1. What are my key takeaways from this module?
ECONOMIC THEORIES OF ENTREPRENEUR
The study of entrepreneurship is a maze of theories as they are written in different approaches to discipline, economics, psychology, sociology, and business
management.
1. CLASSICAL THEORIES OF ENTREPRENEURSHIP
The pre-classical economic though began in early antiquity and proceed through the 18th century ending before Adam Smith. It covered the period from philosophical propositions of Aristotle to the mercantilist notion of an economy.
2. NEOCLASSICAL THEORIES OF ENTREPRENEURSHIP
The neoclassical theory of entrepreneurs contradicted the classical model based on the proposition that the value of goods does not depend solely on the cost of production (supply side) but also on the demand side of a close economy. Equilibrium demand and supply determine prices as well as economic growth.
3. Austrian Market Process Theory of Entrepreneurship (AMP)
Austrian school taken as a whole uses verbal logic of a priori thinking in contrast to classical and neoclassical school which make use of data and mathematical modelsto objectively prove their point. The Austrian school rejects the universal application of any economic theory. Prices are subjective as an individual’s preference to buy or not to
buy a particular good is subjective.
2. What specific economic theories change my perspective on the role of entrepreneurs in the economy?
The economic theories that change my perspective on the role of entrepreneurs in the economy is the, Austrian Market Process Theory of Entrepreneurship (AMP) because, Austrian economics argued that entrepreneurs have the ability to seek and communicate knowledge throughout a market system via price information and are responsible for innovation to take place, satisfying market needs, and changing the system-wide structure to happen.
3. How can Iperform the role of an entrepreneur in the economy?
Through Entrepreneurial activities may influence a country’s economic performance by bringing new products, methods, and production processes to the market and by boosting productivity and competition more broadly.
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