The Practical Wisdom of Entrepreneurial Judgment

Entrepreneurship, defined as judgmental decision-making under conditions of uncertainty, is studied in many different disciplines across the social sciences and humanities. Despite the growth of the field, however, there is still relatively little research on the philosophical foundations of entrepreneurial action. This chapter highlights some connections between this entrepreneurial judgment and practical wisdom. It first examines the roots of entrepreneurial decision-making as explained through the framework of “Austrian” economics, especially with regard to action, choice, and uncertainty. It then compares entrepreneurial judgment and practical wisdom in light of Aristotle’s five intellectual virtues, noting some similarities and tensions. Finally, it discusses some moral aspects of entrepreneurial action and their relation to human flourishing, and the institutional foundations that support this relationship.