Kirzner has improved understanding of entrepreneurship though his theory of entrepreneurship alertness and discovery. Entrepreneurship alertness is the ability to identify imperfections and gaps in the markets. Market imperfections occur when people operating in the market lack information on technology, demand, supply, and competition determinants (Minniti, Spinelli, & Zacharakis, 2006, p. 45). Additionally, the people do not understand these determinants hence imperfections arise. Entrepreneurship alertness is the ability of person through their day to day activities to identify these market imperfections and get an opportunity to make economic profits by exploiting the imperfections (Minniti, Spinelli, & Zacharakis, 2006, p. 62).
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For profit organizations can be run entrepreneur. The organizations would focus on maximizing social welfare and establish new ideas that would enable organizations to achieve. Therefore, non-for –profit organizations should be run entrepreneur to establish new approaches to social problems and maximize their role in society.
Courtney, R. (2002). Strategic Management for Voluntary Nonprofit Organizations. London:
Harper, D. A. (2003). Foundations of Entrepreneurship and Economic Development. London: