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?
In a world of demanding and ever-changing consumers, there is always a way to do things better, with greater quality, and at a lower price. Entrepreneurs must learn how to do this, or they will lose out to those who can.
The diversion of real funding from the private sector toward government projects — no matter how important these projects appear to be — in fact, disrupts the process of real wealth generation.
When operating in an easy money regime, finding investments capable of providing reasonable returns becomes difficult to near impossible. Low risk vehicles are bid down to near-zero returns, pushing investors into ever riskier vehicles to generate enough return to cover objectives.
When entrepreneurs create profit, we know they are using resources in a way that benefit others. When entrepreneurs causes losses, they are destroying wealth.
Entrepreneurs try to find gaps in the marketplace where consumers are not quite satisfied with the status quo. Successful entrepreneurs then fill in those gaps.
In The Free Market and Its Enemies, Mises wrote, “Even though you know everything about the past, you know nothing about the future.” This explains that the timeframe and economic constraints at work are vital to the expression of entrepreneurial talents.
Entrepreneurial action provides the fuel for the constant mining of consumer value. If entrepreneurs cease acting in this way, consumers will cease to see innovation and growing value in the marketplace.
