Surely we are all tired of the mantra that everything should be “run like a business.” Surely we all realize that the government, or the health care system, or the education system, or your family are not businesses and should work according to their own immanent logic rather than according to the norms of business.
Yet it occurs to me: is anything inherently a business? We normally think of a bakery as a business, for example, but isn’t it actually a place where people bake things? One can imagine a bakery operating under many different economic systems. The examples multiply. A clothing retailer is a place where people come to get their clothes. A convenience store exists to provide people with easy access to frequently used items. A car factory exists to make cars. Even a bank exists primarily to intermediate between people’s different financial priorities (e.g., saving vs. spending), rather than to make money as such. All of those things are typically “run like a business” in Western countries, but that doesn’t mean that they directly “are” businesses.
Only one type of pursuit is inherently a business: hedge funds. Read the rest of this entry »