https://youtu.be/vtAI4R7DeSI
Rapid technological change requires entrepreneurs to stay at the forefront of innovation, using emerging technologies to create new opportunities and solutions. Furthermore, startups play a vital role in job creation and local economic development.
During the conference, Alfredo Irigoin—who holds a PhD in Economics from New York University, a Bachelor of Arts from Grove City College, and a degree in Business Administration from the Catholic University of Argentina—explored entrepreneurship from the perspective of Austrian economics.
Adaptability and resilience
In a dynamic and uncertain economic environment, entrepreneurial skills—such as adaptability and resilience—are essential. Access to resources and support networks, as well as the opportunity to operate in a globalized market, further underscore the importance of entrepreneurship.
In his presentation, the expert highlighted the importance of understanding entrepreneurship in the context of the 21st century.
The Paradox of Value
A central theme of the talk was the approach of the Austrian School of Economics, particularly its emphasis on subjective valuations. This school of thought stands in contrast to neoclassical economic theories.
Irigoin explained how, until 1870, the value of goods was linked exclusively to production costs. “If I work hard, I earn a lot; if I work little, I earn little,” he explained.
“Why is a diamond worth more than a banana you can eat?” he asked the audience. He continued: “A glass of water has immense value in the desert, but very little in the city. Would you say that air is an economic good? Have you paid for it? It depends on relative scarcity. If I can’t breathe, I’m willing to give my kingdom for a little oxygen.”
The speaker noted that these questions also puzzled classical economists, who sought to understand why some essential goods had such a low market value, while non-essential goods commanded exorbitant prices.
The Shift Toward Subjectivity
In 1871, with the marginalist revolution, this view changed: “Goods are not valued by the amount of resources used in their production, but by the subjective people make of them,” he asserted.
According to the expert, this concept “has enormous implications for how we understand society. The issue of subjectivity is fundamental to both business and personal life.”
Subjectivity also influences how countries are perceived—such as the way other nations view Uruguay, for example. This perspective permeates all human activity. “You can work for 20 years, 20 hours a day, but that doesn’t guarantee that your work will create value,” he said.
He added: “In the social sciences, things are what people believe them to be. And if people believe that a person is the wisest in the world, they will value their work accordingly.”
He also emphasized the importance of the social context in the business world: “It doesn’t matter what I think of my company, but what others think of it.” This approach encourages entrepreneurs to understand and adapt to market perceptions.
Final Thoughts
The conference concluded with a reflection on the transformative role of the entrepreneur in the modern economy.
“We are all a little entrepreneurs; what makes us successful is that we see a situation before others do,” Irigoin stated. He also highlighted the need to develop a tolerance for failure as part of the path to success: “To be an entrepreneur, you have to have a tolerance for failure and prepare yourself to endure it.”