Introduction
The first rigorous attempt to link the innovation role of the “pioneering entrepreneur” with the boom and bust of business cycles was by Joseph Schumpeter in his two-volume Business Cycles (Schumpeter 1939). This linkage is fraught with danger as it attempts to examine innovative entrepreneurship – which occurs at the individual firm level – with the aggregate pattern on economic cycles at an economy-wide level. Much has been researched and written since then in an effort to overcome the pitfalls of this dilemma, while preserving the dynamic power of an endogenous entrepreneurial-driven cyclical process. This entry will examine the various mechanisms that have been proposed on how the action of innovative entrepreneurs can lead to prosperity and recession. The analysis begins with a first “simple” approximation of the dynamics of entrepreneurs and cycles and builds dynamic complexity with further...
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Courvisanos, J. (2017). Business Cycles. In: Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-6616-1_195-2
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DOI: https://doi.org/10.1007/978-1-4614-6616-1_195-2
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