The Entrepreneurial Context

Entrepreneurs do not act in a vacuum and entrepreneurial actions take place in well-defined contexts. Thus, understanding the entrepreneurial process requires that we consider the context in which entrepreneurs develop their efforts. For any individual, the entrepreneurial context consists of the knowledge required by the individual and of the set of more or less binding constraints that are a function of his social and economic circumstances. Sue Birley, for example, argues that there is no...

Vienna Style Entrepreneurship Entrepreneurs Without Firms

In 1908 Schumpeter published his habilitation thesis, accepted the previous year by the University of Vienna, which qualified him for a professorship in the Austrian Empire. It was a scholarly, but somewhat uninspired, survey of the work of contemporary non-German neoclassical writers (Schumpeter, 1908). A question that Schumpeter seems to have found lacking in those works induced him to start writing a new book. If, as the neoclassical gospel has it, the economy is supposed to gravitate back...

Neoschumpeterian Extensions Firms And Routines Without Entrepreneurs

As explained in the previous section, Schumpeter changed his views on the entrepreneurial role. In Schumpeter (1942) he concluded that, in the era of large trusts, it is no longer through the outstanding figure of the promoter-entrepreneur that new market opportunities are established. This task is done instead by the bureaucratic work of the specialized divisions of those trusts. However, he did not explain either how the corporate teams and departments actually operate or how the division of...

Kirzners Theory Of Entrepreneurship

Building on the work of Ludwig von Mises,1 Kirzner's theory of entrepreneurship elucidates the principal mechanism of the market process. His theory involves three central components the costless discovery of profit opportunities, the subsequent actions that discovery initiates, and the successful exploitation of opportunities via price arbitrage. For Kirzner the market process is set in motion by the results of the initial market-ignorance of the participants and consists in the systematic...

Schumpeters New Perspectives On Entrepreneurship Outlined In Entrepreneur

Since Schumpeter did not elaborate on the various new vantage points he had in mind, we are left with the inference that transpires from a comparative reading of Entrepreneur and Schumpeter's earlier statements on entrepreneurship. We singled out the 1911 edition of Theory as the obvious source representing his early views on the entrepreneur and then traced the shifts in Schumpeter's conception of entrepreneurship between this text and Entrepreneur. It is clear from these findings, reported...

The Schumpeterian Dichotomy

The conventional-wisdom analysis of Schumpeter's obsolescence thesis is in part a matter of oral tradition among (mostly) English-speaking writers whose interest in Schumpeter traces to a concern with innovation and technical change. But documentation in print is far from lacking. There are, in fact, several related versions of this conventional analysis. One of the clearest and best known traces to Almarin Phillips (1971), who focuses primarily on Schumpeter's view of technological...

The Origins Of Entrepreneurial Opportunities

How readily an unexploited profit opportunity is recognized is related to the ways in which entrepreneurial opportunities arise. Some profit opportunities are easier to spot than others. Holcombe (2003) argues that entrepreneurial opportunities arise from three different sources factors that disequilibrate the market, factors that enhance production possibilities, and as the by-product of previous entrepreneurial actions. Within a neoclassical framework, and within Kirzner's (1973) framework,...