The City-State of Ancient Athens as a Prototype for an Entrepreneurial and Managerial Society

Abstract

In this paper we argue that a significant part of the wealth amassed by Athens in classical times emanated from the entrepreneurial incentives Athenians, rather consciously, instituted and applied in their city-state. To corroborate our view, we give a brief account of the political institutions and rules of governance of the city-state of Athens; we describe the economy within which entrepreneurs operated, and we explain the reasons why Athenians chose to establish an open society, based on international trade and incentives for almost everyone (including slaves) to pursue entrepreneurial activities. Lastly, we focus on a “protagonist of management science,” i.e. Xenophon, who developed explicitly the first principles and imperatives of managerial actions.