27 Pages Posted: 15 Jun 2012 Last revised: 17 Jul 2012
Date Written: July 16, 2012
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.
Keywords: entrepreneurship, entangled political economy, Jane Jacobs, polycentricity vs. monocentricity, parasitical political pricing, liberty and politics
JEL Classification: D02, L14, L26, L33
Suggested Citation: Suggested Citation
Podemska-Mikluch, Marta and Wagner, Richard E., Entangled Political Economy and the Two Faces of Entrepreneurship (July 16, 2012). GMU Working Paper in Economics No. 12-26. Available at SSRN: https://ssrn.com/abstract=2084487 or http://dx.doi.org/10.2139/ssrn.2084487