ECON 1 Lecture Notes - Lecture 20: Population Ecology, Small Business, Creative Destruction
Document Summary
British classical school: british classical school did not start with strong appreciation for entrepreneurship, word entrepreneur was never used in writing or translated, no direct parallel for french word, laws in england and france differ. In france clear distinction between ownership of capital or land and ownership of business. Is decision maker who begins without any means other than ability to predict changes in market conditions: casson focus on information asymmetries, exploration of role of information, information exchange, information markets on alertness to opportunity. Schumpeterian school: many trace origins of modern thought of entrepreneurship back to joseph schumpeter, theory focused on economic development and role of entrepreneur in development process. Important question in capitalism is not how it supports existing structures and markets. Introduction of new good or new quality of good. Individuals and businesses only being entrepreneurial when they carry out combinations described: revert back to normal activity once their innovative role has been completed.
