The Entrepreneur in the Firm
September 20, 2011 Leave a comment
While the theory of the firm is struggling with the Coasean questions about its existence, boundaries, and internal organization, the entrepreneur is strangely missing. Obviously, an entrepreneur is needed at the creation of firms. By definition. But what is the entrepreneur’s function within the firm? And what is the firm’s function to the entrepreneur? These questions are seldom asked and even more rarely answered.
I make an attempt to connect the entrepreneur and the firm from a historical point of view, summarizing the evolution of the theory of the firm and attempting to identify the relationship between entrepreneurs and their firms. I drafted a theory in a recently published article that we mentioned here. In an article for a not-exclusively-academic audience published today, I discuss how the history of the economic theory of the firm suggests answers to many questions about the firm and the entrepreneur – and how they are interdependent. It was given the title: The Economic Theory of the Firm.