Joseph Alois Schumpeter is remembered as one of the preeminent economists of the 20th century. A renowned Austrian-American economist, bank president, and government minister, Schumpeter was a pioneer in the field of economics and business, introducing a number of key theories and insights that still remain relevant today. He is especially remembered for his 1942 book Capitalism, Socialism, and Democracy, the theory of creative destruction, and for offering the first German and English references to methodological individualism in economics.

Schumpeter's work dealt with aspects of the evolution and development of modern economies – shifting away from the classical theories of economics that had gone before and sticking his head into broader areas of inquiry. He believed it important to develop an understanding of how an economic system works, rather than simply relying on the ideal conditions of perfect competition, or other classical assumptions.

Schumpeter's most renowned concept is that of ‘creative destruction’ – defined as the process of “destroying the old way of doing things to make way for a new and improved way”. Schumpeter viewed it as the process by which industries and corporate entities become defunct, but leave behind new and improved products, services, and markets. In this he heralded a new, more dynamic approach to economic progress and prosperity.

Schumpeter also introduced the concept of 'entrepreneurship', which remains at the heart of capitalism in the 21st century. The concept is a bridge between innovation and economic progress, showing how skills, capital, and courage are leveraged by individuals to generate economic growth.

Although Schumpeter's work was initially overshadowed by the contrasting theories of his contemporary, John Maynard Keynes, it has now become the centerpiece of modern thinking on how economies evolve. Joseph Schumpeter’s theories and ideas have profoundly shaped the way we understand business, finance and economics. We are forever indebted to his work.