Last week on episode 85 of the #E4Epod with @PerBylund, we urged entrepreneurs to consider the insights of the Austrian school of economics versus those of Business School. Here are some of the #austrianschool vs. #businessschool highlights: 
The Austrian school of #economics helps #entrepreneurs understand how #markets really work, enabling them to think better about running their businesses. B-schools train managers for management positions and tasks in large corporations.
Austrian school thinking and analysis is original, deduced via rigorous cause-and-effect realism. Business schools borrowed from other disciplines in the university, like sociology, psychology, and economics.
Austrian entrepreneurs know that action is the method of business, generating reactions from customers in the market, to which the entrepreneur can respond in a cycle of continuous improvement. B-school tends to favor models and theories of industries.
Austrian economics understands value in a different and better way, as a subjective experience of customers that the entrepreneur can facilitate. B-schools teach value creation - as if value was embedded in products and services as value-in-use.
Austrian businesses advance via creativity, continuously searching for new and better ways to serve customers. B-schools favor strategy - an analytic and structural approach to business.
Austrian economics understands markets as a process, in a state of continuous change, and therefore business as a dynamic activity. B-schools tend to be more static, constructing business plans and fixed paradigms.
As a result, Austrian entrepreneurs understand business as a discovery process of continuous acting and learning and responding in meeting customer needs. B-schools teach competitive markets, with the aim of beating the competition, establishing competitive advantage.
While B-schools use case studies and the portraits of charismatic entrepreneurs to teach the WHO of entrepreneurship, the Austrian school teaches the WHAT of entrepreneurship: what are the behaviors and actions that lead to success, and are available to all entrepreneurs.
What are your thoughts about the lessons to be learned from #businessschool vs. #austrianeconomics?
• • •
Missing some Tweet in this thread? You can try to
force a refresh
