In traditional economics a basic principle is that economic resources - the means of producing goods and services - are limited or scarce. Economic resources are defined as property resources - land or raw materials and capital - and human resources - labor and entrepreneurial ability. Therefore, entrepreneurial ability is one of the four cornerstones of our economy. What is meant by entrepreneurial ability? There are essentially four basic components to it:
1. An entrepreneur is the one who takes the initiative to combine land, capital, and labor to produce a good or service in what is hoped will be a profitable venture.
2. An entrepreneur is a person who makes basic business policy decisions that set the course of the business enterprise.
3. An entrepreneur is an innovator - a person who attempts to introduce on a commercial basis new products, new productive techniques, or even new forms of business organization.
4. An entrepreneur is a risk taker, risking not only time, effort and business reputation, but his or their invested funds and those of associates or stockholders.
The availability of these resources directly affects how robust the economy is.
Historically, being entrepreneurial has been outside the mainstream of the business.
Today, with the internet boom, entrepreneurs have become one of the most dynamic forces in the economy.