ENTREPRENEURSHIP

Detailed explanation-1: -As per a previous study (Burnett, 2000) the term “entrepreneur” was first introduced by the early 18th century French economist Richard Cantillon. In his writings, he formally defines the entrepreneur as the “agent who buys means of production at certain prices in order to combine them” into a new product.

Detailed explanation-2: -The Schumpeterian entrepreneur is the economic agent who introduces “new combinations of factors of production” which provide by the same token opportunities for investment (Schumpeter, 1935).

Detailed explanation-3: -According to Cantillon, successful entrepreneurs perform a key role in the economy by relieving the paralysis engendered by uncertainty, allowing production and exchange to occur and market equilibrium to be attained.

Detailed explanation-4: -Cantillon held that market prices are not immediately decided by intrinsic value, but are derived from supply and demand. He considered market prices to be derived by comparing supply, the quantity of a particular good in a particular market, to demand, the quantity of money brought to be exchanged.