Abstract

Drawing on the concept of “entrepreneurial alertness” forged by Israël Kirzner, the article provides a sociological interpretation of the way in which entrepreneurs earn financial profits. By studying the productive diversification practised by craftsmen to make a living from their skills, he casts light on the social origin of entrepreneurial alertness. This arises from the intersection of the productive and commercial spheres: the dual role of creative craftsmen as both producers and sellers enables them to identify price differences between inputs and outputs from which they can profit. Because of their embeddedness in a professional community, however, there are limits on how much profit they can make. Entrepreneurial alertness is shaped by professional ethics.

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