Explain how entrepreneurs remake the economy over time in Schumpeter’s theory and how this differs from the focus on static efficiency in neoclassical analysis.

EXPLAIN HOW ENTREPRENEURS REMAKE THE ECONOMY OVER TIME IN SCHUMPETER'S THEORY AND HOW THIS DIFFERS FROM THE FOCUS ON STATIC EFFICIENCY IN NEOCLASSICAL ANALYSIS
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Explain How Entrepreneurs Remake the Economy over Time in Schumpeter's Theory and How This Differs from the Focus on Static Efficiency in Neoclassical Analysis
Entrepreneurship has several advantages in the economy, such that it tends to bridge the unemployment gap through informal and formal business ventures, which employ several people globally. In such light of understanding, entrepreneurial ventures tend to contribute to the GDP (Gross Domestic Product), a symbol of their significance in financing governmental projects and raising revenue, contributing to economic growth. Therefore, Schumpeter's theory plays a pivotal role in clarifying how the expansion of output relies upon technological development history. According to Schumpeter, he suggests that innovation tends to be the main factor in any entrepreneur's field of specialization. Besides, he suggested that knowledge could be present for a long time when it helps an entrepreneur become successful.
On the other hand, the neoclassical economist tends to have a diverse ideology on entrepreneurship. They tend to focus on demand and supply as the driving factors behind the pricing, production, and consumption of goods and services. This paper's primary connotation is to critically evaluate and explain Schumpeter's theory and explain how it differs from neoclassical economics and provide fact-based arguments. According to Schumpeter's theory, consumer preferences tend to be already provided such that they do not undergo spontaneously. Most significantly, the consumer's preferences cannot be the cause of economic change. Besides, consumers in the process of economic development act as a passive role. However, as he continued, Schumpeter described the development as a historical procedure of structural changes, substantially driven by innovation divided into five categories.
1 The introduction of a new product
2 The introduction of a new method of production
3. The opening of the new market
4. The acquiring of new sources of supply of raw materials/semi or finished goods
5. The new industry structure
Schumpeter's theory argues that any individual seeking profits should innovate and apply the above strategies. Besides, five strategies are likely to cause the different employment of the economic system's existing supplies of productive means. Schumpeter firmly believed that b innovation plays a pivotal role in the economy, such that it acts as the significant driver of competitiveness and economic dynamics. Moreover, the Schumpeter theory tends to place innovation as the center of economic change. It immediately revolutionizes the economic structure from within, continually destroying the past, persistently developing a new one (Shegelman et al., 2020, p.700). Therefore, entrepreneurs are likely to remake the economy over time if they apply Schumpeter's theory because the entrepreneurs tend to be the central figure in the Schumpeter analysis of t...