This approach states that the formation of new businesses is the result of a rational decision-making process in which expertise is applied. Knowledge and experience in economics and business administration are of paramount importance. This means that people out there with administrative and managerial skills are more likely to start a business. According to Kuratko, entrepreneurship creates value through the recognition of business opportunities, management of risk taking, and communication and management skills to mobilize resources. The main task of an entrepreneur is that of a manager of a company, an input into the production process. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay To further explain this entrepreneurial behavioral theory, we will look at one of the world's greatest success stories Warren Buffet, Warren Edward Buffet is an American corporate investor who serves as the chairman and CEO of Berkshire Hathaway. Mr. Buffet is highly regarded in the field of management and many people from all over the world turn to him for management advice or as they are called management secrets. First we will see why Warren Buffet is an entrepreneur, he made his money through stock trading where he would identify an undervalued stock on the stock market, buy it and sell it at a higher price. His first job was a stockbroker and thanks to this he earned his first million. Warren Buffet then invested directly in business using the value investing techniques he had learned while in school. He had attended Columbia Business School where he studied securities analysis under Benjamin Graham, a well-known securities analyst. Thanks to the knowledge he gained in school, he was able to find deals in the stock market and invest in companies that would grow at a very rapid pace. Stock trading is usually speculative in nature and Warren Buffet had to speculate on which stocks to trade. in and which ones to avoid, he also used his training to choose companies to invest in and companies to avoid investing in. These businesses are speculative, which means they carry risk, so this makes him an entrepreneur in all aspects of the world. According to managerial theory, entrepreneurship creates value through the recognition of business opportunities, management of risk taking, communication and management skills to mobilize resources. Management theory focuses on skills, expertise and technical knowledge, looking at Warren Buffet at his knowledge of stocks early trading made him a millionaire at the age of 31. He then applied the knowledge he learned in school about investment analysis and was able to invest in a number of companies and achieve a very significant return on investment. While looking for new opportunities he discovered a textile manufacturing company called Berkshire and Hathaway and began buying shares and soon took control of the company. He also made some good investments like American Express which doubled its price within two years of investing. Let's now look at some of the other business strategies applied by Warren Buffet. When it comes to investing Warren Buffet is well known for his hands-off investing strategy, he is also known for his light due diligence process which involves thoroughly reading a company's annual reports and then placing his trust in its management to continue to steer the ship in the..