The Practical Wisdom of Entrepreneurial Judgment

Mihai-Vladimir Topan, Matthew McCaffrey, Nicolai J. Foss*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review


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.
Original languageEnglish
Title of host publicationHandbook of Practical Wisdom in Business and Management
EditorsBarry Schwartz, Caleb Bernacchio, César González-Cantón, Angus Robson
Number of pages12
Place of PublicationCham
Publication date5 Aug 2022
ISBN (Print)9783030001407
ISBN (Electronic)9783030001407
Publication statusPublished - 5 Aug 2022
SeriesInternational Handbooks in Business Ethics

Bibliographical note

Epub ahead of print. Published online: 05 August 2022


  • Entrepreneurship
  • Judgment
  • Uncertainty
  • Economic calculation
  • Institutions

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