---
entity_slug: frugal_and_industrious_borrowers
entity_type: Element
vsm_system: S3
type_rationale: Frugal and Industrious Borrowers are economic actors who persist as
  identifiable agents in Smith's analysis, representing a category of people who exist
  independently and engage in productive borrowing activities.
vsm_rationale: These borrowers operate within the management system by seeking and
  allocating borrowed capital resources for productive employment, making them part
  of the resource allocation and operational control functions that characterize S3.
classified_at: '2026-02-23T11:07:54.361152'
---

# Classification: Frugal And Industrious Borrowers

## Entity Type

Element

## VSM System

S3

## Type Rationale

Frugal and Industrious Borrowers are economic actors who persist as identifiable agents in Smith's analysis, representing a category of people who exist independently and engage in productive borrowing activities.

## VSM Rationale

These borrowers operate within the management system by seeking and allocating borrowed capital resources for productive employment, making them part of the resource allocation and operational control functions that characterize S3.
