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1. Schumpeter uses the expression "economic subject" to denote what we today would call an "economic agent."

2. The original term is "soziale." Throughout the text, we translate this as "collective" as Schumpeter contrasts this level with the individual level.

3. The original term is "wirtschaftliches Sonderleben." The meaning of the term is "economic, as opposed to general, life."

4. The "pressure of given circumstances" not only parallels the contemporary use of the term "selection pressure" in behavioural economics and theories of economic evolution, but more importantly also Schumpeter's own use of the term Auslese (selection) to characterize the process of competition in a string of works during the late 1920s (Schumpeter, 1927, 1929a, b). Thus, among the most important topics Schumpeter focussed upon after resuming his academic career in 1925 was the role of the entrepreneur in economic development, and related, the characterisation of competition by the severe behavioural limitations of economic agents; the latter point leading to the understanding of competition as a selection process. Weber had a few years earlier, partly on grounds of empirical realism, conceptualised (economic and social) competition as a selection process, and explicitly related this conceptualisation to the idea of biological selection (see e.g. Weber, 1978, pp. 38-40). Moreover, Weber (1978) consistently emphasized the importance of behavioural limitations.

5. Although the original German term "bewußt" has been translated as "conscious" a few words before, it here has a different meaning in referring to plans: "deliberate."

6. That is, a planned economy.

7. The original term is "Erwerbswirtschaft." We have chosen to translate this as "profit-making economy" because it emphasizes the opposition with "subsistence economy." In the translation of Weber's Economy and Society (1978), "Erwerb" is also rendered consistently as "profit-making." Thus, we view Schumpeter's contrasting categories of "profit-making economy" versus "subsistence-economy" as a close parallel to Weber's distinction between Capitalism associated with "profit-making" (Erwerben) and Economic Traditionalism associated with the pursuit of immediate wants (Swedberg, 1998). This statement is, therefore, quite important since Schumpeter in proposing selection pressure and behavioural limitations downplays the importance of the fundamental dichotomy used consistently by Weber in a number of works including Economy and Society.

8. The original term is "feststellen." It could also have another meaning, which is "fix," "set in a fixed position."

9. The original term is "privatwirtschaftlicher Natur." We use "private enterprising" for "privatwirtschaftlicher" and subsume "Natur" in the qualifier "related to."

10. The original term is "zurückwirken." We have translated it as "counter-effect" in line with our translation of Schumpeter (1911), see Becker and Knudsen (2002).

11. Here and in the following, we have added the square brackets and their content in order to give the reader some help in the long enumeration of extra-capitalistic elements that follows. The classification into five categories of extra-capitalistic elements is ours.

12. In the original the expression "diesen letzteren" unambiguously refers to "Of the unfolding inner logic of production." "Of the unfolding inner logic of production" is therefore inserted for clarity.

13. Toto coelo is the local ablative form of the Latin word coelum, which means "sky" or "heaven." The expression literally means "the whole sky." In the present context, it qualifies the term "unique." After consultation with a Latin scholar, we arrived at the conclusion that the meaning of the term here is "completely unique."

14. The original term is "Wirtschaften," we have stayed close to the Weber translation (Weber, 1978) of the term as "economic action" but have amended it to "economic activity" for reasons of elegance.

15. The original term is "Wirtschaften," we have stayed close to the Weber translation (Weber, 1978) of the term as "economic action" but have amended it to "economic activity" for reasons of elegance.

16. In deviation from the translation used throughout the text for "Erwerb," "profit-making," we chose to translate the term "Erwerbssinn" as "economic sense" because it refers to a broader concept here.

17. The original term is "Stadt- und Territorialwirtschaft." Our translation refers to the famous title of Henry George's essay "City and Country" first published in 1883 in his book "Social Problems."

18. The original term is "Erwerbstatigkeit." The translation used in Weber (1978) is "Acquisitive activity." We use the freer translation "employment."

19. The limitations mentioned refer to whether the survey reports changes in the expressions of economic life (the phenomenal level) or rather in its underlying principles. This becomes clear in the above passage, where Schumpeter describes two different opinions about what it is that you can observe when tracing the change of economic life.

20. We have translated "wirtschaftet" as "engages in economic acts" rather than choosing the more ambiguous "acts economically" or "economically acting."

21. We translate "Betriebe" as "establishments," following the Weber translation (Weber, 1978).

22. The original reads "nach ihrem Ebenbilde hin." Schumpeter here uses the words of Gen. 1:27, a point we thank our referee for. A verbatim translation would be "towards its own image." Referring to the American Heritage Dictionary, we define "image" as "A reproduction of the form of a person or an object, especially a sculptured likeness." This leads to the above translation.

23. The original term is "Kreditwesen," which literally means a credit system, even if has found use as (modern) technical term for "banking."

24. The term "Bindungen" has been translated as "constraints." The term can also have the meaning of "links" or "connection." However, in our interpretation the constraining character of links is in the focus here.

25. The original term is "Niederkonkurrieren."

26. "Erwerbsgesellschaften" has been translated as "profit making companies" where "Erwerbsbetrieb" has been translated as "profit-making enterprise" (Weber, 1978).

27. The original term is "Expositur." The usual translation is a "wing," for example to a school or a church. In the Austrian vocabulary, however, "Expositur" also takes on the meaning of a "proxy." We have chosen the latter translation because it fits the meaning of the sentence, and because Schumpeter was an Austrian, and would therefore be inclined to use "Expositur" in the sense particular to the Austrian.

28. A precise translation would be the slightly more awkward "all but one or few."

30. The original term is "der Grundsatz prinzipiellen Sichselbstüberlassens."

31. The original term is "öffentlichen Verwaltungskorpers." In the context that the term is used in here, "Korper" also shows up in "Korperschaft," which denotes a public institution (e.g. ministries, district attorneys, etc.). Therefore, the translation as "institutions" seems to be the most appropriate one. It would also have been possible (at least in modern German) to say "offentliche Verwaltung" in German, dropping "Korper." The term "public adminstration institution" is somewhat clumsy in English, however.

32. The original term "Bedeutung" has a double meaning: "importance" and "meaning." We chose "importance" here as it captures the implication of a loss of meaning, and thus encompasses both terms in their implications.

33. The original term is: "niederkonkurriert."

34. As mentioned above, the point is that the enterprise and the establishment are distinguished on the basis of technical and commercial aspects of economic organization. In the particular instance of the putting out system, Schumpeter points out that the constraints on size appear when it is viewed as an establishment, not when it is viewed as an enterprise.

35. The terms "trades" and "crafts" are used interchangeably.

36. The original term is "bürgerliche Nahrung." In the context of the present discussion of the medieval - and small - city, Schumpeter emphasizes in particular the fact that economic life is taking place in small circles of participants. For this reason, we have chosen to translate "Nahrung" with "earning of income," referring to the meaning of "Nahrung" as "Ernahrung," or "Erwerb." In the present context, "bürgerliche" seems to refer to a principle of how to do that. Again, for us the term refers primarily to the small number condition, i.e. the fact that economic activity takes place in small circles. This implies taking into consideration the others to some extent, behaving in a "civilised way" defined by the rules of the civilisation in question.

37. The original term is "fest," which could also mean "fixed" (hinting towards the institutional support for the stable behaviour pattern rather than this phenomenon itself).

38. The original term is "Ausbildung" which means "expression." In the present context, the degree of expression is best rendered by "degree of sophistication." Note that "Ausbildung" could also mean "education" or "formation." The two meanings are connected, in that higher sophistication requires higher education to operate.

39. The original term is "Teilaufgabe." The precise meaning is "sub-task," a part of a bigger one. This component of the meaning has been omitted. It should be kept in mind that Schumpeter refers to a task that is part of a bundle of tasks.

40. Italics added in order to convey the emphasis on the word in the original.

41. The original term is "grundherrlicher Fronhof." The precise meaning of this term is that of a (large) farm the owner of which not only owned the land, but also had some kind of property rights over the employees ("Leibeigene," those "whose body is owned by someone else"). These have to perform labour not out of their own decision, i.e. they have to perform forced labour.

42. Schumpeter subsumes both manor estate and farm economy under one life-form.

43. The original term is Eignung.

44. The original term is "Verumstandung," which is different from "Umstande" (which means circumstances). However, this difference - a participle, i.e. a process - is very difficult to render in English. A word like circumstantification would be needed.

45. The original term is "Geschaft." This term could also have the meaning of "affairs," but in our understanding in the present context Schumpeter emphasises physical aspects of business activity.

46. In the sense of "money lender."

47. Italics added to better bring out the contrast to the sentence before, i.e. between possession vs. administration and utilisation of capital.

48. Original: "Typus." We have chosen to render this as "character," as this is what Schumpeter is talking about: the character and the function of the entrepreneur. In the passage under consideration, he does not develop a typology of the entrepreneur, but reviews different opinions regarding the character (essence) and function of the entrepreneur. A typology is then presented towards the end of the article.

49. "Of the entrepreneur" added for clarity. Considering the previous as well as the following passages, there is no doubt that "Typus" refers to the entrepreneur.

50. We have chosen to render "Eignungen" with "competences" because they are linked to performances.

51. Similarly, the original term here is "Anbietender." Thus, Schumpeter describes the actions of demanding and offering something to and from the market, not the fulfilment of these demands and offers through market exchanges, as our translation implies. However, the translation has been chosen because to make what has just been said clear is a task not possible simply by choosing other terms.

52. The original term is "Kaufakte." This term is more specific than "transaction," referring to "purchasing transaction." As they refer to means of production (factors), it is clear that the transactions in question are the acquisitions of the factors, not their sale.

53. The original term is "Bedeutung," which can mean "meaning" as well as "importance." We choose "importance," because it also encompasses the implications of "true meaning," too. Surely, the implications are not to be ignored, and thus the translation as "importance" is the safer choice here.

54. Schumpeter here refers to Section I of this text, where he distinguished two meanings of the term "Unternehmung": the institution, or "unit" in his parlance, and the activity of entrepreneurs that leads to the emergence of enterprises.

55. The original term, "Willenseigenschaften," is more encompassing: "characteristics of will." Our translation emphasizes the strength of will as its most important characteristic, an interpretation in line with Schumpeter's early writings (see Becker & Knudsen, 2002).

56. The original term is "aussere" - this literally means "external" in the sense of superficial or at first sight. As becomes clear on the next page, this does not make very much sense, because Schumpeter talks about "aussere Position in irgendwelchem Organismus" -so it is internal, not external. We think that Schumpeter here means another connotation of "aussere," the fact of being recognizable from the outside. This meaning is best conveyed by the term "formal," as in a formal hierarchy.

57. Although the original term "Wesen" also carries the meaning of "essence," we believe Schumpeter does not talk about the essence of the function here, but about its phenomenal expression.

58. The original term is "Vorabeiter." The usual meaning is a man who serves as the leader of "ordinary" workers of a workcrew.

59. Our translation of "sei es... sei es' is a little stronger than the original term, as it introduces - at least implicitly - an element of opposition in the pair that is not emphasised by Schumpeter.

60. Italics added to better bring out the contrast with "something already established."

61. See footnote on "external" above.

62. Schumpeter here refers to a complicated intertwining of factors, not a conglomerate in the sense of "trust," i.e. an organisation.

63. The original term is "mehr oder weniger regelmassig," and the straight translation of that would be "on a more or less regular basis." It renders the translation a bit clumsy, though, and it can be argued that "usually" also encompasses, if however does not emphasise, the "more or less"-aspect.

64. These possibilities.

65. The original term is "Produktivkraft."

66. The original term "Absatzmarkte" emphasises that it is markets for the sale of products, not markets for purchasing of supplies.

67. "Absatz" has been translated as marketing, giving the term a wider interpretation than the alternative, "sales."

68. The original says: "oder selbst erst geschaffen werden." There are three possibilities of how "selbst" could be used here: (i) it refers to the subject, i.e. the one who has to estimate: "or yet have to be created by oneself"; (ii) it refers to the object of the estimation: "or yet have to be created themselves"; (iii) it has a mere gap-filling/sentence-flow function, and thus can be dropped in the translation.

69. When Schumpeter talks about "organisational forms" ("Organisationsformen"), he thinks about the organisation of an economy - and not, as a modern perspective would imply, firms. This becomes clear when considering the alternative organisational forms available: market economy and socialist economy. Therefore, the term "organisational forms" has the meaning of "forms that an economy can be organised in."

70. The original term is "Organstellung." Note how the word "Organ" is close to the "Organism" that Schumpeter talks about elsewhere in the text. In our interpretation -and translation of the term "Organstellung" as "administrative position" - (at least) one important meaning of "Organism" for Schumpeter is what we today would call hierarchy.

71. The original term here is "Einheit." We have chosen to translate this as "whole," because we think what is emphasised here is not the meaning of "Einheit" as a "unit" (that can be counted for example), but the fact that this it forms a recognisable whole (Ein-heit, literally "one-being").

72. The original term is "die Ihren." Strictly speaking, this could mean all persons that are somehow attached to the entrepreneur. However, the family seems to be the most important group of such persons.

73. The original term is "durch seine Schulden hindurch den Erfolg erstritt."

74. The term "Arbeiterschaft" has been translated as "working class" although the term "class" might introduce a new emphasis here. It has been chosen because it is the best term available for a collective of workers, on whom the emphasis is here.

75. The original term "Leiter" is best translated as "leader." This, however, is also the best translation of the term "Führer" and has been used as such in our translation. In order not to confound "Leiter" and "Führer," we decided to translate "Leiter" as "manager," in the sense that this is the person who directs others. Another possibility would be "Director." In contemporary use, "manager" rather than "Director," however, better captures the meaning associated with the use of the term "Leiter" in the present text.

76. This is the precise translation of the term "leiternder oder geschaftsführender Aufsichtsrat." From a modern perspective, the executive and management positions would be located on the executive board, while the supervisory board would have supervisory tasks. It seems that in the context Schumpeter wrote in, this was different.

77. The orginal term is "Bürger," which also, more generally, means "citizen."

78. The original line reads "des Gründers (promoter)."

79. I.e., in the negative, the importance of the entrepreneurial function is falling.

80. (i) That the social whole is getting ever more used to incessant innovation within the realm of the economic process; and (ii) that it is becoming ever more taken for granted that every new insight, as soon as it presents itself, is also carried out into economic practice because the possibilities for calculation are improving.

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