Entrepreneurship in Economic Theory:

Examines the historic inability of economic theory to develop a formal analysis of entrepreneurship. The entrepreneur is the major catalyst to the process of economic growth, a central force in both micro and macro economics. Despite this reality, in formal theory, the entrepreneur's role has historically been conspicuously absent. The economic models call for no entrepreneurial initiative, so that theoretically, business people remain passive automaton maximizers. In fact, contributors from the disciplines of psychology and sociology have made more significant advances - by analyzing social and cultural conditions for entrepreneurship - than have economic theorists. Though it is decided that the supply of…