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Entrepreneurship and Economic Theory

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Author Info
Khalil, Elias

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Abstract

Let us define entrepreneurship as creativity and the evolution of novelty. Let us suppose, the main thesis of the chapter, that entrepreneurship is an action that does not differ from everyday action such as walking, driving, or chewing gum. If the definition and supposition are granted we can conclude that the theory of everyday action, such as walking or chewing gum, is one and the same as the theory of evolution. The conclusion is definitely strange if not extraordinary. It is based on a subtle but subversive thesis: There is no difference between everyday action and creativity or evolution. This conclusion is extraordinary only because it goes against the dominant dogmas in economics (i.e., neoclassical theory) and evolutionary biology (i.e., neo-Darwinian theory). Both dogmas draw a radical divide between action and evolution. For neo-Darwinian theory, action is phenotype ultimately determined by genotype—while the genotype evolves according to another mechanism. For neoclassical economics, action is determined by rational calculation of the efficient allocation of given resources—while resources evolve according to another mechanism. To undermine the radical divide between the theory of action and the theory of evolution, this chapter shows how everyday action—from walking, fetching water, to fishing—is entrepreneurial at first level of approximation—and hence should be the basis of the theory of evolution.

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File URL: http://mpra.ub.uni-muenchen.de/501/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 501.

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Date of creation: 13 Oct 2006
Date of revision: 18 Oct 2006
Handle: RePEc:pra:mprapa:501

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Related research
Keywords: Action Evolution neo-Darwinism neoclassical theory Austrian Economics classical economics Alfred Whitehead John Dewey.

Find related papers by JEL classification:
D29 - Microeconomics - - Production and Organizations - - - Other
D20 - Microeconomics - - Production and Organizations - - - General

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This page was last updated on 2008-11-17.


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