Foundations of Entrepreneurial Theory

Revision sheet excerpt

Course Outline

  1. Evolution of the entrepreneur concept
  2. Cantillon, Say and Adam Smith views
  3. Entrepreneur and capitalist distinction
  4. Entrepreneurial function: Marshall and Leibenstein
  5. Kirzner market imbalances and profit opportunities
  6. Knight uncertainty and forecasting the future
  7. Schumpeter innovation and post-Schumpeter entrepreneur
  8. Politicized markets and political performance
  9. Five entrepreneurial functions overview

1. Evolution of the entrepreneur concept

Key Concepts & Definitions

  • Economic literature : Economic literature is the body of writings where the entrepreneur figure was gradually analyzed and defined over time.
  • Richard Cantillon : Richard Cantillon is the early economist credited with introducing the entrepreneur term and linking it to uncertainty and commitment of costs.
  • Jean-Baptiste Say : Jean-Baptiste Say is the economist who defined the entrepreneur as the agent that combines productive elements into an operating organism.
  • Adam Smith : Adam Smith is the economist who viewed the entrepreneur as organizing productive work to raise returns within a laissez-faire setting.

Essential Points

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Quiz preview

1. From the early eighteenth century, how was the entrepreneur gradually understood in economic theory?

2. Which economist is credited with linking the entrepreneur to uncertainty and committed costs?

3. How does Jean-Baptiste Say define the entrepreneur's main role?

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Flashcards preview

Evolution of entrepreneur concept

Developed from 18th-century economic thought.

Cantillon — view?

Linked entrepreneur to uncertainty and committed costs.

Say — role?

Defines entrepreneur as combining productive elements.

Smith — view?

Sees entrepreneur organizing work for higher returns.

Entrepreneur vs capitalist — difference?

Initially same; later distinguished by focus on innovation vs capital provision.

Marshall and Leibenstein — function?

Reduce firm inefficiency and improve productivity.

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