Final answer:
Schumpeter's view on entrepreneurship centers around innovation, particularly through the use of new technology to produce new products, which establishes a temporary competitive edge and leads to above-normal profits.
Step-by-step explanation:
Joel Schumpeter's theory of entrepreneurship highlighted that innovation is paramount in starting and sustaining a business. He emphasized the role of technological innovation and the pursuit of new production methods or product features in enabling firms to gain temporary monopolistic power and earn above-normal profits. Schumpeter believed that such innovations often create a competitive edge that, although temporary, can significantly impact market dynamics.
Creating a new business by employing new technology to produce a new product aligns with Schumpeter's perspective. Leveraging new technology to introduce novel products or induce change in production processes can lead to the establishment of a competitive advantage in the market. This competitive advantage allows the entrepreneur to capture higher profits before competitors can adapt and catch up, fostering both industry progress and consumer benefit through increased choices and possibly improved products.
The other strategies listed, such as expanding upon old technology, developing current markets, or finding a less expensive source of resources, although potentially viable, do not embody the essence of Schumpeter's emphasis on innovation as the lifeblood of entrepreneurship.