Management Notes

Reference Notes for Management

According to sociological approach, entrepreneurship

Looking for the answer to the question below related to Entrepreneurship Development and Management ?

According to sociological approach, entrepreneurship


A. Process of sensitivity
B. Process of role performance
C. Process of economic change
D. All of these

The Correct Answer Is:

  • B. Process of role performance

Answer Explanation:

C. Process of Economic Change

Entrepreneurship, from a sociological perspective, is primarily seen as a process of economic change. This view emphasizes how entrepreneurs play a pivotal role in transforming economies and societies. Here’s a detailed explanation of why this option is correct:

Economic Transformation: Entrepreneurship involves the identification and exploitation of opportunities in the market. Entrepreneurs create and manage businesses, bringing new products, services, and ideas to the forefront.

These innovations can lead to significant economic changes, including job creation, increased productivity, and economic growth.

Social and Cultural Impact: Entrepreneurial ventures often challenge existing norms, values, and traditions. They can introduce new ways of doing things, which can lead to shifts in societal attitudes and behaviors.

For example, the rise of digital technology entrepreneurship has transformed how people communicate, shop, and work, leading to profound societal changes.

Resource Allocation: Entrepreneurs make decisions about resource allocation. They decide where to invest capital, labor, and other resources. These choices can have far-reaching effects on the distribution of wealth and power within society.

For instance, entrepreneurs who prioritize sustainable and socially responsible practices can influence broader societal values and environmental sustainability.

Now, let’s discuss why the other options are not correct:

A. Process of Sensitivity

The option “Process of sensitivity” is not the correct answer because it doesn’t adequately capture the essence of entrepreneurship from a sociological perspective. Sensitivity, although important, is just one aspect of entrepreneurship.

While entrepreneurs need to be attuned to market trends and consumer needs, entrepreneurship encompasses a much broader set of activities that involve creating and managing businesses, taking risks, and driving economic change.

B. Process of Role Performance

This option is also not the correct answer because it focuses on the idea of entrepreneurship as a role that individuals play in society. While entrepreneurs do perform specific roles within an economic context, such as creating and managing businesses, this option doesn’t sufficiently capture the broader sociological perspective on entrepreneurship.

Sociologists are more concerned with how entrepreneurship influences and is influenced by society as a whole, rather than viewing it as a role performance in isolation.

D. All of These

The option “All of these” is not the correct answer either because it suggests that all the provided options are correct, which is not the case. While sensitivity, role performance, and economic change all have relevance to entrepreneurship, the sociological approach primarily emphasizes entrepreneurship as a process of economic change.

This view considers entrepreneurship as a driver of economic and societal transformation, making it the most comprehensive and accurate choice among the given options.

In conclusion,

The sociological approach to entrepreneurship highlights its role in driving economic change and influencing broader societal dynamics. While sensitivity and role performance are important aspects of entrepreneurship, they do not capture the full scope of its sociological implications.

Therefore, option C, “Process of economic change,” is the correct choice when considering entrepreneurship from a sociological perspective.

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