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Entrepreneurship Theories^ and^ Their^ Use^ in^ Rural^ Development:^ An^ Annotated

Bibliography. By Martha Frederick and^ Celeste^ A.^ Long.^ Agriculture^ and^ Rural Economy Division, Economic Research Service, U.S. Department^ of^ Agriculture. Bibliographies and Literature of Agriculture No. 74.

Research on entrepreneurship has changed over the 250 years since the concept was born in economic theory. The^ focus^ changed^ from^ the^ characteristics^ of^ an individual entrepreneur to the current emphasis on the contributions of entre- preneurship to economic development. This bibliography is a guide to theoretical material and to more recent empirical work on entrepreneurs in different economic climates. By using background references and^ the^ literature^ specifically^ on rural entrepreneurs cited here, rural development strategists can build a foundation of knowledge for use in their efforts to promote local independent business development.

Keywords: Bibliography, entrepreneurship, rural economic development, small business

This report is part of a research project entitled "Entrepreneurship: Assessment of Its Potential as a Rural Development Strategy," funded by the Economic Development Administration, (^) U.S. Department of Commerce.

The authors thank the following (^) for their help. David (^) McGranahan, Economic Research Service (^) (ERS) , U.S. Department of Agriculture (USDA) (^) ; Buddy L. Dillman, Clemson University; Joe Francis and Ruth Young, Cornell University; Gene Summers and Phyllis Wilhelm, University (^) of Wisconsin-Madison; David L. Barkley, Penn- sylvania (^) State University; and Stephen M. Smith, University of Arizona, provided useful suggestions on the (^) bibliography's organization, focus, and content. James P. Miller, (^) Herman Bluestone, and J. Norman Reid, ERS; and Beth Walter Honadle

,

Extension Service, USDA, (^) provided encouragement and guidance. Judith P. Reid conducted (^) a computerized literature (^) search. Donna J. Fusonie, ERS, tracked down many books and articles. (^) Tonya L. Sullivan, ERS, and Joni Hurst typed drafts of the manuscripts. (^) Elizabeth Gatewood, University of Georgia; James P. Miller, ERS; and Edward J. Malecki, (^) University of Florida, reviewed the bibliography and made suggestions for (^) its improvement. Vicky Salin, Economics Management Staff, USDA, edited the manuscript.

Abstract

Preface

Acknowledgments

1301 New York Avenue, NW. Washington, DC 20005-4788 April 1989

Entrepreneurship Theories^ and^ Their

Use in^ Rural^ Development

An Annotated Bibliography

Martha Frederick Celeste A. Long*

Introduction

After an unprecedented decade of surprisingly rapid employment and population growth, (^) rural areas in the 1980 's are once again struggling economically. Many rural areas are now growing slowly and a significant number of them are losing jobs and population through outmigration. Rural areas are looking for new^ ways to create jobs and wealth. Some are turning to indigenous development: the creation and retention of small, (^) locally owned, independent businesses. As a result, interest in rural entrepreneurship has been increasing in recent years. Yet, little is known about the (^) subject. The purpose of this bibliography is to provide a solid and systematic foundation of knowledge that could help policy- makers, community planners, and researchers assess entrepreneurship as a rural development strategy.

Scope

To give a comprehensive (^) view of entrepreneurship, this bibliography contains references (^) to general research as well as to works on rural entrepreneurship in particular. We found that relatively little has been written specifically on rural entrepreneurship. (^) Because of this and because rural entrepreneurship has much (^) in common with entrepreneurship in general, we have included many writings without a rural (^) focus. Most of the citations concern U.S. entrepreneurship, although we (^) have included some citations on studies relating to less developed countries because they (^) seem relevant to the situation in U.S. rural areas. The bibliography (^) is interdisciplinary and eclectic; it brings together literature from such fields as economics, (^) geography, planning, psychology, public administration, and (^) sociology.

We originally planned to (^) include only recent research on rural entrepreneurship

.

But, we^ quickly^ encountered a major difficulty: the terms "entrepreneur" and "entrepreneurship" are ambiguous in the recent literature. The terms are defined and used in several (^) ways. This prompted us to seek the origins of the terms in economic theory, leading us back to the "Essai sur la Nature du Commerce en General" by Richard Cantillon, (^) written about 1730. Because of the importance

*Martha Frederick is a geographer and Celeste A. Long is a former agricultural economist in the Agriculture and Rural Economy Division, Economic Research Service, U.S. Department (^) of Agriculture.

of the definition^ problem, we also added other theoretical works by such original thinkers as J.B. Say, J. A. Schumpeter, and Israel Kirzner. These historical works enable the reader to better understand the concept of entrepreneurship and the entrepreneur's role in society, to see the evolution of the concept, and to trace the change in the focus of the literature from the individual entrepreneur to the role of entrepreneurship in economic development.

Some kinds of writings were (^) purposefully excluded from this compilation. The bibliography does not contain articles from the popular press. Nor does it include any of the numerous "how-to" books or texts which tell how to be success- ful in business or how to start one's own business. Lastly, it does not contain biographies or case studies of successful or famous entrepreneurs.

Methodology

We used several^ approaches to find the works included in the bibliography. First, we searched indexes of pertinent professional journals and Government documents. We read and used works referenced in articles and books already chosen for inclusion. A computerized bibliographic search turned up additional writings. Also, we (^) solicited titles of relevant works from other cooperators in the Economic Development Administration entrepreneurship research project and other researchers interested in entrepreneurship and rural development.

We have taken care to include works that are readily available to readers of the bibliography. When necessary, we have given the addresses of the periodicals and publishers to aid readers in obtaining them.

Since entrepreneurship continues to be a popular topic, much additional work has become available since we did our final annotations. Therefore, some good works on entrepreneurship that have just recently become available may be unavoidably missing from the bibliography.

Organization

We classified the literature into four subject categories. Our first topic, definition of the entrepreneur, is subdivided into theoretical works and those that look at entrepreneurs in practice. Other subject categories contain literature on business formations, environments suited to entrepreneurship, and opportunities for (^) incorporating entrepreneurship into economic development strategies

.

Within these subject categories, we arranged the citations from earliest publica- tions to most recent ones. This chronological order^ emphasizes^ the^ historical evolution of entrepreneurship research.

Following (^) the lists of references within the four subject headings, we listed comprehensive (^) volumes that cover a wide range of topics, periodicals useful to researchers studying entrepreneurship, and other sources that^ we^ have^ not annotated.

To (^) make the bibliography more convenient to use, we have included author and subject indexes. The author index lists all of the authors or editors^ of^ the annotated works alphabetically by their last name. The subject index^ is^ arranged alphabetically (^) by keywords (^) or phrases found within the annotations. The^ keywords or (^) phrases are sometimes quite specific, such as the name of a particular community development agency. Sometimes the keywords or^ phrases^ are^ broader^ in scope, referring to a topic such as "community development corporations."^ Cross-

generation has^ become^ a popular^ topic^ since.^ Birch also pioneered the use of national data sets on business establishments based on their (^) size and age. Recent research on new^ small businesses studies their size, age, location, industry sector, and ownership patterns.

Entrepreneurship has become a popular research topic (^) in the 1980' s. Current work is a logical outgrowth^ of earlier research. Since earlier research determined that some entrepreneurial skills can be taught, some recent research concentrated on entrepreneurial training programs. While earlier research focused on (^) the characteristics of entrepreneurs as a group, recent (^) research looked at the traits of various^ types of entrepreneurs, such as minorities or women. While earlier research described entrepreneurship as change or innovation, recent research defined creation of a new firm as the entrepreneurial event. Earlier research established small businesses as entrepreneurial and important to economic growth and development, and recent research expanded to focus on issues pertaining (^) to small business^ development.^ These issues include environments favorable to small businesses, government policies to promote entrepreneurship, programs to encourage small business formations, sources of small business financing, and new forms of businesses, such as incubators (shared services and facilities (^) to nurture new businesses), public-private partnerships, and community development corporations

.

The early definition (^) of the entrepreneur (^) as the agent of change or the person who employed factors of production and profited as a result has been lost. Today, we use the term entrepreneur as a synonym for a person who starts or operates a new small business. The definition of entrepreneurship has changed from a process of innovation to the founding of a new business.

Applications to Rural Development

Studying entrepreneurship in specific settings has led to a new focus on rural entrepreneurship. Works on rural entrepreneurship point out the disadvantages of rural environments for small (^) business activity. Some studies discuss ways in which rural (^) areas can be made more attractive (^) for small business, including descriptions of successful rural entrepreneurship programs.

Efforts to improve (^) the economic climate for small businesses in rural areas may take time to show results. Entrepreneurship is neither a "quick^ fix" for^ rural economic development nor a panacea. Rather, programs to foster rural entrepre- neurship are likely to be most effective in conjunction^ with^ other^ development strategies

.

What the rural entrepreneurship literature does not^ yet^ cover^ also^ is^ quite revealing. Little has been written on the level of rural entrepreneurial activity, defined either as small independent businesses or new business^ forma- tions. Little also exists on the growth potential and survivability of entrepre- neurial businesses in rural communities. As a result^ of^ gaps^ in^ the^ research,^ we have scant information on the costs and benefits of programs designed^ to encourage rural entrepreneurship.

While descriptive studies and surveys abound, the literature^ contains^ few empirical studies of rural entrepreneurship that test theories. Few researchers approach the analysis from a national perspective. Most^ do^ only^ local^ case studies

.

Another (^) gap in the literature concerns the characteristics of new businesses^ in rural areas. The kinds of jobs they create in terms of^ pay,^ opportunity^ for

workers to improve their skills, and stability are not known. Also, (^) it is unclear what proportion of the emerging small business sector in rural areas serves only the local area or exports some of its output. Export-based small businesses have greater potential for expanding community employment both locally and in the areas receiving (^) the exports. Finally, the ability of new rural businesses to survive and grow is unknown.

Such information is needed. Gaps in our understanding of rural entrepreneurship may result in ineffective and inappropriate programs and policies. Thus, a knowledge base that is as complete as possible is vital to rural America. (^) To that end, we offer this bibliography.

Definition of the Entrepreneur

The literature reveals disagreements on how to define the entrepreneur. The views of theoreticians differ from the views of empirical researchers. Empirical researchers attempt to define who the entrepreneur is in practice.

Definitions in Theory

1730

1. Cantillon, Richard. Essai sur la Nature du Commerce en General. (An Essay on the Nature of Business in General (^) ). circa 1730. Edited and translated by Henry Higgs. London: Frank Cass, 1959.

Cantillon describes the emerging market economy in 18th century France. The entrepreneur is the central figure. This work is often cited as^ the first economic treatise to employ the word "entrepreneur."

1834

2. Say, (^) Jean Baptiste. A Treatise on Political Economy or The Production. Distribution, and Consumption of Wealth. Sixth edition. Translated by C.R. Prinsep. (^) New York: Sentry Press, 1834.

Say describes the political (^) economy by categorizing economic activity by occupation. (^) These occupations are landed proprietor, devotee of science, capitalist, master agent or adventurer, and laborer. He describes the type of reimbursement (^) for each type of labor and its role in the^ overall^ economy. Master agent or adventurer are the^ English translations for entrepreneur.

1888

3. Walker, Francis^ A. Political Economy. Third edition.^ New^ York:^ Holt, Henry, 1888.

In this^ political^ economics^ text,^ Walker^ defines^ entrepreneurs^ as individuals who employ factors (^) of production and profit from them.

1904

4. Carver,^ Thomas^ Nixon.^ The^ Distribution^ of^ Wealth^.^ New^ York:^ Macmillan,

1943

9. Sweezy, Paul M. "Professor Schumpeter^ 's^ Theory^ of^ Innovation,"^ Review^ of Economic Statistics. Vol. (^) 23, No. (^) 1, 1943, pp. 93-6.

Sweezy incorporates surpluses and accumulation of^ wealth^ into^ Schum- peter 's theory of circular flow. He concludes that these contribute as much to innovation as does Schumpeter 's entrepreneur.

1944

10. Stauss, James H. "The Entrepreneur:^ The^ Firm,"^ Journal^ of^ Political Economy. Vol. (^) 52, 1944, (^) pp. 112-27.

In contrast to traditional definitions, Stauss says that^ the^ firm^ is the entrepreneur. He explains the nature of the firm, the significance of its decisionmaking organization, and the people who^ make^ the^ firm^ work.

1946

11. Cole, Arthur H. "An Approach to the Study of Entrepreneurship : A Tribute to Edwin F. Gay," Journal of Economic History. Supplement VI.^ The Tasks of Economic History. 1946, (^) pp. 1-15. Reprinted in: Explorations in Enterprise. Ed. Hugh G.J. Aitken. Cambridge, MA: Harvard University Press, 1965, (^) pp. 30-44.

Cole reviews (^) the evolution (^) of the definition of the entrepreneur and incorporates this knowledge into a logical and systematic framework that may be useful in economic analysis.

1947

12. Schumpeter, Joseph Alois. "The Creative Response in Economic History," Journal (^) of Economic History. Nov. (^) 1947, pp. 149-59. Reprinted in: Essays on Economic Topics of J. (^) A. Schumpeter. Ed. Richard V. Clemence. Port Washington, (^) NY: Kennikat Press, (^) 1951, pp. 216-26.

Schumpeter (^) contrasts the creative response with the adaptive response to change. (^) The entrepreneur is seen as the source of the creative response, which results (^) in permanent, unpredictable social and economic changes

.

1949

13. Cole, Arthur H. (^) "Entrepreneurship and Entrepreneurial History: The Institutional Setting," Change and the Entrepreneur: Postulates and Patterns for Entrepreneurial (^) History. Research Center in Entrepreneurial History, Cambridge, MA: Harvard University Press, (^) 1949, (^) pp. 85-107.

Cole examines (^) the entrepreneurial roles of individuals in different institutions. He focuses on two groups of individuals: those who have initiated, managed, and directed charitable bodies, religious sects, and social (^) organizations, and those who are responsible for innovation, management, and adaptation to external conditions.

14. Jenks , Leland H. "Role Structure of Entrepreneurial Personality," Change and the Entrepreneur: Postulates and Patterns for Entrepreneurial History. Cambridge, MA: Harvard University Press, (^) 1949, pp. 108-52.

Jenks defines a business unit as an institutional (^) system made up of entrepreneurial and nonentrepreneurial roles. He defines two types of entrepreneurial roles, the owner-manager and the business executive. Both types are motivated by social rather than psychological factors.

15. Schumpeter,^ Joseph^ Alois.^ "Economic^ Theory^ and^ Entrepreneurial^ History," Change and the^ Entrepreneur: Postulates and Patterns for Entrepreneurial History. Cambridge,^ MA: Harvard^ University Press, 1949, (^) pp. 108-152. Reprinted in: Explorations in Enterprise. Ed. Hugh G.J. Aitken. Cam- bridge, MA: Harvard University Press, (^) 1965, pp. 45-64.

Schumpeter reviews economic literature on entrepreneurship , economic progress, and evolution of enterprise. He uses this information to support his views on the function and occurrence of entrepreneurship

.

16. Von^ Mises, Ludwig.^ Human Action: A Treatise on Human Action. New Haven: Yale University Press, 1949.

Von Mises uses praxeology, (^) the general theory of human action, (^) to object to the assumptions in economic theory of perfect information and rationality. The behavior of individuals determines economic activity, and the entrepreneur plays an important role in the market economy because people are not omniscient. Von Mises also addresses the role of the entrepreneur in centrally planned economies

.

1950

17. Jenks, Leland H. "Approaches to .Entrepreneurial Personality," Explorations in Entrepreneurial History. Vol. (^) 2, Jan. 1950, (^) pp. 91-9. Reprinted in: Explorations (^) in Enterprise (^). Ed. Hugh G.J. Aitken. Cam- bridge, MA: Harvard University Press, 1965, (^) pp. 81-92.

Jenks discusses (^) the neglect of personality characteristics in the economic analysis of the entrepreneur's contribution to historical change. Although Jenks examines several approaches, he concentrates on role theory and its use in determining the probable economic behavior of the entrepreneur.

1953

18. Kuznets, (^) Simon. "Schumpeter ' s Business Cycles," Economic Change: Selected Essays in Business Cycle. National Income, and Economic^ Growth^. New York: W.W. Norton, 1953.

Kuznets describes the relationship between the distribution^ of^ entrepre- neurial ability and economic cycles.

1956

19. Carlin, Edward A. "Schumpeter ' s Constructed Type -^ The Entrepreneur," Kyklos, Vol. (^) 9, 1956, (^) pp. 27-43.

1968

24. Baumol, William J. "Entrepreneurship in Economic Theory," American Economic Review. Vol. 58, No. (^) 2, May 1968, (^) pp. 64-71.

Baumol discusses the absence of entrepreneurship in models of economic development and the difficulty of integrating theory with policies. (^) He concludes by saying that the strategic choices and attitudes of (^) the entrepreneur cannot (^) be analyzed (^) in detail. (^) Despite this barrier to thorough research on the motivations of entrepreneurs (^) , ways to encourage entrepreneurs must be studied and integrated into policies.

25. Cole, Arthur H. "The Entrepreneur- -Introductory Remarks," American Economic Review (^). Vol. (^) 58, No. (^) 2, May (^) 1968, (^) pp. 60-3.

In his introductory remarks to the 1968 American Economic Association meetings, Cole gives a historical perspective for the economic study (^) of entrepreneurship. He provides a general description of entrepreneurs and their role in economic growth.

26. Gerschenkron, Alexander. "The Modernization of Entrepreneurship," Continuity in History and Other Essays (^). Cambridge, MA: Belknap Press, 1968, (^) pp. 128-39.

Gerschenkron recounts the historical role of the entrepreneur and the development of entrepreneurship theories from the Middle Ages through the Age of Industrialization.

27. Leibenstein, Harvey. "Entrepreneurship and Development," American Economic Review (^). Vol. (^) 58, No. (^) 2, May (^) 1968, (^) pp. 72-83.

Leibenstein expands on the Schumpeterian view of the entrepreneur as a market facilitator or "gap filler." He attempts to incorporate this role into economic theory by evaluating the theory's underlying assump- tions and acknowledging (^) the existence of market imperfections. He suggests that entrepreneurial activity can be encouraged by making changes in the "motivational state" of an area, removing market impedi- ments, and providing (^) training.

28. Soltow, James. "The Entrepreneur in Economic History," American Economic Review (^). Vol. (^) 58, No. (^) 2, May 1968, (^) pp. 84-92.

Soltow presents a comprehensive overview of historical approaches to entrepreneurship. (^) He focuses on the history of and contributions made by the Harvard Research Center in Entrepreneurial History.^ He^ ends^ by admitting that, despite these contributions, no comprehensive theory^ of the entrepreneurial role (^) in economic development exists.

1973

29. Kirzner, Israel M. Competition and Entrepreneurship. Chicago:^ The University of Chicago Press, 1973.

Kirzner develops a market and price theory that incorporates^ the entrepreneur. He covers market process versus market^ equilibrium,

competition and monopoly, selling^ costs,^ quantity,^ and^ welfare^ and coordination.

30. Vanneman,^ Reeve^ D. "Dominance^ and^ Achievement^ in^ Entrepreneurial^ Per- sonalities," Micro Aspects of Development^. Ed.^ Eliezer^ B.^ Ayal^. New York: Praeger, 1973.

Vanneman goes beyond McClelland' s work in The Achieving Society and evaluates more recent work in psychology, which may help typify entre- preneurial personalities. He presents case studies^ from^ developed^ and less developed countries and discusses the relationship between the personal motivations described (^) in need- achievement theory and entrepre- neurial behavior. (See entry #21.)

1974

31. McNulty,^ Paul J. "On^ Firm^ Size and Innovation^ in the^ Schumpeterian System," Journal of Economic Issues. Notes and Communications. Vol. (^) 8, No. (^) 3, Sept. (^) 1974, (^) pp. 627-32.

McNulty challenges the long-held interpretation of the Schumpeterian hypothesis that innovation (^) is more likely to occur in large firms with substantial market power because they have both greater incentive and more ample resources for research and development. He offers proof that Schumpeter emphasized (^) the entrepreneur and the newness (^) of the firm rather than firm size.

1978

32. (^) Leibenstein, Harvey. General X- Efficiency Theory and Economic Develop- ment. New York: Oxford University Press, (^) Inc., 1978.

Leibenstein gives a comprehensive explanation of his X- efficiency theory, which says entrepreneurs are not necessarily unique and heroic persons and allows (^) for increasing the numbers of entrepreneurs through entrepreneurial training. He examines economic development, surplus agricultural labor, migration, (^) urban unemployment, population growth, and fertility (^) within the X-efficiency construct.

1979

33. Harwood, Edwin. "The Entrepreneurial (^) Renaissance and Its Promoters," Society (^). Vol. (^) 16, No. (^) 3, Mar. /Apr. (^) 1979, pp. 27-31.

Harwood examines the state (^) of American businesses and entrepreneurs. He compares current (^) conditions to Schumpeter 's prediction of the inter- nalization of the entrepreneurial function into large corporations

.

34. Kirzner, (^) Israel M. Perception. Opportunity, and Profit: Studies in the Theory of Entrepreneurship (^). Chicago: The University of Chicago Press,

This compilation of papers addresses theories of capital and interest, the (^) topic of property, the role of the entrepreneur, and profit.

35. Pridavka, Gary (^) M. "Entrepreneur: Undefined or Ill-Defined," The Michigan Academician. Vol. (^) 12, No. (^) 2, 1979, pp. 167-74.

1981

41. Naisbitt, John. "The New Economic and Political Order of the 1980' s," Expanding the^ Opportunity^ to^ Produce:^ Revitalizing^ the^ American^ Economy Through New Enterprise Development. Eds. Robert Friedman and William Schweke. Washington, DC: The Corporation for Enterprise Development, 1981, (^) pp. 56-65.

Naisbitt pinpoints 10 emerging U.S. trends he feels will be important in the future. Among these is the emergence of an information society which will depend greatly upon the ability of entrepreneurs to use the renewable and self -generating resources indicative of an information society.

1982

42. Brockhaus , Robert H. , Sr. "The Psychology of the Entrepreneur," Encyclopedia of Entrepreneurship. Eds. Calvin A. Kent, and others. Englewood (^) Cliffs, NJ : Prentice-Hall, 1982, (^) pp. 39-71.

Brockhaus reviews literature pertaining (^) to the psychological makeup of the entrepreneur, including descriptive and theoretical works on McClelland' s need- achievement theory. He also discusses locus-of- control (perceived source (^) of a person's power (^) to control, either internal or external), role (^) models, personality traits, personal exper- iences, values, displacement, and dissatisfaction with work experiences. (See entry #21.

)

43. Casson, Mark. The Entrepreneur. Totowa, NJ : Barnes and Noble, 1982.

Casson defines (^) the entrepreneur as someone who exercises judgment to determine the best way to allocate scarce economic resources, such as capital (^) and labor. The entrepreneur is not the capitalist who bears the risk, but rather is the one being paid to make business decisions. Thus, Casson feels, (^) a culture that stresses individuality instead of conformity (^) encourages entrepreneurs who can make independent judgments.

44. Gilad, Benjamin. (^) "On Encouraging Entrepreneurship: An Interdisciplinary Approach," (^) Journal of Behavioral Economics. Vol. 11, Summer 1982, (^) pp. 132-63.

Gilad attempts (^) to reconcile the psychological and economic approaches to the study of entrepreneurship. (^) He finds merit in both disciplines and suggests an (^) interdisciplinary approach to studying entrepreneurship.

45. Harwood, Edwin. (^) "The Sociology of Entrepreneurship," Encyclopedia of Entrepreneurship (^). Ed. Calvin A. Kent. Englewood Cliffs, NJ : Prentice

Hall, 1982, (^) pp. 91-8.

Harwood begins (^) with a review of definitions of the entrepreneur and touches on the interrelationships among risk, profit, and innovation as they relate to the role (^) of the entrepreneur. He discusses the creation of "artificial (^) entrepreneurs," which results from the "prof essionaliza- tion of entrepreneurship" through educational programs. These programs turn out students who (^) don the name of entrepreneur before entering the marketplace (^) to test a new venture.

46. Hebert, Robert F. , and Albert Link. The Entrepreneur: Mainstream Views and Radical Concepts. New York: Praeger, 1982.

This text provides a comprehensive overview of entrepreneurship from the development of economic theory to success stories of modern entrepre- neurs. Central (^) to this (^) discussion is the (^) relationship between the entrepreneur and economic activity.

47. Kirzner, Israel M. "The Theory of Entrepreneurship in Economic Growth," Encyclopedia of Entrepreneurship (^). Eds. Calvin (^) A. Kent, and others. Englewood (^) Cliffs, NJ: Prentice-Hall, 1982, (^) pp. 272-6.

Kirzner contends that the obsession theoretical economists have with equilibrium has resulted in the omission of the entrepreneur from economic theory since the entrepreneur creates disequilibrium. He examines the profit motive as the force behind the entrepreneur.

48. Schiming, Richard C. "Two Views of the Future of the Entrepreneur," Akron Business and Economic Review. Vol. 13, No. (^) 2, Summer (^) 1982, pp. 22-

Schiming provides a takeoff on Schumpeter's prediction of the demise of capitalism and the entrepreneur. He offers several indicators to measure the current status of the entrepreneur in the American economy. (See entry (^) #8.)

1983

49. Arrow, Kenneth J. "Innovation in Large and Small Firms," Entrepreneur

ship (^). Ed. Joshua (^) Ronen. Lexington, MA: D.C. Heath Co., 1983, (^) pp. 15-28.

Arrow develops a simple model of the innovation process that differen- tiates between the types of innovations implemented by individuals and innovations implemented (^) by different sized firms. Because of the control structures of firms, less costly and more original innovations occur in small firms and more costly and less radical innovations occur in large firms

.

50. Backman, Jules. "Entrepreneurship: An Overview," Entrepreneurship and the Outlook for America (^). Ed. Jules Backman. New York: The Free Press, 1983, (^) pp. 1-24.

Backman portrays the entrepreneur as an individual capable of recog- nizing a need and* coordinating the personnel, materials, and capital to meet that need. He makes this characterization after a brief survey of the (^) literature. He then comments on the role of the entrepreneur in creating economic growth, increasing productivity, generating innova- tion, and financing new enterprises.

51. Baumol, William J. "Toward Operational Models of Entrepreneurship," Entrepreneurship (^). Ed. Joshua Ronen. Lexington, MA: D.C. Heath Co., 1983, pp. 29-48.

The author develops a preliminary model that incorporates entrepre- neurship into economic theory. He stresses the forces affecting^ the supply of entrepreneurship and the entrepreneur's role in economic growth

.