Role of entrepreneurs

From CEOpedia | Management online
Role of entrepreneurs
See also

Role of entrepreneurs in modern economy is crucial for development and growth. They perform following important tasks:

  • creation of wealth and prosperity by risking their own resources
  • adding jobs to the labour market
  • giving incentive to develop infrastructure in industrial regions
  • improving tax revenues and income for whole community
  • increasing standards of living
  • they are motivated and use their own energy to motivate others
  • they make products and services that satisfy customers demand
  • they grow their capital and look for investment opportunities
  • they improve whole regional and country level economy

Two factors which may influence how entrepreneurs' ability to 'stand out' and 'fit in' affects their resource acquisitions[1]:

  • the contribution of the two facets of legitimacy is influenced by the maturity of the field the entrepreneur enters.
  • Entrepreneurs' resource acquisition may be enhanced by their ability to free navigate the possible conflicting demands to fit in versus and stand out through impression management.

Successful entrepreneurs

Some entrepreneurs so much more successful than others in starting new companies—ones that create wealth for themselves and their societies. But what it depends on? Increasing evidence suggests that the answer involves the social factors and the influence cognitive. Entrepreneurs who are successful appear to think differently than other persons. They are more likely to show overconfidence in their judgments but less likely to engage in counterfactual thinking. This kind of entrpreneurs appear to be higher in social competence. Successful entrepreneurs have got the ability to interact effectively with others and they are better at social perception and adapting to new social situations[2].

Schumpeter theory

"Schumpeter (1934) was among the first to identify the entrepreneur as an entity worthy of study, distinct from business owners and managers"[3]. According to him, entrepreneurs as individuals whose function was to carry out new combinations of means of production. Schumpeter. claims that This function was fundamental to economic development. Today still exist to be an implicit assumption that the entrepreneur contributes disproportionately to the economy of a nation, but a little has been done to take this individual for further analysis. Schumpeter thought that an entrepreneurs was distinguishable both by type and by conduct[4].

The concept of the entrepreneur as a person who has the function of leadership was the core of Schumpeter's assumptions. The leadership engenders creativity for introduction of innovation. "Schumpeter's thesis of leadership indicates the creative entrepreneur essentially as the leader of innovation"[5]. Schumpeter suggest that this entrepreneurial leadership quality can be valued as the means of production to the enterprise. The entrepreneur is the leader of innovation in the sociocultural and economic development of a society. According Schumpeter's, economic development as embedded in the sociocultural development of an entire society. The entrepreneur enhances interaction between the economic and noneconomic areas of a society through introduction of innovations[6].



  1. D. De Clercq, M. Voronov (2009)
  2. R.A. Baron (2000)
  3. J.W. Carland, F. Hoy, W.R. Boulton, J.A.C. Carland (2007)
  4. J.W. Carland, F. Hoy, W.R. Boulton, J.A.C. Carland (2007)
  5. L. Lintunen (2000), s. 57
  6. L. Lintunen (2000),s. 57

Author: Agnieszka Pytel