Nobel prize winner applauds Disruptors

• October 17th, 2006 /
•  Blake Killian

“Entrepreneurs are the newcomers, the disruptors, who fuel dynamic economic development.” This is a statement made by Jeff Cornwall, Director of the Belmont University Center for Entrepreneurship. In a recent blog post on his blog, The Entreprenuerial Mind, he cites the 2006 Nobel Prize winner in Economics, Professor Edmund S. Phelps’ recent Op Ed piece in the Wall Street Journal. In his piece, Professor Phelps explains that there are two types of entrepreneurial systems in the world.

1. Ours: In the U.S., Canada and the U.K. we are all open to pursue our own ideas, and are often encouraged to do so by financiers who nurture the development of our ideas. This is capitalism.
2. Theirs: Phelps describes another system where private ownership of ideas exists, but “has been modified by the introduction of institutions aimed at protecting the interests of ’stakeholders’ and ’social partners.’ The system’s institutions include big employer confederations, big unions and monopolistic banks.” This is not capitalism.

I think it’s very easy to take for granted the freedom we have to make things happen. Quite literally, if you can think of an idea, chances are you can make that idea a reality. If necessity is the mother of invention, the Disruptors are emerging because they’re needed. Remember, Disruptors make things easier, and more accessible.

Disruptors are on a slippery slope, however, according to Phelps, because we are moving away from supporting the little guys towards creating the next Microsoft. Powerful engines are made of thousands of moving parts, and I think what he’s saying here is that we need to stay connected to/devoted to the little guys who make up our system’s powerful economic engine.

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