An analysis about the entrepreneurial role in Kirzner and Schumpeter.
The objective of this article is to analyze the importance of the entrepreneur in the development and economic growth, in the vision of Israel Kirzner and Joseph Schumpeter. In 1973, Kirzner in his article “Producer, entrepreneur and the right to property” wrote about the insufficient attention paid to the entrepreneurial role. Kirzner states that a fairly sharp distinction has emerged between the factors of production and entrepreneurship. In Schumpeter's classic discussion, for example, the means of production include all agents required to produce the product in the state of circular flow (equilibrium). In equilibrium there is the tendency "for the entrepreneur to make neither profit nor loss … he has no function of a special kind there, he simply does not exist. In disequilibrium, on the other hand, innovations in product quality and in methods of production are attributable to the initiative of pioneering Schumpeterian entrepreneurs.” For Kirzner if there is a difference between factors of production and entrepreneurship. The last is not similar to factor of production, because cannot be purchased of hired by the entrepreneur. It is a fact not a mean of production. The entrepreneur is active not passive respect to the decisions that are taken in the market. In the neoclassical theory decision maker operates in a world of given price and output data. For Austrians, entrepreneurs operates change price/output data. The entrepreneurial role is relevant because it leads the negotiation of the terms in which economic transactions occur. There is only one supplier or maker of market prices. That gives life to it, and is not exempt from inaccurate decisions. And the outcome or impacts of their decisions are visible in the functioning of the market, production and consumption.
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Keywords: Entrepreneurial role; Entrepreneurship; Israel Kirzner, Schumpeter; market
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