"Joseph Schumpeter" Essays and Research Papers

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    McDaniel‚ B. A. (2002) Entrepreneurship and Innovation: An Economic Approach by M. E. Sharpe‚ Armonk‚ New York and London‚ England [On line] Available at: Ebrary<http://site.ebrary.com/lib/unnc/docDetail.action?docID=10178085> [10 November 2010] Schumpeter‚ J. A. (1934) The Theory of Economic Development: An Inquiry into Profits‚ Capital‚ Credit‚ Interest‚ and the Business Cycle First published as a Galaxy Book‚ 1961‚ New York: Oxford University Press

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    pay-off to the entrepreneur is not profits arising from risk-bearing but instead a wage accruing to a scarce type of labor. Alfred Marshall introduced an innovating function of the entrepreneur which is to seek opportunities to minimize costs. Joseph Schumpeter opposed the risk bearer and manager definition of an entrepreneur. He argues that an entrepreneur is an innovator with five main tasks: creates new goods‚ creates a new method of production‚ opens a new market‚ captures a new source of supply

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    Theories of Profit

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    Theories of Profit There are various theories of profit‚ given by several economists‚ which are as follows: 1. Walker’s Theory of Profit as Rent of Ability This theory is pounded by F.A. Walker. According to Walker‚ “Profit is the rent of exceptional abilities that an entrepreneur may possess over others”. Rent is the difference between the yields of the least and the most efficient entrepreneurs. In formulating this theory‚ Walker assumed a state of perfect completion in which all firms are

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    (1952) entrepreneurship involved uncertainty bearing‚ coordination of productive resources‚ introduction of innovations and the provision of capital. In the 20th century‚ economist Joseph Schumpeter (1883-1950) focused on how the entrepreneur’s drive for innovation and improvement creates upheaval and change. Schumpeter viewed entrepreneurship as a force of "creative destruction." The

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    innovation‚ productivity‚ job creation and economic development (Fisher‚ 2010). Schumpeter (1934) defined entrepreneurship as a creative response to potential opportunity and innovation means creating something original‚ innovative and significant that makes difference in a market or society (Frankelius‚ 2009). With respect to the relationship between entrepreneurship‚ innovation and economic development‚ Schumpeter (1934) highlights the role of entrepreneurship is the catalyst of economic development

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    that entrepreneurship is: ‘The pursuit of opportunity without regard to the resources currently under one ’s control or influence" Joseph Schumpeter ’s definition of entrepreneurship mainly focused on innovation and the

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    Innovation is defined as adapting a different approach to the workings of what is known as the normal proper procedure. In that‚ Joseph Schumpeter believes in the usefulness of creative destruction. This theory of creative destruction works on two aspect dynamic efficiency and state efficiency‚ while stressing that importance of dynamic efficiency over that of the state efficiency. Dynamic efficiency is defined as the achievement of long term growth and technological improvement while state efficiency

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    areas to earn profits‚ to riskbearing‚ and finally to an entrepreneur being responsible for organization and control.However‚ the most substantial research into entrepreneurial theory was achieved in the 20 th  century‚ under the aegis of Joseph Schumpeter‚ who claims that the entrepreneur has acreative destruction innovation by replacing destroying an existing economy by a better‚advance one.Where some of the entrepreneurships emerged as a result of innovation basedon new products‚ others were

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    Entrepreneurship. Organisation for Economic Co-Operation and Development‚ 16‚ 1–277. OECD (2000) Social Enterprises. Organisation for Economic Co-Operation and Development‚ 1–69. Schmookler‚ J. (1966) Invention and Economic Growth. Harvard University Press. Schumpeter‚ J. (1942) Capitalism‚ Socialism and Democracy. New York: Harper and Row. World Bank (2004) World Development Report 2004: Making services work for poor people. Washington: Oxford University Press.

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    resources. They are the ultimate authority in the organization and therefore responsible for the social‚ legal‚ environmental and ethical aspects of the company. An entrepreneur is not exactly the latest form of performing business activities as Joseph A. Schumpeter identified entrepreneurial entities already in

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