Part 1 of "The Entrepreneur in Time”: Creative Destruction : Under30CEO Part 1 of "The Entrepreneur in Time”: Creative Destruction : Under30CEO
Join the Under30CEO Community We deliver tips, tools and inspiration for your business. Daily to your inbox.

Part 1 of “The Entrepreneur in Time”: Creative Destruction

| September 12, 2013 | 13 Comments

This article is the first in the series “The Entrepreneur in Time” which explores some of the basic assumptions about entrepreneurs from the emergence of entrepreneurship in capitalist business writings up until the present day. I embarked on this topic to discover if the character of the entrepreneur has always been the same, or if the idea has developed over time. One hundred years ago it was said that entrepreneurship was the only way to escape your class. I’d say this still holds true today. I hope readers find some pearls of wisdom from these stuffy old tomes!


Joseph Schumpeter (1911)

This book was written during a very exciting time for inventors – the world saw teabags, disposable razors and windscreen wipers for the first time (amongst many great conveniences that we still know and love today). So what were these people like? How were they viewed? Are we as modern entrepreneurs so different? Let’s take a look at what this writer had to say about them.

“First of all, there is a dream and the will to found a private kingdom, usually, though not necessarily, also a dynasty… Then there is the will to conquer: the impulse to fight, to prove oneself superior to others, to succeed for the sake, not of the fruits of success, but of success itself…Finally, there is the joy of creating, of getting things done, or simply of exercising one’s energy and ingenuity.”

The entrepreneurial character: desirable or diabolical?

Schumpeter describes the character of the entrepreneur as someone who is strong, who is not averse to grasping opportunities at the expense of others, and who destroys the old with his/her new invention. This character is a great influencer of politics, society and economy. Schumpeter argues that if entrepreneurs over-plan their idea will lose its value in the process by getting weighed down by the planning process. Because an entrepreneur is a charismatic personality, it doesn’t matter how unimportant, useless or insignificant the product being sold is. This person can make it work.

We can and we can’t all be entrepreneurs.

“A minority of people with a sharper intelligence and with a more agile imagination perceive countless new combinations. They look at everyday events with more open eyes and a wealth of ideas suggests themselves on their own.”

Entrepreneurialism was believed by Schumpeter as the only way to transcend your class and become socially mobile; you became part of the class of capitalists. He equated entrepreneurialism and innovating with capitalism. There will always be space for more entrepreneurs and innovations because no matter what the current state of affairs are, there will be infinite interpretations of what is the “best”. Most people will not be innovators or entrepreneurs, however, because they will simply be trying to overcome everyday problems. Schumpeter also believed that more knowledge about the world (in all its aspects) leads to better entrepreneurial prediction and intuition. So, without a well-rounded education, there would be less entrepreneurial prospects.

Modern success story: Amancio Ortega Gaona

Courtesy of Inditex

Courtesy of Inditex

The founder of Zara is the third richest man in the world, yet you could not imagine a more reclusive and withdrawn person. Starting out in a quiet village in northern Spain as a shop assistant in his teenage years, he is now valued at $57 billion. His success was based on two simple principles: give customers what they want, and give it to them fast. He changed the business model for the fashion industry forever. However, he has faced some controversy with employees.

Power and responsibility: if we cause change, what do we destroy in the process?

Schumpeter’s term “creative destruction” holds strong as the best simple explanation of what an entrepreneur does. The economy is never still. Even if we do not actively push to advance it from the inside, it continues due to external influences. Every time a person or group decides to create or change something within the economy, no matter how small, it is still something new. But new things typically replace something (for example, making someone’s trade redundant ).

To Schumpeter, entrepreneurs must be leaders. That is their character and role. Because the entrepreneur presents such an impressive figure, as one who is able to navigate and control the economy, he gains influence and therefore respect and power. He himself knows this because he also rose to this position of power on his own merit, and not by inheritance or title. Society follows entrepreneurs and their behaviour like idols or celebrities. Whether the entrepreneur chooses certain styles, foods etc. or not, what society perceives he/she would do becomes fashionable and thus affects culture. Does the entrepreneur then need to assume a role of social responsibility?

Relevance for today…

Just over one hundred years ago, this material was published. Reading through it, I found some parts were timeless. It was particularly interesting to ponder his discussion that entrepreneurs are powerful, therefore they probably have some duty to guide the people that idolize them. How would you react to such a statement? Do you think about what you are destroying when you create a new business? Do you realize how much influence you have on your admirers, now that being a business starter is fashionable?

Andrea Francis is the PR and research evangelist for Twoodo, the ultimate “one box to rule them all” online productivity tool. She is into events, marketing and PR with tech startups in Europe. Andy likes getting things done and makes an awesome homemade hamburger.

About the Author: Andrea Francis

Andrea Francis is the growth hacker mogul and troublemaker for Twoodo, the ultimate "one box to rule them all" online productivity tool. She is into events and marketing with tech startups in Europe. Andy likes getting things done and makes an awesome homemade hamburger. Come talk to our startup on @twoodo !

Opt In Image
Awesome People + Awesome Places
Travel around the world while making new friends

Under30Experiences curates awesome experiences around the world for young travelers.

Tags: , ,

Category: Entrepreneurship

  • Michael Amushelelo

    Andrea Francis, i have to congratulate you for a great article, no doubt entrepreneurs have a great influence on society, such influence can be used for good or for bad, but being an entrepreneur myself i know most will use it for good, for the betterment of society. Keep the great work cant wait to read part 2.

  • Andrea Francis

    Thank you MIchael! I’ve been wondering a long time if entrepreneurs are just out to make money or out to do good along with it. These will be the future philanthropists – how will they choose to spend the money?

  • Michael Amushelelo

    Entrepreneurs of all generations through history have strive for a better society, by introducing products and services that make our lives easier. Most of them do not do it for money, however money is just a buy product of their hard work and ultimately success. However the business people on the other side have done more harm then the entrepreneurs.

  • Pingback: Does America’s Shrinking Private Sector Signal Capitalism’s Unmaking? — State of Globe

  • cesar romero

    @andreafrancis:disqus amazing article, well written and truly exposing the origins of entrepreneurship and where we stand today. I think that to be an entrepreneur, you need to be a leader, an agent of change, look for problems and present solutions to make people’s live easier. I really like social entrepreneurship because I like the concept of giving something back to society and not just looking to generate revenue. Another issue I have is that I don’t think that every product that has been introduced has been for good. Mcdonalds? Coke? so when I think entrepreneurship I’m thinking more of bigger problems like health, food, technology, education and the like, issues that are asking for solutions in this information age. Thanks for sharing Andrea and can’t wait for part 2

  • Tyson Hartnett

    Andrea, great article.
    Our generation thinks they are the smartest, best, hardest working, etc, because we are living now, and don’t know anything else. However, if you look back hundreds, even thousands of years, we will see that the entrepreneurs back then all had the same traits as we do today. Nothing really has changed, just the technical aspects of it all. Like Ortega said, the main concept of dealing with the customers will be the same, yet the extra details will always be different. Therefore, learning from our ancestors and the people who have been through it is, I believe, mandatory.

  • Pingback: Part 1 of “The Entrepreneur in Time”: Creative Destruction |

  • Andrea Francis

    I agree that not a HUGE amount has changed over time just on the character of the individual entrepreneur. It’s just adding incrementally to what we know. But when do you think the “entrepreneur” becomes the “big business man” and crosses over to the dark side? Ortega seemed to do so, and many other hugely successful entrepreneurs.

  • Andrea Francis

    Exactly, – the SOCIAL entrepreneur is what is new today, not just regular old business entrepreneur who I don’t think had any big intention of doing good for others, just accidentally so or for profit. The definition of entrepreneur is to “make profit” – otherwise it would be more akin to charity.

  • Tyson Hartnett

    I think we all start with purity in our hearts, yet as time goes on, we think we need to play the “big business man”, especially if you have dozens, or hundreds, of employees under you. If they see you as the soft, visionary ceo, they may get lazy, and think they can get away with things. So I think being able to manage the two sides of it is important, a la Steve Jobs.

  • Yasmine Khater

    Loved the article @andrea.

    I dont think social entrepreneurship is a new thing, I just its now publicized and hyped up more.

  • Pingback: Blogging around: where to find Twoodo wisdom on the interwebs / Twoodo product blog

  • Pingback: Entrepreneurship in time: Creative Destruction | European Entrepreneurship Foundation