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Theory of Social Behavior

Kunkel presented a behavioral model of entrepreneurship. This model is concerned with the overtly expressed activities of individuals and their relation to the  previous and presents surroundings, socials structures and physical conditions. According Kunkel, individuals perform various activities of which some are accepted by the society while others are not. The accepted ones are rewarded. The rewards act as reinforcing stimulus increasing the probability of repeating that behavior patter. This pattern of social behavior is entrepreurial behavior.

The supply of entrepreneurship depends upon four structures found in a society. These are as follows:

(i)    Limitations Structure. The society limits specific activities and this limitation structure affects all the member (including entrepreneurs) of a society)

(ii)    Demand Structure. Material rewards are necessary to lay the foundation for future social gains. moreover, behavior of people can made entreprentiurial b / manipulating certain selected components of the demand structure.

(iii)    Opportunity Structure. It consists of the availability of capital, management and technological skills, information concerning production methods, labour and markets. This structure is required to increase the probability of entrepreneurial activity.

(iv)    Labour Structure. It is concerned with the supply of competent and willing labour. The supply of labour is governed by several factors such as available alternative means of livelihood, traditionalism, expectations of life, etc.

The major limitation of the above theory is that it assumes ideal structures for the supply of entrepreneurs. But generally, the is a discrepancy between objectives, structures and the actual indene of entrepreneurs. It is due to the fact that there are inadequate or incorrect perceptions attached with these perceptions. In practice, entrepreneurship is also governed by the specific combinations of situational factors which are generally not available in the environment.

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