Culture and entrepreneurs

More on Cultural Capital and

Entrepreneurs

“There are no entrepreneurs

without capital.”

Capitalism, Socialism and Democracy

Creative Destruction

Innovation and Entrepreneurship

Joseph Schumpeter(1883 - 1950)

There are no active entrepreneurs

without cultural capital

Intellectual

Financial Physical

Human

Culture

Entrepreneur

What capital was used to create the iPhone?

Why wasn’t the iPhone created in Syria?

bits and

atoms

atomsthe physical universe

mass and energye = mc2

always with uscannot create or destroy

bitsdigital computer technology

ones and zerosbinary digits or bits

software ideas intelligence intellectual

creativityhow we combine

bits and atoms in new waysadding more bits to atoms

making things smarter

ideas

inventions

innovations

human thought

inventors developing ideas

entrepreneurs successfully marketing inventions

China U.S.

Manufacturing 2.5 trillion 2.0 trillion

Workers 100 million 12 million

Output per worker $25,000 $167,000

$0

$45,000

$90,000

$135,000

$180,000

China U.S.

Output per Person

Innovation - Productivity

Innovation - Productivity

Continuous Innovation

discover Experimenting

idea

create

observe

Ideas grow exponentially

Internet is an idea creation and testing

factory

Culture

Entrepreneur

Two types of entrepreneurs

value-capturing value-creating

value-capturingentrepreneurs

lookingarbitrage

buy low sell highspace or time

arbitragespace and time

value-creatingentrepreneurs

new productsnew services

Culture

Entrepreneur

trust in governmentvaluesinstitutionsinfrastructure rulesrespect and dignityproperty rightsrule of lawtaxesregulationsstable currencymobility