ENTREPRENEURSHIP

Detailed explanation-1: -Schumpeter is best known for his theories on business cycles and the development of capitalist economies, and for introducing the concept of entrepreneurship. For Schumpeter, the entrepreneur was the cornerstone of capitalism-the source of innovation, which is the vital force driving a capitalist economy.

Detailed explanation-2: -Schumpeter, the effective function of an entrepreneur is to start innovation in venture. This theory is also called innovation theory or dynamic theory. According to this theory, the entrepreneurs emerges because of individuals having certain psychological elements i.e., will power, self-intuitions, tolerance capacity.

Detailed explanation-3: -Schumpeter proclaims in this classical analysis of capitalist society first published in 1911 that economics is a natural self-regulating mechanism when undisturbed by “social and other meddlers.” In his preface he argues that despite weaknesses, theories are based on logic and provide structure for understanding fact.

Detailed explanation-4: -Richard Cantillon (1755) is credited with the discovery of economic theory and was the first to fully consider the critical role of entrepreneurship in the economy. Cantillon described entrepreneurship as pervasive and endowed the entrepreneur with the most pivotal role.