Problem Solving-Answer the questions related to The Theory of Essay

Problem Solving-Answer the questions related to The Theory of entrepreneurship - Essay Example Curran stated the term entrepreneur should be kept for those small business owners who are innovative and opportunistic in organizing resources or offering new products and services in chase of profit, and others that are not innovative and merely offer recognized and services to existing markets are merely small business owners. Schumpeters interactions with the thoughts of other economists were relatively complex in his most essential contributions to economic analysis were the theory of business cycles and development. Following neither Walras nor Keynes, Schumpeter start in The Theory of Economic Development with a paper of circular flow which, not including any innovations and innovative actions, leads to a inactive state. The inactive state is, according to Schumpeter, explained by Walrasian equilibrium. The superman of his story, though, is, in fine Austrian fashion, the entrepreneur. The entrepreneur upsets this equilibrium and is the reason of economic development, which proceeds in cyclic fashion along several time scales. In fashioning this theory linking innovations, cycles, and development, Schumpeter kept alive the Russian Nikolai Kondratievs thoughts on 50-year cycles, Kondratiev waves. Schumpeter offered a framework in which the four main cycles, Kondratiev, Kuznets, Juglar and Kitchin can be combined collectively to form a merged waveform. In fact there was significant professional competition between Schumpeter and Kuznets. The wave form offered here did not contain the Kuznets Cycle basically because Schumpeter did not identify it as a suitable cycle (you can see "Business Cycles" for verification. A Kondratiev wave could comprise of three lower degrees Kuznets waves. Each Kuznets wave could, itself, be faked of two Juglar waves. In the same way two or three Kitchin waves could outline a higher degree Juglar wave. If each of these were in stage, more