This paper examined the four most used theories of entrepreneurship and their reflection on Tanzania's economy. Entrepreneurship theories have remained the most researched issue in development economics. There are several theories of entrepreneurship, including economic, psychological, and sociological theories. The paper used a narrative design to review the empirical literature on entrepreneurship. During the review, the economic theory of entrepreneurship has many empirical works of literature compared to others. Other theories examined included sociological, psychological, and innovation theories of entrepreneurship. The main results from the review are that entrepreneurship has been defined differently depending on the type of study and the use of the theory. However, other scholars define entrepreneurship depending on the economic set-up. In Tanzania, no policy has been explicitly developed for entrepreneurship. Instead, the small and medium enterprise policy 2003 is used for entrepreneurship, which does not fit precisely with the theories. Entering into business is taken as risk-taking and looking for opportunities. In Tanzania, however, the use of all theories compared to practice has been noted. The study recommends another study to define entrepreneurship in Tanzania clearly by assessing all the entrepreneurship theories.
