Some economists have likened entrepreneurs to heroes, praising their role in disrupting industries and driving progress. Joseph Schumpeter, for instance, famously described them as agents of “creative destruction.” This description evokes the image of warriors boldly slaying the dragon of entrenched systems — tearing down outdated structures to pave the way for revolutionary innovation.
Yet Israel Kirzner, a leading economist in the Austrian tradition and a student of Ludwig von Mises, rejected this dramatic portrayal. Instead, he argued that entrepreneurship is about simply noticing opportunities that others overlook. At first glance, this view might seem to downplay the heroism of entrepreneurs. But does it really?
Exploring Kirzner’s ideas through the lens of the Hero’s Journey — a narrative framework developed by Carl Jung and later expanded by Joseph Campbell — reveals that even Kirzner’s entrepreneur is a hero, though in a subtler and less dramatic way.
In this framework, true heroism emerges in uncovering the potential of the unknown and bringing it into the light of consciousness.
The Ordinary World: The Illusion of Perfect Knowledge
In Campbell’s theory, the story starts in the “ordinary world,” which represents a state where the surface appears stable and calm but underlying tensions and possibilities remain hidden. In economics, this is the world mainstream theories often assume: a world of perfect knowledge.
Mainstream economics operates on this assumption to simplify complex real-world phenomena into predictable models. By presuming that individuals possess complete and accurate information about prices, resources, and preferences, these models mathematically simulate equilibrium — a theoretical state where supply equals demand and all markets are clear. In this framework, all options and alternatives are known, neatly laid out for decision-makers to maximize their preferences.
But beneath this surface of apparent perfect information lies an unseen world of unmet needs and inefficiencies, with solutions that remain unnoticed. In Jungian terms, these solutions reside in the unconscious, Which means no one searches for them because no one knows they exist — a state that Kirzner aptly describes as “sheer ignorance.” This ignorance will persist until the entrepreneur steps forward to reveal what lies hidden.
The Call to Adventure: Recognizing the Unseen
In the Hero’s Journey, the call to adventure shakes the hero’s perception of the ordinary world, urging them toward the unknown. In the market, this call arises when the entrepreneur stumbles upon hidden gaps and inefficiencies — revealing that the so-called perfect information is an illusion.
This illusion is tragic. Those who possess solutions and those who desperately need them pass each other like ships in the night, unaware of each other’s existence. The entrepreneur’s discovery breaks this cycle, linking unmet needs with untapped resources.
These discoveries are not the result of systematic search, because, as explained earlier, information lost in the unconscious cannot be searched for. Yet this does not suggest sheer luck; rather, it highlights the entrepreneur’s unique “alertness” — a heightened sensitivity to opportunities that others fail to see.
In archetypal stories, the call to adventure is often symbolized by an encounter with something extraordinary — like a dream, or, for example, an animal guide such as the white rabbit in Alice in Wonderland. Although the encounter seems accidental, Jungian theory suggests these symbols represent an unconscious recognition of something worth pursuing. Just as the rabbit calls Alice into her journey, entrepreneurial opportunities reveal themselves only to those with the alertness to perceive them.
Meeting the Mentor: Inner Vision and Instinct
In the Hero’s Journey, the mentor — often depicted as a wise old man — provides wisdom and encouragement, representing an inner guide. For entrepreneurs, this mentor is their unique instinctive vision.
This vision is essential in navigating the uncertainties and facing the inevitable challenges ahead. It is not blind gambling but more like traveling at night, where limited vision still provides enough guidance to move forward while others remain paralyzed. As the journey unfolds, the entrepreneur must rely on their inner guide to endure and overcome trials.
Trials and Challenges: Risk and Uncertainties
No hero’s journey is complete without trials and challenges, and entrepreneurship is no exception. Entrepreneurs do not simply uncover hidden opportunities; they must act on them by venturing into uncharted territory.
This requires imaginative, prudent decision-making, as they must evaluate incomplete information, anticipate market reactions, and adapt to unforeseen changes. Losses can occur if predictions about future demand or market conditions prove incorrect, or if competitors bring even better solutions to light.
In Jungian terms, these trials and challenges reflect the hero’s confrontation with the unknown — the shadowy, chaotic aspects of the unconscious, which is what the dragon symbolizes in this framework.
The Reward: Profit as Motivator
In the Hero’s Journey, the reward is the immediate recognition of the hero’s success, often symbolizing the value they’ve brought back from their trials. For the entrepreneur, this reward is profit.
The beauty of the market economy lies in its ability to transform gaps in knowledge — those hidden solutions waiting in the unconscious — into profit opportunities. When entrepreneurs recognize and act on these gaps, the market validates their success, providing the motivation to continue innovating.
Profit is not the only reward. Entrepreneurs also experience deep personal satisfaction from solving meaningful problems or creating something new. Yet, the true measure of their heroism lies in the broader gift they bring to society.
The Elixir: Uncovering New Knowledge
In the Hero’s Journey, the elixir symbolizes the ultimate reward — the treasure the hero brings back to the ordinary world to benefit others. For entrepreneurs, their discoveries do more than solve problems or satisfy unmet needs; they expand the boundaries of what society knows and can achieve by bringing previously unconscious knowledge into the light.
But the impact of entrepreneurship goes further. Entrepreneurs build bridges between people with complementary resources and needs, fostering cooperation and creating opportunities for mutual benefit. In doing so, they bring people together, contributing to a more peaceful and harmonious social order.
The Dangers of Perfect Knowledge Framework
The importance of entrepreneurial discovery cannot be overstated. By failing to grasp this crucial concept, the theory of “perfect knowledge” paves the way for central planning and massive regulations that obstruct individuals from freely exploring opportunities.
In their imagined world, where all paths are already known and everyone follows the same route, there is no room for any discovery. Without the freedom to venture into the darkness, vast potentials would remain locked in the unconscious — not only depriving us of them, but more tragically, leaving us unaware they ever existed or could have been discovered.
Every breakthrough, whether major or minor, every improvement in living standards, whether transformational or incremental, and every leap forward in human history has been an elixir brought back by entrepreneurs. Their heroic quests remind us that the unknown holds boundless potential waiting to be realized.
To safeguard this vital process of discovery, we must preserve the freedom that allows entrepreneurs to explore the unknown and illuminate new paths, ensuring humanity’s continuous cycle of innovation and flourishing.