The Practical Wisdom of Entrepreneurial Judgment

Handbook of Practical Wisdom in Business and Management, eds. Barry Schwartz, Caleb Bernacchio, César González-Cantón, and Angus Robson (Springer, 2022).

16 Pages Posted: 22 Sep 2022 Last revised: 22 Feb 2023

See all articles by Nicolai J. Foss

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Mihai Vladimir Topan

Academy of Economic Studies, Bucharest

Matthew McCaffrey

University of Manchester - Manchester Business School

Date Written: 2022

Abstract

Entrepreneurship, defined as judgmental decision-making under conditions of uncertainty, is studied in many different disciplines across the social sciences and humanities. Despite the growth of the field, however, there is still relatively little research on the philosophical foundations of entrepreneurial action. This chapter highlights some connections between this entrepreneurial judgment and practical wisdom. It first examines the roots of entrepreneurial decision-making as explained through the framework of “Austrian” economics, especially with regard to action, choice, and uncertainty. It then compares entrepreneurial judgment and practical wisdom in light of Aristotle’s five intellectual virtues, noting some similarities and tensions. Finally, it discusses some moral aspects of entrepreneurial action and their relation to human flourishing, and the institutional foundations that support this relationship.

Keywords: entrepreneurship, judgment, uncertainty, economic calculation, institutions

JEL Classification: D02, D81, L26

Suggested Citation

Foss, Nicolai J. and Topan, Mihai Vladimir and McCaffrey, Matthew, The Practical Wisdom of Entrepreneurial Judgment (2022). Handbook of Practical Wisdom in Business and Management, eds. Barry Schwartz, Caleb Bernacchio, César González-Cantón, and Angus Robson (Springer, 2022)., Available at SSRN: https://ssrn.com/abstract=4211430

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilen
Frederiksberg, 2000
Denmark

Mihai Vladimir Topan

Academy of Economic Studies, Bucharest ( email )

Bucharest
Romania

Matthew McCaffrey (Contact Author)

University of Manchester - Manchester Business School ( email )

United Kingdom

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