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The Entrepreneur and Entrepreneurship: A Neoclassical Approach

  • Ying Lowery

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    This paper attempts to introduce the entrepreneur as the “economic man” into a neoclassical framework and to indicate the role of government in fostering entrepreneurship. The entrepreneur is assumed to behave as if he maximizes utility including his value and desire to succeed, subject to an income constraint, of which his physical effort in subsistent production and entrepreneurial production generate this income. Entrepreneurship, specifically, is defined as an “economic system” that consists of three components: (1) entrepreneurs, who desire to achieve their goals of economic survival and advancement; (2) the social constitution, that the entrepreneur’s right of free enterprise is granted; and (3) the government, that has the ability to adjust the economic institutions that can work to protect each individual entrepreneur and to stimulate entrepreneurs’ motive to achieve toward fostering of economic development and growth.

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    File URL: http://www.sba.gov/advo/stats/wkp03yl.pdf
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    Paper provided by U.S. Small Business Administration, Office of Advocacy in its series The Office of Advocacy Small Business Working Papers with number 03yl.

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    Length: 26 pages
    Date of creation: 2003
    Date of revision:
    Handle: RePEc:sba:wpaper:03yl
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