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Article: Entrepreneurship and Dynamic Capitalism: The Economics of Business Firm Formation and Growth.
- Article from:
- Review of Business
- Article date:
- June 22, 1994
- Author:
CopyrightCOPYRIGHT 1994 St. John's University, College of Business Administration. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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This is a relatively small book with a very large objective--to help slay the dragon of general equilibrium theory. Why? Because general equilibrium theory has failed to acknowledge the importance of small-firm entrepreneurship to the creation and distribution of wealth and has spawned inimical government policies biased in favor of the large corporation.
Kirchhoff argues that entrepreneurship is a small-business phenomenon that is the engine of new job creation. It is a turbulent phenomenon that undermines the notion of equilibrium. It is a phenomenon in which change is the normal state. General equilibrium economics, says Kirchhoff, must give way to evolutionary ...