← Search

Journal of Political Economy Vol. 98 No. 2 1990

A Theory of Entrepreneurship and Its Application to the Study of Business Transfers

Thomas J. Holmes1; James A. Schmitz

1 Twin Cities Orthopedics

Abstract

We formalize a view of entrepreneurship in the spirit of Theodore W. Schultz. In this view, entrepreneurs are those individuals who respond to the opportunities for creating new products (and the like) that arise because of technological progress, for example. The theory has implications for entry and exit, specialization of labor, and business transfers. These business transfers correspond to, among other things, individuals changing jobs an sales of firms. Transfers are seen as a mechanism facilitating division of labor. We also discuss evidence on business transfers that occur through sales of firms.

DOI
10.1086/261678
Volume
98
Issue
2
Pages
265-294
Language
en
Sources
openalex crossref

Cite