How Do Principles Textbooks Treat the Return to Entrepreneurship? The Missing Factor

Authors

John Estill, San Jose State University
Tom Means, San Jose State University

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.

Comments

This article was published in The Journal of Private Enterprise, volume 34, issue 3, 2019, and can also be found online here.

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