Summary. de Soto’s main ideas with regard to entrepreneurship (Chapter II of his book)
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One would think that the citizens of our country should not be of two minds about the impracticability and utopian nature of socialism, since they all have had an opportunity to fully experience its disastrous results in their own personal lives. Unfortunately, however, life teaches us that this is not the case. We see that to this very day many people advocate state intervention in the economy to the detriment of private initiative. This happens because the ruling minority (as well as a significant part of the subordinate majority) still does not understand the fundamental importance of entrepreneurship and the key role played by personal initiative and enterprise in social and economic life. In this article, we will restrict ourselves to an overview of de Soto’s main ideas with regard to entrepreneurship (Chapter II of his book), and those readers who are interested in de Soto’s critique of socialism are advised to acquire his book and familiarize themselves with Chapters III-VII, which contain a critical analysis of socialist theories.
The book’s main thesis is that “in the absence of freedom of entrepreneurship, the information necessary for rational economic calculation (that is, for making decisions that will not be arbitrary, since in each concrete case subjectively significant information will be taken into account) is not created, and economic actors have no opportunity to learn to coordinate their behavior with the needs and circumstances of others (that is, social coordination does not take place).”
For de Soto, entrepreneurship “is like any human activity. In this connection one can say that anyone who acts to change his present reality and attain new goals in the future is engaging in entrepreneurship... Indeed, both the Spanish word empresa and the French, as well as English, word entrepreneur go back to the Latin verb in prehendo-endi-ensum, meaning discover, see, perceive, realize, seize; the Latin expression in prehensa clearly implies action and...