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In this paper an attempt has been made to show that entrepreneurship manifests itself in coordinating action on two levels, that of the market and that of the firm organization. In pursuing profit opportunities which they try to realize in the markets, entrepreneurs in many cases acquire human resources on the basis of employment contracts, i.e. within the organizational form of a multi-person firm. Since such contracts leave a certain amount of discretion to the agents who have been hired, the coordinative task, and hence the pursuit of a profitable opportunity, in this case takes a form different from that of ordinary market contracts. To realize a profit opportunity as perceived in an entrepreneurial business conception, the employees need to be coordinated on, and motivated to pursue, the entrepreneurial business conception as their own frame of action. Accordingly, the entrepreneurial reorganization of production and trade implies two different coordinating tasks. The one focuses on exploiting the market opportunities. It has been extensively discussed by writers like Schumpeter, Mises and Kirzner. The other coordinating task is to see through the entrepreneurial business conception in the intra-organizational interactions of the multi-person firm in the daily organizational grind. This side of entrepreneurship has been largely ignored in almost all strands of economics. The cognitive approach to the problem suggested in the present paper provides a fruitful basis for discussing the theory of the firm from the point of view of the Austrian school of economics and its core assumptions of uncertainty and subjectivity of individual knowledge.

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