Entrepreneurship, growth, and Adam Smith

Authors

  • Steven C. Michael

    Corresponding author
    1. College of Business, University of Illinois at Urbana Champaign, Champaign, Illinois, U.S.A.
    • University of Illinois at Urbana Champaign, College of Business, 1206 S. Sixth St., Champaign, IL 61820
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Abstract

In the canonical work of economics, Adam Smith's Wealth of Nations, he explained that nations grow wealthy through changes in the division of labor. Using Smith's insight, entrepreneurship can be defined as the study of human actions that lead to changes in the division of labor. This definition gives theoretical and empirical meaning to studies examining new venture formation and economic growth, and can be used by scholars for intellectual profit, as illustrated by Baumol and Strom, Casson and Wadeson, and Agarwal, Audretsch, and Sarkar. Copyright © 2008 Strategic Management Society.

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