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An Austrian approach to the role of entrepreneurs

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Hans Ecomics is blogging through a new book by Peter Klein and Nicolai Foss.

Peter Klein is my host when I pass through the Uni of Missouri at Columbia. He also blogs on Organizations and Markets.

NERD ALERT

First chapter

Foss and Klein (FK) lament from the start the schism between the firm and the entrepreneur which has been erected in economic science. They argue that for a full understanding of the firm, one must understand the entrepreneurs who make decisions within the firm; while for a full understanding of the entrepreneur, one must understand the environment of the firm in which he acts. Their effort is to make the needed connection where a substantial gap currently exists between the firm and the entrepreneur.

Second chapter

Foss and Klein draw on the Austrian school of economics view of heterogenous capital goods and an active, thinking entrepreneur to establish their definition of entrepreneurship.

Third chapter

Chapter three of Nicolai Foss and Peter Klein’s book Organizing Entrepreneurial Judgment: A New Approach to the Firm Entrepreneurship: From Opportunity Discovery to Judgment takes a detailed look at the opportunity discovery view of entrepreneurship put forth by Kirzner (as we discussed in part 2 yesterday) and compares and contrasts it with the views of those in the Austrian School of economics.

Written by Poor Old Rafe

August 16th, 2012 at 2:21 pm

Posted in Uncategorized

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