TOWARDS AN INTERDISCIPLINARY
THEORY OF ENTREPRENEURSHIP
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
Unemployment is rising the relation of entrepreneurship and
job generation has became center of interest
Small enterprise creating more jobs
Entrepreneurship in the form of starting up of a company can
Entrepreneurship also act as a central figure for the
distribution of economically relevant information.
THE ROLE OF ENTREPRENEUR IN THE HISTORY OF
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.
ENTREPRENEUR AS UNCERTAINTY-BEARER
Risk is consequence of uncontrolled and
Change has not occurred because of entrepreneur
process but entrepreneur use changes for his
He considered profit of the entrepreneur as a
compensation of bearing uncertainty.
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
THE ENTREPRENEUR AS ALERT DISCOVERER
realized by entrepreneurs
distribution of information
ECONOMIC ROLE: Adjustment-prices-equilibrium
ECONOMIC PROBLEM: Information?
MARKET PROCESS THEORY
(market= discovering+learning by accepting
Information- advantages for own profit
Aim Maximize outcome
Determine new targets
ENTREPRENEUR AS A COORDINATOR
Neo-classical theory- No theory on entrepreneurship
CASSON MODIFIED NEOCLASSICAL ASSUMPTION=
assymetric info+ transaction costs (marketing making
Entrepreneur as a coordinator- DEFINITION
Dynamism, bearing economic uncertainty and alertness
ENTREPRENEUR IN ECONOMIC THOUGHT
Entrepreneurship is difficult in economic literature
Kirzner-Entrepreneur is central element in market process
Knight –Entrepreneur profit
Dynamic and evolutionary perspective of economic
Identify the entrepreneur
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
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
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.
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
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
Where does his ideas come from?
Where and how he try them?
It can be concluded that the theory of
entrepreneurship will be very difficult to
develop, the unsolved problems are still
The whole field of entrepreneurship
research and economics is still its
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.