Showing papers on "Entrepreneurship published in 1973"
Posted Content•
TL;DR: Kirzner as discussed by the authors argues that the assumption of perfect knowledge is unrealistic and argues that every market participant is a potential entrepreneur who can exploit a situation, which depends on a lack of perfect information among the market participants.
Abstract: Kirzner, writing from a neo-Austrian economic perspective that is inherently dynamic with an emphasis on action over time, offers a critique of the prevailing positivistic, value freedom of orthodox microeconomics and price theory, focusing on what he believes is its unrealistic emphasis on static equilibrium analysis. Kirzner criticizes the methodology of Robbinsian equililbrium analysis in which a competitive market is a situation in which buyers and sellers have perfect knowledge and in which decision-making is mechanical and its solutions given. This analysis, according to Kirzner, eliminates all consideration of the competitive process and of entrepreneurship (which is synonymous, for him, with competitive activity); the assumption of perfect knowledge is unrealistic. He offers a full elaboration of the Mises-Hayek view of entrepreneurship and competition as a process based on von Mises' idea of "human action" rather than Marshall's idea of economizing. Kirzner sees the entrepreneur as always alert to information and propelling the system forward by seeking out price discrepancies as opportunities for profit. This process depends not on impulses from technology or genius; rather every market participant is a potential entrepreneur who can exploit a situation, which depends on a lack of perfect knowledge among the market participants. Entrepreneurial activity is always competitive; and competitive activity is always entrepreneurial. Kirzner is thus also a critique of the Schumpeterian view of entrepreneurship as disrupter of equilibrium; rather the entrepreneur removes disequilibrium in a short-run movement to an equilibrium position. A Kirznerian entrepreneur is a decision-maker whose entire role arises from alertness to unnoticed opportunities or knowledge about market data. Within the context of entrepreneurial activity, he offers a neo-Austrian redefinition of the concept of monopoly and competition. Since for Kirzner entrepreneurship involves no element of resource ownership, monopoly is defined as the impact of input ownership on the competitive process, and not the shape of the demand curve facing a firm. A monopoly position can be won by an alert entrepreneur. In the light of his theory of competition, Kirzner provides a new theoretical place for advertising and selling costs. Advertising, which promotes and calls attention to product differentiation, is the "weapon" of competition, which allows competitive-entrepreneurial adjustments in the type of products placed in the market in disequilibrium. Kirzner's revaluation of advertising is thus opposed to the idea of advertising as a social waste. Kirzner also offers a new conception of economic welfare based on the "coordination-of-knowledge-and-actions" instead of the orthodox "allocation of social resources" standard. (TNM)
5,214 citations
Book•
01 Jan 1973
TL;DR: Kirzner as mentioned in this paper argues that "it is more useful to look to price theory to help understand how the decisions of individual participants in the market interact to generate the market forces which compel changes in prices, outputs, and methods of production and in the allocation of resources".
Abstract: Stressing verbal logic rather than mathematics, Israel M. Kirzner provides at once a thorough critique of contemporary price theory, an essay on the theory of entrepreneurship, and an essay on the theory of competition. "Competition and Entrepreneurship" offers a new appraisal of quality competition, of selling effort, and of the fundamental weaknesses of contemporary welfare economics. Kirzner's book establishes a theory of the market and the price system which differs from orthodox price theory. He sees orthodox price theory as explaining the configuration of prices and quantities that satisfied the conditions for equilibrium. Mr. Kirzner argues that "it is "more" useful to look to price theory to help understand how the decisions of individual participants in the market interact to generate the market forces which compel changes in prices, outputs, and methods of production and in the allocation of resources." Although "Competition and Entrepreneurship" is primarily concerned with the operation of the market economy, Kirzner's insights can be applied to crucial aspects of centrally planned economic systems as well. In the analysis of these processes, Kirzner clearly shows that the rediscovery of the entrepreneur must emerge as a step of major importance.
982 citations
TL;DR: The factors influencing the birth of new, high-technology firms have been investigated in a number of separate studies as discussed by the authors, including the characteristics of the entrepreneur, including the many aspects of his background which make him more or less inclined toward entrepreneurship.
Abstract: The factors influencing the birth of new, high-technology firms have been investigated in a number of separate studies. This paper summarizes and reports upon this research.
New, technologically-based firms have had, in the aggregate, substantial economic impact. The birth of these companies has been concentrated in particular places and at particular times.
The decision to found a new company appears to be influenced by three major factors. The characteristics of the entrepreneur, including the many aspects of his background which make him more or less inclined toward entrepreneur-ship, are important. The organization for which he has been working, which might be termed ‘the incubator organization’ also influences the entrepreneurial decision in various ways. A third factor consists of a complex of external influences, including the availability of venture capital and the collective attitudes toward entrepreneurship. Feedback processes appear to be at work such that past entrepreneurship makes future entrepreneurship more likely.
209 citations
TL;DR: In this paper, both choice of and attitude towards business as an occupation were predicted from the components of instrumentality theory and the results supported the theory, and there also was a strong indication that...
Abstract: Both choice of and attitude towards business as an occupation were predicted from the components of instrumentality theory. The results supported the theory. There also was a strong indication that...
76 citations
TL;DR: McKee et al. as mentioned in this paper conducted a detailed analysis of the impact of foreign enterprise on Russian industry during World War I, finding that foreign investment increased from 17 percent of the capital of industrial corporations in Imperial Russia in 1880 to 47 percent in 1914.
Abstract: Foreign investment increased from 17 percent of the capital of industrial corporations in Imperial Russia in 1880 to 47 percent in 1914, coinciding with the rapid development of Russian industrialization before World War I. John McKay's study, based largely on intensive research in numerous archives and utilizing many previously unexplored private business records, is the first detailed analysis of the impact of foreign enterprise on Russian industry during this period. His conclusions are significant for historians, economists, and those interested in the development of modern industrial society.
73 citations
Book•
01 Jun 1973
59 citations
TL;DR: In this article, Wik concludes that Ford's fame rests on "his ability to mass produce a practical automobile which had a universal appeal" (p. 240), and not on his inventive or technological achievements.
Abstract: Yet, the author shows that Ford did not really understand the basic economic problems of farmers. On the other hand, Ford did demonstrate an unusual knowledge of, and interest in, conservation, ecology, and scientific farming. As Wik says, his "views on technology, conservation, ecology, and the mechanization of rural America were generally prophetic, enlightened, progressive and often far ahead of his times" (pp. 160-61). Other topics covered include Ford's flirtation with politics, his response to the Great Depression, and his ideas on education. Wik completes his study by sampling the tremendous correspondence Ford received from farmers, and an interpretative chapter on "Ford in Retrospect." He concludes that Ford's fame rests on "his ability to mass produce a practical automobile which had a universal appeal" (p. 240), and not on his inventive or technological achievements.
31 citations
TL;DR: The trading career of John Sarbah of Ghana is illustrative of the activities of a distinguished group of independent African coastal merchants in the late nineteenth century, and an analysis of his business methods helps to cast light on the general problems and operations of mercantile entrepreneurship in West Africa.
Abstract: The trading career of John Sarbah of Ghana is illustrative of the activities of a distinguished group of independent African coastal merchants in the late nineteenth century, and an analysis of his business methods helps to cast light on the general problems and operations of mercantile entrepreneurship in West Africa. The rise of the African merchants was the result of an interaction between indigenous and external factors. It would be a mistake to exaggerate the importance of the coastal trading sector in the development of the total economy of the country in the late nineteenth century; but it would appear that the major African merchants, led by John Sarbah, F. C. Grant, J. W. Sey and others, played a larger part in commercial development, 1865 to about 1895, than is commonly recognized in historical accounts. Sarbah's entrepreneurship was mainfested in his ability to manage with competence a network of stores and trading stations, to extend the market for manufactured merchandise, to open up new sources for cash export, and to assess risks and invest capital in his firm's expanision. Of particular importance were Sarbah's efforts to stimulate the collection and processing of palm kernels, to help lay a groundwork for the development of the rubber trade in Asin and Lower Denkyera in the early 1880s, and to extend the orbit of his trading operations to the southeastern Ivory Coast.
30 citations
TL;DR: In this paper, the authors draw together some of the little research which has been conducted in Europe and discuss to what extent the American research findings apply in a very different business environment.
Abstract: Studies of technical entrepreneurship outside North America are in their infancy. This paper draws together some of the little research which has been conducted in Europe and discusses to what extent the American research findings apply in a very different business environment.
21 citations
20 citations
TL;DR: The findings of a study made of 39 successful entrepreneurs involved in the establishment of one or more technologically based enterprises in the secondary manufacturing sector in Canada are presented in this paper, where the authors examined the social and economic background of the entrepreneurs, the nature of the companies they started or with which they were involved.
Abstract: The findings of a study made of 39 successful entrepreneurs involved in the establishment of one or more technologically based enterprises in the secondary manufacturing sector in Canada are presented. Most of these enterprises are small, with a present annual sales volume of less than one million dollars. A major purpose of the study was to examine the social and economic background of the entrepreneurs, the nature of the companies they started or with which they were involved, and their perception of the environment for entrepreneurship in Canada. Special emphasis is given to comparing Canadian-born with non-Canadian-born entrepreneurs. Where feasible, the findings of this study are compared with comparable studies conducted in the United States.
TL;DR: In this article, the authors report the intracorporate entrepreneurial program (ICEP) practices, or ''venture management'' activities, of 210 American industrial firms and reveal a growing concern among US industrial enterprises about increasing competition and outlines a viable action-oriented response to these competitive pressures.
Abstract: This article reports the intracorporate entrepreneurial program (ICEP) practices, or‘venture management’ activities, of 210 American industrial firms. The survey reveals a growing concern among US. industrial enterprises about increasing competition and outlines a viable action-oriented response to these competitive pressures. Motives for creating long-term resource commitments to the creation of new product ventures and new technology divisions in existing companies are explored. A preliminary assessment is made of the effect of such programs on the human resources and performance measures of the organization. A cautious optimism for the successful continued growth of such programs is argued.
01 Jan 1973
TL;DR: Odusina as discussed by the authors proposed a course-aid for successful entrepreneurship in Nigeria, which is designed specifically to help the Nigerian Small Business persons to learn effec¬ tive management techniques, and to develop the right attiµ tudes in related social topics.
Abstract: Course-aid (Curriculum) for Successful Entrepreneurship in Nigeria (August 1973) Jonathan Odusina, B. A., Honors, London University Dip. Ed., Ibadan University Dip. Trop. Agric., Sch. of Agric., Ibadan M. B. A., University of Massachusetts Ed. D., University of Massachusetts Directed by: Dr. George Urch This is a course-aid (curriculum) designed specifically to help the Nigerian Small Business persons to learn effec¬ tive management techniques, and to develop the right atti¬ tudes in related social topics. The content of the course-aid is an output from the interaction of the following inputs discussed in this work: 1. The economic and social characteristics of the businessman, 2. The physical and social environment of Nigeria, 3. The principles of curriculum design and instruction, 4. Individual and social change theories, 5. Leadership theories and their effective application, 6. Appropriate material from basic functional areas of business management.
TL;DR: The second part of the title does not indicate that there will ever be a precise, acceptable set of terms that will be mandated by an association or group as mentioned in this paper, but a progression of terms is set forth, however, that may lead to a somewhat more orderly approach to the problems of the business that moves from strictly domestic activities to a broadened range of business abroad.
Abstract: Even the title of this paper poses a question to those studying business conducted in more than one country because definitions of "international" vary from textbook to textbook, from article to article, from book of readings to book of readings. Besides only a rather vague agreement on the adjective, there is also a vagueness as to the noun. Should it be "business," "commerce," "trade," or "marketing"? The second part of the title does not indicate that there will ever be a precise, acceptable set of terms that will be mandated by an association or group. A progression of terms is set forth, however, that may lead to a somewhat more orderly approach to the problems of the business that moves from strictly domestic activities to the broadened range of business abroad.
TL;DR: The history of black business in the United States goes back to the pre-Revolutionary War years, with the earliest known black enterprise being the catering service, later an ale and oyster house, established by Emanuel Bernoon in Providence, Rhode Island, in 1736 as discussed by the authors.
Abstract: The history of black business in the United States goes back to the pre-Revolutionary War years, with the earliest known black enterprise being the catering service, later an ale and oyster house, established by Emanuel Bernoon in Providence, Rhode Island, in 1736 (this historical introduction relies very heavily on information contained in Burrell and Seder, 1971). Between the Revolutionary and Civil Wars, several black businesses flourished; examples include Paul Cuffe's shipbuilding and shipping enterprise established in Massachusetts in 1780; Richard Allen's boot and shoe store established in Philadelphia about 1800; James Forten's sail manufacturing enterprise established also in Philadelphia a few years later; Henry Boyd's bedstead and furniture-making factories in Cincinnati; William Alexander Leidesdorff's export-import and ranching operations in California: and