Neoclassical vs austrian unemployment in a specific occupation
-
Knight: risk (measurable, relatively predictable) vs uncertainty Occupational earnings and entrepreneurship —> higher income
(unmeasurable, heterogeneous) risk = higher change entrepreneur, higher expected income for
Kirzner: alertness, DIY and discovery—> entrepreneur not job = lower chance entrepreneur, failure to achieve occupation
special, but person with good timing. Opportunities ‘out income = ^ chance
-
there’ Skill variety and entrepreneurship —> many skills = ^ chance
Saravathy: effectuation (to bring) + Barney: opportunity creation -
Occupational role models of self-employment and entry barriers
Schumpeter: creative destruction (entrepreneur introduces - How occupational environment can influence choice
disruptive innovations and changes system) Kautonen et al.
Austrian school Foss et al. -
The intention to start a business is not always the starting
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Methodological individualism: plans of individuals to pursue point of the entrepreneurial process
goals -
Theory of planned behaviour -Ajzen: Attitudes toward behaviour
-
Subjectivity: value is not inherent —> consumer at center of (personal beliefs) + subjective norms (beliefs environment
economic around you) + perceived behavioural control (self-efficacy,
-
Tact and dispersed knowledge: subjectivism of bailout to do it) —> Intention
knowledge, information and expectations —> behaviour
-
Uncertainty: knowledge uneven, time -
PBC has double role: high levels of control over behaviour —
-
Heterogeneity of capital: if homo then there wouldn’t be > direct connection (no intention needed), lower level of
cooperation issues control, prediction of behaviour through intention = proxy for
-
Entrepreneur =drives economy >> entrepreneurial judgement actual behaviour
is talent Dencker et al
-
Occupational theory: entreprn=self-employment, individual -
Opportunity-driven and necessity-driven entrepreneurs
= unit of analysis -
Entrepreneurial processes in developing environments
-
Structural theory: start-ups, scale-ups —> firm as unit of under basic psychological needs (institutions, human
analysis - entrepreneur driver of economic growth Mises capital)
-
Functional theory: entrepreneurship = action/process not -
(absent, low): replication = copying
outcome—> behavioural spect, entrepreneurial judgement -
(present, low) = experiential replication = trial and error
(based on uncertainty to reduce uncertainty
-
Judgement based approach Knight, Mises —> entrepreneur is -
(absent, high) = skill-preserving = observing and
different, decision making without rules to follow learning from existing businesses
Elert et al. -
- (present, high) = skill-leveraging = based on institutions
Collaborative innovation bloc: how firms create its impact and human capital, new opportunities identified and
on society and create value over time—> idea/innovation exploited
(inventor and entrepreneur) —> new firm (early-stage -
Basic safety needs developed environments (institutions, HC)
financers, customers, key personnel-knowledge dispersed -
(absent, low) = imitation = mimic
time and place) —> growing firm (later-stage financers) —> -
(present, low) = differentiation = develop value propositions
large firm -
(absent, high) = path-dependency = operate on skill set
-
Incentivised by institutions -
- (present, high) = ambitious path-dependency = capitalise
Interconnectedness agents and resources
- on skills, ambition supported by institutions
Difference schumpeterian and replicative entrepreneurs -
Coleman boat: sociology —> macro level change —> impacts
(start firm similar to existing) future macro environment, also impact individual
-
EU focused on innovation > don’t see innovation actors/resources (micro/austrian) —> individuals act on
comes from entrepreneurs change —> aggregate change of macro change. Stages:
Wennekers & Thurik 1999
- Institutions/economic policy->conditions of entre action-
Entrepreneurship: creating economic opportunities and >entre action-> entre outcomes
introduce ideas into the market in the face of obstacles Institutions = rules of the game (North 1990) —> structure
(uncertainty) = individual level incentives Formal: constitutions, lass, policies, rights,
-
Action: firm level regulations Informal: social norms, customs, tradition
-
Individual level: psychological endowments and culture No uncertainty = no failure possible —> productive, unpro. —
institutions (conditions) —> attitudes, skills and actions > must be uncertainty
-
Firm level: culture institutions and business culture Baumol
incentives —> attitudes, skills and actions -
Institutions determine relative payoff —> prevailing rule:
-
Macro level: culture institutions —> attitudes skills action payoff of activity.
(elements) -
-
Productive entrepreneurship: contributed to society and
Attitudes skills action —> startups, entry into new markets, economy —> innovation, job creation, discovery opportu. =
innovations —> variety, competition selection —> no rent seeking purpose
competitiveness and economic growth (impact) -
Unproductive, destructive entrepreneurship: rent see rent-
-
Firm performance —> self-realisation and personal seeking = expenditure of resources in pursuit of economic
wealth, competitiveness, innovations rents by means that don’t break institutions —> drugdeal,
Entrepreneurship hard to measure —> self-employment around prostitution, blackmail, corruption
the longest but self-employed =/ innovation -
Critique Foss et al ch4: no role for uncertainty which can
Week 2 - individual entrepreneur affect all types of entrepreneurial activity (future returns
What makes someone an entrepreneur?
- uncertain), Austrians say productive entrepren. = satisfying
demographics and labor economics —> education, age, needs consumers —> when judgement correct
gender —> human capital and talent Stenholma, Acs, Wuebker 2013
-
Access to financial capital -
- Rate of entrepreneurial activity: newly registered businesses
Psychology: personality —> openness, conscientiousness, per 1000 working people
extraversion, agreeableness, neuroticism -
Type: entrepreneurial aspirations
-
Sociology: networks -
Scott’s institutional pillars impact rate and type
-
Context -
Regulative: regulation, policies, rules law —> quantity : too
Occupational choice: individuals rationally weigh the expected
many/little can (de)motivate —> how easy is it to be come
outcomes and underlying risks, given their perceived
entrepreneur
entrepreneurial skills —> entrepreneurship is alternative -
occupational choice —> opportunity cost Sorgner & Fritsch Cognitive: perceptions of opportunities, perceived skills —>
hypotheses patterns of thinking
-
-
Occupational unemployment risk and entrepreneurship —> Normative: social norms, values, beliefs, —> frowned
switch to self-employment easier when there is a higher upon or encouraged? —> opinion
, -
Conducive: quality!! —> resources, skills,
technology Foss et al ch4
Political entrepreneurship: governments decision making—
> judgement on uncertainty —>3 differences market and
public: Public finance vs investors, not in price system, no profit
loss test
Institutional entrepreneurship: influence entrepreneurs on
institutions —> outcomes in boat impact policy making. Inst.
Behavior (abiding, evading, altering)
Social entrepreneurship: not primary goal of making profits —
> social value
Foss et al ch5+6 starter
Organisation economics analyses behaviour and strategies of
firms Theory of the firm analyses behaviour and strategies in
market contexts Traditional approaches
-
Industrial economics approach: firm is a unit of production
that employs factors of production under a certain
technology
