What is entrepreneurship in economics?

Entrepreneurial economics is the field of study that focuses on the study of entrepreneur and entrepreneurship within the economy. The accumulation of factors of production per se does not explain economic development. They are necessary factors of production, but they are not sufficient for economic growth.

What does it mean to be an entrepreneur?

Adam Smith, paste medallion by James Tassie, 1787; in the Scottish National Portrait Gallery, Edinburgh. entrepreneurship, the state of being an entrepreneur, or a person who organizes, manages, and assumes the risk of a business with the goal of generating economic value. The term is derived from the Old French verb entreprendre, “to undertake.”

Why is entrepreneurship important in economics?

Economies rely highly on entrepreneurship to develop as entrepreneurs identify profit opportunities which naturally ends up filling gaps in the market to enhance the community. What is an example of entrepreneurship in economics? John lives in a rural town that imports most of its goods and thus doesn't produce much with its given resources.