How do entrepreneurs make decisions in the real world? Why are entrepreneurs absent from mainstream economics? What functions do entrepreneurs play in the market? What type of institutional environment is needed for entrepreneurship to play a role? Neoclassical economics is a market theory without entrepreneurship. This misconception distorts our understanding of how the real market works, leading to a theory of market failure that forms the common foundation of various government interventions. The market is not only an allocative process but, more importantly, a discovery and creative process. To understand the real market, Weiying Zhang argues that economics must shift from a price-centric to an entrepreneur-centric paradigm. Blending theory and narrative, Zhang intersects history with the present supporting his theory with relevant case studies. He argues that once entrepreneurship in the market is correctly understood, the foundation for government intervention is undermined and the economy can sustainably flourish.

‘Combining vivid real-life examples with sound logic, this book illustrates how the neoclassical theory of economics overlooks the main driving force of economic development - entrepreneurship. This book reflects Professor Zhang’s deep and critical thinking about China’s economic miracle in the past forty years, highlighting the importance of the agency and creativity of individual entrepreneurs in the face of numerous political, legal, and institutional ambiguities and barriers.’

Xiao-Ping Chen - Philip M. Condit Endowed Chair Professor in Business Administration, Michael G. Foster School of Business, University of Washington

‘A major advance in our understanding of entrepreneurship and of the essential role it plays in the economy.’

Meir Kohn - Professor of Economics, Dartmouth College

‘Weiying Zhang is one of the most important economists of our time. I have learned a lot from him. At the center of his thinking is, quite rightly, the entrepreneur. Entrepreneurial ideas are the most important thing in capitalism - and we all owe our prosperity primarily to entrepreneurship.’

Rainer Zitelmann - Historian, sociologist, entrepreneur, and author of In Defense of Capitalism (published in thirty languages)