Entrepreneurship and Economic Theory

McFarlane, Julie

A definition of entrepreneurship would be helpful. In the years following the turn of the century,

an uptick in theoretical and practical interest in entrepreneurship around the world

via official channels. Considering how much has changed over the past quarter century, this is a big deal.

A great resurgence has taken place in the appreciation of diminutive

organisations' "primacy as essential competitive instruments in the

representative of a dynamic and forward-thinking economy" (Beaver and Prince, 2004, p.

To put it another way: 34, entrepreneurs are widely regarded as pivotal figures in the economics
literature.

in the formation of wealth, the progression of society, and the evolution of species.

There are more than 5. 2 million firms in operation in the UK alone.

2015; 99 percent are small and medium-sized businesses (SMEs), which employ 14.5 million people.

positions (Federation of Small Business, 2015). According to the research,

is business owners who are the engine that propels this type of transformation, which takes the

a current in economics that is revitalising and reshaping economies

the world over, boosting economic growth and social well-being

and a steady government. Because of this, it is crucial to learn about the

Using examples from the pioneering era of entrepreneurship, this book simplifies the difficult area of

literature and by analysing and comprehending the broader contributions to the

The entrepreneur's unique economic views are well-established at this point.

What it means to be an entrepreneur

Scholars "implicitly or openly" questioned in the past why

Studying entrepreneurship is beneficial for everybody (Shane and Venkataraman, 2000, p.

219). This phenomena has been called a "slippery idea" in and of itself.

because it's tough to incorporate into a strict analysis. From this perspective, "data

can be hard to come by, there is a lack of theoretical framework, and current research results are
limited.

equivalent to results found in other parts of the corporate world" (Shane and Venkataraman,

2000, p. 219). Recent developments in the study of entrepreneurship have

Managing a Business: 16 Ideas to Consider

has emerged due to the accumulation of knowledge over the last

years, and as a result, entrepreneurship theorists have been able to develop and present novel

new, interesting, and compelling arguments for why academics "should" research the subject (Bygrave,

2003, p. 2). The phenomena, however, has only become well-known as

general term under which "a mishmash of research is held" (Shane and

And the biggest barrier to developing a more comprehensive under-

being able to agree on an overarching explanation for the phenomenon.

in terms of defining it. Researchers have thus far had a hard time pinpointing the source of the dis-

unique to the field, compromising the field's economic legitimacy

(Shane, Venkataraman, & Bygrave, 2000; Bygrave, 2003)

For a long time, economics literature contributed little to the field.

say concerning starting a business. It's the social sciences, not natural, that are the ones that tend to

confront the modern business owner head-on with the harsh economic realities of the market

(Rocha, 2012).
For economic purposes, the term "entrepreneur" refers to "a

meeting point of two trends: the availability of financially rewarding possibilities and the

the existence of innovative people" (Shane and Venkataraman, 2000, p. 218):

Entrepreneurs focus on making money rather than passing it along.

Many scholars over the years have proposed various definitions of "entrepreneur."

neurs who have each had their own unique experiences. As of now, the majority have

focus on this one aspect of the field:

Identifying the Entrepreneur (Delmar, 2006)

Their Work (Venkataraman, 1997)

To explain their actions, we need to know why they are taking certain stances (Davidsson, 2008)

What they do and how they do it (Garnter, 1985)

Where they carry it out (Welter, 2011).

The term "entrepreneur" is often used to describe people who exhibit certain traits (Delmar,

2006), while others take a behavioural stance (McClelland, 1961), and yet some still take a sociological
approach.
(Moroz and Hindle, 2012) Most studies examine either the procedures or the results.

and business risk-taking (Dimov 2011). However, the most noticeable characteristic for many is

one defining feature of the phenomena is the extraordinary variety of forms it takes (Gartner, 1985).

Even if the aforementioned definitions are just partial, they are crucial

to acknowledge their individual achievements, bringing up their own unique

significant patterns that reveal the secrets of business success.