Department(s)
Business Administration
Document Type
Article
Publication Date
2020
Keywords
entrepreneurship, stewardship, rent, profits, property
Abstract
Entrepreneurs should act as stewards of entrepreneurial rent. Entrepreneurial rent is the difference between the ex post value of a venture and its ex ante costs. It is the result of competition among buyers and sellers within the market process rather than the sole efforts of the entrepreneur. As a result, entrepreneurs should allocate entrepreneurial rent for the benefit of other market participants rather than consuming it for themselves. The moral obligation to steward entrepreneurial rent is consistent with traditional bases of property rights and the norm of social welfare maximization, and it applies to corporations and their shareholders, as well as individual entrepreneurs.
Publication Title
Business Ethics Quarterly
ISSN
1052-150X
DOI
https://doi.org/10.1017/beq.2019.51
Recommended Citation
Lee, Jooho, "Entrepreneurial Stewardship: Why Some Profits Should Be Used to Benefit Others" (2020). Pepperdine University, All Faculty Open Access Publications. Paper 130.
https://digitalcommons.pepperdine.edu/faculty_pubs/130