ABSTRACT
This chapter introduces the concept of pure entrepreneurship. Israel Kirzner has developed it in his work, in order to understand that entrepreneurship is the creative ability of people. The chapter explains how the creative ability, which everybody possesses to a greater or lesser degree, can be defined as the ability to create new possibilities of action. Thus pure entrepreneurship cannot be reduced to a productive factor because it is not something that is given as a variable of a production function, but rather it is something prior and more radical. Entrepreneurship is the perception that undertaking this productive action may be profitable. Entrepreneurship cannot be reduced to objective knowledge, like scientific knowledge. Entrepreneurship is the subjective ability to use objective knowledge. The essence of entrepreneurship is in the active alertness of the person. The role of the person in the discovery of the means is active.
