Economic Theories of Entrepreneurship

Julie McFarlane

Research output: Chapter in Book/Report/Conference proceedingChapter


What is entrepreneurship? Since the turn of the century, there has beenincreased global interest in entrepreneurship both by individual theorists andby institutions. This is significant because over the last quarter of a centurythere has been a remarkable renaissance in terms of the recognition of smallfirms’ “centrality as a necessary competitive instrument in the developmentof a modern, vibrant and progressive economy” (Beaver and Prince, 2004, p.34). The economics literature acknowledges the central role of entrepreneursin economic development, the creation of wealth and evolutionary change.In the United Kingdom alone, over 5.2 million businesses are operating as of2015; of those, 99% are SMEs, accounting for 14.5 million people in employedpositions (Federation of Small Business, 2015). The literature suggests that itis entrepreneurs who are the driving force of such a revolution, in the form ofan economic trend that is transforming and in some cases renewing economiesworldwide, contributing not only to employment but also to economic, socialand political stability. Therefore, it is vital to develop an understanding of thecomplex field of entrepreneurship by drawing on the early entrepreneurshipliterature, and by evaluating and understanding the wider contributions to thenow-established distinctive economic theories of the entrepreneur.
Original languageEnglish
Title of host publicationEnterprise
Subtitle of host publicationConcepts and Issues
EditorsNorin Arshed, Mike Danson
Number of pages20
Publication statusPublished - Jan 2016

Publication series

NameGlobal Management Series


  • entrepreneurship
  • innovation


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