A critical analysis of the concept of entrepreneurship

Includes bibliographical references (pages 90-93)Research in social science utilizing the concept of entrepreneurship has yielded rather disappointing results. In this paper I discuss some representative research on entrepreneurship, emphasizing whether the researcher adheres to a collectivistic or an individualistic theoretical perspective. Unresolved difficulties found in the literature on entrepreneurship are highlighted. Two societies in Papua New Guinea are examined to determine the role of entrepreneurs in regard to the economic development of each, and the conclusion is reached that more is needed than highly motivated potential entrepreneurs to achieve economic development. Studies of entrepreneurship have only successfully demonstrated that it exists in modern, industrial societies, and its relationship to economic development has not been clearly illuminated. Research is presently being conducted concerning a workable definition of entrepreneurship and its relationship to economic development. Use of the concept of entrepreneurship in studies of economic development has not produced, and will not produce, significant results because it is a descriptive, not a scientific, concept that does not explain economic development. Entrepreneurship is a variable that is dependent upon the socio-economic system in which it operates and it is this socio-economic system that is important in studies of economic development. Any use of entrepreneurship must therefore be done with a complete understanding of the limitations of the concept