Ford Motor Company was founded in 1903 by Henry Ford. The motor company has seen much success since then, and this is largely due to Henry Ford’s entrepreneurial skills. He fits Austrian economist Joseph Schumpeter’s definition of an entrepreneur as he placed emphasis on innovation, such as
- New products
- New production methods
- New markets
- New forms of organization
Ford introduced the Model T automobile in 1908 which revolutionized transportation in America. It was revolutionary because it was available for all of Americans as it was very inexpensive, and it was produced in mass quantities. Henry Ford was also credited for “Fordism” which is mass production of inexpensive goods coupled with high wages for workers. The high wages for workers decreased turnover rate and encouraged the best workers to join Ford. This increased productivity and Ford no longer had to spend much on employee training.
Ford was also able to reach new markets by introducing a franchise system that put a dealership in every city in North America and in major cities around the world. He also had his own labor philosophy which was to keep and hire the best workers available in order to be efficient.
The entrepreneurial skills of Henry Ford has allowed Ford Motors to flourish into one of the biggest firms in the US. 