Whether a new firm is established or not depends on the respective environment and on its creator – the entrepreneur. Usually he does not have perfect know ledge about all critical factors, thus, he bears certain risks. Only if dimensions of perceived risk appear to be sufficient to enter a market and expected economic future shows promising signals, a new firm is born. The act of founding a firm depends on the individuals’ perceptions and on the evaluation of current situation. Furthermore, firm’s economic success, once founded, is determined again by individuals’ resources and specific managerial capabilities, in short, it all depends on the entrepreneur. Historically, some leading economists have made salient the ability and roles of entrepreneurs.

According to Jean-Baptiste Say, a French economist and businessman, the entrepreneur is a “combiner and coordinator of productive resources.” Say viewed the entrepreneur “as the core of market system,” and link of communication between the various classes of producers, and between the producer and consumer.

Joseph Schumpeter, an Austrian-Hungarian-American economist, believed market system has an inherent tendency toward change and dynamic attributes of capitalism were its most useful characteristics. Thus, according to him, entrepreneur is the innovator who implements change within markets states. As such, the entrepreneur moves the market away from its equilibrium. Schumpeter’s entrepreneurial innovation was an outcome of new goods, new methods of production, new markets, or new organisations that define economic development.

However, the entrepreneur is also seen as an ‘arbitrageur’ by Israel Kirzner, a leading economist. Kirzner points out an entrepreneur is someone with ability to perceive profit opportunities and act upon them. A ‘pure entrepreneur’ observes the opportunity to sell something at a price higher than at which he can buy it. He recognises and acts upon market opportunities. In contrast to Schumpeter’s viewpoint, according to Kirzner, entrepreneur moves market toward equilibrium.

It was Richard Cantillon,an Irish-French economist who writing before Adam Smith, introduced the term “entrepreneur” to economics. Cantillon’s entrepreneur was a speculator, but he considered the entrepreneur role to be more than a mere arbitrageur (buying low and selling high) because of the presence of uncertainty. According to Cantillon, the entrepreneur, in conducting his transactions, buys ata certain price and sells at an uncertain one. Cantillon’s entrepreneur was the key to the market system because of his willingness to bear risks.

Most recently, economists have combined these historically differing views and crafted the entrepreneur as an economic agent who undertakes an “entrepreneurial event.” Thus, an entrepreneur is one who takes initiatives — grabs a market opportunity; who consolidates resources — uses the existing resources into new production combinations (Schumpeter’s view); who manages the organization and the organisational assets to the best of the venture; who enjoys relative autonomy; and who is risk-taking.