The Entrepreneur and Entrepreneurship: A Neoclassical Approach (original) (raw)

Entrepreneurship and economic development: From classical political economy to economic sociology

Journal of Economic Studies, 2005

Purpose -The purpose of this paper is to reconstruct economic reasoning on entrepreneurship from the perspective of its institutional content, thus underlining the aspects of power relations and leadership, which are related with the organisational and technological dimensions of innovation and coordination as entrepreneurial functions. Design/methodology/approach -In reconstructing the theory of entrepreneurship in a range from classical political economy to current efforts in economic sociology, the paper focuses on an appreciation of Schumpeterian entrepreneurship as a concept that is influenced both by Austrian marginalism and the German historical school. Findings -The paper finds that the research perspective of economic sociology as a means for exploring the institutional foundations of entrepreneurship is of utmost relevance for further efforts in theorising the role of entrepreneurship in economic development. Practical implications -The paper promotes policy implications, which underline that policies for the support of entrepreneurship need to account for the differentiation of entrepreneurial functions and their actual carriers, reconsidering the economic manifestations of their institutional embeddedness. Originality/value -The paper establishes innovation and coordination as ideal types of entrepreneurial functions, perceiving them as fundamental concepts in economic reasoning on entrepreneurship in the process of economic development.

A THEORETICAL PREMISEOF ENTREPRENEURSHIP

Shodha Saritha, 2021

Entrepreneurship is considered a major factor in the progress of an economy. Governments are encouraging and supporting entrepreneurship critically, as it leads to productivity and profitability for the community and country. The sides of deliberations on entrepreneurship literature are whether entrepreneurship is learned or not. This discussion lies between the ends of "entrepreneurs are born", and "entrepreneurs can be made". In reaching a conclusion between these two points of discourse, there are policy efforts and instruments in terms of programs and sustaining institutions to create and sustain entrepreneurship. The support for this view comes from an appraisal of wide literature on entrepreneurship and business creation, suggesting important links between entrepreneurship education, training and development programs, business creation, and entrepreneurial outcomes. The development of an entrepreneur means inculcating entrepreneurial traits in a person, imparting essential knowledge, developing technical, managerial, financial, and marketing skills, and building an entrepreneurial attitude. In this milieu, the present paper is an attempt to review the accessible literature and theories on Entrepreneurship. The main objective of the paper is to understand and construct a theoretical background so as to reach a conclusion on entrepreneurship and its development. To achieve this purpose, the authors make use of relevant secondary data sources related to entrepreneurship. An outcome paper reveals that entrepreneurship is a broad-based discipline that borrows ideologies and can be evolved through systematic and holistic efforts.

Locating the Origin and Role of Entrepreneur in Economic Theories

2016

The complexity and ubiquitous nature of entrepreneurship field compelled it to evolve as a multidisciplinary subject area. Various academic fields have contributed at philosophical, conceptual and methodological levels to highlight the different facets of entrepreneurship. One has to get hold of any one side of the string to generate the basic understanding of “entrepreneurship” (phenomenon) and the “entrepreneur” (individual initiating the process) by reviewing the extant literature on the subject. The subject roots are in economics discipline but the treatment it received therein added further to its complexity, hence, no unanimous definition of entrepreneurship could be reached at. The paper therefore, aims to explicate the economic theories to offer a workable definition that can provide a fresh start to early academics in the discipline.

The Entrepreneur in Economic Theory: From an Invisible Man Toward a New Research Field

Mainstream economics had great difficulty in fitting entrepreneurship into its theory and for long time the theoretical firm remained “entrepreneurless”. However, from the early 20th century onwards, we identify strong attempts of key economists to recognize the role of the entrepreneur as an explanatory force of several economic phenomena. This paper analyzes the evolution of economic thought on entrepreneurship, and in particular the path through which the entrepreneur (re)entered into economic theory over the 20th century, leading to the new and increasingly independent research field Economics of Entrepreneurship. The analysis goes through the main Economics fields where the (re)discover of the entrepreneur figure was most remarkable - namely Labor Economics, Microeconomics and Industrial Organization, and Economic Growth and Development - searching for the rationality to include the entrepreneur figure into the analyses of particular economic phenomena. The study is enriched by a brief bibliometric analysis, which helps to set forth a chronological trace of the entrepreneurship research within Economics literature.

The Political Economy of Entrepreneurship

2008

We outline a politico-economic growth system centered around the entrepreneur. The working of entrepreneurial function crucially depends on the existing institutional framework. We develop a typology of different types of entrepreneurship to further our understanding of the effect of institutional context on entrepreneurial activity. We also point to the necessity of viewing institutions as endogenously influenced by entrepreneurs. We use developments in modern history as a real-world context for evaluating our framework. Particular attention is given to the effects of enforcement of property rights and taxation, two of the most prominent institutions in the literature.

Entrepreneurship: multiple meanings and consequences

International Journal of Entrepreneurship and Innovation Management, 2004

Aim of the paper is to question for the meaning of entrepreneurship. A view through relevant pieces of the literature indicates that no consensual understanding exists about the understanding of the term. The most conventual practise is to translate entrepreneurship with self-employment. In this sense, the political postulated need to strengthen entrepreneurship will mean consequently to strengthen the ratio of self-employment. What is taken tooless into account, however, is the fact that even self-employment is fragmented into different classes of actors having different socioeconomic attributes, rationalities, and related biographies. Among this category of people, one may find the potential keys for future positive developments as well as one can meet with just the opposite, eg. people who are settled here since they have no other chances in the labour market for getting a job and related income. One of the conclusions is that entrepreneurship has multiple meanings and consequences.

The enterprise is the actual place for the entrepreneurial function in economic theory

2016

The enterprise is an historical phenomenon specific to capitalism. It is a fictional agent created by accounting and sanctioned by law. It is based on capital and its purpose is to yield monetary profit. Within the framework of the market economy, production is organized according to the decisions and actions of the aggregate of these artificially created agents. This paper demonstrates that the "entrepreneur" as used in economic theory is nothing but a personification of the enterprise. In the most renowned economic theories of entrepreneurship, the entrepreneurs are supposed to be in possession of the resources they employ. Yet the functions which these theories ascribe to the entrepreneurs implicitly presuppose that the latter not only possess resources, but that they actually own them. Without capital, which grants the power to obtain property rights in resources, entrepreneurs would not be able to bear the losses that come along with the entrepreneurial functions. The...

Economic Development and Entrepreneurship

Procedia Economics and Finance, 2014

Several dynamic forces, such as technological disruption, fluctuating economies or demographical changes, have brought new opportunities and threats for organizations, and transformed societies from all over the world. In order to cope with these shifting forces, governments, public and private organizations, and the public are more and more aware of the importance of entrepreneurship. Entrepreneurship is a multifaceted phenomenon, being analysed as a process, a resource or a state-of-being. According to the Schumpeterian view, the entrepreneurial process constitutes one of the key factors in the economic development of a country/region. However, researchers have expressed different views about the relationship between the stages of economic development and entrepreneurship during the time. The aims of the paper are to examine in brief the concepts of economic development and entrepreneurship, and to emphasize the role of entrepreneurship in economic development. The methodological approach is literature review. Our paper provides a theoretical model that highlights some of the main factors involved in the relationship between entrepreneurship and economic development. More than ever in the history, economic development and entrepreneurship have become strongly interconnected.

Modern Policy for the Entrepreneurial Economy: Theoretical Considerations

This article aims at defining the scope and conceptual instruments of the new policy to promote entrepreneurship under the conditions of the paradigm of entrepreneurial economy with particular emphasis on supporting high growth small and medium-sized enterprises (HGSMEs). The article stresses the relationship between SME policy and enterprise or entrepreneurship policy and innovation policy. The article also identifies contemporary instruments to support entrepreneurship in the entrepreneurial economy. The study uses the analysis and critique of literature.