Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
The role of entrepreneurs in societies
Role Of Entrepreneurship In Business
Explain the role of innovation in entrepreneurship
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: The role of entrepreneurs in societies
1. Both Knight and Schumpeter laid great stress on the importance of the entrepreneur. What similarities and differences, if any, do you find in these authors’ conception of the nature and role of the entrepreneur?
To Schumpeter, the main function of an entrepreneur is an innovator who induces forward shifts in the market through the improvements which he introduces. Schumpeter classifies innovation under five different types, namely: (1) the creation of a new good or an improvement in the quality of an existing good; (2) the creation of a new method of production; (3) the opening of a new market; (4) the capture of a new source of supply; or (5) the creation of a new organization or industry. Schumpeter’s entrepreneur exists in tandem with the banker or the capitalist. It is the capitalist that finances the business venture and assumes the uncertainty brought about by the entrepreneur.
Knight, on the other hand, contended that the main role of the entrepreneur is to assume uncertainty himself and to function as some sort of an “insurance agent” to stakeholders. To Knight, an entrepreneur is an individual who carries out the following tasks: (1) initiate useful changes or innovations; (2) adapt to changes in the economic environment; and (3) assume the consequences of uncertainty related to the company.
Schumpeter and Knight had some similar points in their conceptualization of an entrepreneur. Both believed that innovation and initiation of change is a vital task of an entrepreneur. Since entrepreneurs generate capitalistic development, Schumpeter and Knight also considered them the driving force behind economic growth. The main difference between the two authors is their approach to uncertainty. Schumpeter firmly believed t...
... middle of paper ...
...921). Risk, Uncertainty, and Profit. Boston, MA: Hart, Schaffner & Marx.
Knight, F. H. (1942). Profit and Entrepreneurial Functions. The Journal of Economic History, 2, 126-132.
Landreth, H., & Colander, D. (1994). History of Economic Thought. Boston: Houghton Mifflin Company.
Marshall, A. (1890). Principles of Economics (8th ed.). London: Macmillan and Co., Limited.
Roncaglia, A. (2006). The Wealth of Ideas: A History of Economic Thought. Cambridge, UK: Cambridge University Press.
Samuelson, P. A. (1947). Foundations of Economic Analysis. Cambridge, MA: Harvard University Press.
Schumpeter, J. (1981). History of Economic Analysis. London: George Allen & Unwin.
Schumpeter, J. A. (1934). The Theory of Economic Development. (R. Opie, Trans.) Cambridge, Massachussets: Harvard University Press.
Schumpeter, J. A. (1949). Economic Theory and Entrepreneurial History.
Smith, A. (1904). An Inquiry into the Nature and Causes of the Wealth of Nations (5th Ed.). (e. Edwin Cannan, Ed.) London: Methuen & Co., Ltd.
Gaynor Ellis, Elisabeth, and Anthony Esler. ""New Economic Thinking"" World History: The Modern Era. Prentice Hall. 186. Print.
Heilbroner, Robert L. The Worldly Philosophers: the Lives, Times, and Ideas of the Great Economic Thinkers. New York: Simon & Schuster, 1999. Print.
In Mass Flourishing by Edmund S. Phelps, the author strives to give his point of view on why some countries in the early 19th century went through periods of vast and unbounded growth of their wages, expansion of employment in the market economy and widespread satisfaction of their work (Phelps). He looks at several different examples of why certain countries, and what factors within those countries led to what he calls “flourishing”, and why that type of growth is no longer happening today. Phelps goes on to argue that flourishing and innovation are not the result of a select few innovators and inventors, but rather a cultural view of the masses, that steers economic growth within one’s industry and country. I believe Phelps’s question is important because he is looking for another way to describe economic growth that does not seem to follow mainstream ideas. Him being such a respected economist adds weight to his views and the evidence he provides throughout the book raises many valid points. Why was there such exponential growth throughout the 1800’s and into the 1900’s? What caused such growth to occur, and likewise, what caused that level of growth to cease? Phelps argues that grassroots innovation is one of the core causes of growth throughout history and gives several examples of why.
George Stigler (1911-1991) was a neoclassic economist and an important figure in the development of many of our currently used economic principles. Stigler taught at the University of Chicago, where he worked closely with Milton Freidman. George Stigler was said to be quite brilliant in his field and yet, he kept a confident wit about himself that was said to help his students enjoy and understand economics. (Sowell) Comparatively, Stigler was a sort of renascence man in the economic field, as he was well studied, versatile, and involved in many facets of economic thought. Stigler’s drive to dispute and negate old economic theory, while further quantifying existing theory, is what most would argue defined his economic frame of mind. (Sowell)
A. C. Pigou, Review of the Fifth Edition of Mashall's Principles of Economics (unimelb.edu.au) The Economic Journal, volume 17, 1907, pp. 532-5
Case, Karl E., and Ray C. Fair. Principles of Economics. Upper Saddle River, NJ: Prentice Hall, 1999. 780. Print.
Well, that's work. The characteristics of an entrepreneur were added in the 15th century: a person with "adventurous disposition, readiness to undertake challenges, and a spirit of daring" (Harper, 2015). In recent definitions, "One who undertakes an enterprise; one who owns and manages a business; a person who takes the risk of profit or loss" (OED,
I would like to write an article for my final project of Introduction to Economics on semester 2. In this article, I want to explain to you about Entrepreneur.
Dollonger, M. J. (2002). A framework for Entreprenership. In M. J. Dollonger, Entrepreneurship strategies and Resources (pp. 5-6). New Jersey.
In the era of hypercompetitive business economy and high increasing market environments, the role of and attention to corporate entrepreneurship have escalated highly throughout the world. Not only small business ventures are considerably into creating new opportunities, adaptable natures, helpful philosophies and undiscovered approaches along with entrepreneurship ethics, but also huge corporations feel the need for the aids of improved and advanced corporate entrepreneurship owing to either small or enormous circumstances in the competitions. There are different kinds of internal and external forces that create a need for corporate entrepreneurship, and they will be discussed thoroughly below. The recent business practices have implied that the need for newly innovative entrepreneurial management is on the increase. However there are some possible and unforeseeable obstacles to inhibit corporate entrepreneurship to flourish.
"Entrepreneurs who start and build new businesses are more celebrated than studied. They embody, in the popular imagination and in the eyes of some scholars, the virtues of "boldness, ingenuity, leadership, persistence and determination." Policymakers see them as a crucial source of employment and productivity growth. Yet our systematic knowledge of how entrepreneurs start and grow their businesses is limited. The activity does not occupy a prominent place in the study of business and economics.
Decision making under uncertainty is the basis of entrepreneurship (Schumpeter, 1934) (Kirzner I. , 1979). It was Knight (1921) landmark thesis that put the issue at the very heart of entrepreneurship research. “The beauty of Knight’s argument was to show that the presence of true ‘uncertainty’ about the future might allow entrepreneurs to earn positive profits despite perfect competition, long-run equilibrium and product exhaustion” (Blaug, 1996).
Unlike Schumpeterian entrepreneur who is the one to introduce a new product, a new technology, or a new method of production which is more efficient. Kirnzer had given us a description of entrepreneur form endoplasmic.
Entrepreneurship is an important aspect of social, economic and community life. It can be viewed as a critical factor to economic growth as well as a way of addressing unemployment (Nolan, 2003).Entrepreneurs are people who are persistently focused on identifying opportunities, they seek to create something worthwhile while taking into account foreseeable risk and rewards associated with the efforts (Nolan, 2003). Furthermore, entrepreneurs are frequently understood to be individuals who discover market needs and establish new business to meet those identified opportunities. The following assignment will firstly discuss the types of entrepreneurship, secondly it will discuss the reasons people become entrepreneurs, and thirdly it will discuss the importance of entrepreneurship.