Economic development is seen almost exclusively as a process of technological change which is brought about by the technological creativity of individuals in society. Thus, Everett Hagen sees the entrepreneur as a creative problem solver interested in things in the practical and technological realm and driven by a duty to achieve. The theory of social change by Everett Hagen is described below:
Theory of social change by Everett Hagen
Hagen postulates that the sequence of changes separating the typical authoritarian personality of a stable traditional society from the emergence, many decades later, of creative entrepreneurial activity is as follows:
Showing Sequence of Changes for Entrepreneurial Motivation
Withdrawal of status respect, also described as group subordination, is one of two exogenous variables in Hagen’s system (the other is a relative social blockage) and is the trigger mechanism for changes in personality formation.
Status withdrawal “in the perception on the part of the members of some social group that their purposes and values in life are not respected by groups in the society whom they respect and whose esteem they value”
Hagen postulates the fur types of events can produce status withdrawal:
- Displacement by force, e.g., the Norman invasion of England or the derogation of merchants, samurai, and wealthy peasants in seventeenth-century Tokugawa Japan;
- Denigration of valued symbols, e.g., suppression of religious sets in seventeenth-century Russia and England;
- Inconsistency of status symbols with a changing distribution of economic power
- Nonacceptance of expected status on migration to a new society e. g, the Amioquents in seventeenth-century Colombia.
Once the status withdrawal has occurred, the sequences of change in personality formation are set in motion with the creative personality emerging after a minimum retreat interval of five generations.
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