It is precisely to distract attention from its theoretically inert landlords and capitalists that neoclassical economics complicates its initial story and introduces another character into the drama: the entrepreneur. Here is an economic actor par excellence. The entrepreneur sees an opportunity, rushes to take advantage of it, thereby benefitting not only himself but society at large. The entrepreneur develops a new product, invents a new technology, comes up with a new and more efficient way of producing or marketing. Or, more modestly, he replicates in a new location what others have done elsewhere—develops a new strip mall, opens another coffee shop or dollar store or fast food restaurant. The entrepreneur is the creative principle of capitalism, celebrated, emulated, envied. Surely no one will deny that the entrepreneur makes a positive contribution to society—and hence is deserving of his reward.
No one can doubt that the entrepreneur makes a positive contribution. One can question the long-range value of specific contributions but any society, if its to be at all dynamic, needs people who are economically creative and willing to initiate new projects. Entrepreneurial activity is vital—for capitalism and for successor-system socialism. Socialism will need entrepreneurs (though not capitalists).
Excerpted from After Capitalism by David Schweickart. Published by Rowman & Littlefield, Lanham, Maryland, 2002.