Week 1
The promise of Entrepreneurship as a field of research (Shane & Venkataraman, 2000)
Purpose: creating a conceptual framework which will help recognize the relationship
among the necessary factors that compose entrepreneurship, and thereby advance the
quality of empirical and theoretical work in the field.
Entrepreneurship= the discovery & exploitation of profitable opportunities.
2 types of opportunities:
1) Entrepreneurial: engage in new activities (sold at greater than production costs)
2) Non-entrepreneurial: enhance efficiency of existing activities
Activities: goods/services, markets/customers, sources of supply, methods of production
and/or organization.
Research questions; why, when and how ...
- opportunities for the creating goods & services come into existence;
- some people and not others discover & exploit these opportunities;
- different modes of actions are used to exploit opportunities.
Why do some people and not others discover opportunities?
1. Possession of the prior information necessary to identify an opportunity:
Prior info complementary with new info triggers entrepreneurial conjecture
recognizes opportunity
2. Cognitive properties necessary to value it:
identify new means-ends relationships discover opportunities
Why do some people and not others exploit opportunities?
1. Nature of opportunity;
2. Individual differences:
Perception, optimism.
,The rise of the entrepreneurial economy and the future of dynamic capitalism (Thurik et al,
2013)
Purpose: explain why shift from ME to EE has taken place
Shift since
'Entrepreneurial
the 1970s
'Managed economy' [EE]
economy' [ME] ('new economy'
('old economy') or 'dynamic
capitalism'
ME: “an economy where economic performance is positively related to firm size, scale
economies and routinized production and innovation.”
EE: “an economy where economic performance is related to distributed innovation and
the emergence and growth of innovative ventures.”
Managed Economy (ME) Entrepreneurial Economy (EE)
Advantage through: land, capital & labor, Advantage through: knowledge &
economies of scale innovation
SMEs as suboptimal (due to lack of scale Important role for SMEs & start-ups
effects)
Tight commitment between firms & Looser contracts (e.g. solo self-employed,
workers (long-term employment) temporary workers
Policy: focused on control & constraints Policy: focused on facilitating
entrepreneurship
Recognition of emergence of EE trigger policy debates governments / EU targeted
effort to spur the startup of firms and growth & survival.
,Different factors underlying the rise of this EE:
Shock of the ICT revolution= starting point for the shift led to EE.
Sections of the model:
3) The introduction of technologies has a deep impact on industrial organization.
4) These introductions can lead to major changes in the worldwide political configuration.
The character of this globalization wave created new restrictions and opportunities
for multinational corporations.
5) Addresses the causes and consequences of globalization as it manifested itself over the
last 2 decades.
6) Concerns the new business model of large American and European corporations that
resulted from the pressures of the ICT revolution and globalization.
This new model was the result not only of the distance-destroying capacity of ICT,
but also of the political opportunity & determination to deregulate world trade.
7) Knowledge production and its transformation into economic value.
Making & using knowledge is the most important consequence of the decline of
physical capital as the source of competitive advantage of developed industrialized
economies.
8) Final role of entrepreneurship results from the massive spurt in economic growth
resulting from the introduction of ICT, the expansion of participation in the global
economy, and the reallocation of economic activities.
The ensuing unprecedented high levels of economic prosperity in the formerly
industrialized countries led to demand characteristics favorable to an entrepreneurial
organization structure.
, Understanding the dynamics of entrepreneurship through framework approaches (Kuratko
et al., 2015)
Purpose: examine the various perspectives & frameworks of e’ship to offer an
integrative framework.
1) Schools of Entrepreneurial Thought Framework
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