Entrepreneurship and economic growth: The theory of emergent institutions.

authors: Jack High year: 2009 See in Zotero

Literature Notes

Uses Mises’, Schumpeter’s, and Kirzner’s definitions of entrepreneurship. An entrepreneur is someone that is looking (aware) of opportunities for personal (economic) gain.

The adoption of institutions comes with 3 steps.

1. Someone tries something different. A different combination of physical or social elements.
2. Others in the community/ society observe the different behavior and make a judgement about the practice. Is it better than the current status quo?
3. Early adopters take up the practice - through the forces of persecution and imitation.

He then uses this theory to show how division of labor, money, and double entry accounting could have evolved.

Interestingly he cast education as entrepreneurship.