Entrepreneurs, Not Governments, Solve Uncertainty

In these times of economic uncertainty and shortages, it’s easy to forget what makes an economy run. Many turn to the government when things get difficult. But government solutions aren’t conducive to lasting economic prosperity. It’s especially important right now to remember that private-sector actors are key—in particular entrepreneurs.

First, what is an entrepreneur? Some define an entrepreneur as someone who starts a new business. But this doesn’t capture the whole picture. Entrepreneurship is an ongoing process by which individuals attempt to forecast what consumers will want in the future and then organize production to satisfy those demands.

This might sound bland, but it’s immensely important. Without people thinking about what consumers might want, nothing will get done—our economy will just be a lump of raw materials, tools, and factories. Entrepreneurs are the men and women that act now to create value for consumers in an uncertain future.

The key point here is that entrepreneurs are acting in the face of uncertainty. Entrepreneurs that consistently make profits prove themselves capable of forecasting the constantly changing demands of consumers.

Now we can see why entrepreneurs are so vital in today’s economy. Taking action in the face of uncertainty is precisely what entrepreneurs do. So who could be better qualified to meet our changing needs in these very uncertain times?

And we do, in fact, see entrepreneurs adapting and expanding their services for the needs of health-conscious consumers. As my colleague Corianna Baier noted in a recent post:

Most stores now have curbside or delivery options, gyms and restaurants are moving things outdoors, and socially-distanced concerts are the latest form of entertainment. There is also plenty of innovation in education, with pods facilitating or replacing virtual learning.

However, entrepreneurs need the freedom to innovate and act on their ideas. The immense number of regulations in Missouri hinders their ability to adapt to our needs. The more Missouri dictates what can be done in education, restaurants, and public meeting places, the less freedom entrepreneurs have to provide for our needs.

Missouri faces a difficult challenge. The COVID-19 crisis has changed our behavior and the goods and services we need. Entrepreneurs have already adapted to these changes and will continue to innovate in order to provide for our needs. Shouldn’t we celebrate these men and women and allow them the freedom to serve us in this uncertain economy?