| We survey the concept of entrepreneurship and the different ways in which entrepreneurial activity might be measured and assessed. In the process we present the very diverse views of who the entrepreneur is, discuss how economic science has neglected the issue and explore different approaches to the measurement of entrepreneurial activity. Entrepreneurship is at the heart of output and productivity growth, exports and job creation. At a personal level, it is associated with personal autonomy and success. In the traditional neo-classical model, individuals have perfect information, economic objectives are clear and can be stated in rational terms, markets exist and are assumed to clear in equilibrium at one set of prices. A person with special ability to deal with change and uncertainty, as detailed below, is not a necessary character; an able manager that deals with quantities and prices is all that is needed. The development of economic theory in the last few decades, with the emphasis on imperfect markets, information theory, and game theory, has still not suggested the importance of the entrepreneur. Our contribution is thus to bring into light the core characteristics of entrepreneurship and their manifestation in economic activity. |
