Question

Entrepreneurship
Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit."  

Schumpeter identified innovation as the critical dimension of economic change. He argued that economic change revolves around innovation, entrepreneurial activities, and market power. He sought to prove that innovation-originated market power can provide better results than the invisible hand and price competition.

He argued that technological innovation often creates temporary monopolies, allowing abnormal profits that would soon be competed away by rivals and imitators. These temporary monopolies were necessary to provide the incentive for firms to develop new products and processes.

1) How the concept of entrepreneurship can help you to explain a cultural norm or institution in society?

Answer 1

Cultural norms such as individualism can be explained via the concept of entrepreneurship wherein the people are independent and individual decision makers. Thus individuals preferences are the most important and they want to be self sufficient which is where entrepreneurship comes into play. They value independence and autonomy, which is what entrepreneurs also value.

Thus this drives entrepreneurship and it is because of this individualism in the society that people pursue according to their self interest and innovate, create new ideas so that they are independent and create problem solving solutions. For example when there is high level of entrepreneurship, people want to be independent as much as possible and create solutions such as glasses for the blind people, hearing aid technology and auto driving cars. This drives innovation and people being self reliant and willing to work and spend time and effort on research and development.

Thus America has high level of entrepreneurship and is a individualist society wherein entrepreneurship drives a sense of financial security which is why they seek out as much profit as possible and individual decisions are trusted and leadership is valued the most. The more the market power, more is the independence and identity in the society.