not have innovative products to sustain positions in the market. The key aspects of organization demography such as size, age and managerial tenure distribution had a significant bearing and affected the growth of collective entrepreneurship in the sector. The human resource had not adequately developed and maintained competencies to acquire competitive position in the evolving market. Majority had inadequate skills or capacities required to embrace new ideas, change, innovation and teamwork where majority had not employed the right people.
groups will gain less per capita of successful collective action. Hence, in the absence of selective incentives, the incentive for group action diminishes as group size increases, so that large groups are less able to act in their common interest than small ones.
2.3.2 Theory of Entrepreneurship
There are so many theories of entrepreneurship which are based on psychological/personality traits, sociological models and socio-economic factors influencing the success of businesses enterprise.
2.3.2.1 Economic Based Theory of Entrepreneurship: Economic entrepreneurship theories date back to the first half of the 1700s with the work of Richard Cantillon, who introduced the idea of entrepreneurs as risk takers. The classic, neoclassical and Austrian Market process schools of thought all pose explanations for entrepreneurship that focus, for the most part, on economic conditions and the opportunities they create.
2.3.2.2 Resource-Based Theory of Entrepreneurship: Resource-based theory focus on the way individuals leverage different types of resources to get entrepreneurial efforts off the ground. Access to capital improves the chances of getting a new venture off the ground, but entrepreneurs often start ventures with little ready capital. Other types of resources entrepreneurs might leverage include social networks (e.g cooperative society) and the information they provide, as well as human resources, such as education. In some cases, the intangible elements of leadership the entrepreneur adds to the mix operate as resource that a business cannot replace.
2.3.2.3 Psychological Theory of Entrepreneurship: Psychological theories of entrepreneurship focus on the individual and the mental or emotional elements that drive entrepreneurial individuals. A theory put forward by psychologist David McCLelland, a Harvard emeritus professor, offers that entrepreneurs possess a need for achievement that drives their activity.
Julian Rotter, put forward a locus of control theory. Rotter‘s theory holds that people with a strong internal locus of control believe their actions can influence the external world and research suggests most entrepreneurs possess trait. A final approach, suggests personality traits ranging from creativity and resilience to optimism drive entrepreneurial behavior.
2.3.2.4 Sociological/Anthropological Theory of Entrepreneurship: The sociological theory centers its explanation for entrepreneurship on the various social contexts that enable the opportunities entrepreneurs leverage. Paul D. Reynolds, a George Washington University research professor, singles out four such contexts: social networks, a desire for a meaningful life, ethnic identification and social-political environment factors. The anthropological model approaches the question of entrepreneurship by placing it within the context of culture and examining how cultural forces, such as social attitudes, shape both the perception of entrepreneurship and the behaviors of entrepreneurs.
2.3.2.5 Opportunity-Based Theory of Entrepreneurship: Peter Drucker put forward an opportunity-based theory. Drucker contends that entrepreneurs excel at seeing and taking advantage of possibilities created by social, technological and cultural changes.
Entrepreneurship theory suggests that entrepreneurial behavior is a function of the individual‘s interaction with the society. The entrepreneurial function implies the discovery, assessment and exploitation of opportunities, in other words, new products, services or production processes;
new strategies and organizational forms and new markets for products and inputs that did not previously exist (Shane & Venkataraman, 2000). The entrepreneurial opportunity is an unexpected and as yet unvalued economic opportunity. Entrepreneurial opportunities exist because different agents have differing ideas on the relative value of resources or when resources are turned from inputs into outputs. The theory of the entrepreneur focuses on the heterogeneity of beliefs about the value of resources.
2.3.3 Theory of Financial Inclusion
Access to formal financial services has the potential to help transform the lives of low -income households through three channels: the smoothing of consumption, investment in human or productive capital and the management of vulnerabilities.Theory of inclusion is to give people with special needs equal opportunities to participate fully in regular financial activities with people who do not have any special needs.
According to Gardeva & Rhyne (2011) financial inclusion or broad access to financial services is as an absence of price and non-price barriers in the use of financial services. The theory of financial inclusion emphasized that financial services and products should be accessible to all:
this is often seen as the goal of financial inclusion.
2.3.4 Tenets of the Theories
Olson‘s theory of Collective Action Tenets was that;
1. if everyone in a group (of any size) has interests in common, then they will act collectively to achieve them; and
2. The majority will tyrannize and exploit the minority.
Tenets for entrepreneurship theory was that
Needs for achievement and power through innovations and creativity
Locus of control
Risk taking propensity
Tenets for financial inclusion theory emphasized on the
access to financial services and products for everybody that were excluded financially
Usage of financial services and products for everybody that were excluded financially
Quality of financial services and products that were available to those people that were excluded financially
2.3.5 Premise for the Adoption of the Theories
It is obvious from the facts presented in the theories adopted for the study that, at least where economic objectives are involved, that groups of individuals(like cooperative society) with common interests usually attempt to further those common interests. Cooperative with common interests is expected to act on behalf of their common interests much as single individuals are often expected to act on behalf of their personal interests through entrepreneurship. Thetheory of collective action; entrepreneurship theories; and theory of financial inclusion are all embedded in the concept of collective entrepreneurship which is about collective innovative training;
collective ownership of enterprise thatinvolved risk sharing which is capable of facilitating and
enhancing access; usage and quality of financial services and products among the cooperative members. Many economists of diverse methodological and ideological traditions have implicitly or explicitly accepted it.
The idea that groups tend to act in support of their group interests is supposed to follow logically from this widely accepted premise of collective entrepreneurship model. In other words, if the members of cooperative investment and credit society limited (CICSL) have a common interest or objective, and if they would all be better off if they were financially included, it has been thought to follow logically that the individuals in that group would financially include, if they were rational and self-interested, act to achieve that objective These theories contended that there is linear relationship between collective action; entrepreneurship and financial inclusion.