Schumpeter, Entrepreneurship, and Creative Destruction

Abstract

Destruction of businesses, fortunes, products, and careers is the price of progress. This is what Joseph Schumpeter describes as “Creative Destruction.” His life spanned two World Wars, the Great Depression and the beginning of the Cold War. He saw rapid change and realized the importance of change. His vision was stark and he saw that change was essential for growth. He had witnessed so many clashes in life and yet he could see revival for those who adopted to changing environment. These environmental changes may have been the reason for his philosophy. It was in 1942 he first used this phrase ‘creative destruction’. He used this phrase to propound the concept of net economic growth. People tend to see results in a shorter perspective. He saw beyond the ordinary.