from Part I - The Nature of Knowledge and Entrepreneurship
Published online by Cambridge University Press: 02 May 2024
This chapter uses three classic examples to explain what entrepreneurship is NOT. Entrepreneurial decisions are different from managerial decisions, and cannot be understood within the neoclassical rational model. First, entrepreneurial decision-making is not scientific decision making, which is based on data and calculations, instead, it mainly depends on intuition, imagination, and judgement. Second, entrepreneurial decision-making is not about finding a solution under given constraints, instead it changes constraints. Third, entrepreneurial decision making is not solely profit focused, the entrepreneur has non-profit goals. Imagination is the most important for entrepreneurial decisions under an uncertain and indeterminate future. This means that mainstream economics’ externality theory, anti-monopoly theory, and corporate governance theory must all be revised. This also means industrial policy has lost its theoretical basis. This chapter is the core of the entire manuscript. It is extremely important for our understanding of the market economy.
To save this book to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.