Entrepreneurship theory revolutionizes business strategy and firm structures worldwide.
Entrepreneurship theory can help create a comprehensive theory of firms by combining economic and managerial perspectives. Entrepreneurs make decisions based on judgment and take risks with optimism and confidence. Different forms of entrepreneurship lead to firms of varying sizes and structures. Entrepreneurs identify and use information networks to exploit new opportunities. CEOs in large firms often exhibit entrepreneurial traits. The theory of entrepreneurship also applies to human resource management, administrative procedures, and corporate strategy.