A Reconsideration of the Theory of Entrepreneurship: A participatory approach

The aim of this paper is to further the understanding of the relationship between entrepreneurial success and organisational form. The role of entrepreneurship in the neoclassical, Austrian and competence theory approaches is analysed and five recurring themes are identified: the tacit nature of knowledge relevant for entrepreneurial activity; the presence of tacit knowledge at both the individual and organisational levels; the articulation of tacit knowledge through social processes; the distinction between the entrepreneur and the capitalist; and the motivation for engaging in entrepreneurial activity. Characteristics of the organisational context that emerge as necessary for entrepreneurial success are set out, an organisational framework promoting generalised participation in entrepreneurial activity is outlined and this is then evaluated in comparison with a capitalist system.

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