Is entrepreneurship a factor of production?

This view assumes that entrepreneurship is embodied in the creation and operation of a firm and the deployment of the other factors. Austrian economist Peter Klein says that if entrepreneurship is treated as a process or attribute – not an employment category – it cannot be treated as a factor of production.

What are factors of production?

Factors of production are the inputs used to produce a good or service. If you are a baker, to bake a loaf of bread you will need flour, yeast, water, salt, an oven and so on. You won't need money, after all coins are not used as an ingredient in bread-making! However, money can be used to purchase factors of production.

Should entrepreneurship be considered a separate factor of production from labor?

Since disruptive innovations are the result of human insight, it is not entirely clear that entrepreneurship should be considered a separate factor of production from labor. Economists disagree about whether entrepreneurs are different from laborers, are a subset of laborers or whether they can be both simultaneously.