This is a fascinating back and forth between David Rubinstein and SoftBank Group Corp. Chairman and CEO Masayoshi Son.
Rubinstein, co-founder of Carlyle Group, is no slouch when it comes to raising money but he is clearly intrigued by the way Masayoshi Son raised $45 billion---in 45 minutes.
Note to Austrian school economists: You don't need to have your own capital to be a successful entrepreneur. You just need to know where to find it.
Israel Kirzner's observation on this is correct and extremely important.
Kirzner's observation means that a ghetto kid is not deprived of being a successful entrepreneur just because he has no capital of his own. It is a very important insight, deserving of the Nobel Prize, that should give hope to those who have no starting capital of their own.
-RW
You have got to be kidding me? Excuse me while I send this link to a comedian.
ReplyDelete"You don't need to have your own capital to be a successful entrepreneur. You just need to know where to find it."
ReplyDeleteThe next and bigger trick is retaining ownership and control of your successful creation when building it with capital that belongs to someone else.
An even bigger trick is selling it off with the risks while retaining an income stream from it.
Indeed. Kirzner's theory of entrepreneurship is questionable. Peter Klein's theory makes more sense, namely, that an entrepreneur is someone who risks his own capital in pursuit of profit under conditions of uncertainty. You can make money without risking your own capital, such as acting as a broker or advisor to someone else on a profit opportunity, but that doesn't make you an "entrepreneur."
DeleteHow many ghetto kids are reading and getting inspiration from Kirzner and his theory, and how many of them care if they fit within someone's theory of who is an entrepreneur?
ReplyDelete