Biography Of Joseph Schumpeter ( 1883-1950 )

Bygrave, W.D. & Zacharakis, A. (2014). Entrepreneurship, 3rd ed. Hoboken, NJ: John Wiley & Sons, Inc. ISBN: 978-1-118-58289-3

An entrepreneurial opportunity is an economically attractive and timely opportunity that creates value for interested buyers or end users (pg. 6). Hennessy identified a demand for dry-cleaning services and convenient operating hours. He capitalized on these opportunities by opening a 24 hour dry-cleaners and wash-and-fold service. There was Laundry Locker, which is technology based and Hennessy spent a year petitioning the company and they finally allowed him to license the software. This allowed him to have a storefront, unstaffed, locker technology, 24-hour drop off laundry service.

Entrepreneurship is the activity of creating a new business or enterprise. It is an essential and significant action in the growing job market (Bednarzik, 2000). Entrepreneurship has become important to all the countries whether they developed or developing ones. It is a basis of economic growth and employment creation (Thurik, Carree, Van Stel, Audretsch, 2008). It involves opportunity recognition or creation, collecting resources to track the opportunity, and managing actions that bring a new venture into existence. Some ventures are complete start-ups, while other ventures are pursued within an existing organization (Enz and Harrison, 2010). Entrepreneurs accept the personal financial risks that drive with having their own business. On the other hand, entrepreneurs benefit directly from the

The existing literature on entrepreneurship stems from economical conceptual frameworks developed in the early twentieth century by Schumpeter, Cole, Kirzner among others. Fayolle (2014) notes that entrepreneurship has gained considerable study

Entrepreneurship is related with the capability of recognition and evaluation of opportunities, allocation of resources and growth. Moreover, entrepreneurship has been taken as an organisational notion that contains three magnitudes: Modernisation, Bear risks and Practical alignment. It has been confirmed that the companies that were engaged in entrepreneurial activities are now most successful and efficient.

Schumpeter in his book, The Theory of Economic Development (1912, 1936), provoked scholars to emphasize the relevance of innovation as the driver of economic growth and structural change. Schumpeter (1942) argues that economic growth is achieved through creative destruction in a capitalist regime. In this process the old is being continuously destroyed and consequently freeing up resources for the new

The role of entrepreneurship in the development of the company and the fundamental reasons behind their success.

Austrian economist Joseph A. Schumpeter and his notion of 'creative destruction ' – the apparently contradictory term he came up with to describe the inner, self-cannibalizing logic of capitalism after reading, ironically enough, some of Marx 's works – are nowadays renowned for having linked entrepreneurship and a theory of economic and historical change for the first time in the history of economic ideas. Furthermore, Schumpeter 's work is often recognized as one of the most critical components in the steady path to a post-war revival of economic liberalism that eventually reached its full-fledged form in the last decades of the century. His antipathy toward centralized state planning, the methodological individualism that ran through the entirety of his work in economic analysis, his views favoring innovation over regulation, and the notion that entrepreneurs alone are the true agents of historical change have since become commonplace in contemporary economic science, culture, and policy.

The entrepreneur is the figure responsible for creating these new channels by introducing innovations that disturb the status quo. Schumpeter defines innovation “as the carrying out of new combinations of the means of production” (Elster 116; emphasis in original). An individual whose function is to carry out new combinations is called an entrepreneur (75). Schumpeter goes on to explain the five main cases of new combinations—a new good, a new method, a new market, a new supply, a new organization. The power of his explanation lies in its simplicity; he

Entrepreneurship refers to organizational, management, and assumption of risk of a business venture (Skousen, 2014). There are several approaches to entrepreneurship theorized in economics. Perhaps two of the most common theories are that of Israel M. Kirzner and Joseph A. Schumpeter. This short essay will review theories by both Kirzner and Schumpeter, share personal opinion of the accuracy of each theory, and offer further insights of how an individual benefits from obtaining a greater understanding of these entrepreneurship theories.

Schumpeter, who conceived innovation as one of the causes of economic development, understood it as a process of economic, social and cultural transformation, defined as the introduction of new goods and

When people take a close look at the world today they can see an abundance of producers and consumers. Consumers buy and producers sell, but there is more to it than that. People have to work and so the producers can sell, producers must supply so that the consumers can buy and so on. It is truly a never ending chain reaction of buying and selling. In order for the economy to run, people to live, and so many other crucial parts of a daily life, one things has to keep growing, and that one thing is entrepreneurship. Entrepreneurship is when one takes on a personal goal or businesses plan that can benefit all. These benefits are shown through, enhancing

Entrepreneurship is induced by an individual’s skills, attitudes, motives and psychological ability. The entrepreneur as an individual is affected by the circumstances in which he or she is acting, as a result, entrepreneurial actions and motives are influenced by the business environment, cultural and institutional factors and macroeconomic conditions (Pirich, 2001).

The entrepreneurial function implies the discovery, assessment and exploitation of opportunities, in other words, new products, services or production processes; new strategies and organizational forms and new markets for products and inputs that did not previously exist (Shane and Venkataraman, 2000). The entrepreneurial opportunity is an unexpected and as yet unvalued economic opportunity. Entrepreneurial opportunities exist because different agents have differing ideas on the relative value of resources or when resources are turned from inputs into outputs. The theory of the entrepreneur focuses on the heterogeneity of beliefs about the value of resources (Alvarez and Busenitz, 2001: 756). Entrepreneurship – the entrepreneurial function, can be conceptualized as the discovery of opportunities and the subsequent creation of new economic activity, as a majority or active shareholder who, in many small and medium–sized firms, assumes both the entrepreneurial and managerial functions (Reynolds, 2005).

According to Schumpeter, "Entrepreneurship is based on purposeful and systemic innovation. It included not only the independent businessman but also company directors and managers who