Abstract
One of the reasons entrepreneurs are motivated to action is their assessment of the potential profit associated with a particular opportunity to recombine resources from the factor market into a product (or service) that will be demanded in the product market. Entrepreneurial firm survival often depends on the creation and appropriation of this profit. However, this profit is uncertain ex ante as it depends on the ex post difference between the costs that must be paid for the factors of production and the prices that will be realized for the finished product. This paper explores the relationship between uncertainty and the creation and appropriation of profit by entrepreneurial firms.
Document Type
Article
Publication Date
9-2005
Publisher Statement
Copyright © 2005 Babson College. This article first appeared in Frontiers of Entrepreneurship Research (September 2005).
Please note that downloads of the article are for private/personal use only.
Recommended Citation
Bosse, Douglas A., and Sharon A. Alvarez. "Summary -- Reducing Market and Appropriation Uncertainty: The Twin Organizational Tasks of Entrepreneurship." Frontiers of Entrepreneurship Research (September 2005).