I personally find this discussion about Entrepreneurship as a social "evil" quite disconcerting. Of course evil exists in our world and like most things, there is a dark side to entrepreneurship? I think that it is one thing for there to be a dark side to entrepreneurship and another to say that entrepreneurship is driven by evil. Is the dark side of entrepreneurship systematic or is it a random occurrence across the population?
Let me suggest an alternative research track with which we may approach this. Let us think about this from a transaction cost perspective (Williamson, 1985). Because entrepreneurship invariably involves a small entity (significant vertical integration is rarely an option), they have to develop exchanges with multiple outside suppliers and buyers in spite of the fact that they are dealing with specific assets. Entrepreneurs by definition also operate in highly uncertain context given the innovations that they are seeking to commercialize. Because of resource constraints and the uncertainty that they operate in, it is unrealistic for them to consistently engage in transactions based on contingent claim contracts.
It seems that the only realistic alternative for entrepreneurs is for them to operate based on trust. If they have not developed a reputation of consistent trustworthiness among external exchange agents, I venture to say that such entrepreneurs will soon be out of business. As a case in point, I have repeatedly seen capital providers back away from a deal if there is any "hint" of wrong doing or ethical compromising on the part of the entrepreneurs. Here is my research proposition: The presence of evil, wrong doing, ethical compromises, and questionable behavior will usually severely limit the growth potential of a venture and take the entrepreneurs out of business prematurely.
Lowell Busenitz
University of Oklahoma
-----Original Message-----
From: Entrepreneurship Division Listserv [mailto:
ENTREP@AOMLISTS.pace.edu] On Behalf Of Charles H. Matthews, Ph.D.
Sent: Tuesday, October 30, 2007 7:12 PM
To:
ENTREP@AOMLISTS.pace.edu
Subject: Re: [ENTREP] SV: [ENTREP] Entrepreneurship as a social "evil"
Alistair,
This sounds like a very interesting paper. I would be interested in reading it. Thanks for sharing this on the listserve as it adds an interesting dimension to the discussion.
Of course, now I have to ask, at what point do we cross the line from entrepreneurism to criminal activity? An entrepreneurial villain? It is interesting terminology, but it would seem to me you did your research on a group of gangsters not entrepreneurs. Or would you argue that they are entrepreneurs who have used their power for evil instead of good?
Why is it we continue to muddy the waters by allowing the terms entrepreneur and entrepreneurial to be hijacked by every group that comes along including criminals? When one engages in illegal activity for financial gain why do we still want to call them entrepreneurial? There is a perfectly good word for what they are doing - criminal. Yet, entrepreneurial has become the adjective of choice.
Which brings us full circle - was Al Capone a notorious criminal engaging in illegal commercial activities some under the guise of legitimate commerce (usually for the illegal purposes of money laundering) or an evil entrepreneur? A ruthless thug or an entrepreneurial villain? Both?
Just curious...
Chuck
Charles H. Matthews, Ph.D.
Professor of Entrepreneurship and Strategic Management
Executive Director, UC Center for Entrepreneurship
Education & Research
University of Cincinnati
Cincinnati, OH 45221
---- Original message ----
>Date: Tue, 30 Oct 2007 13:30:20 +0000
>From:
a.r.anderson@RGU.AC.UK
>Subject: Re: [ENTREP] SV: [ENTREP] Entrepreneurship as a social "evil"
>To:
ENTREP@AOMLISTS.pace.edu
>
> I had emailed Andrew privately but since there is so
> much well deserved interest in the topic, I thought
> that I should email the group.
>
> Rob Smith and I have a paper coming out in the next
> edition of Entrepreneurship and Regional Development
> which deals with the topic. We ask if there is a
> moral space in entrepreneurship and argue that there
> is, at least as far as entrepreneurship is a
> socially constructed phenomenon. We spent some time
> with a group of London gangsters collecting data for
> this and were surprise to find that one notorious,
> but very entrepreneurial villain considered himself
> morally just!
>
>
>
> The moral space in entrepreneurship: An exploration
> of ethical imperatives and the moral legitimacy of
> being enterprising.
>
>
>
> Alistair R Anderson and Rob Smith
>
>
>
> Abstract
>
>
>
> This paper explores the morality associated with
> entrepreneurship. It has been argued that there is
> no moral space in entrepreneurship, but such
> instrumental views may the miss out much of the
> nature of enterprise and how it is understood.
> Consequently we propose that a socially constructed
> perspective, based upon the meanings of
> entrepreneurship, may help to understand the
> morality of entrepreneurship. By applying such a
> lens, we find that the narratives and discourses of
> the meanings of entrepreneurship are ideological and
> clearly present a moral space. This space lies
> between the individual and society and is
> normatively articulated in entrepreneurial
> discourses. We develop a tentative framework which
> links values and outcomes that shows how
> "authenticated" entrepreneurship, that is to say
> that which resonates with a socially approved moral
> dimension, is legitimised by comparisons with a
> socially constructed view. The empirical part of the
> paper comprises of two case stories. The first is a
> local garage owner who has a reputation as a decent
> man; the second is a notorious, but entrepreneurial
> London gangster. Our analysis shows that to be
> judged "entrepreneurial", it is not enough to act
> entrepreneurially; the social constructs of public
> perceptions entail examining both moral means and
> moral ends. We conclude that there is a moral
> imperative in entrepreneurship.
>
>
>
>
>
> Happy to send a word copy to anyone interested
>
>
>
> Alistair
>
> ----------------------------------------------------
>
> From: Entrepreneurship Division Listserv
> [mailto:
ENTREP@AOMLISTS.pace.edu] On Behalf Of
> Henrik Berglund
> Sent: 29 October 2007 22:59
> To:
ENTREP@AOMLISTS.pace.edu
> Subject: [ENTREP] SV: [ENTREP] Entrepreneurship as a
> social "evil"
>
>
>
> Since much of the discussion seems to center on
> economics and functional views of entrepreneurship,
> I think the following statement by Ludwig von Mises
> might be of interest. In it, Mises writes of his
> very general theory of human action. However, the
> value-neutrality of the message is especially valid
> in the case of entrepreneurial action:
>
>
>
> Ethical doctrines are intent upon establishing
> scales of value according to which man should
> act but does not necessarily always act. They
> claim for themselves the vocation of telling
> right from wrong and of advising man concerning
> what he should aim at as the supreme good. They
> are normative disciplines aiming at the
> cognition of what ought to be. They are not
> neutral with regard to facts; they judge them
> from the point of view of freely adopted
> standards.
>
>
>
> This is not the attitude of praxeology and
> economics. They are fully aware of the fact that
> the ultimate ends of human action are not open
> to examination from any absolute standard.
> Ultimate ends are ultimately given, they are
> purely subjective, they differ with various
> people and with the same people at various
> moments in their lives. Praxeology and economics
> deal with the means for the attainment of ends
> chosen by the acting individuals. They do not
> express any opinion with regard to such problems
> as whether or not sybaritism is better than
> asceticism. They apply to the means only one
> yardstick, viz., whether or not they are
> suitable to attain the ends at which the acting
> individuals aim.
>
>
>
> The notions of abnormality and perversity
> therefore have no place in economics. It does
> not say that a man is perverse because he
> prefers the disagreeable, the detrimental, and
> the painful to the agreeable, the beneficial,
> and the pleasant. It says only that he is
> different from other people; that he likes what
> others detest; that he considers useful what
> others want to avoid; that he takes pleasure in
> enduring pain which others avoid because it
> hurts them.
>
>
http://www.mises.org/story/2711
>
>
>
>
>
> Two questions arise: 1) Does 'evil' entrepreneurship
> differ from 'good' entrepreneurship in its "means
> for the attainment of ends"? 2) If not, should
> entrepreneurship qua economic function be discussed
> in ethical terms?
>
>
>
>
>
> /Henrik
>
> __________________________________________________________________________
>
> Henrik Berglund
>
> Postdoctoral fellow
>
>
>
> Department of Technology Management and Economics
>
> Chalmers University of Technology
>
> Phone : +46 (0)708 128 138
>
> Email :
henrik.berglund@chalmers.se
>
> Skype : henrik.k.berglund
>
> Web :
www.henrikberglund.com
>
>
>
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Charles H. Matthews, Ph.D.
Professor of Entrepreneurship & Strategic Management
Executive Director, U.C. Center for Entrepreneurship Education & Research
Department of Management
University of Cincinnati
Cincinnati, OH 45221-0165
Phone: 513-556-7123
Fax: 513-556-5499
Email:
charles.matthews@uc.edu
www.ucecenter.org
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