Re-Understanding Entrepreneurship: What It Is and Why It Matters

Entrepreneurs make decisions in the real world based on market conditions, competition, and risk. They are absent from mainstream economics because neoclassical economics does not recognize the role of entrepreneurship in the market. Entrepreneurs play a vital role in the market by discovering and creating new products, services, and technologies. They bring innovation, competition, and growth to the economy. The institutional environment for entrepreneurship to play a role includes policies that promote innovation, risk-taking, and access to capital.

Format: Paperback / softback
Length: 377 pages
Publication date: 02 May 2024
Publisher: Cambridge University Press

Entrepreneurs play a vital role in the real world by making decisions that shape the market and drive economic growth. However, their presence in mainstream economics has been limited, leading to misconceptions about the market and government interventions. Neoclassical economics, which focuses solely on market efficiency and price-driven outcomes, fails to capture the full essence of entrepreneurship.

To understand the real market, we need to shift our perspective from a price-centric to an entrepreneur-centric paradigm. This means recognizing that the market is not just an allocative process, but also a discovery and creative process. Entrepreneurs bring new ideas, products, and services to the market, driving innovation and competition.

One prominent economist, Weiying Zhang, has argued that economics must shift from a price-centric to an entrepreneur-centric paradigm to fully understand the market. Zhang blends theory and narrative to support his theory with relevant case studies. He argues that once entrepreneurship in the market is correctly understood, the foundation for government intervention is undermined, and the economy can sustainably flourish.

In conclusion, entrepreneurs are essential to the real world market, and their presence in mainstream economics needs to be increased. By shifting our perspective to an entrepreneur-centric paradigm, we can better understand the market's dynamics and promote economic growth and sustainability.

ISBN-13: 9781009453363