The 's Theory Of Entrepreneurship

910 Words4 Pages
As one looks at the history of entrepreneurship, they will notice the variety of definitions and entrepreneurial elements that economists use to explain the topic. Although there are many vital parts of this concept, Israel Kirzner developed his own view that many economists take into account when creating their own definition. Basically, Kirzner’s theory of entrepreneurship held the idea of alertness as its backbone. Without the use of alertness, entrepreneurs would never discover opportunities, which allows their competitors to easily surpass them. However, if the entrepreneur is alert, then they will notice an opportunity where innovation is needed and in return they will usually profit. When others analyzed Kirzner’s theory, they criticized the amount of value that Kirzner put on alertness because they believed he lost sight of the creativity and the imagination aspect of entrepreneurship. After Kirzner developed his theory, years later an economist by the name of Frederic Sautet decided to elaborate more on Kirzner’s concept. Basically, Sautet portrayed alertness as the central piece to his and Kirzner’s view of an entrepreneur; however, he went into more depth in order to help silence Kirzner’s critics. Sautet explains, “It simply means that before one unleashes one’s own creativity, imagination, and judgment, one has to come to recognize one’s own creativity, imagination, and judgment”(95). Sautet explains that Kirzner did not disregard creativity and imagination
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