ABSTRACT
Traditional factors of production, land, labour, capital, once acquired give a stable equation. With the consideration of entrepreneur as prime mover this equation is destabilised, in the sense that a variable factor is now under consideration. The uncertainty may be determined by the political system and the prevailing law and order situation. Normally noneconomic factors have not been given due weight in the analysis of risk and uncertainty. The risk of an entrepreneur may be entirely determined by institutional framework in existence. The uncertainty may be determined by political system and prevailing law and order situation. The entrepreneur in organising something new was taking on a new ‘risky’ arrangement. This presumably also meant a reconsideration of raw materials, production systems, marketing of goods etc. Entrepreneur may, therefore, be added to the original list of factors of production. The reasons for this being so are different than in the more developed countries where capital markets follow their own criteria and nuances.
