Question

24. Schumpeter's and Kirzner's views of entrepreneurship are similar but not identical. Name three things on which they might agree and three things on which they would disagree. Which author do you find most convincing? Why?

Answer 1

Similarity between Schumpeter and Kirzner Entrepreneur theory –
- Both considered entrepreneurs as change agents of the market.
- Both considered market as a platform to explore opportunities for business.
- Both believe in the concept of a free market
Differences between Schumpeter and Kirzner Entrepreneur theory –
-Schumpeter considered an entrepreneur as an innovator while Kirzner considers them as discoverers.
-Schumpeter considered entrepreneur as a disruptive force in the market where as Kirzner considered them as a equilibrium force.
Schumpeter considered the introduction of new products as a way to discard or replace the old and obsolete ones. Kirzner considered the discovery as a new profit-making opportunity till market eliminates that through competition.

I agree with the views of Schumpeter who considered Entrepreneurs as market disrupters. Time and again, we have seen this occurring in the market. I also agree that entrepreneurs are innovators. They create stuff which was non-existent. Internet was create and so was new technologies like block chain. His ideas and philosophies are more realistic in nature.