Understanding Richard Cantillon Contribution To Entrepreneurship Development
In this article , I want to continue my discussion a out entrepreneuship development . I will be talking about all that you need to know about the contributions of Richard Cantillon and Jean Baptiste Say to Entrepreneuship Development.
To earliest theories of entrepreneuship are this of Richard Cantillon and Jean Baptiste Say. Both were 18tj century French economists. He argued that all entrepreneurs -merchants , financiers , farmers and artisan operate their enterprises at a risk by buying at a certain price and selling at an uncertain price.
He is regarded as the founder of the term entrepreneur. He explained that the person bearing risk (entrepreneur) is distinct from the person providing finance (capitalist) . He observes that entrepreneur plays a pivotal role in the development of the market economy.
Contillon and Say belong to the Economic School Of Thought known as the ‘Physiocrat’ which concerned their economic analysis mainly on the physical aspect of an agrarian economy.
Contillon wrote that there are those classes of people in an economy or society:
- The entrepreneur
- The landowners
- The workers
According to him, entrepreneurs were actors in the economy . They provide mainly commercial role in the stages of production. Contillon views were not considered by earliest industrial economists probably because of the dominance of their thinking on land and agrarian economy.
Jean Baptiste also emphasised this difference between the entrepreneur and the person providing capital . He distinguished between the profit of the entrepreneur who bear the risk and interest paid to the provider of the capital.
Say described the entrepreneural functions as that of combining various business resources , risk taking and management . According to him, the entrepreneur shifts economic resources from area of lower productivity to area of higher productivity and greater yield.
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