Explain how entrepreneurs remake the economy over time in Schumpeter’s theory and how this differs from the focus on static efficiency in neoclassical analysis.

EXPLAIN HOW ENTREPRENEURS REMAKE THE ECONOMY OVER TIME IN SCHUMPETER'S THEORY AND HOW THIS DIFFERS FROM THE FOCUS ON STATIC EFFICIENCY IN NEOCLASSICAL ANALYSIS
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Explain How Entrepreneurs Remake the Economy over Time in Schumpeter's Theory and How This Differs from the Focus on Static Efficiency in Neoclassical Analysis
Entrepreneurship has several advantages in the economy, such that it tends to bridge the unemployment gap through informal and formal business ventures, which employ several people globally. In such light of understanding, entrepreneurial ventures tend to contribute to the GDP (Gross Domestic Product), a symbol of their significance in financing governmental projects and raising revenue, contributing to economic growth. Therefore, Schumpeter's theory plays a pivotal role in clarifying how the expansion of output relies upon technological development history. According to Schumpeter, he suggests that innovation tends to be the main factor in any entrepreneur's field of specialization. Besides, he suggested that knowledge could be present for a long time when it helps an entrepreneur become successful.
On the other hand, the neoclassical economist tends to have a diverse ideology on entrepreneurship. They tend to focus on demand and supply as the driving factors behind the pricing, production, and consumption of goods and services. This paper's primary connotation is to critically evaluate and explain Schumpeter's theory and explain how it differs from neoclassical economics and provide fact-based arguments. According to Schumpeter's theory, consumer preferences tend to be already provided such that they do not undergo spontaneously. Most significantly, the consumer's preferences cannot be the cause of economic change. Besides, consumers in the process of economic development act as a passive role. However, as he continued, Schumpeter described the development as a historical procedure of structural changes, substantially driven by innovation divided into five categories.
1 The introduction of a new product
2 The introduction of a new method of production
3. The opening of the new market
4. The acquiring of new sources of supply of raw materials/semi or finished goods
5. The new industry structure
Schumpeter's theory argues that any individual seeking profits should innovate and apply the above strategies. Besides, five strategies are likely to cause the different employment of the economic system's existing supplies of productive means. Schumpeter firmly believed that b innovation plays a pivotal role in the economy, such that it acts as the significant driver of competitiveness and economic dynamics. Moreover, the Schumpeter theory tends to place innovation as the center of economic change. It immediately revolutionizes the economic structure from within, continually destroying the past, persistently developing a new one (Shegelman et al., 2020, p.700). Therefore, entrepreneurs are likely to remake the economy over time if they apply Schumpeter's theory because the entrepreneurs tend to be the central figure in the Schumpeter analysis of the process of economic development.
Moreover, an entrepreneur tends to occupy the main place in the development procedure since he initiates development in a society and implements it. Entrepreneurship tends to be diverse from a managerial activity because entrepreneurship requires the introduction of new processes. In contrast, an administrative position requires a manager to direct productions under existing strategies. Therefore, entrepreneurs should know the entire task designed for them because they also have different capitalist functions. For instance, entrepreneurs tend to direct the funds' use, while capitalists tend to furnish their finances. The creativity activity tends to raise the economies to be productivity effective, leading to a more significant income and output.
Moreover, Schumpeter's theory enables to make entrepreneurs higher that expanding the productivity rate continues to be the secret of remaking the economy. Thus, the remaking of the economy tends to happen when sufficient resources are available in the economy. Therefore, entrepreneurs continue to the main figure in remaking the economy (Platzek, & Pretorius, 2020, p.1500). Each country attempts to attain maximum economic development since it relies on the human resources available in the country. However, the present human resource cannot produce economic resources without innovative entrepreneurs. Therefore, a particular country might have natural resources but lacks dynamic entrepreneurs, which can negatively affect economic development. Schumpeter's theory defines the entrepreneurs as focused on actions, motivated people who conduct risks to attain the objectives. Therefore, remaking and economic growth rely on entrepreneurs. Besides, entrepreneurs are likely to change and remake the economy because they are known as change agents. Through their dynamic actions and creativity in business, most people are likely to have improved products, luxuries, and a better standard of living.
The Introduction of a New Product
Developing new products tends to target new products and increase the revenue streams such that several innovative products on the market are merely incremental improvements over the previous versions. With slightly improved performance, the goods can benefit the entrepreneur by offering sufficient new value to increase sales revenue. Introducing new products to the market tends to play a pivotal role in the entrepreneur and the economy. The revenue streams are likely to decline when the entrepreneur stops operating the business. Therefore, the economy tends to be well served by the continued existence of entrepreneurs. Applying Schumpeter's theory tends to be helpful to an entrepreneur. In contemporary society, the market tends to be dynamic. It keeps changing due to the wide variety of client's needs: a globalized market and increased literacy rate. Therefore, the taste and p...