L1

Question 1

Main point of 
Cantillon
Say
Mill
Schumpeter
Knight
Kirzner

Answer 1

Cantillon-entrepreneur is the person willing to take a risk
Say-intermediate between land/resource and costumer, some obstacles and anxiety involved
Mill-people willing to take risk should be rewarded
Schumpeter-innovation, something new. Not act of skill but act of will
Knight-risk must be defined, uncertainty require real entreprenuership
Kirzner-finding opportunities and acting upon them

Question 2

Four main ideas about entrepreneurship from Shane and Venkataraman

Answer 2

1. Entrepreneurial opportunities exist but are not known to everyone
2. Not everyone share the same perception of the same idea
3. Some people will chose to exploit
   There are different modes of opportunity exploitation (strategy)

Question 3

Define opportunity

Answer 3

=situation when new good, service or organizing methods can be sold at higher price and the cost to produce them
It is an objective thing but not known to everybody at the same time

Question 4

Two aspects that influence how people find opportunities?

Answer 4

Information corridors (different sets of information that affect if opportunity is discovered)
Cognitive properties (ability to see new means-ends relationships)

Question 5

What influences the decision to exploit an opportunity?

Answer 5

Nature of opportunity (expected value must be large enough)
Individual differences (opportunity cost, financial capital, risk tolerant, optimism)