneurship is the recognition of a social problem and the uses of entrepreneurial principles to organize, create and manage a social venture to achieve a desired social change. While a business entrepreneur typically measures performance in profit and return, a social entrepreneur also measures positive returns to society. Thus, the main aim of social entrepreneurship is to further broaden social, cultural, and environmental goals. Social entrepreneurs are commonly associated with the voluntary and not-for-profit sectors, but this need not preclude making a profit. Social entrepreneurship practiced with a world view or international context is called international social entrepreneurship.

1.2 Background information on Sociological Entrepreneurship Theory

The sociological theory is the third of the major entrepreneurship theories. Sociological enterprise focuses on the social context .In other words, in the sociological theories the level of analysis is traditionally the society. The terms social entrepreneur and social entrepreneurship were used first in the literature on social change in the 1960s and 1970s. The terms came into widespread use in the 1980s and 1990s, promoted by Bill Drayton the founder of Ashoka: Innovators for the Public, and others such as Charles Leadbeater.From the 1950s to the 1990s Michael Young was a leading promoter of social enterprise and in the 1980s was described by Professor Daniel Bell at Harvard as 'the world's most successful entrepreneur of social enterprises' because of his role in creating more than sixty new organizations worldwide, including the School for Social Entrepreneurs (SSE) which exists in the UK, Australia and Canada and which supports individuals to realize their potential and to establish, scale and sustain, social enterprises and social businesses. Another British social entrepreneur is Lord Mawson OBE. Andrew Mawson was given a peerage in 2007 because of his pioneering regeneration work. This includes the creation of the renowned Bromley by Bow Centre in East London. He has recorded these experiences in his book "The Social Entrepreneur: Making Communities Work and currently runs Andrew Mawson Partnerships to help promote his regeneration work (http://en.wikipedia.org/wiki/Social_entrepreneurship).

1.3 Definition of key terms:

Theory; as a set of assumptions, propositions, or accepted facts that attempts to provide a rational explanation of cause and effect of relationships among a group of observed phenomenon (http://www.businessdictionary.com/definition/theory.html).

Theory; can be defined as a set of interconnected hypotheses that offer general explanationsfor natural or social phenomena (http://www.en.wikipedia.org/wiki/social-theory).

Theory is a statement of how and why specific facts are related (Macionis, 1997:15).

Sociological theory; is defined as a set of interrelated ideas that allows for systematization of knowledge of the social world. This knowledge is used to explain the social world and make prediction about the future of the social world (Robert O. Keel, 2011).

Sociological theory; is complex theoretical and methodological frameworks used to analyze and explain object of social study. Examples of sociological theories are conflict theory, critical theory, feminist theory, functionalism theory, and rational choice theory (http://en.wikibooks.org/wiki/introduction-to-sociological-theory).

Therefore, sociological theory can be defined as a complex theoretical framework that is used to explain social theories through empirical formula (scientific method) and making judgments.

Entrepreneurship; is often defined as the process of starting and running one’s own business.The term entrepreneur is increasingly employed to refer to the type of individual who is highly determined, confident, creative and sales oriented personality, familiar with the trends and able to translate a vision into a real business. These individuals are often viewed as reckless risk takers (http://shodhganga.inflibnet.ac.in/bitstream.pdf).

Entrepreneurship; Entrepreneurship is a process of extracting profits from unique and valuable resources in an uncertain environment. Entrepreneurship is characterized by how opportunities are discovered, created, and exploited by whom and with what consequences (http://en.wikipedia.org/wiki/Entrepreneurship).

2. The following are areas of sociological theory leading to the influence of entrepreneurship successes in the first and third world countries:-

Social networks; here, the focus is on building social relationships and bonds that promote trust and not opportunism. In other words, the entrepreneur should not take undue advantage of people to be successful; rather success comes as a result of keeping faith with the people. For example in Tanzania, Reginald Mengi is a great entrepreneur in IPP media with success and through him many entrepreneurs have been influenced and initiating media business with many successes such as star Television, Tanzania Broadcasting, Capital Television, East Africa Television, Redio free Africa, and Kiss Fm.

Analyzing the life situations and characteristic of individuals who have decided to become entrepreneurs; the experiences of people could influence their thought and action so they want to do something meaningful with their lives. For instance some people decided to become entrepreneurs by being influenced with certain life situations such as poverty, unemployment, low pay or wages and sometimes people with enough money or capital likes to invest more for society successes.

Ethnic identification; One’s sociological background is one of the decisive “push” factors to become an entrepreneur. For example, the social background of a person determines how far he/she can go. Marginalized groups may violate all obstacles and strive for success, encouraged on by their disadvantaged background to make life better. Not only that but also tribes or characteristics can led to people to be entrepreneurs like Tanzania we have Chaga found Kilimanjaro and Kinga at Iringa.

Dependent upon the ethical values of the society; several studies demonstrated the importance of ethical values like religion and culture as the potential factors affecting the entrepreneurial development or success. By referring to Max Weber (1947) analyzed religious beliefs are the driving or restraining force for generating entrepreneurial activity as well as determining the behaviour or actions of the entrepreneur towards generating or limiting profit. For example in Tanzania and other developing countries, religious institutions have been engaged in entrepreneurial activities like Moravian and Lutheran churches are investing in education, health, and economic sectors.

Population ecology; the idea is that environmental factors play an important role in the survival of businesses. For example the political system, government legislation, customers, employees and competition are some of the environmental factors that may have an impact on survival of new venture or the success of the entrepreneur.

Neglected positive externalities in the society; addressing the problems involving neglected positive externalities is the distinctive of action of social entrepreneurship. For example, in most countries especially developing countries since disadvantaged groups or marginalized groups have its important but yet are neglected in socio- economic, therefore those situations influence them to engage in entrepreneurship individually, or groups to fight for the better life or their rights.

Logic empowerment rather than logic control; social entrepreneurs are more likely to seek solution on built on the logic empowerment than on the logic of control, this refers to empowerment ideologies towards entrepreneurship programs to individuals or groups than controlling or limiting them to access the entrepreneurial opportunities. Hence, logic empowerment encourages or influences the majority of people to engage themselves in the businesses. For instance, in developed countries most people are empowered financially or economically that’s why many people are entrepreneurs gaining high profit.

Seek sustainable solutions than to seek advantages; social entrepreneurs are more likely to seek sustainable solutions than to seek advantages. Many entrepreneurs are benefits more once they first know a real means or alternatives that can make the business to win or success, therefore, being knowledgeable and skillful on sustainable solutions towards business growth influence people to engage themselves in entrepreneurship programs. For example, many entrepreneurs in the third world countries are using a business plan very attentively basing on its important.

3. The following are challenges of sociological theory to the success of entrepreneurship in the first and third world countries:-

Lack of access to entrepreneurial information; majority of people especially in developing countries can have difficulties in accessing or integrating current entrepreneurial information that helps or influences people to establish and maintain their business for the success. For example many people living in rural areas are more affected in getting current and clear information towards entrepreneurship programs leading them to do improper business or end ups with loss; and sometimes others remain dormant.

Lack of skilled personnel or human resources; the scarce of skilled people in entrepreneurship is big challenge to the community sometimes can be there but lacks support from government such as funds, transport, and salaries which will result to failure in building or strengthening social networks. For example in Tanzania there is a big problem of employment; therefore, sociologists, economists, psychologists, and environmentalists graduates are remain stagnant or useless in the country.

Lack of infrastructures; the success of entrepreneurship or economic growth in both first and third world countries depend much on the presence advanced infrastructures with high technology this refers to good roads, transport and transportation, availability of market for produced goods or products. Thus; lacks of good infrastructures affects many people in the society in turns discourage them to engage themselves in entrepreneurship. Good examples are those people living in rural areas are interested and wish to be entrepreneurs but discouraged much with poor infrastructures meanwhile remain poverty.

Seek more business advantages or profit; majorities are after advantages or profit of the business not people’s dignity or problems making them to live in hardship conditions. For instance, many capitalists or entrepreneurs in both first and third world countries thinks more on how they can exploit or alienate people by paying low wages, no work security, and no incentives so that they reserve money finally maximizing high profit.

Sex-based stereotypes:

We examine how establishing a mixed-sex entrepreneurial founding team may benefit women entrepreneurs in male-dominated cultures and industries. We contend that as a result of sex-based stereotypes, most women deals with small enterprises with low pay while men deals with big businesses with much success regarding women that has less power and not skilled enough for entrepreneurship.

Obstacles in securing access to resources:

Women entrepreneurs face unique obstacles in securing access to resources for their ventures. We argue that one way for women entrepreneurs to overcome these obstacles is to partner with a man. Drawing upon institutional, resource-based, and network theories, we theorize how partnering with a man may help provide women entrepreneurs in male-dominated contexts with enhanced legitimacy, access to a larger number of resources, and a stronger, more diverse social network.

4. RECOMMENDATIONS:

1. Social networks among citizens in both first and third world countries are more encouraged since its focus is building social relationships and bonds that promote trust and not opportunism. In other words, the entrepreneur should not take undue advantage of people to be successful; rather success comes as a result of keeping faith with the people.

2. Governments in both first and third world countries should take high consideration the importance of sociologists, economists, psychologists, and environmentalists careers and employ them with equipped resources to meet community needs in entrepreneurial programs since are inevitable.

3. Make sure urban and rural infrastructures are improved so that can influence and encourage people to engage themselves in entrepreneurship programs with much success.

4. Counseling and training to members of the communities in first and third world countries on entrepreneurship is mandatory because being entrepreneur is not based on sex ,gender, ethnic or tribe, and education; doing so will remove the ideology of sex stereotypes, male-dominance in many societies.

5. Conclusion

Today, nonprofits and non-governmental organizations, foundations, governments, and individuals also play the role to promote, fund, and advise social entrepreneurs around the planet. A growing number of colleges and universities are establishing programs focused on educating and training social entrepreneurs. This verifies how sociological theory is remaining most important to the development and success of the entrepreneurship field in both first and third world countries.