The University of Edinburgh Business School, in collaboration with the David Hume Institute, recently hosted a thought-provoking public talk: “Revisiting Capitalism, Adam Smith, and Entrepreneurship – A New Era?” led by Dr Samuel Mwaura. As someone who’s passionate about the intersection of business innovation and social responsibility, I found this talk imaginative, poignant, and yes, even a bit challenging! Dr Mwaura didn’t just scratch the surface of capitalism; he dug into its foundations, sparking lively debates and fresh perspectives on how we understand profit, entrepreneurship, and economic fairness.
One of the most intriguing ideas Dr Mwaura presented was his view of profit not as a direct reward for investment, innovation or efficiency, but often as a “residual error.” What did he mean? Essentially, he argued that profits sometimes stem from unmeasured costs - think of underpaid wages or environmental impacts - that businesses don’t account for in their financials. Rather than private entities retaining all this residual value, he proposed that society might benefit more if these “residuals” were returned to the public through high taxation. Pretty radical, right? But it definitely makes one pause and think: are there hidden social costs embedded in our profits?
Now, I’ll admit, this view wasn’t universally accepted in the room. One audience member raised an insightful counterpoint, asking, “What about profits reinvested to adapt to market changes, like the shift to e-books?” This example illustrated how profit fuels necessary business reinvention - something I understand well from my background in engineering. Without profit, businesses might struggle to innovate and adjust to new market conditions. This tension between social value and economic necessity kept us all leaning forward in our seats.
Another fascinating perspective from Dr Mwaura was his take on entrepreneurs. Rather than seeing them solely as value creators, he positioned entrepreneurs as “underwriters” who absorb the risks inherent in an unpredictable economy. Think of them as managing “errors” within the market, rather than directly producing value. The talk’s discussant, Dr Robbie Mochrie from Heriot Watt University, however passionately countered: “Risk is not something everyone is willing to take, and those who do should be rewarded proportionately!” This sparked a deeper debate on the nature of risk and reward, and I found myself appreciating both sides. Yes, entrepreneurship is about bold risk-taking, but maybe there’s also room for a view that includes the entrepreneur as a stabilising force, one who brings a safety net to an otherwise chaotic economic landscape.
Risk is not something everyone is willing to take, and those who do should be rewarded proportionately!Dr Robbie Mochrie, Heriot Watt University
And then, there was the part of the talk that truly made me smile: B Corps. The discussion around socially conscious businesses provided a welcome alternative to traditional models, not quite as radical as the ideas Dr Mwaura was proposing, but one that is gaining traction in practice. This view was presented by the second discussant, Fran van Dijk, CEO of One Stone Advisors, a Global Sustainability Consultancy based in Edinburgh. Fran shared the story of Tony’s Chocolonely, a B Corp that not only produces delicious chocolate but also champions fair wages and ethical sourcing. Their unevenly shaped chocolate pieces symbolise inequalities in the supply chain, with the larger pieces representing those who profit the most. It was such a powerful visual - and a brilliant reminder that business can be both delicious and impactful! The audience loved it, too. One attendee noted, “B Corps strive for impact in ways traditional businesses often overlook,” sparking a lively conversation on whether B Corps could eventually reshape mainstream capitalism.
As the talk wrapped up, Dr Mwaura left us with a hopeful message. Yes, capitalism has its flaws, but each of us - especially as future business leaders - has the power to influence change. I walked away not only more reflective about capitalism but also inspired by the potential of rethinking business models to align with values of equity and sustainability.
I’m genuinely grateful for opportunities like these, which push me to question, learn, and dream about a future where business can indeed do good. Here's to exploring, challenging, and—hopefully—redefining capitalism for a new era!