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In Search of Lost Schumpeter

Volodymyr Machuskyy Sr.

Entrepreneurial activity, or entrepreneurship, began to attract the attention of economists in the eighteenth century. The development of the process of scientific definition of entrepreneurship took place in several stages.

Josef Schumpeter’s theory of entrepreneurship (1934) seems to be the most suitable – entrepreneurial activity is the ability to promote innovation on the market through risky business, which is a constant source of competitive restructuring of the economy and economic growth.

Innovation means, in contrast to invention, not only and not so much the original idea of a new product or technological process, but the transformation of the idea into an innovation suitable for commercial implementation.

The driving force of the entrepreneur are his interests, needs and incentives.

Entrepreneurial interests have motivational and meaningful ways of expressing.
Motivational expression of entrepreneurial activity requires profit, and meaningful expression is associated with the formation, development and implementation of individual personality abilities.

If we talk about entrepreneurship from a subjective point of view, then entrepreneurship is the state of mind. You can’t be an entrepreneur from 9 a.m. to 6 p.m. At the same time, entrepreneurship is not a profession, and it is impossible to stay in this state for a long time.

Or another person, in principle, is an entrepreneur, if he implements a new original idea (creates a new combination). When a business created by such a person begins to function independently, in ordinary circulation, entrepreneurship disappears.
Therefore, there are not many entrepreneurs who remain entrepreneurs for decades, as well as ordinary business entities that have not become entrepreneurs at least once in their lives.

The implementation of entrepreneurial activity, so to speak, in its pure form is a specific process, a function of a special kind. Under normal conditions of economic turnover, each business entity feels confident and behaves in the same way as others.

Moreover, these other business entities usually expect this kind of behavior from this entity. In this case, the subject acts quickly and rationally. He simply adjusts his actions to the circumstances, which, as a rule, do not change suddenly and suddenly. And it does not matter in what social circle of society such activity takes place.

The peasant, in selling his harvest, can show the same sharpness of mind and resort to the same, if not greater, tricks as the chairman of the bank, who seeks the right decision from the general meeting of shareholders. But they can hardly be called entrepreneurs. Their actions are based on numerous precedents, which for decades, centuries, and even millennia, have shaped people’s behavior, destroying any deviation from the norm.

However, life constantly provides everyone with new opportunities, including the opportunity to make discoveries and inventions. Then why can’t this or that individual take advantage of these new opportunities in the same way as he used the old ones? You do not need to be an inventor to do this. Entrepreneur and inventor in general very rarely exist in one person. The entrepreneur, as a rule, realizes new opportunities, instead of creates them.

Realizing new opportunities (idea, combination), the business entity solves an unusual task. If he used to go with the flow, then, changing the constant order of things, he must swim against it. Any departure from the routine is associated with certain difficulties.

Where the established order ends, many individuals stop, others act differently. What used to be a reliable support becomes an obstacle, and well-known factors are unknown. It is one thing to build a new road, it is quite another to use an already built one.

There is even some public opposition to the entrepreneur’s attempts to introduce something new in general. Such opposition can take the form of obstacles, both legal and political.

It should be borne in mind that to implement something new is more difficult than usual and tested not only objectively.

Subconsciously, through habit or tradition, the subject himself may oppose this new, realizing that its implementation requires new and even qualitatively new efforts. Hence, it can be noted that all entrepreneurs are economic entities, but not all economic entities are entrepreneurs.

An entrepreneur is characterized by a special view of things. In addition, the main role is played not so much by intelligence as by the will and ability to be aware of certain moments of reality and see them in the real light. And when it comes to intelligence, it is important for the entrepreneur not so much its depth and breadth, as a special kind of limitation.

An entrepreneur is also characterized by the ability to move towards a set goal, not paying attention to the associated uncertainty and possible resistance. Equally important is the entrepreneur’s ability to influence other people, using them for his own purposes.

One of the motives of the entrepreneur is the desire to create their own business, and ideally – a private empire and dynasty. His business gives the entrepreneur a sense of freedom and power.

The next motive of the entrepreneur can be determined by his will to win. On the one hand, it is a desire to fight, and on the other – to succeed. And although the motto of the entrepreneur is always “plus ultra”, the economic side of the case is not always decisive. In this case, the amount of profit can play the role of indicators of success and victory, because there are simply no others for the entrepreneur.

Another motive for the entrepreneur can be defined as the joy of creativity. Although the joy of creativity is inherent in other areas of socially significant activities, it is for the entrepreneur that it becomes an important motive for behavior.

An entrepreneur moves in a business environment, as movement is his nature, while enjoying creative activities and overcoming difficulties that arise on his path.

Business Courts in the United States

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