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.