Question

How can we justify relevance of withdrawal theory of e hagen in the context of overall entrepreneurial development in the country?

Answer 1

Explanation:

Everett E. Hagen was a political scientist and economist writing at MIT in the 1950s and 1960s. He sought to explain how traditional societies changed into those with continual technological progress and hence, rising per capita incomes. Here we discuss Hagen's theory of entrepreneurship.

Hagen argues that a process eventually leading to entrepreneurship is triggered when a social group loses status in relation to other groups in a society. When members of a given social group perceive that they are not respected by the dominant groups in society, this triggers a personality change (creativity) that encourages entrepreneurial behaviors (Dana, 1995).