Foundations of Entrepreneurship: Definitions and Early Theories

Apuntes

sESSION 2 – THE FIRM AND THE ENTREPRENEUR: NATURE AND ROLES The study of entrepreneurs is central to business history because entrepreneurs: ● Create and organize firms ● Introduce innovations ● Respond to uncertainty ● Drive economic and structural change There is no single definition of entrepreneur. The concept has evolved over time depending on: ● Historical context ● Economic structure ● Dominant economic theories The word “entrepreneur” originated in medieval France. ● Leaders of military expeditions ● Contractors responsible for large public works In the 17th and 18th centuries, the term was used to describe individuals who: ● Undertook risky activities ● Coordinated complex projects ● Managed uncertainty The meaning of entrepreneur has therefore changed over time and across societies. 3. Early Views: Entrepreneurs as Risk-Takers (17th–18th Centuries) Richard Cantillon (1680–1734) ● Entrepreneurs are individuals who bear uncertainty ● They buy inputs at known prices and sell outputs at uncertain prices ● Profit is the reward for assuming risk ● Risk-bearing is the defining entrepreneurial function Jean-Baptiste Say (1767–1832) ● Entrepreneurs act as coordinators of productio...