Flashcards: Foundations of Entrepreneurial Economics — 20 cards

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.

Marx — view?

Capitalist as exploitative, performing social role.

Weber — contribution?

Protestant ethic fosters capitalist spirit.

Keynes — entrepreneur?

Estimates future, acts on animal spirits.

Schumpeter — function?

Drives progress via innovation and creative destruction.

Marshall — core theory?

Coordinates productive factors for efficiency.

Leibenstein — core theory?

Reduces inefficiency in production.

Kirzner — core theory?

Spot market imbalances for profit.

Knight — core theory?

Estimates under uncertainty for residual profit.

Residual surplus — source?

From correct predictions under non-insurable risk.

Market imbalance — profit?

Created by imperfect info, spotted by alert entrepreneurs.

Knight uncertainty — meaning?

Future outcomes cannot be reliably quantified.

Innovation — Schumpeter?

Creates new combinations, drives cyclical progress.

Post-Schumpeter entrepreneur — role?

Pressures State, influences political environment.

Fifth business function?

Political performance—pressuring the State for favorable action.