The firm is bounded by what is legitimate in that specific situation. Turning this around we see the private sector firm is a child of the political and cultural processes that open up and demarcate an opportunity space lying within socially legitimated constraints. Entrepreneurs are given the freedom to inhabit this space as they attempt to generate economic value by engaging its uncertainties. In a capitalist democracy, the economic value created, especially the taxes generated and the spillovers that occur, helps legitimate the apparatus that is also, of course, impelled by private gain and
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