[2] William Baumol wrote in American Economic Review that "The theoretical firm is entrepreneurless – the Prince of Denmark has been expunged from the discussion of Hamlet".
Entrepreneurship is difficult to analyse using the traditional tools of economics, e.g. calculus and general equilibrium models.
[5] Coase believed that economics has become a "theory-driven" subject that has moved into a paradigm in which conclusions take precedence over problems.
Entrepreneurial Economics challenges fundamental principles, using insights from models and theories in the natural sciences.
"[6] Studies about entrepreneurs in economics, psychology and sociology largely relate to four major currents of thought.
[9] He is a kind of "super-manager" because the exercise of the function needs a combination of rare qualities and experience: "Judgement, perseverance, and a knowledge of the world as well as of business...the art of superintendence and administration".
Knightian uncertainty exists where there is no basis for objective probabilities, so that it is unmeasureable and decisions have to be made using subjective judgment.
He assigned the role of innovator to the entrepreneur, driving economic growth through a process of creative destruction, and not to the capitalist.
Israel Kirzner, an economist of the Austrian School, sees the entrepreneur as an arbitrageur who is alert to opportunities for profit that exist due to market disequilibrium.
Additionally, drawing from the theories of J.B. Say and Richard Cantillon, Leibenstein suggests that entrepreneurs have the ability to combine various inputs into new innovations in order to satisfy unfulfilled market demand.