The Marshallian entrepreneur

Abstract

Entrepreneurship is a broad topic of research, beginning with the analysis of Richard Cantillon in the mid-eighteenth century and extending into modern times with the inclusion of psychological, sociological and historical exegeses. Within such a modern approach to entrepreneurship lies Alfred Marshall’s relevant theory. His analysis begins with an examination of the fundamental entrepreneurial functions, proceeds to the establishment of an enterprise and extends to entrepreneurial motives, personal characteristics and the justification of profit as a special reward. This paper examines the Marshallian elements of entrepreneurship and presents the case that Marshall was the first economist to analytically advance an adequate entrepreneurial theory incorporating multidisciplinary factors. Also, it will be shown that he had developed ideas and arguments many of which have been recently advanced more fully theoretically and/or verified by recent empirical investigations.