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The Unintended Consequences of Entrepreneurship

The Unintended Consequences of Entrepreneurship Maria Minniti0 & Roger Koppl 00 1. Introduction Entrepreneurship breeds entrepreneurship. 1 It is not the entrepreneur's intention to produce more entrepreneurship. He intends to make a profit. It is thus an unintended consequence of entrepreneurship that it breeds more entrepreneurship.2 As such, it is subject to the sort of invisible-hand explanation characteristic of Austrian economics. 5 The idea that entrepreneurship exhibits increasing returns to adoption has been stated in the past. 4 It has not, however, been clearly developed within the context of Austrian theory. This paper attempts to fill that gap. Kirzner builds on both Hayek and Mises. We believe that developing the Hayekian elements of Kirzner's theory may allow us to derive testable implications of the theory. 5 Kirzner has devoted considerable attention to the catallactic implications of his theory. In this paper we develop some different catallactic implications of entrepreneurship, implications that have been largely or entirely neglected by Kirzner. As far as we know, these catallactic implications of entrepreneurship are not to be found in Hayek's work. It was, after all, Kirzner and not Hayek who developed a full-blown theory of entrepreneurship. We believe, * We thank David Harper and two anonymous referees http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal des Économistes et des Études Humaines de Gruyter

The Unintended Consequences of Entrepreneurship

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Publisher
de Gruyter
Copyright
Copyright © 1999 by the
ISSN
2194-5799
eISSN
2153-1552
DOI
10.1515/jeeh-1999-0406
Publisher site
See Article on Publisher Site

Abstract

Maria Minniti0 & Roger Koppl 00 1. Introduction Entrepreneurship breeds entrepreneurship. 1 It is not the entrepreneur's intention to produce more entrepreneurship. He intends to make a profit. It is thus an unintended consequence of entrepreneurship that it breeds more entrepreneurship.2 As such, it is subject to the sort of invisible-hand explanation characteristic of Austrian economics. 5 The idea that entrepreneurship exhibits increasing returns to adoption has been stated in the past. 4 It has not, however, been clearly developed within the context of Austrian theory. This paper attempts to fill that gap. Kirzner builds on both Hayek and Mises. We believe that developing the Hayekian elements of Kirzner's theory may allow us to derive testable implications of the theory. 5 Kirzner has devoted considerable attention to the catallactic implications of his theory. In this paper we develop some different catallactic implications of entrepreneurship, implications that have been largely or entirely neglected by Kirzner. As far as we know, these catallactic implications of entrepreneurship are not to be found in Hayek's work. It was, after all, Kirzner and not Hayek who developed a full-blown theory of entrepreneurship. We believe, * We thank David Harper and two anonymous referees

Journal

Journal des Économistes et des Études Humainesde Gruyter

Published: Dec 1, 1999

References