The Entrepreneur as a Non ‐ Factor

Abstract

A MAJOR SHORTCOMING of current neo-classical theory is the absence of the entrepreneur as the element which spontaneously originates decisions and change in the economy. Thus, William J. Baumol (1968) observed that currently 'the theoretical firm is entrepreneurless -the Prince of Denmark has been expunged from the discussion of Hamlet ' (p. 66, it. orig.), and further that 'the [neo-classical model of the firm] is essentially an instrument of optimality analysis of well-defined problems, arid it is precisely such (very important) problems which need no entrepreneur for their solution .... In all these models, automaton maximizers the businessmen are and automaton maximizers they remain' (ibid., pp. 67-68). The Austrian-inclined economists, from von Mises (1949) onwards, have tried to incorporate a spontaneously originative entrepreneur into economic analysis, but it was G. L. S. 1970 and 1979 a, b) who showed a possible path of the entrepreneurial decision-making process. However, he did not pursue this to incorporate the entrepreneur into the body of economic theory. In this paper,*(2) building mainly upon Shackle's work, we develop the argument that the entrepreneur is not a factor of production, and that he must be clearly differentiated from the manager, who is a factor. To establish this differentiation it is necessary to understand the manner in which entrepreneurial action is generated. For this purpose, an analysis of entrepreneurial expectations is carried out. In consequence we show how the entrepreneur as a non-factor is fitted into the theory of the firm. Shackle (particularly in

Entrepreneurial traits of undergraduate students at selected South African tertiary institutions

“…(1997); Kreitner and Kinicki (1998) Category G: Risk-taking (Predisposition for taking moderate, calculated risks providing a reasonable chance for success) McClelland (1967); Schackle ((1979) in Abraham and Gurzynski (1987)); Burch (1986); Siropolis (1990); Kroon and Moolman (1991); Kuratko and Hodgetts (1993); Mariani (1994); Wickham (1998); Zimmerer and Scarborough (1998b); Casson (1991) Category H: Taking initiative/seeking personal responsibilities (Need to use own initiative, make important decisions and determine action steps. Accept consequences) Gerdes (1988); Marx et al (1998); Goodman (1994); Kreitner and Kinicki (1998); Maré (1996) Category I: Drive and energy level (Ability to work long hours, vigour, good health and persistence) McClelland (1967); Burns and Dewhurst (1989); Casson (1991); Goodman (1994); Mariani (1994); Marx et al (1998) Category J: Tolerance for ambiguity (Ability to live with modest to high levels of uncertainty concerning job and career security, perform different tasks simultaneously) Bowler (1995); Zimmerer and Scarborough (1998b) (continued) Table III shows the composition of the sample.…”