[Guide to the Market Economy] The Adventures of Prince Enrique

Prince Henry’s “Age of Exploration” Led Portugal to Prosperity

We Need the Entrepreneurial Spirit That Does Not Shrink from Adventure and Challenge

Humanity maintained a hereditary class society for a very long time. Even just a little over 100 years ago, people had to live according to the status they were born into, and escaping that inborn status was about as difficult as plucking a star from the sky. However, with the arrival of capitalist society, the class system that had accompanied humanity throughout its long history began to break down. As societies transitioned to capitalism, wealth that had previously been monopolized by a small number of those in power became something anyone could attain through open competition.

Schumpeter’s Entrepreneurship

Naturally, as status-based inequality began to dissolve, the dignity of individuals who had once been discriminated against according to their birth came to be recognized equally. In a society where anyone can become wealthy depending on what they do, what matters more is not one’s inherited status but one’s individual ability and effort.

In this way, capitalism is a kind of revolution that dismantled class society, and it is also a mode of growth that has enabled humanity to improve the quality of life through repeated innovation. It guarantees diverse opportunities to create wealth and provides the strongest possible motivation to transform life for the better through free economic activity. That is capitalism.

When discussing capitalism, one cannot leave out firms and entrepreneurs. Firms are the agents of competition that hire workers and produce goods, while entrepreneurs are the pioneers who create new markets and industries and lead tremendous social progress. Nobel Prize-winning economist Joseph Schumpeter called entrepreneurs and entrepreneurship, which drive social change, “the flower of capitalism.” This is because he believed that the wealth created by firms does not merely accumulate material value, but also has a profound impact on human life and society as a whole.

Portugal’s Development and a Prince

As an example, one may think of the Age of Exploration, which drove Europe’s explosive growth in the 15th and 16th centuries. The country that led that era was Portugal. At its center was Portugal’s Prince Henry, known as the “Navigator Prince.” Prince Henry established Sagres Castle, gathered talented people, and invested generously in collecting and researching materials on astronomy, geography, navigation, and shipbuilding. On the basis of this solid knowledge, he led the exploration of the African coast and Europe’s first Atlantic expeditions, and spearheaded Portugal’s overseas colonial ventures. Despite his royal lineage, Prince Henry even personally explored routes along the west coast toward India.

Thanks to this, Portugal was able to seize maritime leadership far more quickly than other European countries. Countless young people threw themselves into opening new sea routes and willingly risked their lives on dangerous voyages. That was because Prince Henry’s active pursuit of new routes and colonial enterprises presented a new vision to many young people. At the time, the Portuguese king carefully reviewed the exploration plans submitted by young men, and if he judged them to be ventures of value and daring, he willingly provided the funds and ships needed for the expedition. In modern terms, the explorer submitting an exploration plan was a venture entrepreneur, the king sponsoring ships and capital was a venture investor, and the voyage led by the explorer was a venture business.

Just like venture businesses today, opening new sea routes at that time was an extremely dangerous undertaking. It was the kind of venture that could easily cost one’s life, yet ambitious young people boldly took on the challenge, each cherishing a vision of his own. What motivated them to voluntarily take risks and press forward was the enormous wealth and honor granted to those who returned successfully from exploration.

Because Portugal fully encouraged the spirit of adventure and challenge among talented young people in this way, it was able to open the Age of Exploration at an early stage. Unlike other European countries of the time, which still remained agrarian societies, Portugal discovered new industries through maritime trade and colonial development and made them the driving force of national growth. As a result, Portugal was able to enjoy glory as the great protagonist of the Age of Exploration, shining throughout history. The adventurous and challenging spirit of the young talents who led Portugal’s prosperity is closely connected to what we today call entrepreneurship.

We Need a 21st-Century Prince Henry

Entrepreneurship, which leads innovation and development, manifests itself differently depending on the era and society. That is because the innovation and development demanded by each age and society are different. The society in which we live is developing at a faster pace and demands far more change than before. Therefore, if you dream of becoming wealthy, you must not live thoughtlessly, simply going along like everyone else. You must begin your own adventure with your own philosophy and entrepreneurial spirit. Only then will a new Prince Henry of the 21st century finally emerge, and only then will we once again enjoy the glory of a new Age of Exploration.

● Please remember

The country that led the Age of Exploration was Portugal. At its center was Portugal’s Prince Henry, known as the “Navigator Prince.” Prince Henry established Sagres Castle, gathered talented people, and invested generously in collecting and researching materials on astronomy, geography, navigation, and shipbuilding.

Sung-no Choi, President, Center for Free Enterprise (CFE)

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Original title: [시장경제 길라잡이] 엔히크 왕자의 모험

Author: Sung-no Choi

Date: 2019-10-21

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=12&idx=21978