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Entrepreneurial strategy

In: Entrepreneurship and the Market Economy

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Abstract

This chapter relates the theory of entrepreneurship to mainstream theories of business strategy. It analyses the consequences of the entry and exit of entrepreneurs from a segmented market, and the effect that such changes have on the prices and quantities traded along different linkages within the economy. It considers whether entrepreneurs can foresee such changes, and what the consequences of such foresight might be. The analysis assumes that the cost of entry into a market is the only sunk cost incurred by entrepreneurs. The analysis can be extended to more complex cases, but in such cases the outcomes depend crucially on a range of very specific conditions.

Suggested Citation

  • ., 2024. "Entrepreneurial strategy," Chapters, in: Entrepreneurship and the Market Economy, chapter 9, pages 209-229, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:23690_9
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    File URL: https://www.elgaronline.com/doi/10.4337/9781035341542.00016
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