MACRO VIEW AND MICRO ENTREPRENEURSHIP: MARSHALLAN NEOCLASSICAL ENTREPRENEURS THEORY



1.         DISCUSSION THE ORIGIN OF ENTREPRENEURSHIP 
            The word entrepreneur etymologically originated from a French word enterpredre, meaning to undertake. The term was first used by a eighteenth century French economist Richard Cantillon when he associated the risk bearing’ activity in the economy with entrepreneur. It played an important role in England during the industrial revolution as entrepreneur played an important role in risk taking and transformation of resources.

            Richard Cantillon first used it as a technical economic term meaning an employer in the character of one who assumes the risk and management of business; an undertaker of economic enterprises. From 19th century down the memory lane, many economists like baudeau, Jacques Turgot and Jean Bapiste Say who was credited with giving entrepreneur a particular meaning. According to him, entrepreneurs create value. In the 20th century, the economist most closely associated with the term was Joseph Schumpeter. He described entrepreneurs as the innovators who drive the “creative-destructive” process of capitalism as well as change agents in economy.
            In the 20th century, Joseph Compete who lived between 1883 to 1950 and a reknowned economist focused on how the entrepreneur’s drive for innovation and improvement creates upheaval and change. Equally business expert Peter Drucker (1909-2005) took this idea further, describing the entrepreneur as someone who actually searches for change, responds to it, and exploits change as an opportunity.
            Today, an entrepreneur is an innovator or developer who recognizes and seizes opportunities, coverts those opportunities into workable/ marketable ideas, adds value through time, effort, money or skills, assumes the risks of the competitive market place to implement these ideas, and realizes the rewards from these efforts. The entrepreneur is the aggressive catalyst for change in the world of business, and is the independent thinker who dares to be different in a background of common events.

2.         DIFFERENTIATE BETWEEN MACRO VIEW AND MICRO VIEW OF             ENTREPRENEURSHIP 
            The major difference between macro view and micro view of entrepreneurship is that macro view focuses on events from the outside looking in while micro view concentrates on specifics from the inside looking out. Macro view of entrepreneurship presents a broad array of factors that relate to success or failure in contemporary entrepreneurial ventures. These include external processes that are sometimes beyond the control of the individual entrepreneur, for they exhibit a strong locus of control point of view. These three schools of thought viz
1.                  Environmental
2.                  Financial/ capital and
3.                  Displacement represent a breakdown of the macro view.
In the other way, the micro view of entrepreneurship examines the factors that are specific to entrepreneurship and are part of the internal locus of control. The potential entrepreneur has the ability to direct or adjust the outcome of each major influence. The strategic planning theory, venture opportunity theory and entrepreneurial trait theory is presented in this micro view.
3.         DIFFERENTIATE BETWEEN MARSHALLIAN NEOCLASSICAL ENTREPRENEURSHIP AND SCHUMPETER ENTREPRENEURSHIP THEORY
The major difference between Mashallian neo-classical entrepreneurship and Schumpeter entrepreneurship theory is that while Joseph Schumpeter saw an entrepreneur as an innovator or inventor who invents or develops new and not yet tested technology, Marshal based his own theory on contribution. According to Marshallian analysis, small contributions from a very large number of modest entrepreneurs lead to economic progress. Schumpeter’s entrepreneur plays the role of a revolutionary in creation of new production functions and methods. Thus, entrepreneurs create disequilibrium and this creative destruction is possible only under capitalistic system. In contrast to marshal, Schumpeter’s analysis progress does depend on the great man and as an innovator economic and social leader the entrepreneur by definition is a monopolist.
In neoclassical analysis represented by Marshal, the main focus is the conditions necessary to sustain an equilibrium, and Schumpeter’s focus was to explain the progress in capitalist system by using innovator entrepreneur’s destructive creation.                                        
           

DISCUSS THE ORIGIN OF ENTREPRENEURSHIP
DIFFERENTIATE BETWEEN MACRO VIEW AND MICRO OF ENTREPRENEURSHIP AND DIFFERENTIATE BETWEEN MARSHALLAN NEOCLASSICAL ENTREPRENEURS THEORY

 A TERM PAPER
ON ENTREPRENEURSHIP OF EDUCATION
COURSE CODE ESP 212
 
DEPARTMENT OF SOCIAL STUDIES EDUCATION
FACULTY OF EDUCATION
ATC01/ESUT. ENUGU


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