Entrepreneurship, Altruism and the Good Society

Abstract

The objectives of this essay are to show that first, far from being antithetical to each other, altruism and entrepreneurship differ only in degree; and second, that an entrepreneurial society is a necessary condition for achieving a just and fair society. I begin by defining the terms entrepreneurship and altruism and examine their implications from a value creation perspective. I go on to argue that entrepreneurship is an expression of individual freedom with a view to value creation, and that any attempt to curtail entrepreneurial activities will result in an impoverishment in the basic freedoms of all citizens in a democratic society. I then dwell on the contingent nature of entrepreneurial success, using a population ecology perspective. I highlight the vulnerability of the entrepreneur, and provide arguments to counter the assertion that entrepreneurs form only a small fraction of any society (Brenkert 1999). On this foundation, I build my thesis that a proper understanding of the process of entrepreneurship can help us bridge the gap between self-creation and justice, but only if we lower our standard of individual action that would qualify as having made a contribution to society. I conclude with some reflections on the extent to which an entrepreneurial society meets the conditions for a "good society".

Keywords: Entrepreneurship, altruism, capitalism, fairness, justice

JEL Classification: M13, A13, D63, D64, H11