Matthew McCaffrey

Austrian Economics and Entrepreneurship surveys the rich history of entrepreneurship research within and inspired by the “Austrian” school of economics. Unlike most schools of the past 150 years or so, the Austrian tradition places entrepreneurship at the heart of economic theory and practice. Understanding the entrepreneurial “function” in society is vital for explaining the real-world market process, but also for a proper understanding of the fundamental concepts and theories of economics. These include action, choice, exchange, prices, supply and demand, money, capital, competition, economic development, and business cycles, to name only a few. This monograph surveys the development of Austrian theories of entrepreneurship, examining the contributions of leading members of the tradition in addition to those of some lesser-known writers and scholars. The authors explore some ways in which Austrian work contributes to modern entrepreneurship research, especially through the Judgment-Based Approach. The monograph concludes with a discussion of the professional roles now played by Austrians in the contemporary entrepreneurship discipline.

The 'Austrian' tradition is well-known for its definitive contributions to economics in the twentieth century. However, Austrian economics also offers an exciting research agenda outside the traditional boundaries of economics, especially in the management disciplines. This Element examines how Austrian ideas play a key role in expanding the understanding of fields like entrepreneurship, strategy, and organization. It focuses especially on the vital role that entrepreneurs play in guiding economic progress by shaping firms and their strategic behavior. In doing so, it explains a wide range of contributions that Austrian economics makes to the understanding of key problems in management, while also highlighting many directions for future work in this inspiring tradition.