The Ideology of Entrepreneurship: A Conversation with Robert Eberhart
Aug 28, 2023
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Robert Eberhart, an entrepreneur turned business professor, discusses the ideology of entrepreneurship and its misrepresentation. He shares personal experiences growing up in Michigan, starting his own business in Japan, and debunking misconceptions about entrepreneurship. Eberhart also explores the impact of conflict and community in ventures.
The ideology of entrepreneurship justifies inequality but overlooks the role of social safety nets and unequal access to resources.
The rise of the entrepreneurial ideology is a response to economic crises and the belief that markets are the perfect solution.
The identification as entrepreneurs leads temporary workers to support arrangements that bear the downsides of entrepreneurship without enjoying its benefits.
Deep dives
The Influence of Thomas Piketty's Work on Inequality and Ideologies
Piketty's book, Capital in the 21st Century, highlighted the increasing inequality in many rich nations, attributing it to larger returns on capital compared to labor. This led to a growing divide between the rich and poor. He argues that in the context of such suffering, inequality breeds resentment and eventually social strife. The ideology of entrepreneurship has emerged as a core aspect justifying inequality, suggesting that success is a result of individual effort and value creation. However, the paper argues that this ideology overlooks the role of social safety nets and the unequal access to resources needed for entrepreneurial success.
The Evolution of Work Arrangements and the Entrepreneurship Ideology
The paper explores the historical changes in work arrangements, noting the shift from the post-war period characterized by loyalty, reasonable wages, and the promise of advancement, to the current entrepreneurial ideology. The rise of entrepreneurship as an ideology is seen as a response to economic crises and a belief that markets are the perfect solution to economic challenges. This new ideology considers that success is a result of taking risks and deserving benefits, while failure is perceived as a learning experience. However, the paper critiques this ideology, highlighting the limited access to resources and the false narrative that failure is an essential component of entrepreneurial success.
The Impact of the Entrepreneurship Ideology on Temporary Workers
The paper examines the link between the ideology of entrepreneurship and temporary work arrangements. It highlights a California proposition that aimed to employ workers as temporary employees without providing them with full employment benefits. Surprisingly, around 50% to 55% of Uber drivers voted in favor of this proposition, which the paper attributes to their identification as entrepreneurs rather than employees. The ideology of entrepreneurship promotes the idea that temporary workers are independent agents and that they can achieve success through their own efforts. However, the paper argues that such workers often bear the downsides of entrepreneurship without enjoying its benefits, and their support for these arrangements can be interpreted as a result of socialization into the entrepreneurial ideology.
Importance of Social Networks in Entrepreneurship
The podcast discusses the importance of social networks in entrepreneurship. The speaker shares personal experiences of starting a wine business and highlights the significance of having strong social connections in the industry. The speaker emphasizes that entrepreneurs need to rely on their social network for guidance, support, and access to resources. The podcast also explores how social networks can contribute to legitimacy and credibility in the business world.
The Role of Expertise and Perception in Entrepreneurship
The podcast emphasizes the role of expertise and perception in entrepreneurship. The speaker shares experiences of starting a wine business in Japan and highlights the importance of understanding the market and being perceptive about people's needs. The speaker argues that successful entrepreneurship involves gathering resources and capitalizing on market opportunities. Furthermore, the podcast challenges the popular belief that entrepreneurship is solely about resource acquisition and highlights the significance of market focus and perception in entrepreneurial success.
Robert Eberhart, Associate Professor of Management and Faculty Director of International Business at the University of San Diego, talks about his work on the ideology of entrepreneurship with Peoples & Things host, Lee Vinsel. Eberhart's work is partly motivated by his own work as a businessman and successful entrepreneur and finding that academic publications from business schools significantly diverged from his and others' experiences in actual businesses. Eberhart and Vinsel also talk about how Eberhart has drawn together teams of researchers, including at the Reversing the Arrow conference, to study the ideological dimensions of entrepreneurship and how it has spread around the globe.
Lee Vinsel is an associate professor in the Department of Science, Technology and Society at Virginia Tech. He studies human life with technology, with particular focus on the relationship between government, business, and technological change. His first book, Moving Violations: Automobiles, Experts, and Regulations in the United States, was published by Johns Hopkins University Press in July 2019.
