Entrepreneurs allocate the deficient goods and the free goods in the process of productive consumption according to the requirements of a specific system of wants. The production of an actual economic good appears as consumption of some other goods, and the consumption of an actual good is a production of some other goods nevertheless. Entrepreneurs run productive consumption, or – what amounts to the same thing – creative destruction, according to the maxims of the consumer sovereignty and the producer sovereignty.
Historical Backdrop
• RICHARD CANTILLON An Essay on Economic Theory: entrpreneur.
• JEAN BAPTISTE SAY A Treatise on Political Economy: proprietor.
• EUGEN VON BOHM-BAWERK Positive Theory of Capital: capiatalist undertaking.
• JOSEPH SCHUMPETER The Theory of Economic Development: new combinations; Capitalism, Socialism and Democracy: creative destruction.
• PETER DRUCKER Innovation and Enterpreneurship: entrpreneurship.
• ISRAEL KIRZNER Competition and Entrepreneurship: alertness.