Consumers are indeed sovereign, but the reason consumers can exercise their sovereignty is that entrepreneurs have already borne the uncertainty of production to make the goods available for purchase.
To succeed, entrepreneurs must demonstrate superior foresight and judgment, and practice continuous dynamic improvement in their assembly and reassembly of assets to serve the consumer.
It is always a challenge for entrepreneurs to try and predict what customers will want in the future. But now things are even more unpredictable. And government regulations aren't helping either.
Capitalists and entrepreneurs serve distinct functions in the real economy. Capitalists save money that then maintains production processes until final goods are produced. Entrepreneurs adjust the capital structure in light of uncertainty to produce the most desired goods. Capitalists are ...
The economy is not primarily about the adjustment of capital investment across industries and firms, but about the determination of which industries and types of production will exist—and who will be involved in this future production.
Innovations aren't very useful unless they serve consumers in the marketplace. Otherwise, we're pursuing innovation for its own sake, and that isn't progress.
Successful entrepreneurial strategy incorporates learning of all types from trial and error. What other choice is there for entrepreneurs, since they are not omniscient or omnipresent in market processes?
