ENTREPRENEURIAL INTENTION THEORIES

Abstract

The rising rate of unemployment in the Indian economy implies the need to shift the perceptions of the young graduates from job seeker to job creator. Entrepreneurship serves as the suitable sustainable solution to the rising unemployment. With the thriving interest in the studies on entrepreneurship through the entrepreneurial intention, the current study will try to elaborate on the two most cited theories of entrepreneurial intention i.e. The Theory of Planned Behavior developed by Ajzen and Entrepreneurial Event Model developed by Shapero and Sokol. The Theory of Planned Behavior posits that attitude towards behavior, subjective norms and perceived behavioral control influences entrepreneurial intention which in turn predicts entrepreneurship behavior. According to Entrepreneurial Event Model a new venture is created only when there is a positive or negative displacement in the life event of an individual. With the occurrence of displacement a new company is form based on the perception of desirability and perception of feasibility. Based on the available, the study found Entrepreneurial Event Model as slightly superior to the Theory of Planned Behavior. KEYWORDS: Entrepreneur, Entrepreneurship, Entrepreneurial Intention, Employment Generation