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Entrepreneurship and the Theory of the Firm

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  • Mark Casson

    (Department of Economics, University of Reading)

Abstract

Entrepreneurship is a missing component of several leading theories of the firm. Entrepreneurship is key to the growth and survival of firms in a volatile environment, because ent repreneurial judgement is necessary to success in making complex decisions under uncertainty. The addition of entrepreneurship is not a minor refinement of the theory of the firm, but represents a radical change. The paper summarises the principle changes. It suggests that the introduction of entrepreneurship can facilitate the development of an integrated synthetic theory of the firm.

Suggested Citation

  • Mark Casson, 2004. "Entrepreneurship and the Theory of the Firm," Economics Discussion Papers em-dp2004-07, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2004-07
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