in collaboration with The Spatial History Project

Using other people's money is, as Joseph Schumpeter pointed out, what entrepreneurs do. "...risk bearing is no part of the entrepreneurial function. It is the capitalist who bears the risk. The entrepreneur does so only to the extent to which, besides being an entrepreneur, he is also a capitalist, but qua entrepreneur he loses other people's money."

Joseph Schumpeter, Business Cycles: A Theoretical, Historical, and Statistical Analysis of the Capitalist Process, two volumes (New York: McGraw-Hill, 1939): 1:104.

"The Railroad Problem in American Politics, August 1, 1874" in Lauren E. Crane (ed.), Newton Booth of California: His Speeches and Addresses (New York: G.P. Putnam's Sons, 1894), 161.

Last updated on August 23, 2012 at 12:23am