Progress and Entrepreneurship By: Holcombe, R. G Synopsis: In his article Progre
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Question
Progress and Entrepreneurship
By: Holcombe, R. G
Synopsis:
In his article Progress and Entrepreneurship, the author begins by expounding on the notion that the world has not always experienced rapid change and claims that the quality of life remained much the same as 550-1750. The author then details the economic implications of a few historical events such as the industrial revolution and how these events contributed to the growth and created new opportunities.
Holcombe distinguishes economic growth from economic progress: growth— the production of increasing amounts of output. The author defines economic progress as improved quality of life and wellbeing. Holcombe states that economic progress is realized through entrepreneurship.
"Growth without progress is self-limiting, whereas progress brings with it
growth. Economic growth is a minor component of economic progress.
It takes insight to perceive changes that might alter the nature of production
processes or that might lead to the introduction of new goods and services.
Perceiving and acting on such a profit opportunity is entrepreneurship, which is the engine of economic progress" (Holcombe, 2003).
Holcombe dedicates much of his article to the notion that entrepreneurship is the reason for the exponential growth experienced from the eighteenth century to the present, and that it will be the reason for more significant developments in the future. Holcombe champions innovation and an entrepreneurial mindset as he states that firms which do not exercise good management and entrepreneurial skills won't survive in the long run.
From the conclusion:
"This article describes how theories of entrepreneurship can be completely incorporated into a model of the competitive process to show that entrepreneurship is the engine of economic progress, to show that entrepreneurship is necessary for firms to survive in competitive markets, and to show that product differentiation is one of the competitive
strategies that produces economic progress. The result is not a steady-state
competitive equilibrium, nor would such a result be optimal. The result is a
competitive process where firms continually improve their production
processes and the characteristics of their output in order to remain competitive, and this process results in continual economic progress" (Holcombe, 2003).
Critique:
1. Do you agree or disagree with the main conclusions of the article? Explain why.
I agree with many of the conclusions, points presented in the article. The author supports his points with relevant subject references.
2. Was there anything left out of the article?
Taking my limited knowledge on the subject matter into consideration, I believe the author covered much of the relevant points within their professional purview of the subject.
I believe the article is well written as is. The article is written to disseminate the author's ideas regarding a particular topic(s)--which are sufficiently supported.
3. How could you use the information presented in the article?
This article was very informative, and I certainly copied down Holcombe's main points, as I believe the information will serve me well when I pursue business ideas and ventures in the future.
Discussion Questions:
A. Expound on your most important takeaway from the article?
B. Do you agree with Holcombe's distinction between economic progress and economic growth?
C. What other companies can you list which invented a product that may have failed initially but succeeded elsewhere?
Explanation / Answer
1. The most important takeaway from the article is the role of entrepreneurship in the economic progress, which is author's opinion is determined by the upliftment of the standards of living of mankind. The author suggests that it was the entrepreneurial spirit of some people which resulted in some historical events like industrial revolution that changed the way people lived by causing rapid economic progress. The same entrepreneurship is essebtial to survive and grow in competitive scenario.
2. Yes. The growth which is termed as the increase of output can never be sustainable until it leads to positive transformation in the users' lifestyles and wellbeing through application of novel concepts and out of the box ideas to solve some long standing challenges before the mankind, and improve the way people live.
3. Bubble wrap was introduced by two scientists who ran "sealed air" as an attempt to make a glossy, textured wall paper, which did not work. Later the duo used it as a housing insulation, which also met the similar fate. Later when used by IBM in transportation of computers, it became an instant hit among the packers and transporters to prevent the items from being damaged.
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