This document discusses the importance of cultural capital for entrepreneurs. It argues that entrepreneurs require different types of capital, including intellectual, financial, physical, and human capital, to successfully start businesses. The document uses the iPhone as an example of a product that required significant cultural capital, including ideas, inventions, and innovations from human thought, to be created. It also contrasts the different levels of output per worker and cultural factors between China and the US that impact levels of entrepreneurship.

1. More on
Cultural Capital and
Entrepreneurs

2. “There are no
entrepreneurs
without capital.”
Capitalism, Socialism and Democracy
Creative Destruction
Innovation and Entrepreneurship
Joseph Schumpeter
(1883 - 1950)

3. There are no
active entrepreneurs
without cultural capital

4. Intellectual
Financial Physical
Human
Culture
Entrepreneur

5. What capital was used
to create the iPhone?
Why wasn’t the iPhone
created in Syria?

6. bits
and
atoms

7. atoms
the physical universe
mass and energy
e = mc2
always with us
cannot create or destroy

8. bits
digital computer technology
ones and zeros
binary digits or bits
software
ideas intelligence intellectual

9. creativity
how we combine
bits and atoms in new ways
adding more bits to atoms
making things smarter

10. ideas
inventions
innovations
human thought
inventors developing ideas
entrepreneurs successfully
marketing inventions

12. China U.S.
Manufacturing 2.5 trillion 2.0 trillion
Workers 100 million 12 million
Output per
worker
$25,000 $167,000

13. $0
$45,000
$90,000
$135,000
$180,000
China U.S.
Output per Person

14. Innovation - Productivity

15. Innovation - Productivity

16. Continuous Innovation

17. discover Experimenting
idea
create
observe

18. Ideas grow
exponentially
Internet is an idea
creation and testing
factory

19. Culture
Entrepreneur

20. Two types of
entrepreneurs
value-capturing
value-creating

21. value-capturing
entrepreneurs
looking
arbitrage
buy low sell high
space or time

22. arbitrage
space and time

23. value-creating
entrepreneurs
new products
new services

24. Culture
Entrepreneur
trust in government
values
institutions
infrastructure
rules
respect and dignity
property rights
rule of law
taxes
regulations
stable currency
mobility