Document Type
Article
Publication Date
January 2019
Publication Title
The Journal of Private Enterprise
Volume
34
Issue Number
3
First Page
35
Last Page
42
ISSN
0890-913X
Abstract
Principles textbooks have improved in incorporating entrepreneurship intheory. However, they still generally lack simple demonstrations of theentrepreneurial input, particularly when teaching the theory of a normal rateof return. Many texts are unclear over the definition of a normal return andits constituent parts. Our paper (1) reviews the theory of the entrepreneurialinput; (2) sorts how popular textbooks calculate a normal rate of returnconsistent with their definition of the entrepreneurial input; and (3)provides a simple numerical example that incorporates the entrepreneurialinput, which can be more fully developed in intermediate texts.
Recommended Citation
John Estill and Tom Means. "How Do Principles Textbooks Treat the Return to Entrepreneurship? The Missing Factor" The Journal of Private Enterprise (2019): 35-42.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
Comments
This article was published in The Journal of Private Enterprise, volume 34, issue 3, 2019, and can also be found online here.