Possibilities for a Realistic Theory of Entrepreneurship: The Climate of Enterprise

Abstract

Outlines a historical model for comparative studies of economic theory. Briefly describes the changes in economic theory that have occurred from the early 1930s to the late 1940s, and suggests a realistic theory of entrepreneurship to advance the study of economics to its next stage. The suggested theory takes into account historical variables affecting freedom, power, and the climate of entrepreneurship. In the past, problems have arisen because of the confusion of economic theory with history, and theorists' inability to unambiguously define the term "entrepreneur." Instead, the individual entrepreneur should not be studied so much as the conditions favoring entrepreneurial action, though Weber's concept of the "ideal entrepreneur" may be helpful. Variants of security are then analyzed as conditions especially important in determining entrepreneurial action, including political, social, entrepreneurial, and ethical securities. The historian's contribution to economic theory is thus the ability to see the big picture, to look at overall methods of change and compare alternate forms of economic organization. The freedom and power governing entrepreneurship must be studied according to specific time periods and economic stages, through a theoretical framework that accounts for historical analysis. (CJC)

Keywords: Entrepreneurship research, Security, Economic systems, Economic power, Sociopolitical background, Entrepreneurial economies, History, Economic theory, Entrepreneurial environment, Organizational structures, Business conditions, Political stability