Displacement School of Thought

Topics: Entrepreneur, Joseph Schumpeter, Entrepreneurship Pages: 2 (518 words) Published: February 10, 2014
The Entrepreneurial Schools Of Thought are divided in two major views, the macro and the micro view. Then these two views are break down in six schools of thought and they cover the different approaches of entrepreneurship. The displacement school of thought is part of the major views. This school explains how the social surrounding can influence or restrict an individual to become an entrepreneur. In other words there is always certain factors that push or restrain an individual to become an entrepreneur. There are three major types of displacement that illustrate this theory. The first is Political displacement; it states that in some situation an individual is restrains to become an entrepreneur by some political regime that rejects free enterprise. Or new laws that require major changes in an industry, by the same token, compel entrepreneurial ventures to reorient their activities or in extreme, prevent the pursuit of any activity. The second is Cultural displacement; it states that some individuals can be restricted from professional fields by their social environment. That means that sometimes some unethical reasons can push an individual to become an entrepreneur by rejecting his/her desire to be part of an already establish organisation because of his/her ethnic background, religion, race, gender, etc. The third is Economics displacement; it focuses on economical variations to explain the desire of an individual to pursue an entrepreneurial venture. This motivation can either be generated from a job loss, capital loss, or a recession period that push an individual to do something new and jump in an entrepreneurial venture. The example I can relate to the displacement school of thought for motivating an individual to become an entrepreneur is the story of my dad. At the age of twenty-one he started working for a company that was employing about forty people. The company was manufacturing high precision metal pieces for the aerospace industry. He started as...
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