How do entrepreneurs make decisions in the real world? Why are entrepreneurs absent from mainstream economics? What functions do entrepreneurs play in the market? What type of institutional environment is needed for entrepreneurship to play a role? Neoclassical economics is a market theory without entrepreneurship. This misconception distorts our understanding of how the real market works, leading to a theory of market failure that forms the common foundation of various government interventions. The market is not only an allocative process but, more importantly, a discovery and creative process. To understand the real market, Weiying Zhang argues that economics must shift from a price-centric to an entrepreneur-centric paradigm. Blending theory and narrative, Zhang intersects history with the present supporting his theory with relevant case studies. He argues that once entrepreneurship in the market is correctly understood, the foundation for government intervention is undermined and the economy can sustainably flourish.

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Weiying Zhang is Boya Chair Professor of Economics at the National School of Development, Peking University. The recipient of several prestigious awards, he is widely regarded as the leading advocate of the free market in China as well as an authority on the theory of the firm and ownership reform. Weiying has studied entrepreneurship for four decades and, through numerous articles, papers and books, has almost single-handedly changed the public image of entrepreneurs in China.

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Re-understanding Entrepreneurship : What It Is and Why It Matters

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