Foundations of Entrepreneurial Economics

Revision sheet excerpt

Course Outline

  1. Entrepreneur concept in economic literature
  2. Cantillon, Say and Adam Smith views
  3. Entrepreneur and capitalist distinction
  4. Entrepreneurial function: four core theories
  5. Marshall-Leibenstein inefficiency reduction
  6. Kirzner profit opportunities from market imbalances
  7. Knight uncertainty and future estimation
  8. Schumpeter innovation and post-Schumpeter entrepreneur
  9. Politicized markets and political performance
  10. Five entrepreneurial functions overview

1. Entrepreneur concept in economic literature

Key Concepts & Definitions

  • Entrepreneur : An entrepreneur is an agent responsible for initiating and completing a project under uncertainty.
  • Richard Cantillon : Richard Cantillon is the economist credited with coining the term entrepreneur and linking it to uncertainty in future markets.
  • Jean-Baptiste Say : Jean-Baptiste Say defined the entrepreneur as the agent who combines productive factors into an operating productive organism.
  • Adam Smith : Adam Smith viewed the entrepreneur as someone who organizes productive work and allocates it among workers to raise returns.

Essential Points

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Quiz preview

1. What is the entrepreneur concept most closely associated with early economic literature?

2. Which economist is credited with linking the entrepreneur to uncertainty in future markets?

3. How did Jean-Baptiste Say define the entrepreneur?

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Flashcards preview

Entrepreneur — definition?

Agent responsible for initiating and completing a project under uncertainty.

Cantillon — role?

Coined entrepreneur as risk-taker in uncertain future markets.

Say — role?

Defines entrepreneur as the factor combiner into productive organism.

Smith — role?

Organizes productive work to raise returns.

Entrepreneur vs capitalist — difference?

Entrepreneur initiates, capitalist provides capital.

Late 19th-century shift — effect?

Separation of ownership and operation roles.

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