According to the classical economists, an entrepreneur or an
organizer acts merely as an agency for bringing together the various agents of
production and undertaking to remunerate them for the work Done. But the modern
economists recognize the dynamic role that an entrepreneur plays in promoting
the economic growth of the country. This was specially underlined by
|Schumpeter who thought that the entrepreneur played a key role in economic
development. Even Karl Marx had
emphasized the fact that in trying to widen the profit margin by adopting new
technology and improved methods of production, the entrepreneur in fact makes
an important contribution to economic growth. The entrepreneur earns profit by
ensuring that the value of the final product exceeds the sum of the remuneration
of the factors of production, the value of the means of production.
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