Theory of Social change by Everett Hagen

06/10/2020 0 By indiafreenotes

Hagen in his theory had accredited the withdrawal of status respect of a group as the starting point for entrepreneurship development process. Before we discuss the concept of withdrawal of status respect let us try to consider the various crucial facets of the theory.

The theory is based on a general model of the society. His theory viewed the entrepreneur as a trouble shooter who contributes to economic development. The creativity of the entrepreneur brings about social transformation and economic development. Economic growth is associated with the social and political changes. He didn’t encourage the entrepreneurs to imitate other’s technology.

Hagen had ascribed the genesis of entrepreneurship to withdrawal of status respect of a group. The social group that experiences the withdrawal of status respect engulfs itself into aggressive entrepreneurism. In such a situation the status loosing group and the members of status loosing group endeavour to regain their status by undertaking rigorous entrepreneurial drive.

Hagen had suggested the events that could create as well as indicate withdrawal of status respect of a social group. First, dislodgment of a traditional elite group from its prior status, Second, defamation of valued symbols through some change in the attitude of the superior group. Third, Unpredictability of status symbols in the changed allocation of economic power. Fourth, when social group doesn’t enjoy the expected status when it migrates to a new society.

There four possible reactions to the withdrawal of status respect which relates to four different personality types:

(i) The retreatist: An individual who works in the society but is indifferent to the work and position.

(ii) The ritualist: An individual who works in the manner accepted and approved by the society but has no hopes of improving his/her position.

(iii) The reformist: An individual who fights against the injustice and tries to rebels against the established society in order to form a new society.

(iv) The innovator: An individual who endeavours to bring about new changes and utilizes all opportunities. This personality reflects the personality of an entrepreneur.

Criticisms:

  1. The theory lacks general application. It is not always true that all the social groups have behaved in the manner as advocated in the theory.
  2. The theory ignores the various other factors accountable for development of entrepreneurship.