June 15, 2012

Entangled Political Economy and the Two Faces of Entrepreneurship

  • Marta Podemska-Mikluch

    Marcia Page and John Huepenbecker Endowed Professor in Entrepreneurship
  • Richard Wagner

    Distinguished Senior Fellow, F. A. Hayek Program for Advanced Study in Philosophy, Politics and Economics
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This paper contrasts two forms of entrepreneurship genuine and parasitical -- within a framework of entangled political economy. In 1911, Joseph Schumpeter described entrepreneurship as the locus of leadership within a capitalist economy. At that time state participation in economic activity was dramatically less than it is now. Entrepreneurship was largely free of political entanglement. After a century of governmental expansion, however, entrepreneurship has increasingly become entangled in parasitical political relationships. Where genuine entrepreneurship is a feature of a constitution of liberty, parasitical entrepreneurship is a feature of a constitution of control.

Read the whole article at SSRN.com.