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Entrepreneurs in a complex economic system

This lecture explores the role of the entrepreneur in a complex economic system.
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In the previous lecture, we talked about how traditional economics look at entrepreneurship. We saw that they acknowledge that entrepreneurs are working in a dynamic environment, with a lot of uncertainty. However, these traditional economic still look at the economy as a relatively simple system. And we know, in this course, that our modern economy is not a simple system. It’s a complex system. Complexity was defined, earlier in this course, as a characteristic of a system in which a great many heterogeneous elements interact with each other and their environment. And that’s exactly what our environment is at this moment.
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So the traditional economics view is not sufficient to explain entrepreneurship in this modern economy. And that’s how organisational theories developed a new approach in the last century. They looked at entrepreneurship as a process. A process of creating, identifying, and exploiting opportunities. To bring into existence future goods or services, but they focus on the process of entrepreneurship. This process is influenced by the individual, the entrepreneur, the firm, and the context. The outcomes of the entrepreneurial process are related to the value it’s appreciated by the entrepreneur. So it’s not only profit, it can be much broader. For example, work satisfaction, or lifestyle balance.
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The more modern approach, also acknowledges that some outcomes of entrepreneurship are not related to profit. But for, example, that are important for society. Innovation or social outcomes.
This lecture explores the role of the entrepreneur in a complex economic system. In this respect, the traditional view is inaccurate. What is a more modern perspective on entrepreneurship?
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Decision Making in a Complex and Uncertain World

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