The purpose of this pillar is to present a brief history of entrepreneurship and neoliberalism, to emphasize the inclusion of ethics in the general fabric of the society, to move beyond methodological individualism intertwined in the entrepreneurship literature, particularly in Schumpeter’s thought, the rejection of the maximalist assumption in neoliberal economics, and to regard it as a particular kind of freedom emphasized in both hermeneutical realism and Jones and Spicer’s views. In the following, the connection between the history of neoliberalism and the history of entrepreneurship is discussed. Furthermore, it is revealed that there is no significant relationship between entrepreneurship, which is rooted in the Austrian school, and Adam Smith’s classical economics. Thus, with the failure of the positivist orthodoxy of the 1950s
[8], leaving the modernization school behind in the late 1950s, this school and theoretical transition to the dependency theory of the 1960s and 1970s were unsuccessful. It did not work in any country except Tanzania. With new laws in the United States as well as new regulations and privatization in Britain, the capital is free to move across borders, and no government (let alone a small, poor government) can pursue an economic policy against capitalists. Economic planning, welfare systems, and monetary and tax policies are all effectively controlled by capital markets. Government and large-scale post-war development projects have been replaced by small- and mid-sized enterprises (SMEs) run by maximizer individuals. Entrepreneurship, which is inherently a model of capitalist development, has been raised since the 1900s to bridge the gap between the neoclassical theory in economics and the social approach. It became a priority in free market-based economic policies in the early 1980s and with a slight delay in a country such as Iran in the 1990s. Such policies increasingly lead to neoliberalism and superiority of the financial sector overproduction. A study
[9] on the history of development in India reveals that how Bharatiya Janata Party (BJP) relinquished its monopoly on planning for India’s future with the economic liberalization in 1991. Designing what became known as entrepreneurial citizenship, and following Indian immigrants working in Silicon Valley, it requested all political parties, media, and business lobbies to set up startup villages and to promote a “patent” culture. In Iran, for more than two decades, all governments have insisted on entrepreneurship as a “sacred and obvious aspect”
[6]. Iran is a country that has embraced and acted on the structural adjustment policies of the World Bank and the International Monetary Fund since the 1990s when Hashemi Rafsanjani took office. A study in Iran indicates how government-based—actually a regulating government operating in an economy between a state-owned economy and a free market—entrepreneurship discourse is influenced by capitalist relations, such as public expropriation, commodification of nature, and commodification of labor. Moreover, the shortcomings in capital accumulation, the dominance of unproductive activities over productive, the commercial capital over the domestic producers, and the capital outflows (capital flight) over the capital inflow (investment and accumulation) disrupt the capitalist process. These cases cause lending to become a source of rentiership and therefore, in both urban and rural areas, it has led to a rival discourse that relies on fixing and has goals that contradict the development discourse. Schumpeter’s views promote a kind of methodological individualism intertwined with the Austrian school
[10]. Schumpeter’s departure from Walras’ concept of stationary economy is evident in The Theory of Economic Development (1911) and through the concept of business cycles
[11]. After the publication of the second volume of Theory of Economic Development in 1926 and the book Business Cycles in 1939, Schumpeter took a more limited and systematic position on entrepreneurship, and, as Swedberg puts it, he moved from a Dionysian to an Apollonian position. Then, it has been argued that Schumpeter also seeks some forms of capitalist entrepreneurship development. Considering the issue of the priority and least priority of entrepreneurship and the basic economic system, along with capitalism as the driving force of economic development, it has long been assumed that economics has little to offer in terms of entrepreneurship
[10][11][12][13]. Most of the dominant economists of the 18th and 19th centuries, such as Cantillon, Smith, and Say, never considered entrepreneurship as a source of change, development, and progress
[14]. However, some Austrian economists have such a broad view of the entrepreneur that they sometimes use the term “entrepreneur” simply because profit or income is associated with risk or uncertainty and consider industrialists and factory owners as entrepreneurs. Even Ludwig Von Mises suggested that entrepreneurship might lose money due to misprediction of consumer needs, thereby creating obstacles to economic development and finally wasting resources. There are subtle differences between thinkers such as Mises and Schumpeter and Krizner and Hayek. However, they have all sought to implement entrepreneurship as a strategy to advance the capitalist economy
[12]. Therefore, even if entrepreneurship is related to development, it is more of a complementary strategy aiming at creating employment for those who are lagging behind the development in rural areas, while considering industrial and service sectors. It is worth noting that in the strategy of modernity, a form of “integrated rural development” as a kind of intervention and comprehensive attack on passive rural environments and cultures to manage and control them. However, in entrepreneurship, there is the same attack, not from the “developer”, but the “entrepreneur”. Here, the entrepreneur is introduced as someone competing with other entrepreneurs to obtain facilities from banks. He/she only seeks to maximize his/her own or corporate profits in the globalized and neoliberal economy dominated by transnational corporations. Entrepreneurship can be the evil twin of development in the sense that it disrupts the development or causes it to be forgotten. Therefore, it is highly important to be familiar with the history of entrepreneurship while deconstructing its language and conceptual contradictions in the entrepreneurial discourse. This is emphasized by both the skeptical post-development and the critical theory proposed by Jones and Spicer. Accordingly, the purpose of the second pillar is to incorporate inclinations, values, and identities into the notion of maximalism, as one of the foundations of entrepreneurial thinking. Kean Birch
[14], a moderate and important researcher and critic of neoliberalism, argues that when people become entrepreneurs under the influence of neoliberalism, rentiership is further increased in the economy. In Birch’s view (Ibid: 131), entrepreneurship is highly correlated with neoliberalism. Birch (Ibid: 30) also states that at least eight important schools of thought are evident in the intellectual history of neoliberalism, the most important of which are the schools of Chicago and Austria. However, they all have common features, such as monopoly of elites through corporations and holdings, market essentialism, financialization, deregulation, reduction or cessation of public service austerity, and prevalence of rentiership and corruption, which can be classified under entrepreneurship. All of these features can be outlined to some degree in Iran’s economy. For example, Ziai
[15] mentions the destructive impact of foundations on Iran’s economy, giving a demagogic and reactionary character to the development discourse of the country, while most of these foundations control a significant part of Iran’s economy and attempt to escape the tax. Earlier in this regard, people mentioned the prevalence of corruption in the lending discourse of entrepreneurship policies in Iran. Today’s crisis of the Tehran Stock Exchange is due to the undisputed dominance of legal entities (monopolies) over Iran’s monetary and banking economy. Essentialism in culture, influenced by a political–ideological structure, has paved the way for entrepreneurial essentialism. Here, entrepreneurs are referred to as holy men driving the economy alone. Of the USD 1.5 billion credit from the National Development Fund for rural development and job creation in rural areas in September 2018, approximately USD 22 million was allocated to Sistan and Baluchestan Province—one of the most deprived provinces in the country
[16]. However, of the 9285 villages in the province, 2732 (approximately 30%) have been deserted during the recent 15-year drought. This indicates the prevalence of hegemonic and essentialist discourse of entrepreneurship while not critically considering it. Entrepreneurship has progressed simultaneously with backwardness in development. Ziai emphasizes cultural essentialism in skeptical post-development and rejects it. Reliance on the contradictions is a component of Jones and Spicer’s critical theory and skeptical post-development theory. Furthermore, the concept of living, which is the product of the mind’s intention toward the world around it (humans, plants, animals, and the earth all play a role in inhabitants’ lives), is not possible except by abandoning (economic and sociocultural) epistemological essentialism. Abazari
[17], a prominent sociologist in Iran, criticizes the Persian translation of the entrepreneur and points to the entrepreneur’s rent-seeking characteristics from a more radical position than Birch holds. He blames the implementation of Hayek–Friedman policies as one of the causes of the 2008 financial crisis. Like Abazari, Simon Springer
[18] considers neoliberalism from a critical perspective and presents the razor-sharp critique from Foucault’s viewpoint assuming that neoliberalism is a discourse. His prose skillfully fluctuates between academic and literary styles and embraces both. Both Abazari’s paper and Springer’s critique suffer from the flaw the same as Birch when criticizing Dardot and Laval’s book
The New Way of the World: the lack of empirical evidence for the claims made. Springer’s analysis is interesting, since it relates privatization and entrepreneurialism to the imperialist goals of metropolitan countries in places such as Afghanistan, their geographical reconstruction, and the creation of uneven development in those countries. Neoliberalism attempts to restore power to weak countries such as Afghanistan, which have an open economic space, with the slogan of geographical reconstruction and the logic of securitization. “Dirty work” and “regulatory power” of neoliberalism will only be revealed by a precise deconstruction of its discourse and interpretation of its meaning (Ibid: 73). This analysis seeks to explore the meaning of both neoliberalism and entrepreneurship. Personal interest, which is the ultimate goal of business activities, is at the core of Schumpeter’s views and requires serious attention. Adam Smith’s pseudo-problem and the contradiction of his views on “Wealth of Nations and the Theory of Moral Sentiments” show how economics cuts off the moral system, particularly in the Austrian school, and emphasizes entrepreneurship to put the latter first. Therefore, based on hermeneutical realism, a different orientation (a component of life) should be considered toward existence (capitalist-based entrepreneurship), which is created through the exercise of the freedom right of economic actors (agency) in the rural arena. This agency-based existence is born of the integration of the moral system (society) with a profit-oriented economy. The intervention of ethics does not mean the establishment of any kind of individual ethics (micro-moral system), such as the right to own property, the right to accumulate and transfer wealth, the establishment and registration of companies—or the concentration of morality in an institution called the state. However, as stated in the first principle of Spicer and Jones’s theory, it is a new representation of the entanglement of ethics with entrepreneurship, rural, and rurality, which can be achieved by creating a macro-moral system. The debate is over the distribution of ethics in the general fabric of the economic system. The ultimate goal here is to prevent the transformation of human beings to enterprises or investment opportunities through the ethnics of the social fabric and to restore identity and emotions to the homo economicus, who is an entrepreneur of the self. Instead of an omnipotent market, one must speak of omnipotent ethics and release social relations from the predicament of corporate bondage. The moral system, either micro or macro, can be constrained by government policies in line with market-oriented liberalism, through pressure from institutions such as the International Monetary Fund or strong lobbies, such as pharmaceutical companies. On the contrary, it can be expanded through voluntary environmental standards by companies, government policies, and NGO activists, and the shift in consumption patterns to value consumption to support weak and underdeveloped producers. In fact, what is called “fair trade” can be extended from handicrafts to agricultural products. Consumers can easily support fair trade practices and policies. The element of living in hermeneutical realism is based on the emergence of action toward the surrounding world, an action that is reflected by ethics according to the present work. The modern German philosopher Kant interprets ethics as a kind of practical intellect. The normal integration of ethics into the capitalist economy is the new intention of rural actors toward the figurative space of the rural. The figurative space will be based on dual hegemonic and colonial constructs existing in both the entrepreneurship literature, such as the creative and innovative entrepreneur versus the ordinary farmer, and the rural development literature, such as the civilized versus the savage. In short, the second pillar includes (a) a description of the history and scrutiny in the meaning of entrepreneurship and rurality, (b) an explanation of the neoliberal aspects of entrepreneurship through a moderate critique of neoliberalism, and (c) inclusion of an ethical system in the entrepreneurial process.