For simplicity consider a village where the villagers only grow and consume potatoes. Each year they plant the potatoes they set aside for this purpose to grow more potatoes. TheRead More
How Labor Creates Value
As a business owner, how can you use labor as a source of leverage to increase the impact of your own effort? And does this use of labor create value? Read More
On Entrepreneurship
There are many people productively driving around in automobiles. And many, perhaps most, of these people don’t understand how an internal combustion engine operates, much less how to design orRead More
Four Drivers of Value Creation
Value is created when resources are diverted from less valuable to more valuable use. Uber created value by connecting otherwise idle resources (drivers and their automobiles) with other individuals inRead More
On Value Creation
When a business engages in a value-generating activity it uses existing resources (e.g. labor, capital, or materials) – resources that would otherwise be used in some alternate activity. This alternativeRead More