Toward a theory of entrepreneurship

While current economic models acknowledge the important role entrepreneurship plays both as a factor of production, and as a force behind long-term growth, a formal definition and theory is absent. This thesis reviews the current literature on entrepreneurship to create a working definition. This definition is used to develop the beginnings of a theory of entrepreneurship with special emphasis placed on its relationship to the real business cycle. A select data set and case study are presented, followed by a brief discussion of the consequences of the model and its implications for government policy, as well as a call for additional data collection related to entrepreneurship.