ABSTRACT
Brockhaus (2003) asks the question: “Why do entrepreneurs need a theory of entrepreneurship?” His succinct answer is: “because it enables its user to be efficient”. According to Brockhaus (2003), “efficiency” for the entrepreneur means recognizing what kind of information is helpful and knowing where it can be obtained. The efficient entrepreneur uses the theory to translate raw data into usable information and to process the data into categories and variables. A good theory indicates to the user how things and events are related – which are likely to be external causes and independent, and which are likely to be internal results and controllable. A good theory also tells entrepreneurs the probable direction of causality. Therefore, an entrepreneur with a good theory of how entrepreneurship works is practical and efficient. This is crucial because entrepreneurship can be expensive. Real-time failures cost money and the irreplaceable time of many people, as well as their hopes and reputations.
