The Entrepreneur and Entrepreneurship: A Neoclassical Approach

Office of Advocacy, U.S. Small Business Administration Economic Research Working Paper

27 Pages Posted: 10 May 2007

Date Written: January 2003

Abstract

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.

Keywords: entrepreneurship, growth, economic man

JEL Classification: L26, E13, M13, O41

Suggested Citation

Lowrey, Ying L., The Entrepreneur and Entrepreneurship: A Neoclassical Approach (January 2003). Office of Advocacy, U.S. Small Business Administration Economic Research Working Paper, Available at SSRN: https://ssrn.com/abstract=744785 or http://dx.doi.org/10.2139/ssrn.744785

Ying L. Lowrey (Contact Author)

Tsinghua University ( email )

Tsinghua Yuan No. 1, Ming-Zhai 222
Beijing, 100084
China
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