Routledge Dictionary of Economics, Second Edition
The fourth FACTOR OF PRODUCTION, after land, labour and capital, which organizes production and undertakes the risk of an enterprise. In JOINT STOCK COMPANIES, the risk bearing is undertaken by the shareholders; in small businesses, usually by the manager-proprietor. The idea of entrepreneurship was introduced into economics by CANTILLON, literally to mean the ‘undertaker’, i.e. a person who buys at a fixed price and sells at an uncertain price.
Subsequently different economists debated alternative definitions, which include risk-bearer, organizer of production, innovator and decision-maker in circumstances which give people unequal access to information. New entrepreneurs are often well-educated persons with managerial experience having small firms in areas with wealthy local markets.
References
Casson, M.C. (1982) The Entrepreneur: An Economic Theory, Oxford: Robertson.
Gilder, G. (1984) The Spirit of Enterprise, New York: Simon & Schuster; Harmondsworth: Viking, Penguin.
Knight, F.H. (1921) Risk, Uncertainty and Profit, Chicago: Chicago University Press.
Schumpeter, J.A. (1934) The Theory of Economic Development, Cambridge, MA: Harvard University Press; London: H.Milford.
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