Cantillon
-first to introduce term entrepreneurship -acts as arbitrage between workers and employers -essential role for Entrp as he moves market into a certain direction of equilibrium -> he establishes equilibrium -In his theory, there is imperfect information -Entr deals with risk (risk-bearer) -importance of alertness and foresight (not innovativeness) -> discover profit opportunities -there is a perfect capital market to supply the Entr with money -Entr is driven by profit
Jean-Baptiste Say
-entrepreneur is the coordinator and modern leader and (personnel) manager -Entr bears risk of losing capital and reputation -Several abilities required (intelligence, prudence, probity, regularity) related to management, leadership and industry -imperfect capital market - entrep need reputation to get money -profit is called wage -High qualifications required for Entre, therefore limited supply and high wages
Neo classic Marshall
-easy access to captial due to perfect information -entre bears risk associated with his firm -the entre fits in the degment of independent owner, manager (especially of peronnel) and -General abilities (which depend on family background,education and innate ability), intelligence and spezial abilities ( knowledge of trade, power of forecasting, seeing there is an opportunity and undertaking risk) are required , plus being natural leader of men, Good fortune and business opportunities are required as well -because of these requirements, supply is milited -there is not only financial profit, but also self esteem for the succesful entrepreneur -
Schumpeter
-Entr destroys equilibrium und aims to create a higher one -only people carrying out new combinations are entrepreneurs -Entre is not reliable for risk-taking -Entre is successful if he has a certain attitude and can the ability to show deviate behaviour -There is no need to take care of capital supply -Joy of creation is key driver, profit is just a measurement of success -
Knight
-assumption of imperfect information -Entre deals with true uncertainty -entre is independent owner, decision maker and manager -whenever uncertainty is involvled, the entre makes the decisions -managing is to a lesser extent part of kniights contribution -access to capital is difficult, entre has at least to pay production factor their renumeration - however it is possible to convince capital suppliers -supply is limited due to the limited combination of enough wealth and willingness to be an entrepreneur
Kirzner
Austrian school
-entrepre achieves tendencies towards an equilibrium never reacher -imperfect information are assumed -entrepreneur deals with utter ignorance, opening possibility to exploit opportunities -firm results after some decisions, especially purchase of certain resources -uncertainty exists as entre does not know when and to which extend he can collect revenue -alertness and foresight to spot opportunities -capital supply excluded from entre task -creativeness and leadership needed to exploitn opportunities
Findings of the paper
-risk-aversion affects entrepreneurship negatively (acc. to cantillon, say,mashall and knight) -private capital helps find opportunities, but people without money do well in finding opportunities as well (say, knight) -intelligence enhances chances to start, but not to succees. Education seems to influence success positively (marshall, knight) -having a father who is entrepreneur increases successrate (marshall) -knoweldge of occupation and industry increase chance of success (say, marshall) -starting as entrepreneur because of the challenge is related positively (knight) Say, marshall & knight are especially valuable still today
