Study On Entrepreneurship Based On Market Process Theory Of Austrian School And Application

Owning to its prominent role in enlarging employment, increasing income and promoting economic growth, entrepreneurship has become the focus that governments and scholars have paid much attention to, and there has witnessed a strong upsurge in the study of entrepreneurship around the world. Scholars have made some progresses in studying entrepreneurship, but there still lacks a uniform research paradigm, and many important concepts and the boundary of study have not been well defined. Now, such lack of an distinctive theoretical framework risks inhibiting the further development of entrepreneurial studies.Based on the critics of neo-classical general equilibrium theory, Austrian school has developed market process theory. Austrian scholars explored the entrepreneurship phenomenon in a disequilibrium context.They emphasized entrepreneurial discovery behavior and its implication for entrepreneurship. Austrian entrepreneurship theory offers a new perspective for entrepreneurial study.This dissertation detailed Austrian entrepreneurial study, and studied the following problems employing neo-classical economics, Austrian economics, cognitive psychology, resource-based theory, SEM as tools:1. We examined the sources of thought on and the main points of market process theory, distilled the essential part of Austrian entrepreneurial study, i.e. entrepreneurial discovery theory.2. We firstly made a comparative study of Austrian opportunity discovery viewpoint, Neo-classical opportunity discovery viewpoint and Behavioral opportunity discovery viewpoint, enhanced our understanding on the theories of entrepreneurial opportunity discovery.3. Combining with cognitive psychology and resource-based theory, we examined entrepreneurial process with three phases of opportunity discovery, evaluation and development based on market process theory, designed an analytical framework of Austrian entrepreneurial process.4. The sources of economic growth has always been one focus for academics. Mainstream economic growth theory emphasized several factors contributing to economic growth, such as technology advancement,R&D and institution, and its implicitly assumed the possibility of economic growth to be necessarity. From the viewpoint of Austrian entrepreneurial theory, we regarded entrepreneurial discovery as the fundenmatal driving force of economic growth.This study extended existing economic growth theories.5. Austrian entrepreneurial theory suggested that economic freedom has a positive impact on entrepreneurship. Based on the cross-sectional data of all the mainland provinces and municipalities from 2002 to 2006, we, using SEM, tested the relationship between economic freedom and entrepreneurship in China, and gave interpretation by market process theory.