The new era of low transaction cost digital service provision is, in Munger’s telling, a revolution, as significant as the Industrial Revolution in the nineteenth century. Each of us as consumers will have the opportunity to lead more convenient, more efficient, and safer lives.
Progress in one area leads to progress in others. Life gets better. Progress is not brought to us by managers striving for efficiency, but by entrepreneurs developing specialist knowledge about their area of expertise and thereby discovering new opportunities to serve customers better and to make a profit doing so
The future of innovation lies squarely in the initiatives of the independent, interconnected entrepreneur. As new technologies like A.I. and global idea exchange platforms augment individual capacity, the trend towards individually ideated innovation will accelerate.
People prefer to deal with those they know, like and trust. Small business can win big on these three fronts. More and more customers will make the choice to buy from small business, especially now that technology, science, efficiency and organizational effectiveness are no longer reserved to big business.
We need people who can imagine a better future in entrepreneurial terms, not political terms. People who can identify how to serve their customers in a better way, and claim the reward of a financial profit for improving their customers’ lives. We need people who take personal, entrepreneurial and commercial risk because they see opportunity and they believe that they can seize it.
In the division of labor, we each want to demonstrate that we can provide better service to others and be worthy of our hire. This is how individuals find their own level.