Towards a theory of entrepreneurship

Abstract Over 200 years of the study of entrepreneurship have provided many definitions of the word “entrepreneur”. However, no theory of entrepreneurship has been developed that would explain or predict when an entrepreneur, by any of the definitions, might appear or engage in entrepreneurship. Indeed, the search for a best definition may have impeded the development of theory. The Schumpeter economic outcome-based concept that an entrepreneur creates value by carrying out new combinations causing discontinuity is embodied in many of the definitions offered within the last 50 years. We strongly recommend the adoption of Schumpeter's definition for academic and policy-making purposes. We offer the following tentative entrepreneurship theory, extracted from anecdotal observations and extant literature, in the hope that it will better explain and begin to predict the phenomenon of entrepreneurship: “A person will carry out a new combination, causing discontinuity, under conditions of: 1. 1. Task-related motivation, 2. 2. Expertise, 3. 3. Expectation of personal gain, and 4. 4. A supportive environment. ” Several relevant research questions are posed in the hope that they will encourage discontinuity in further development of theory.

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