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> Those that make money, an entrepreneurial profit, do so by breaking the status quo. They innovate. They either get their inputs for less or they sell their ou
by 082349872349872 3y ago
> Those that make money, an entrepreneurial profit, do so by breaking the status quo. They innovate. They either get their inputs for less or they sell their outputs for more.
A third possibility: they went all-in on a bet everyone else thought was bad, but happened to pay out.
- plastic-enjoyer 3y agoBut that only applies for a while, right? Today's big tech companies continue to make profits, but without great innovations. They are mostly iterations where the product is only marginally improved or even made worse.
- classified 3y agoThey went from product building to rent seeking.
- lo_zamoyski 3y agoProduct development is not synonymous with providing economic value.
- 082349872349872 3y agoTFA's notion of entrepreneurial returns is in contrast to the innovation-free profit rate
- baxtr 3y agoHow is this a third option? Input/output is exhaustive by definition. Your possibility sounds like the overarching theme of “breaking the status quo”.
- 082349872349872 3y agoThe system is not closed: due to the presence of lots of other peoples' money sloshing around, it is very possible for moonshot entrepreneurs to personally make substantially more than employees/lifestyle entrepreneurs, even (I'd hazard "especially") at times when their underlying business is losing money.