This document discusses the need for an interdisciplinary theory of entrepreneurship. It reviews how entrepreneurship has been discussed and defined across various economic theories over time. Entrepreneurs have been described as risk-bearers, innovators, and discoverers of new information. More recently, researchers have taken behavioral and systems approaches. However, the document concludes that developing a unified theory remains difficult due to unsolved problems and the field still being in its early stages. Future research should focus on better understanding the activities and decision-making processes of entrepreneurs.

1. TOWARDS AN INTERDISCIPLINARY
THEORY OF ENTREPRENEURSHIP

2. IMPORTANCE OF ENTREPRENEURSHIP
The consequences of liberalized world trade for
industrial countries are twofold.

New export markets

Jobs are shifting

Industries shifting to low cost locations

Asian countries are gaining importance

Germany trying to encourage entrepreneurship as a tool for
innovation

Unemployment is rising the relation of entrepreneurship and
job generation has became center of interest

3. CONT…

Small enterprise creating more jobs

Entrepreneurship in the form of starting up of a company can
create jobs.

Entrepreneurship also act as a central figure for the
distribution of economically relevant information.

4. THE ROLE OF ENTREPRENEUR IN THE HISTORY OF
ECONOMIC THEORY

Disappearance of Entrepreneur from economics literature.

Reason for the disappearance is the separation of micro and
macro economics. Also introduction of neoclassical theory is
considered as reason for disappearance of Entrepreneur.

In early economics entrepreneur has been considered as risk
barer, innovator, industrial leader etc.

Marginal utility revolution at the end of 19th century was the
beginning of neoclassical theory.

5. ENTREPRENEUR AS UNCERTAINTY-BEARER
Risk is consequence of uncontrolled and
controllable change
 Change has not occurred because of entrepreneur
process but entrepreneur use changes for his
purpose.
 He considered profit of the entrepreneur as a
compensation of bearing uncertainty.


6. THE ENTREPRENEUR AS INNOVATOR
Schumpeter listed five categories of action:
 The introduction of new good quality of a good
 Introduction of new method of production- some
thing as yet untried in industry
 The opening of new market
 The utilization of some new source of supply for
raw materials or intermediate goods
 The carrying out of some new organizational form
of the industry

7. THE ENTREPRENEUR AS ALERT DISCOVERER
 Focus-Price
realized by entrepreneurs
Prices
imbalance
distribution of information
asymmetric

ECONOMIC ROLE: Adjustment-prices-equilibrium

ECONOMIC PROBLEM: Information?
MARKET PROCESS THEORY
(market= discovering+learning by accepting
knowledge)
imperfect

8. Information- advantages for own profit
 Learning
 Competition

Aim Maximize outcome
 Determine new targets

9. ENTREPRENEUR AS A COORDINATOR

Neo-classical theory- No theory on entrepreneurship
Implicit access
Highly subjective
to information
CASSON MODIFIED NEOCLASSICAL ASSUMPTION=
assymetric info+ transaction costs (marketing making
service)
 Entrepreneur as a coordinator- DEFINITION
 Dynamism, bearing economic uncertainty and alertness
 Perception, imaginative

10. ENTREPRENEUR IN ECONOMIC THOUGHT

Entrepreneurship is difficult in economic literature

Kirzner-Entrepreneur is central element in market process

Knight –Entrepreneur profit

Schumpeter-2 fold-

Dynamic and evolutionary perspective of economic
development

Identify the entrepreneur

11. ECONOMIC DECISION

Why certain individual becomes an entrepreneur.

Model of Campbell shows that new
entrepreneurship could be stimulated by higher
profits for existing ventures , that high profits
attract imitative entrepreneurs.

Economic Decision Model , Baurnol the
development of an economic explanation of
entrepreneurship.

12. SYSTEMATIC PERCEPTIVE

The model of systematic approach to entrepreneurship
AGIL: Level of Social System , Level of Economic
System and Level of Entrepreneurship System.

Function of social system
1. Concept of Systems
2. Concept of Homeostasis
3. Concept of thresholds

13. PSYCHOLOGICAL


Entrepreneurs are approx. 70% male (decreasing).
Entrepreneurs are in their mid 30s (decreasing).

Have a higher need for achievement.

Need for Independency , a prime motive.

14. THE BEHAVIORAL APPROACH
•
The main idea is to distinguish between the dynamic
entrepreneur and more static small business manager.
•
The Schumpeter’s theory states- “ Everyone is an
entrepreneur when he actually carries out new
combinations.”

15. ENTREPRENEURSHIP RESEARCH SHOULD TRY TO
ADDRESS THE FOLLOWING QUESTIONS:

What kinds of activities does the entrepreneur perform?

With whom he must work?

What basic roles can be inferred from the study of the
entrepreneur’s activities?

Where does his ideas come from?

Where and how he try them?

16. TO CONCLUDE:
It can be concluded that the theory of
entrepreneurship will be very difficult to
develop, the unsolved problems are still
enormous.
The whole field of entrepreneurship
research and economics is still its
beginning.

17. The empirical data on entrepreneurial traits give interesting insights
on the person of entrepreneur but for the time being they do not lead
towards the new theory.

Firstly, if Schumpeter's understanding of entrepreneur is widely
accepted and that it may very well serve as starting point for a future
theory of entrepreneurship.

Secondly the behavioral process, the entrepreneurial pursuit of
business opportunities becomes the centre of empirical research.

18. Thank You