Lecture 5

Question 1

Pioneering contribution

Answer 1

• by Cantillon and Mill
• uncertainty
• abilities instead of skills

Question 2

The disappearing entrepreneurship
(neo)classical

Answer 2

• first industrial revolution
• classical= no ep in research
• neoclassical= mathematical economic equilibrium

Question 3

Neo-Austrian economics

Answer 3

• local knowledge should have bigger role in the economy
• role ep is exploiting (opportunities)

Question 4

Evolutionary economics

Answer 4

• essential
• developments and innovation
• creative destruction
• new market creation –> disequilibrium

Question 5

What makes a cluster? How could it be improved?

Answer 5

• quality of place and good resources
• e.g universities

Question 6

causal mechanism recognition

Answer 6

dimensions influence entrepreneurial mechanisms

Question 7

SME policies

Answer 7

• simplifying regulations
• support

Question 8

Entrepreneurial policies

Answer 8

• new firm creation

Question 9

What are the 4 categories of policies? (+meaning)

Answer 9

• e-extension= support entrepreneurial activity
• target groups
• new firm creation
• ‘holistic’ entrepreneurship= entrepreneurial culture

Question 10

What are the 6 core components of the government?

Answer 10

• ep promotion
• ep education
• barriers entry and exit
• start-up support
• start-up financing
• target groups= dissolve barriers minority groups

Question 11

What happens to the market when it moves toward equilibrium?

Answer 11

• the demand is higher than the supply
• this causes the price to go up
• therefore the supply will grow since you can earn a lot of money

Question 12

What happens to the market when it moves out of equilibrium?

Answer 12

• the supply is bigger than the demand
• this causes the price to drop
• therefore companies will go bankrupt
• new markets will arise
• mutation, selection, retention

Question 13

What was Adam Smith’s opinion on government interventions in the economy?

Answer 13

He didn’t agree with it. He thought there was this ‘invisible hand’ who handled the economy on it’s own and didn’t need the government

Question 14

What is the ‘New growth theory’? (+role entrepreneur)

Answer 14

Knowledge spillovers are needed to create new economic activity. Developments mean new opportunities so the task of the entrepreneur is to execute these new opportunities.