What is the theory on entrepreneurship of knight?

Frank H. Knight's theory on entrepreneurship posits that entrepreneurs are distinct from mere business managers due to their ability to take on risk and uncertainty. He emphasized that true entrepreneurship involves making decisions in the face of uncertainty, where outcomes are unknown and cannot be calculated. Knight argued that this risk-bearing role is essential for economic progress, as entrepreneurs identify opportunities and innovate, ultimately driving competition and growth in the market. His insights laid foundational ideas for understanding the role of uncertainty in economic behavior and entrepreneurship.