ABSTRACT
As explained in several areas in previous parts of this book, there is a clear distinction between capitalists and entrepreneurs. The distinction is important because the driving forces behind the actions of the entrepreneur are quite different from those of the capitalist. Entrepreneurs set about making changes through innovations and are motivated by objectives other than profits. That is not to say that entrepreneurs are not interested in profits, but profits are not the main factor encouraging entrepreneurs to innovate. Innovations come from entrepreneurs, not capitalists. However, once an entrepreneur innovates and profits are generated, most entrepreneurs become capitalists and certainly desire to benefit through profits from the innovation. Many entrepreneurs become capitalists, but far fewer capitalists ever become entrepreneurs.
