Raw Enterprises

The theory of raw enterprises, as discussed by Thorstein Veblen in his work, focuses on the role of business enterprise in the context of industrial production and profit-seeking. It examines how businesses are organized, how they operate within the machine process, and how this impacts society. The theory highlights the shift from a focus on craftsmanship and use-value to a system dominated by pecuniary (monetary) gain and the pursuit of profit. 

Here's a breakdown of key aspects of the theory:

• Machine Process and Industrial Production:

  Veblen's theory emphasizes the impact of the machine process on modern industry. It's characterized by standardization, efficiency, and a reliance on technology. 

• Pecuniary vs. Industrial Logic:

  A central theme is the conflict between the "pecuniary" logic of business (focused on profit and ownership) and the "industrial" logic of production (focused on efficient output and service to the community). 

• Business Enterprise as a Profit-Seeking Entity:

  Veblen sees business enterprise as primarily driven by the desire to accumulate wealth and make profits, rather than by serving the needs of society. 

• Goodwill and Intangible Assets:

  The theory acknowledges the importance of "goodwill" – established business relationships, reputation, trademarks, etc. – as intangible assets that contribute to a company's competitive advantage, even if they don't directly benefit the community. 

• Conflict and Inefficiency:

  The theory suggests that the inherent conflict between pecuniary and industrial logic can lead to inefficiencies, waste, and even sabotage of the industrial process. 

• Implications for Society:

  Veblen's theory has broader implications for understanding the relationship between business, technology, and social welfare. It raises questions about the ethics of profit-driven enterprises and their impact on the common good. 

In essence, Veblen's theory of raw enterprises provides a critical perspective on the modern business system, highlighting its focus on profit and the potential conflicts that arise between business interests and broader social needs.