The History of Entrepreneurship

Early entrepreneurs were rewarded for trading weapons, especially iron, across continents. Iron was discovered around 2000 BCE, and it was later used to build the world’s first empires: Alexander the Great’s empire, followed by the Han Chinese Empire, the Roman Empire, and the Persian Empire. This trade route brought ideas and raw materials to the world, and entrepreneurs spread these ideas around the globe. This early history of entrepreneurship reveals how entrepreneurs were instrumental in the spread of ideas and a global economy.

Supply and demand ruled entrepreneurship

Before money was invented, entrepreneurs had no way to exchange goods. These hunter-gatherer tribes traded goods for the benefit of their tribes. As cities and populations increased, entrepreneurship took on a prominent role. Entrepreneurs became skilled in many crafts, as well as trading with different cultures. The invention of money, however, brought with it a significant shift in the history of entrepreneurship. Before money, people were dependent on barter, which limited trade in the early days of human history.

Economists have used their insights on entrepreneurs to develop economic models. Economists have emphasized different aspects of entrepreneurship, but they agree that entrepreneurship is essentially a human activity involving judgment. Economists have also begun to drop the assumption that the entrepreneur has perfect information, and are likely to incorporate the role of the entrepreneur into future models. However, it is unclear what role this role will play in the future.

Historically, entrepreneurs have stimulated the growth of employment as they enter the market. This direct effect is attributed to new jobs created by the new businesses. Increasing competition among suppliers increases employment. Although some new entrants fail to gain market share, the competition between new and old firms boosts employment. This leads to an increase in the supply of goods and services, and overall positive gains in employment. However, this effect does not last for long, and the entrepreneur’s self-interest is protected by the law of supply and demand.

Schumpeterian entrepreneurs thrive under conditions of institutional predictability

In institutions of institutional predictability, Schumpeterian entrepreneurs can respond to opportunities and incentives while dodging obstacles. This ability enables them to put their talents to more productive use and to benefit the economy as a whole. Institutions of institutional predictability and favorable endowments for resources are ideal for Schumpeterian entrepreneurs. Ultimately, they are able to respond to these conditions and make a profit.

The concept of entrepreneurship was developed by Joseph Alois Schumpeter, an Austrian economist and a leading economic historian. His theory has proven useful in explaining a variety of economic problems. While Schumpeter’s work was often considered to be an early precursor to the concept of entrepreneurship, his theory is still the cornerstone of modern economic thinking. Today, it is widely accepted that entrepreneurs are a vital part of our economy and are the key to economic prosperity.

Prior to the German unification, the first polytechnics were created on the French model. But they did not issue formal degrees until 1899. While the initial entrepreneurial venture spawned numerous imitators, its cumulative effect was enough to create a new system of computing that eventually rendered the old mainframe-based system obsolete. This self-sustaining ecosystem ensured that everyone involved benefited from the thriving innovation.

Global economy has introduced a new age of competition to entrepreneurship

The rise of the Global economy has created a new era of competition for entrepreneurship. Unlike in previous decades, when only the highly educated could start a business, entrepreneurs today can access cheaper means of production and inexpensive labor. Moreover, they can compete with entrepreneurs in countries that are less tolerant to innovation, like China, which is considered to have a very low rate of entrepreneurship. Despite these challenges, global entrepreneurship has become more rewarding and challenging than ever.

Entrepreneurship is booming in developing countries, where the incidence of business creation is nearly double that of developed economies. In developing nations, 10 out of 100 people launched a business; five of these businesses were opportunity driven, while only five out of every 100 were necessity-driven. Moreover, in developed economies, only five out of 100 entrepreneurs launched businesses, whereas in emerging economies, six out of every 10 businesses were opportunity-driven.