Flashcards: Foundations of Entrepreneurial Theory — 18 cards

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.

Kirzner — market imbalances?

Create profit opportunities by noticing gaps in information.

Knight — uncertainty?

Unpredictable outcomes with no reliable probabilities.

Schumpeter — innovation?

Disrupts routines, drives economic cycles.

Post-Schumpeter entrepreneur?

Operates where the state heavily influences markets.

Politicized markets — response?

Entrepreneurs perform political actions to influence policy.

Five entrepreneurial functions?

Information, estimate, inefficiency reduction, disturbance, strategy.

Entrepreneurship evolution — start?

Begins in early 18th century with Cantillon.

Cantillon’s entrepreneur?

Buys inputs at known prices, sells uncertain future outputs.

Say’s view?

Entrepreneur as central to productive and distributive processes.

Smith’s entrepreneur?

Organizes productive work to increase returns.

Marx’s perspective?

Focus on exploitation, surplus value, bourgeois dynamics.

Weber’s contribution?

Capitalism rooted in Protestant work ethic and vocation.