Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship

2013 Edition
| Editors: Elias G. Carayannis

Planned Economy and Entrepreneurial Function

  • Jesus Huerta de Soto
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-3858-8_491


 Entrepreneurial creativity;  Entrepreneurial knowledge;  Government commands;  Institutional coercion

Entrepreneurship is a key concept for any definition of the planned economy. In fact, the planned economy or “socialism” could be defined as any system of institutionalized aggression against the free practice of entrepreneurship (Huerta de Soto 2010, p. 49). Aggression or coercionmust be understood to mean any physical violence or threat of physical violence which is originated toward and performed on an individual by another human being or group of human beings. As a consequence of this coercion, the individual, who would have otherwise freely carried out his or her entrepreneurship, is, in order to avoid a greater evil, forced to act differently to the way he/she would have acted under other circumstances, thus modifying his or her behavior and adapting it to meet the ends of the person or persons who are coercing him or her. Aggression, thus defined, is considered to be...

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© Springer Science+Business Media LLC 2013

Authors and Affiliations

  1. 1.Catedrático de Economía PolíticaUniversidad Rey Juan CarlosMadridSpain