The Ascendance and Decline of Entrepreneurialism: A Neo-schumpeterian Perspective

Entrepreneurship is frequently linked to desirable societal development while its associated social dysfunctions are ignored. This view is at the core of the ideology of entrepreneurialism. The standard explanation for entrepreneurialism’s origin and evolution suggests that it is primarily driven by ideational forces and has expanded monotonically since the 1970s. In contrast, we argue that entrepreneurialism is shaped to a considerable extent by material forces and its long-term evolution is characterized by a combination of cyclical and dialectical processes. Our argument is based on neo-Schumpeterian theory and an analysis of the cultural representation of entrepreneurs and entrepreneurship in the United States over the past 150 years. Over this time period, recurrent technological revolutions triggered successive waves of entrepreneurs, entrepreneurship, and entrepreneurialism. Each wave can be divided into two different periods. The first period coincides with a revolutionizing dynamic, a celebratory representation of entrepreneurs, and the ascendance of entrepreneurialism—but also with increasing inequality and other social and economic problems. The subsequent period of crisis triggers a balancing dynamic, a more critical representation of entrepreneurs, and the relative decline of entrepreneurialism. Our findings suggest that entrepreneurialism’s post-1970 ascendance might be coming to an end and that we might witness its decline soon.