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Entrepreneurial Failure Flashcards

1
Q

What do E. Hunt and S. Pam suggest evidence shows of industry leaders during depression?

A

E. Hunt and S. Pam suggest that evidence shows that agriculturalists clung to traditional practices while there was a lack of entrepreneurialism in industry

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2
Q

What is argued to be a reason there were hard economic times in the later Victorian years according to revisionists?

A

Supposedly, hard economic times can be attributed to disinterested landlords and lacking investment

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3
Q

What is the revisionist argument for the depression in agriculture?

A

The depression in agriculture was supposedly caused by the lacking exploration of opportunities

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4
Q

What had restrictive effects on agricultural production?

A

Traditional style farm leases inhibited agricultural production innovations and increases

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5
Q

What is A. Offer’s opinion of the role played by landlords in the depression in agriculture?

A

A. Offer argues that landlords were incompetent, risk-adverse and rapacious landlords

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6
Q

Who characterises the ‘great estate’ system as pernicious to agricultural development?

A

A. Offer characterises the ‘great estate’ system as pernicious to agricultural development

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7
Q

What must be conceded about the failure of industry leaders to innovate?

A

It must be conceded that price incentives to adapt weren’t always clear or regionally / market-wise viable

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8
Q

What was the impact of long-term and short-term economic changes on entrepreneurialism or lack thereof?

A

Farmers were often confused by conflicting long term and short term incentives as well as fluctuations within these

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9
Q

What can be said of farmers reactions to depression?

A

They are more nuanced than traditionalists have given credit for, for example not everyone turned to dairying to offset agricultural strife, only those in areas where it was sensible to

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10
Q

What is an example of agricultural innovation which occurred in depression despite conflicting advice?

A

The adoption of low farming (maximising output per man rather than per acre) was adopted despite contemporaries viewing it as being less honourable / elegant

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11
Q

Why was low farming an effective solution to agricultural depression?

A

Low farming was useful during depression because it made use of marginal lands, creating low-cost low-yield systems which still turned a profit

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12
Q

What is an example of contemporary criticism of the entrepreneurial low-farming system?

A

F. A. Channing called low farming an “admission of failure” rather than serious cultivation

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13
Q

What was the main entrepreneurial responsibility of landlords?

A

Landlords had strategi entrepreneurial responsibility in effectively deploying capital over time to increase profit margins

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14
Q

What is an example of landlords being entrepreneurs?

A

Landlords were entrepreneurial in installing drainage, which is evident by looking at ledgers for drainage companies in Essex which show a spike 1875-1884

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15
Q

Where was there ‘liberal expenditure’ which indicates entrepreneurialism in farms?

A

Only where farms could truly afford to invest in improvements and when it suited in the wider economy e.g. the Orsett Estate

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16
Q

What must be remembered about the landlord’s responsibility to be entrepreneurial?

A

The responsibility to invest has to be considered within the constrains of economic security at the time, rather than looking at investment exogenous of the economy

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17
Q

By how much did farm rents fall 1872-1911?

A

Farm rents fell by 46.6%, suggesting that there was acute awareness of economic conditions from landlords, rather than a failure to engage with their responsibilities

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18
Q

Which historian studied farm rents during depression?

A

F. Thompson studied depression era farm rents

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19
Q

Which contemporary claimed no landlord evaded any of their responsibilities?

A

The Duke of Bedford in 1897 claimed all landlords fulfilled their responsibilities

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20
Q

Have landlords during the depression era been unfairly treated by historians as E. Hunt and S. Pam claim?

A

Yes. They were expected to be as schumpterian as their industrial revolution predecessors when wider economic conditions didn’t warrant it

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21
Q

Why were alternatives to cereal crops deterred during the era of depression?

A

Alternatives to cereal crops were deterred because of structural constraints such as the international market for cheese and social constraints such as dairying being considered a females profession

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22
Q

What was one significant failure of landlords in trying to offset depression?

A

As cereal farmers were the most distressed they were given the most attention, but because forces causing the depression were outside of British control this did little to help, and the prioritisation of cereal came at the expense of industries which could have been saved

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23
Q

What is a failure of all entrepreneurs or those with obligations to be as such during the era of depression?

A

No entrepreneurs tried to realise change politically through lobbying and policy making

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24
Q

What can be said about the extent to which entrepreneurialism would have made a difference to the depression in agriculture?

A

There was no one panacea which would alleviate depression

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25
What does A. Godley assert as the two failures of historiography regarding Victorian entrepreneurialism?
A. Godley argues that two misunderstandings of the Victorian economy underpin incorrect assertions of entrepreneurialism: that manufacturing drove economic growth and that from 1850+ entrepreneurialism declined
26
What does A. Godley suggest happened to entrepreneurialism from 1850+?
A. Godley suggests that entrepreneurialism didn't fail- it merely changed to suit the economy it was in, becoming concentrated in finance and management, this didn't harm the economy because success wasn't driven by manufacturing
27
When is often considered by contemporaries and historians to be the pinnacle of manufacturing entrepreneurialism?
The pinnacle of manufacturing entrepreneurialism is often seen to be the 1851 Great Exhibition
28
What can be conceded as one failure of the new style of entrepreneurialism?
The new style of entrepreneurialism- project promotion- was just as vulnerable to international competition as manufacturing entrepreneurialism
29
What does A. Godley call new entrepreneurialism, when did it end?
A. Godley calls new entrepreneurialism 'project promotion' and argues it ended in 1914
30
Where was project promotion most successful?
Project promotion was most successful in settler colonies
31
Why was project promotion most successful in settler colonies?
Arguably, project promotion was most successful in settler colonies because they were what P. Cain calls "capitalist Neo-Europes"
32
What was the major innovation in the Victorian era?
While the major IR innovation was the factory system, the Victorian era's defining innovations were railways and steam power
33
What must be remembered about criticising a decline in innovation?
A decline of innovation may have been apparent in technology, but institutional innovation is as important to consider as this
34
What facilitated institutional innovation?
Institutional innovation was helped by the changes in imperial administration and imperial markets
35
What role did the empire play in Victorian entrepreneurialism?
The empire acted as a substantial captive export market
36
What was a social factor which inhibited all entrepreneurialism- and to what extent?
Small firms were generally not viewed as good enough or worthy, and were referred to as tradesmen. But the impact of this on a wider-scale was negligible because the nature of the economy demanded more capital than one man could find.
37
What was the prerequisite for late victorian entrepreneurialism?
Late victorian entrepreneurialism was stoked by wealthy investors backing entrepreneurial artisans became a common business model
38
Who claimed that wealthy investor and entrepreneurial artisans became the crucial relationship in the late Victorian economy?
R. Payne (1980s) claimed that the wealthy investor-entrepreneurial artisan relationship became a key business model
39
What helped firms become more entrepreneurial in a financial and managerial sense globally?
The changes to company law made attaining Joint Stock with Limited Liability status easier, increasing liquidity and encouraging entrepreneurialism
40
What was a key dynamic in business organisation and what was its effect?
Family remained a key aspect of business organisation - i.e. marrying the boss's daughter - but this could stunt managerial delegation etc
41
What can be understood as entrepreneurialism?
entrepreneurialism can be understood someone who specialises in taking risky decisions about major investments (perhaps infrastructure, perhaps investment)
42
What is an issue with historiography of entrepreneurial decline?
An issue with studies of entrepreneurial decline is that there is no consensus of what 'entrepreneurialism' means
43
What caused Victorian paternalism and imperial spread of capital and innovation?
The 1832 Reform Act franchised more of the population, and health and social concerns began to predominate especially after the Irish Famine- people and their capital began to emigrate to the empire
44
What helped facilitate long-term investment in the victorian era?
Long-term investment in the victorian era was encouraged by low inflation and interest rates, which was realised in social infrastructure
45
What was the outcome of Victorian paternalism according to A. Godley?
A. Godley claims that Victorian paternalism led to businessmen becoming social reformers
46
What does the railway age suggest?
The nature of the railway age suggests that the Victorian economy was driven by, and dependent on, the 'project of imperialism'
47
Who coined the term 'project of imperialism' and what does it relate to?
A. Godley coined the term 'project of imperialism' and it relates to his idea of 'project promotion'
48
Why was there a move amongst entrepreneurs from factories to the promotion of infrastructure projects?
Entrepreneurs moved from factories to infrastructure because factory profitability was declining while infrastructure profitability was increasing (as well as non-pecuniary benefits)
49
Where did small firm entrepreneurialism prevail despite the overall economy being unsuited to it?
Small firm entrepreneurialism prevailed in retail industry
50
How did the Victorian economy change?
The Victorian economy changed, as did the framework of company law, but there was still a need for risky decision making, so entrepreneurialism prevailed just in a different climate.
51
How does A. Chandler characterise the large-firm mindset?
A. Chandler characterises the large-firm mindset as having a 'dynastic view'- didn't float on LSE or delegate managerial duties
52
Who is the historian for third generation decline?
M. Rose touches upon the concept of third generation decline
53
What does M. Rose argue with regard to the eldest son in a business?
M. Rose argues that the right of the eldest son to the business created an endemic 'succession problem'
54
How did Edwardian contemporaries understand third generation decline?
Edwardian contemporaries understood third generation decline as the "Buddenbrooks Syndrome"- based on a 1901 novel depicting the same thing
55
What does A. Godley criticise as two improper historiographic interpretations?
A. Godley criticises the interpretation that free trade policy encouraged entrepreneurialism and that there was a "decline" of entrepreneurialism
56
Why does A. Godley criticise historians' praise of free trade policies?
A. Godley says free trade didn't spur entrepreneurialism because pre-1830 war meant there was artificial government demand, and it wasn't even a govt policy until 1846
57
What is the traditional idea of free trade's role in entrepreneurialism?
The traditional idea of free trade and entrepreneurialism is that it flourished until trade unions appeared and monopolised the labour supply
58
What was the Victorian opinion of technological advancements?
Victorians largely held the belief that technological advancements gave the opportunity for sustained increases in standard of living- this required economic change but also political to distribute benefits
59
From when did the trade union movement gain serious tract?
Trade unions began to gain serious tract 1880s+
60
Where do historians disagree in relation to entrepreneurial decline?
Historians often find the time of when decline began a point of contention- mid-century, 1873 etc.
61
Why does the starting point of entrepreneurial decline vary?
The starting point of entrepreneurial decline varies depending on whether technological progress (manufacturing entrepreneurs) or economic change is studied
62
What can be argued about the change in entrepreneurialism post-1850s?
There was arguably a relocation of entrepreneurial talent to the Neo-Europes, that the dynamism moved to the imperial frontier
63
How can it be shown that resources were moved away from manufacturing? What was the impact?
rapid financial service growth + artistic migration led to manufacturing being deprived, but this wasn't necessarily a bad thing. It helped diversify the economy even though there weren't immediate returns.
64
What does J. Schumpeter claim about structural change in the British economy?
J. Schumpeter claimed that factories and trains led to structural change, as both facilitated creative destruction in infrastructure nationwide.
65
What is a three-pronged investment?
Three-pronged investment is marketing, management and research
66
Who claims that the failure of British engineers was in not making three-pronged investments?
A. Chandler suggested that the failure of British engineers was not making three-pronged investments as it was necessary for a move to mass production
67
How can A. Chandler's claim of three-pronged investments failing be challenged?
Yes, some entrepreneurs neglected investment in manufacturing. But they did so because they found more profit elsewhere- and more flexible.
68
What is an example of a flexible way for entrepreneurs to find new profits?
Mira Wilkins' FSCs are an example of flexible forms of profits
69
What does M. Olson claim to be the reason for economic decline in the Victorian era?
M. Olson claims that economic decline occurred because of the institutionalisation of collusion: Trade Unions and trade associations/cartels
70
How can M. Olson's theory of institutional collusion be criticised?
M. Olson's theory of the institutional collusion can be criticised by considering the benefits of horizontal combinations in organising resources
71
What is another reason, aside from monopolies and investment failures, for economic decline?
Some historians have attributed economic decline to the premature gentrification of society- as the gulf between artisans and the gentry widened the incentive of 'fame and fortune' declined
72
Aside from declining aspirations, what is another cultural explanation for economic decline?
Another cultural explanation aside from lacking incentives is the idea that Victorians became concerned of the ramifications of the Industrial Revolution, and sought more moral and Godly jobs in the state and church
73
Who claims that Victorians became consumed by moral and social concerns of economic advancement which thus deterred progress?
M. Wiener claims that Victorians became consumed by moral and social concerns of economic advancement
74
Who says that cultural explanations for entrepreneurial decline are irrelevant?
D. McCloskey argues that cultural explanations for entrepreneurial decline are irrelevant, but since economics underpins everything, that people also sought non-pecuniary benefits cannot be ignored
75
How can the strive for non-pecuniary benefits be illustrated?
P. Cain and A. Hopkins 'gentlemanly capitalists' sought power and prestige from their economic practices
76
What should be stressed about project risk?
All projects were risky, but while individual risk could be mitigated through portfolio investments, society cannot be saved from risk
77
What can be seen about the role of risk in entrepreneurialism?
While there was always systematic risk, entrepreneurs learnt from it.
78
What is an example of entrepreneurs managing risk?
An example of entrepreneurs managing risk is the Indian Railway System, which was built with hindsight of British Railway mania flaws
79
What is lacking coverage in historiography of Victorian entrepreneurialism?
Historiography of Victorian entrepreneurialism lacks coverage of the continuous role played by entrepreneurs in making risky decisions
80
What was the Railway Mania?
Railways began in the 1830s, peaked in the 1860s, with a mania in 1844-6
81
Why did the Railway Mania end?
The Railway Mania ended because of the 1866 Overend Gurney Bankers collapse- they'd had a large railway portfolio and so there was a loss of confidence
82
What shows the extent of success with regards to the railways?
Bradshaw's Railway Manual shows 109 foreign railways were British owned
83
How were British owned foreign railways distributed?
Out of 109 British-owned foreign railways, 32 were in the formal empire, 65 in Latin America
84
List two railway-age entrepreneurs:
Thomas Gray (1825) pioneered the idea of a nationally integrated system with a central north-south spine, Isamabard Brunel wanted a high-speed system for the social elite
85
Who carried out domestic railway promotions? How successful were they?
Domestic railway promotions were carried out by local citizens who wanted to improve their town- parliament only approved these if it helped the "common good"
86
What was the nature of risk in the mining industry?
In mining there was no guarantee of success, even moreso once surface level minerals had been exhausted and pumping underground was necessary
87
Why did mining require project-centred entrepreneurialism?
The scale of land, that it was owned by a landlord, the need for technology and workers all meant that Payne's business model was required- no self made man
88
What happened in the coal industry in the late Victorian era?
The wealthy often formed dynasty-like partnerships, and as manufacturing declined in specialisation coal rose- but it was being exported to the empire.
89
What does the railway age show about the Victorian mindset?
Railways were a manifestation of the contemporary concern to improve Britain morally and materially
90
How can late-Victorian economic practice culture be described?
late-Victorian enterprise culture was not as we understand it today (i.e. from lassies-faire), but an enterprise culture stemming from moral and social goals
91
What is the crucial purpose of entrepreneurship according to A. Godley?
A. Godley argues that the key feature of entrepreneurialism was that it facilitated structural change not just a leading economy
92
How does A. Godley account for economic decline on the global stage?
A. Godley claims that the economy failed to keep its industrial lead but only because its advantage internationally was moving towards the export of services- it was a knowledge based economy

Economics (9 decks)

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