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Chapter 2 Economic Theories of Entrepreneurship

DOI: 10.23912/978-1-910158-75-3-2880

ISBN: 978-1-910158-75-3

Published: 31 January 2016

Component type: chapter

Published in: Enterprise: Concepts and Issues

Parent DOI: 10.23912/978-1-910158-75-3-2848



What is entrepreneurship? Since the turn of the century, there has been increased global interest in entrepreneurship both by individual theorists and by institutions. This is significant because over the last quarter of a century there has been a remarkable renaissance in terms of the recognition of small firms’ “centrality as a necessary competitive instrument in the development of a modern, vibrant and progressive economy” (Beaver and Prince, 2004, p. 34). The economics literature acknowledges the central role of entrepreneurs in economic development, the creation of wealth and evolutionary change. In the United Kingdom alone, over 5.2 million businesses are operating as of 2015; of those, 99% are SMEs, accounting for 14.5 million people in employed positions (Federation of Small Business, 2015). The literature suggests that it is entrepreneurs who are the driving force of such a revolution, in the form of an economic trend that is transforming and in some cases renewing economies worldwide, contributing not only to employment but also to economic, social and political stability. Therefore, it is vital to develop an understanding of the complex field of entrepreneurship by drawing on the early entrepreneurship literature, and by evaluating and understanding the wider contributions to the now-established distinctive economic theories of the entrepreneur.

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  • Julie McFarlane, Heriot-Watt University (author)

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McFarlane, 2016

McFarlane, J. (2016) "Chapter 2 Economic Theories of Entrepreneurship" In: Arshed, N. & Danson, M. (ed) . Oxford: Goodfellow Publishers http://dx.doi.org/10.23912/978-1-910158-75-3-2880


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