The Special Understanding of Entrepreneurship by Americans of the Austrian School
Austrian economics has always been on the leading edge of innovative thinking applicable to business. Back in the last century, there was a group of American economists of the Austrian school who greatly advanced theories related to subjectivism; that is, the role of human beliefs and preferences, and of the market as a process. Here are some of the insights (Mises.org/E4B_107_PDF) they gave us about entrepreneurial business.
The function of entrepreneurship is the generation of new subjectively perceived value.
These economists got the name The Psychological School, because they understood that value is a function of human feelings, preferences and beliefs. The secrets to the successful pursuit of new value are not found in data and mathematics, but in human motivation.
The activity of entrepreneurs is the development and implementation of value-generation business models.
The twentieth century economists we talk about on the podcast this week would probably never use the term business model. But their concept of the market as a process
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