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LSE was founded in 1895 by Fabian Society members Sidney and Beatrice Webb, Graham Wallas, and George Bernard Shaw, with funding provided by private philanthropy, including a £20,000 bequest from Henry Hunt Hutchinson left to the Fabian Society.
The LSE was recognised as a Faculty of Economics within the University of London in 1900.
During these years and under the directorship of Lionel Robbins, LSE redefined the study of economics and the new conception of the study of economics as "a science which studies human behavior as a relationship between ends and scarce means which have alternative uses" is looked to as the norm.
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