The Great Man Theory of Entrepreneurship
One of the most popular 19th-century theories of entrepreneurship is the "Great Man Theory." The theory's popularity is primarily owed to the historian Thomas Carlyle.
While the name sounds archaic today, we can stretch the meaning to "Great People Theory" to analyze its impact. Great people theories are often heard in historical tales of WW2, with figures like Churchill, Eisenhower, and Roosevelt leading the way. In the business world, this narrative pits Bill Gates against Steve Jobs in the battle for the PC, often ignoring the thousands of others involved.
Definition of Great Man Theory
The Great Man Theory holds that most of the important decisions about how the economic and political world works today were made by just a handful of people. These gifted individuals are viewed as the heroes and heroines of every age.
The Assumption: Born, Not Made
A core assumption of this theory is that great people are born, not made. They are born with a special gift or power that allows them to ascend above others and assume positions of influence.
This assumption is problematic because it implies that most people must accept their "low lots" in life. There is an elitism built into the theory—that a few should be great and others not. If greatness cannot be learned, then why try? Perhaps that is the point of such a myth: to keep the average person from trying.
Critiques of the Theory
Modern research offers several critiques of this individualistic view:
- The Network Effect: Entrepreneurship is not really about individuals; rather, it is about groups of individuals who form a network together in the pursuit of common goals (Drakopoulou and Anderson, 2007). Over-emphasizing individuals downplays the importance of these networks.
- The "Garage Myth": The theory ignores that most entrepreneurs use ideas learned from previous employment experiences.
The Reality: Spinouts vs. The Hero Myth
Most innovations in developed economies come from investments in research by governments and corporations. While some incremental innovations are used internally, most radical and disruptive ones spill out of incumbent firms in the form of
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