But as Mises would tell you, capital is not necessary as you can borrow money and still pocket the entrepreneurial profit and managerial salary, having to pay only interest, now whom to believe :-D
I am joking, of course, capital being difficult / expensive to acquire is one of the primary problems of real-world market economies, in the ideal market simply presenting a good business plan, even without any sort of a collateral would get other people's money thrown at it which requires perfect trust and perfect trustworthiness. Markets where only people who already have capital can engage in entrepreneurship end up with nasty outcomes, not only high inequality but also crappy entrepreneurs the customers must put up with.
in the ideal market simply presenting a good business plan, even without any sort of a collateral would get other people's money thrown at it
Well, Silicon Valley functions more or less like this. Hedge funds can look like this, too.
Markets where only people who already have capital can engage in entrepreneurship end up with nasty outcomes
That's basically a counterfactual -- businesses have been able to borrow money for a very long time in human history :-)
In reality the situation is a mix: it's not quite true that "A bank will only lend money ...
If it's worth saying, but not worth its own post (even in Discussion), then it goes here.
Notes for future OT posters:
1. Please add the 'open_thread' tag.
2. Check if there is an active Open Thread before posting a new one. (Immediately before; refresh the list-of-threads page before posting.)
3. Open Threads should be posted in Discussion, and not Main.
4. Open Threads should start on Monday, and end on Sunday.