What can lead to the withdrawal of status respect according to Hagen's theory of Entrepreneurship?

Correct option is D

The correct answer is Perception that efforts and purposes are not valued by others.

According to Hagen’s theory of Entrepreneurship, the withdrawal of status respect is a key psychological and social factor that influences entrepreneurial behavior. Hagen argued that individuals or groups experiencing a loss of social status or respect are driven to seek new roles or opportunities to regain their standing. This loss of status respect can occur when people perceive that:

• Their efforts and contributions are undervalued by society or the group they belong to.
• They face rejection or reduced recognition from peers or authorities.
• Traditional values and symbols of status lose their significance due to societal or economic changes.

This withdrawal of status respect creates a sense of frustration or alienation, which, in turn, motivates individuals to innovate, take risks, and engage in entrepreneurial activities as a means of regaining lost respect and achieving personal or social fulfillment.

Information Booster

• Hagen’s theory emphasizes the role of social and psychological factors in shaping entrepreneurship. He identified four types of status withdrawal:
  1. Displacement by force (e.g., colonization or external domination).
  2. Displacement by status loss (e.g., due to changes in societal norms).
  3. Voluntary withdrawal (e.g., choosing to leave the dominant group).
  4. Economic displacement (e.g., shifts in market power or resources).
• Entrepreneurs emerge as a response to these displacements, seeking innovation and new opportunities to restore status and improve societal standing.

Additional Knowledge

• Option 1 (Increased recognition from the group): This would enhance status respect, not lead to its withdrawal.
• Option 2 (Perception that efforts and purposes are highly valued): This creates a sense of accomplishment, reducing the likelihood of entrepreneurial motivation through frustration.
• Option 3 (Belief in the stability of status symbols): Stability in status symbols provides societal security and does not motivate innovation or change.

Hagen’s theory explains how negative societal pressures can stimulate entrepreneurial behavior as a way to address the loss of status respect.