At the beginning of this elucidation about entrepreneurship it is important to know how natural and basic entrepreneurship is to the human being. Humans seek truth, by nature, because it is what leads to betterment. Truth can be seen as the discovery of the laws in operation all around us and once these laws are relatively more understood the potential for advancement is present.
Transforming from the first stage to the second stage requires a spark of interest, a quest for knowledge, an alertness or a desire for alertness, which transforms latent entrepreneurship into active entrepreneurship. Although somewhat rare, a pure entrepreneurial discovery can occur at this stage and bear its immediate fruit. With a pure entrepreneurial discovery the betterment that results from this pure entrepreneurial discovery requires nothing other than the discovery.But humans are not always engaged in truth-seeking. Everyone has down time. Some have significantly more down time than others. This gets us to the first stage of entrepreneurship: latency. As is implied in latency, humans have the potential to be entrepreneurial - to be truth-seekers - but when that potential is not activated then it is in a state of dormancy.
Most of the time the pursuit of knowledge in the active entrepreneurial stage is accompanied by the recognition that other economic realities like physical and human resources and/or capital are important additional means that are necessary for success.
This is when the third stage of entrepreneurship is entered. The search becomes purposeful, not just for the 'new discovery' but also for all of the new combinations, including those that occur over time. Purposeful entrepreneurship is the driving force in the economy and it is a manifestation of the operation and tendency of the equilibrating power in the market process which, by the way, always happens to be in a state of disequilibrium.
In summary, the three stages of entrepreneurship are: latent, active, and purposeful. For more about the three entrepreneurial stages go here.