Entrepreneurship is “the” source of information within the market process. However, it is not explicit, written or available to everyone. Although Finance professionals continuously seek to formalize entrepreneurship, there are necessary conditions to establish formalization. We examine them and show that entrepreneurship is not “decidable”. We discover that an entrepreneur is anyone who creates decidable problems or discovers previously undecidable ones and makes them decidable. This discovery comes in handy when one has to choose in which part of the capital structure (of a business) to invest.
KeywordsEntrepreneurship Formalization Algorithm Decidability Recursive language Capital structure Portfolio construction Mezzanine financing Monetary policy Economies of scale
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