The Concept of Entrepreneurship: A Comparative Analysis between the Neoclassical School and the Austrian School of Economics

Abstract

Entrepreneurship holds a central yet uneven role in economic theory. This paper compares neoclassical and Austrian views of entrepreneurship. Neoclassical theory emphasises equilibrium, rationality, and perfect information. It largely marginalises the entrepreneur as an analytical category. Profit is seen as a temporary deviation or reward for risk, not discovery. The Austrian school places the entrepreneur at the core of market economies. It views entrepreneurship as a form of discovery amid uncertainty and dispersed knowledge. Entrepreneurs drive coordination, innovation, and market adjustment. The comparison reveals static vs. dynamic understandings of markets, and integrating both perspectives may enrich theory despite key differences.