Carnegie stressed cutting costs in fact his motto was “Watch the costs and the profits will take care of themselves.” This meant hard work in innovating, accounting, and managing. Purchases, for example, were made in bulk to achieve economies of scale. Also, Carnegie strived for vertical integration, the control of his steel business from the buying of raw materials to the marketing of finished steel.
“The Myth of the Robber Barons” by Burt Folsom
The following presentation by Burt Folsom from the YAF’s National High School Leadership Conference is well-worth watching. He goes into the difference between political (request/need subsidies) and market (do it without) entrepreneurs. The presentation style is hit or miss — I like it very much. Very enthusiastic, and with a great sense for the right pauses. And his examples are … I would say great, but damn, how long does it take to learn what works and what does not?
He apparently did the presentation a couple of times (just had a quick look, looks like the same presentation here as well). He also wrote the book “The Myth of the Robber Barons” that goes into more detail. It’s about 270 pages — and an easy and entertaining read.
Very interesting perspective on entrepreneurship.