Anticipatory Inadequacies of Business Economics And Entrepreneurship Theory

Two general theories try to explain the economic life of firms – the business economics theory and the entrepreneurship theory. In this paper, both theories are examined to determine whether either of them, in their present form, is able to explain the complexity of economic life, and even more, to anticipate future states of economic reality for firms doing business in a rapidly changing environment. We argue that they have lost their predictive power and suggest that some paradigmatic shifts are to be undertaken. The common denominator of changes needed in business economics and entrepreneurship theory to fulfill the role of an inner predictive model is a shift from onesidedness to holism, by which the encoding of a business system will be improved.