The Entrepreneurial Process by Alfred Marshall 

While working on my book (in which I will talk about the global status of entrepreneurship and innovation today) I came across this extraordinary passage, from the economist Alfred Marshall (1842-1924) in the beginning of the last century. He describes the Entrepreneurial Process brilliantly, in just one paragraph, talking about the role of trust, resources, capital, credit, scale, marketing and innovation on it. Even luck (“assisted by some strokes of good fortune”) is covered, passing almost unnoticed at the beginning of the epic reported:

“An able man, assisted by some strokes of good fortune, gets a firm footing in the trade, he works hard and lives sparely, his own capital grows fast, and the credit that enables him to borrow more capital grows still faster; he collects around him subordinates of more than ordinary zeal and ability; as his business increases they rise with him, they trust him and he trusts them, each of them devotes himself with energy to just that work for which he is specially fitted, so that no high ability is wasted on easy work, and no difficult work is entrusted to unskillful hands. Corresponding to this steadily increasing economy of skill, the growth of his form brings with it similar economies of specialized machines and plants of all kinds; every improved process is quickly adopted and made the basis of further improvement; success brings credit and credit brings success; success and credit help retain old customers and bring new ones; the increase of his trade gives him great advantages in buying; his goods advertise one another and thus diminish his difficulty in finding a vent for them. The increase of the scale of his business increases rapidly the advantages which he has over his competitors, and lowers the price at which he can afford to sell.”

Original article and in Ukrainian

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