Risk Taking Theory (RTT) (Richard Cantillon and John Stuart Mill 1890)

The risk-taking theory was propounded by Richard Cantillon and John Stuart Mill in 1890. The essence of this theory is that the entrepreneur should have the inclination to take risk and the ability to bear that risk. Every society possess people who are willing to take risk and challenges while others stand totally against taking any risk. The theory perceives entrepreneurship education as a mental education that stimulates individuals to take calculated risk for which future stream of benefits are guaranteed, and people taking big risk have to contend with a great responsibility. The relationship of the theory to this study is that entrepreneurship education improves the ability, capability and potentials of individuals to undertake risks for which economic benefits are assured. The traits of creativity, risk-loving, innovation, strategic thinking and constructive engagements of young people are directed to entrepreneurship development through which jobs and employment are created.