To examine the structure of entrepreneurship we will combine its form with the price system. If there ever appears to be a lull in entrepreneurial activities – and there happens to be no intervention – it simply means that the market participants have not yet become aware of the opportunities or are not willing to bear the uncertainties that are there. However, competitive entrepreneurship guarantees that the discovery and pursuit of the opportunities is on the near horizon.
Market participants will allocate resources to the investments with the highest present value and then to the next highest, successively, discounting the expected future value. In the real world economy this reckoning of the time horizon is of great importance. In a world like we have nowadays, most production processes are time consuming which means that entrepreneurial profit opportunities typically require capital, so it is that capital is part of the entrepreneurial structure.
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