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what is the difference between entrepreneur and entrepreneurship in a short summary. few sentences please
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(I). Economic Theory on Entrepreneurship
Despite the premises based on methodological individualism, the dominant economic
schools (especially orthodox and neoclassic economics) unanimously emphasize the role of
market conditions in the explanation of functioning of enterprises. It is said that economic actors
behave in a well-determined and rational way; their objectives are limited exclusively to the
maximization of their profit, reacting systematically and in a foreseeable way to the signals of
the market without having any innovative possibilities or ambitions.
Thus, this model does not include the theory of the economic actor, its motivations, values or
interests. This theory implies an economy isolated from other social institutions and
identified with the market where all the actors are perfectly informed about their
possibilities on the market, risk and uncertainty are unknown and informational and
transactional costs do not exist.
As we have seen, the neoclassical orthodox theory has been criticized on many levels,
however, these critical remarks have inspired new perspectives in the
conceptualization of entrepreneurship in modern capitalism. The criticism of the static
perception of economy has led to new ideas regarding the role of the entrepreneurs in a
constantly changing economy and has generated constructive debates about the functional
delimitations of the different statutes and responsibilities within an enterprise.
The recognition of market segmentation, imperfect information and of transactional costs has led
to interesting analytical approaches regarding the role of risk and uncertainty in entrepreneurial
decision-making. In the study of risk perception and tolerance of uncertainty among small
town entrepreneurs we will use the most important conclusions of these analyses
Theoreticians of the Austrian school draw attention on the mediator role and the central
position entrepreneurs play in sustaining market stability(Hayek, Kirzner). In our study these
criteria turn up at macro-level analysis of enterprise statistics, where we discuss the economic
role of small and medium sized enterprises (Chapter 4).
Finally, the inclusion of human factor in the economic analysis is becomes complete with
Schumpeter, who when analysing the entrepreneur’s role emphasises the innovative skills
which manifest themselves in the combination of resources.
(II). The psychological theory on entrepreneurship
The psychological theories of entrepreneurial abilities try to discover the personality traits of
entrepreneurs...
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