Entrepreneurial capital is a component of Audretch's complementary theory of growth, promoting entrepreneurship to being an essential and decisive factor of production in the knowledge-driven global economy. Capital stands for:
A) The capital the entrepreneur withholds as compensation for the risk he/she takes
B) The capital an individual can earn from his/her knowledge
C) The capacity of the economy to transform new knowledge into new applications
D) An entrepreneur's investment in his/her project

Question

Quizplus · Accepted Answer

Entrepreneurial capital refers to the capacity of the economy to transform new knowledge into new applications. It is not solely related to the capital an individual earns or invests in their project, as suggested in options A and D. Option B is not a comprehensive definition of entrepreneurial capital as it overlooks the collective effort required to bring new knowledge to fruition. So, option C is the best choice as it highlights the role of the wider economy in supporting entrepreneurial pursuits.

Entrepreneurial Capital Is a Component of Audretch's Complementary Theory of Growth