From the common, ink and quill, Man has discovered ball pen, then typewriter then the computer. This technological development paved the way for the previous products or instruments to dissipate into the background. Is this what capitalists termed as creative destruction?
“Weak persons have doubts before a decision, strong people has them afterwards.” This is most probably true for most of the entrepreneurs out there. The world’s economy is like a person diagnosed with bipolar psychiatric disorder – extreme manic and extreme depression, never in the middle. This hyperbole, may be somewhat difficult to accept by most people, however, this is reality. Today, you sleep with your stocks at the market secured, tomorrow it may be another day of fighting for it.
You may be one of these brave young and women who venture on their own business, trying to create a name for West London Landscapers (great example) and consequently, a legacy. But what makes these so-called entrepreneurs different from the cautious bourgeois? Is it an awesome Ealing targeted landscaping page for a business website? For one thing, the most basic is bravery or a profound motivation to succeed despite previous failure or faults. Such people may have ventured previously on selling textile paints and now will try their hand with marketing highly scented candles.
This motivation stems from a person’s perception of his capabilities. He believes that if he tries hard enough, he will succeed. Such people tend to look at their past failures as training for the next task. They do not see it as most people do: waste of money or waste of time – instead, they view those experiences as inductive learning. Inductive learning is a method of acquiring knowledge through actual experiences.
No two situations are entirely the same, as well as no two individuals; even identical or fraternal have the same capabilities and talents. Each one is unique in his own, and by this, a simulated environment for the purpose of learning will be enough for one person but the other one may need or ask for a much more realistic experience of things.
It is true that it is difficult to start on your own, make your product click, but through such experiences and endeavors, a person is much more able to learn the secrets of the trade. Experience is the best teacher, many experienced individuals will say and it is quite true. Nothing teaches like an experience. This is the reason why most people will prefer to experience a learning situation first hand than hear it being delivered through seminars and conferences.
In a Communist Manifesto, written by Karl Marx, he elaborately defined the consumer and the capitalist, now known as the entrepreneur. According to him, if product A when compared to product B takes more time before it can be produced and requires intricate human skills, it is also necessary to assign a price for it, double than the price of product B. He also introduced the term creative destruction in the entrepreneur’s process of learning in introducing a new product.
One can say that businessmen and women who willingly forge ahead on an entirely new enterprise despite their previous failure is known to subscribe to the principle of creative destruction. In simple terms, creative destruction is what happens when a new product is introduced to the market. Historically, oil has played the major part of providing light during the night. This is true even in caring for the sick, such as the works of Florence Nightingale’s work – doing her rounds with the aid of an oil lamp.
But when someone introduced the processing of crude oil, wax became the trend. Oil lamps were replaced with candle holders. Centuries gone by, the candle started to evolve and does not function only as a light in case of energy shortage; it now serves as a room freshener in the form of highly scented candles. You no longer landscape just to beautify your garden, people are now looking at it as a source of their fresh picks for the kitchen. This was what Karl Marx was referring to. The discovery of wax, ‘destruct’ the existence of the oil lamp. In order for a better way of doing things, creation of a new product will ensue. And when this happens, the previous one started to disintegrate into the background which is what Marx was referring to as destruction. In the modern society, this process is what we frequently hear as Innovation.