Criterion 7: The Role of the Entrepreneur

Entrepreneurs are men and women who search for and exploit new business opportunities. Because such opportunities are untried, entrepreneurs must take risks. Successful entrepreneurs direct resources into ventures that turn out to satisfy consumers, generating benefits that exceed costs.

A good economics text will explain the role of the entrepreneur in economic progress. It also will explain that entrepreneurship cannot be taken for granted. Government policies can reduce or eliminate it through taxes and regulations. The advantages and disadvantages of trade-offs between government action and entrepreneurship should be fully explored in economics texts.

Ideally, a textbook will present case studies of successful entrepreneurs to show that the pursuit of individual gain most often leads to greater benefits for consumers.