Saturday, December 10, 2011

The Heart That Pumps Innovation

A) Kling claims the reason for America's economic success stems from the innovation of our entrepreneurs. He contrasts our private-ownership system with Europe's public-ownership system. I wish Kling would give statistics to back up his claims that Europe's economy is stagnating when compared to the U.S., or that "it is easier for large businesses to fail in America." I found the claim that only paranoid businesses survive very interesting; entrepreneurs must adapt to constantly changing market conditions in order to keep up with the competition. Many entrepreneurs usually experience failure before success. I also found the Entrepreneur's Ten Commandments were really interesting - its basically saying that in order to help the company, you must defy it first. However, entrepreneurship forces companies (i.e. shareholders) to bear most of the cost rather than the intrapreneur. My favorite line is: "Someone who fits the description of an un-entrepreneur would be perfectly suited in another role - as a bureaucrat."

B)
1. How many businesses does the typical entrepreneur start before creating a successful business?
2. Is the appeal of starting your own business greater today than it was 10 or 20 years ago?
3. Can you think of any businesses that actually promote entrepreneurship?

C) Entrepreneurialism advances the market, while benefiting the consumer, because of competition between rising and incumbent firms. However, in order to create a successful business model, entrepreneurs must be able to adapt to the ever changing preferences of consumers.

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