Creative-destructive entrepreneurialism
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- Published: Saturday, 02 January 2016 00:33
- Written by Jonathan D'Oleo Puig
Entrepreneurship is the lifeblood of economic development as the creative-destructive forces of innovation expand the production and consumption possibilities of societies around the world. Throughout this process, sellers find buyers, capitalists fund inventors and added value is translated into profits. All things being equal, profits gravitate to those most fit to compete and satisfy the needs, wants and capabilities of the human population.
Every tongue, tribe and nation has the entrepreneurial spirit present in its DNA. Granted the spirit needs individual bodies to make its intangible essence material, entrepreneurs are the conduits through which the sine qua non of economic growth kicks into full gear. The gears put in motion a vehicle of ideas that flow from scarcity to abundance in pursuit of risk, capital and new markets.
Just as motion happens at a higher rate in low friction environments, entrepreneurship is more prevalent in free-market capitalistic systems. The invisible hand, as described by Adam Smith, allocates resources in an effort-minimizing and utility-maximizing fashion. It does so without captain, overseer or ruler, driven only by the self-interest of individual agents.