Essay The Missing Entrepreneur in Economics - 1602 Words

You cant connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something - your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life. -- Steve Jobs Current economic research denies the innate characteristics of the entrepreneur. Rather than attributing economic growth and innovation to personality traits, economists would rather advocate a form of economic determinism: if an aggressive personality dominated an industry, economists try to explain the characteristics of the industry that made aggression a successful strategy. Economic models are†¦show more content†¦By starting a company with a small scale of profitable operation, they faced a â€Å"heads I win, tails I don’t lose much† scenario. If they failed, they could place the attempt on their resume. Entrepreneurs are not betting the family fortune or making their years spent earning an MBA worthless; instead, we find that an Inc. 500 founder is just about as likely to have only a high school education as to hold an MBA and as likely to be very poor as very affluent. The entrepreneur need not be less risk averse than the average human being. As Jeff Bezos famously noted, it would have been far riskier for him to not have started Amazon.com than to have started it. If Bezos had spent 12 years at medical school studying neurosurgery or had to give up a $3 million a year position at his father’s company, he would not have faced an incentive structure that would have made founding a company the least risky option.What is noteworthy is just how wrong Knight and Mises are with their conception of entrepreneur as risk-bearer. Not only is the entrepreneur not necessarily a risk-bearer, he is more akin to an arbitrageur with his â€Å"heads I win, tails I don’t lose much† incentive structure. Inc. 500 entrepreneurs tend to serve niche marketsShow MoreRelatedInnovation Of An Entrepreneur Creates Innovation1485 Words   |  6 PagesAs entrepreneurs, we are expected to transform, motivate, and thrive. We are seen as the movers and shakers of multibillion pound industries. However, one question always remains, how? The answer is innovation. According Joseph Schumpeter, an entrepreneur creates innovation; not only through invention but by competition to improve technology, finance and organization. Innovation in its simplest form is the generation of a new idea and this idea’s implementation into a concrete form. Innovation canRead MoreCruise Ships And Management Teams Of The Cruise1536 Words   |  7 Pagesthe port locals and entrepreneurs suffering. 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