David Smick, author of the book, The Wold is Curved, finds entrepreneurs "dangerous"

Ateneo Professor on Entrepreneurship

Summarized form The World is Curved, 2008 by David Smick

David Smick a world expert of international finance, wrote a sequel to Tom Friedman book, "World is Flat" with the "The World is Curved"  He writes about the hidden dangers to the global economy.

He writes a chapter on Entrepreneurial Capitalism, namely the hedge funds.  They were few in number before but as of 2008 they have grown to more than 9,000 and takes risks that are not undertaken by banks or IBs.  They go to projects that one would not touch with a l0 ft pole because of the inherent risks involved.

The hedge funds are considered the bogeymen of the financial world:  horrible, greedy, think outside of the box. They contribute to the potential risk and resentment:   in the politician financial world arena. 

The hedge funds finance the entreprepreneurs.  Smick says that in any society, the 10 or 20% (Pareto principle) are the country's leaders and would include the entpreneurs.

Entrepreneurs are perceived to the winners in the game, skimming the top of the economic gravy through sheer audacity.  They improve our lives, solve our problems and thus should be  praised and rewarded.  Their new ideas, following the Joseph Shcumpter's creative destruction, render existing capital worthless

The entrepreneurs represent the winners and losers, and represent an interest, an industry that do not exist yet.

Smick perceives entrepreneurs to be illogical and crazy.  They are creators of jobs and wealth and are "crazy like fox"  Entrepreneurship is not a simple capital formation, but capital mobilization and capital exists in the minds, hands and hearts of people.  The job of public sector is how to encourage these people use the capital and undertake the risk.

For the entrepreneurs to succeed, there has to be a steady stream of innovation.  Innovation means doing things never done before, to do things boldly.  And that makes them dangerous.

They can take their business and resources and capital elsewhere in the world.  All you have to do is to be anti entrepreneurs, business and they will leave your place just like locusts after feeding time.

Are entrepreneurs dangerous?