Austrian Theories

The Austrians assume that markets are composed of people who possess different information. This information allows people to see opportunities that others do not see, even though they are not actively searching for this information. Difference in information leads people to see different value propositions. Collectively this process of decision making about prices moves from an economy of disequilibrium to equilibrium.

In short:

1. People cannot recognize all entrepreneurial oportunities
2. Information about opportunities rather than fundamental personality attributes determine who becomes an entrepreneur.
3. This process depends on other factors than people's willingness to take action.

Part of: Entrepreneurial theories