Final answer:
Most entrepreneurial firms want to grow, aligning with the principles of a market-oriented economy. In such economies, firms are incentivized to increase capital, leading to macroeconomic growth, and are in the best position to decide on actions that will attract customers or increase efficiency.
Step-by-step explanation:
According to the textbook, most entrepreneurial firms want to grow. This is consistent with the fundamental belief behind a market-oriented economy, where firms have the freedom to make decisions such as expanding or reducing production, setting prices, opening or closing facilities, hiring or laying off workers, and introducing or discontinuing products. Firms are considered to be in the best position to determine if their actions will lead to attracting more customers or producing more efficiently, despite the potential for making mistakes, such as unprofitable ventures or clashes of corporate personalities in mergers.
In a market-oriented economic system, firms and individuals are incentivized to increase human and physical capital, which ultimately leads to macroeconomic growth. These incentives drive the pursuit of new technologies, improving products and services, and potentially expanding into international trade. As a result, the desire for growth is often a primary objective for entrepreneurial firms.