ENTERPRENEURSHIP: A FIELD OF ACTIVITY AND A WAY OF LIFE

1. Define entrepreneurship as a field of business.

2. Explain why the activities of entrepreneurs are so important to the economies of their countries, and why
entrepreneurship is an increasingly popular career choice.
3. Describe the process perspective of entrepreneurship, and list the major phases of this process.
4. Explain why entrepreneurship can be viewed as arising out of the intersection of enterprising people and
opportunities.
5. Understand why this text will both describe what entrepreneurs actually do and what, perhaps, they should
do!
6. Describe several issues and questions about entrepreneurship that is currently receiving greater attention in the
field (e.g., university-based technology transfer).
7. Explain why certain sources of knowledge about entrepreneurship are more reliable and useful than others.
8. Describe the nature of three basic means for obtaining knowledge about entrepreneurship-systematic
observation, the case method and experimentation-and the role of theory in the field of entrepreneurship.
One of us has been an entrepreneur (Baron) and the other has worked closely with them for many years (Shane), so we
know that many people seem to believe that entrepreneurs have extraordinary powers-abilities that are almost magical in
nature, this belief, in turn reflects the widely held view that entrepreneurs are unusual people. Think about it for a moment.
When we say the word "entrepreneur," what names come to mind?' Bill Gates? Michael Dell? Julie Aigner-Clark (founder of
"Baby Einstein")? Jeff Bezos (founder of Amazon.corn)? Probably because the fame of these entrepreneurs has spread"
around, the globe. But in fact" entrepreneurship, as we'll describe it in this book, is definitely not restricted to this kind of
awe-inspiring success in one of a handful of industries. On the contrary, the entrepreneurial .spirit can be observed in much
smaller companies and in an almost endless array of contexts. For instance, consider Lorrain~ Santoli. Growing tired of
trying to find a facial tissue while driving, she came up with a new idea-a cup that holds and' dispenses tissues' one at a
time and that can fit in the cup' holders found in almost every vehicle (see Figure 1.1). The company she founded to
develop this idea- TissueKups Inc.-is now humming along with sales in, the millions. High tech? No. "Sexy"? No. Effective
and appealing to many potential customers? Something new that did not exist before? Yes!
Or; for another example, consider Victoria Maimer who, like many millions of people in the United States and other
countries, wanted to .drink more liquids because doing so is good for personal health. Moreover, like many people, she
wanted her beverages to have a flavor she liked. One solution is to carry around heavy bottles containing preferred drinks.
But Ms. Maimer didn't like doing that, so she and her friend Paul Staunton came up with another idea: why not produce
flavorings in small containers that people can easily carry with them and add to any beverage to get the taste they like? The
company they started to produce this and similar productsFlavor2Go-is now riding a wave of sharply rising sales.

Figure 1.1 From Small Inventions, Profitable Companies Sometimes Grow

New products don't have to be dramatic to succeed. The TissueKup, created by Lorraine Santoli, is a good illustration of this
fact. The device, which fits into the cup holders found in almost all vehicles, is useful to many drivers, and has found a large
and ready market.

Why do we start with these examples of what might be termed non-earthshaking products? Because they illustrate
several key points about entrepreneurship that we will make throughout this text. First, these entrepreneurs and
their companies indicate that entrepreneurship is definitely a process-a chain of events and activities that takes
place over time-sometimes, considerable periods of time. It begins with an idea for something new-often, a new
product or service. But the idea is only the start. Unless the process continues

After that, we consider the question of how we know what we currently know about entrepreneurship-in other words, how
the information presented in this book was obtained. We think this point is important because, in general, it is dangerous to
accept any information as accurate without knowing something about its source and how it was obtained. Finally, we
provide you with an overview of the contents of this book and a description of its special features. Now, to begin at the
beginning, we offer a definition of entrepreneurship so that the idea is converted into reality (actually brought to market
through a new business venture, licensing to existing companies, etc.), it is not entrepreneurship. Rather, it is just an
exercise in creativity or idea generation.
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 Second, these examples underscore the fact that being an entrepreneur does not necessarily involve starting a
particular kind of company, working in a particular industry or sector (e.g., high-tech), or coming up with a dramatic new
product. On the contrary, as we'll see over and over again, the heart of the process involves bringing something new-
something that is not now being produced or exploited by others-to the marketplace. We'll have more to say about this, the
heart of entrepreneurship, later; here, we simply want to break the mind-set with which many people enter their first course
in entrepreneurship an approach reflecting several major myths about entrepreneurship (e.g., it can't occur without large
amounts of capital, it must be based on new technology, must tap a really "hot" market, and so on). We'll be discussing-and
refuting-these and other false ideas throughout this book, so stay tuned for more about this point because our goal is to
present an accurate picture of what entrepreneurship really is, rather than a repetition of what many people think it is.
Having clarified these important points, we now turn to several tasks that we want to accomplish in this initial chapter.
First, we present a definition of entrepreneurship as an activity, a field of study in business, and a way of life. Next, we'll
offer a framework for understanding entrepreneurship as a process one that unfolds over time. As we'll soon see, this
process is affected by many different factors, some relating to individuals (i.e., entrepreneurs), some to their relations with
other people (e.g., partners, customers, venture capitalists), and some to society as a whole (e.g., government regulations,
market conditions). A major theme of this book will be that all three kinds of factors (individual, group, societal) play an
important role in every phase of the entrepreneurial process. As part of this discussion, we emphasize yet another key
theme: At the heart of the entrepreneurial process lies the intersection of opportunities generated by changing economic,
technological, and social conditions, as well as enterprising people capable of recognizing and actively exploiting them.
This theme will be examined in more detail in Chapter 2, which focuses on the .emergence of opportunities, and Chapter 3,
which focuses on the cognitive foundations of entrepreneurship (e.g., where ideas for new products or services originate
and how individuals actually perceive or recognize opportunities).
Third, we'll comment briefly on current trends in the field of entrepreneurship-topics and questions that are receiving
growing attention because they are increasingly recognized as playing an important role in the entrepreneurial process.
After that, we consider the question of how we know what we currently know about entrepreneurship-in other words, how
the information presented in this book was obtained. We think this point is important because, in general, it is dangerous to
accept any information as accurate without knowing something about its source and how it was obtained. Finally, we
provide you with an overview of the contents of this book and a description of its special features. Now, to begin at the
beginning, we offer a definition of entrepreneurship
Define entrepreneurship as a field of business
The Field of Entrepreneurship: Its Nature and Roots
LEARNING OBJECTIVE 1
Definitions are always tricky, and for a field as new as entrepreneurship, the task is even more complex. It is not
surprising, then, that currently, there is no single agreed-upon definition of entrepreneurship either as a field of study in
business or as an activity in which people engage. Having said that, we should note that a definition offered by Shane and
Venkataraman has received increasing acceptance. Broadly paraphrased, their definition suggests the following:
Entrepreneurship, as a field of business, seeks to understand how opportunities to create something new e.g., new products
or services, new markets, new production processes or raw materials, new ways of organizing existing technologies) arise and
are discovered or created by specific individuals, who then use various means to exploit or develop them, thus producing
a wide range of effects]
By implication, this definition suggests that entrepreneurship, as an activity carried out by specific individuals, involves the
key actions we mentioned earlier (identifying an opportunity that is potentially valuable in the sense that it can be exploited
in practical business terms and yield sustainable profits), and the activities involved in actually exploiting or developing
this opportunity. In addition, as we note in a later section of this chapter, the process does not end with the launching of a
new venture; it also involves being able to run a new business successfully after it comes into existence.
We believe that this definition is a clear and useful one, and does indeed capture the essential nature of
entrepreneurship. Although it helps to clarify many important questions, perhaps the most central of these is: "Just what
makes someone an entrepreneur?" To see how the definition offered by Shane and Venkataraman helps significantly in
this respect, consider the following individuals. For each, ask yourself the following question: "Is this person an
entrepreneur?"
A woman who enjoys making appetizers for parties in her home, and who is often praised by her friends who tell her
how delicious these are, starts a company to make and sell them.
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 A university scientist engaged in basic research on the biochemistry of life, makes important discoveries that advance
the frontiers of his field; however, he has no interest in identifying practical uses of his discoveries and does not
attempt to do so.
After being "downsized" from his management level job, a middle-aged· man discovers a special way of processing
old tires to make edging for gardens (borders that keep different kinds of plants separate).
A retired army officer purchases obsolete amphibious vehicles from the government and uses them to start a
company that specializes in tours of remote wilderness areas.
A man who has often forgotten the numbers needed to open combination locks comes up with a new idea: why not
build a lock that uses letters instead of numbers? He enters the idea (which he previously patented) in a contest for
new inventions, and wins. The retailer that runs the contest signs a contract with him to sell this new kind of lock at all
of its 1,200 stores.
Which of these individuals are entrepreneurs? At first glance, you might be tempted to conclude that only the last two are
really entrepreneurs-only they brought something new to market. We suggest, however, that all of these individuals with the
exception of the university scientist are entrepreneurs. Why? Recall our definition: Entrepreneurship involves recognizing
an opportunity to create something new. It does not have to be a new product or service; on the contrary, it can involve
recognizing an opportunity to develop a new market, to use a new raw material, or to develop a new means of production,
to mention just a few possibilities. According to this definition, the appetizer baking woman is acting as an entrepreneur
because she recognized a new Market-one that will pay a premium price for appetizers that taste truly homemade In fact,
this is just what Nancy Mueller did when she started Nancy's Quiche-s-a company she recently sold for several hundred
million dollars.
Similarly, the downsized executive is using an existing "raw material “old tires-in a new way. This activity, too, qualifies
as entrepreneurship. The retired Army officer and the inventor are also entrepreneurs: Both identified opportunities for new
products or services, and both took active steps to exploit these ideas in ways that generate economic gains.
In contrast, the university scientist is not an entrepreneur according to our definition. Even though his research does
add appreciably to human knowledge, the fact that he makes no effort to apply his discoveries to the development of new
products, services, markets, or means of production, suggests that he not an entrepreneur. Certainly, he is playing a
valuable role in society; but no, he is not an entrepreneur.
In fact, scientists often can be entrepreneurs. For instance, one of us (Baron) is privileged to teach, from time to time,
with a Nobel-prize winning physicist, Ivar Giaever. Prof. Giaever used his scientific knowledge to develop a new product-
one that can help physicians identify cancer cells not by looking at them through a microscope (what they typically do), but
in terms of the electrical activity of the cells. Professor Giaever found that cancer cells and normal cells differ in this respect,
and his product-which he patented-may well soon become a commercial as well as a scientific device. Whether it does or
not, the fact that he has attempted to bring this new product to market makes him an entrepreneur as well as a world-class
scientist.
In essence, then, entrepreneurship requires creating or recognizing a commercial application for something new. The new
commercial application can take many different forms, but simply inventing a new technology, product, or service, or
generating a new idea is not, in itself, enough. As shown in Figure 1.2, many inventions never result in actual products for
the simple reason that they offer no commercial benefits (or, alternatively, no one can think of a marketable use for them),
and so they cannot really serve as the basis for a profitable new business. In sum, we agree with Shane and Venkataraman
and with other theorists'' that entrepreneurship emerges out of the intersection of what might be termed inspiration
and activation-recognizing opportunities for something new that people will want to own or use, and taking vigorous
steps to convert these opportunities into viable, profitable businesses.
Newness Is Not Enough!
As shown here, the fact that a product is new is not sufficient to assure that it will be developed and brought to market. We
doubt, for instance, that the product shown here will ever really exist outside the cartoonists' imagination.

A Recent Extension and Clarification

The definition offered by Shane and Venkataraman appears to be a useful one and has gained widespread
acceptance in the field of entrepreneurship. However, we should note that it has recently been extended and clarified
by McMullen and Shepherd, two well-known researchers.' They note that in essence, entrepreneurship involves two

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key phases or activities. In the first, individuals (potential entrepreneurs) use their existing knowledge and personal
strategies for obtaining knowledge, to recognize that some opportunity exists-an opportunity that someone, not
necessarily they, can develop. In the second phase, they evaluate this opportunity to determine whether they have
the knowledge and skills needed to actually develop it; In other words, they try to determine whether the opportunity
is one they can pursue by taking such actions as founding a new venture. In essence, this framework is fully
consistent with the definition offered earlier, but it also helps to highlight the importance of individual motivation,
skills, and knowledge in entrepreneurial action, and the additional point-a very important one that recognizing an
opportunity can be quite distinct from actually doing something about it.
Other additions to the framework have been offered as well. One of the most interesting, suggested by
Sarasvathy proposes that we should focus not so much on who, why, and how specific persons identify particular
opportunities, but rather on the barriers that prevent some persons from becoming entrepreneurs, and on how
entrepreneurs create specific kinds of firms because these new businesses are the "tool" through which entrepre-
neurs convert their ideas and skills into means of exploiting various opportunities. When added to the definition
proposed by Shane and Venkataraman, these more recent suggestions truly enrich our basic understanding of the
process of entrepreneurship and how it unfolds.

A Note on Intrapreneurship
Before turning to other topics, we should note, briefly, that recognizing opportunities for creating or developing
something new can occur within existing organizations as well as outside them," In fact, many successful companies
are deeply concerned with encouraging innovations and take active steps to provide an environment in which it can
flourish." These companies work to develop a corporate culture that is receptive to new ideas rather than one that
routinely rejects them, and provide concrete rewards for innovation? For instance, General Electric offers employees
who come up with innovative Ideas a share of the profits resulting from them. Although we can't say for certain that
this policy increased innovation at GE, the company obtained more patents during recent decades than any other
U.S. company; in fact, it holds more 51,000 in. total! Individuals who act like entrepreneurs inside a company are
often described as being intrapreneurs-people who create something new, but inside an existing company rather
than through the route of founding a new venture. Unfortunately, they often face formidable barriers or obstacles,
because not all organizations are as committed to innovation as General Electric. .However, innovation is truly
essential for gaining and sustaining competitive advantage, so it is something all organizations should seek.
Although our focus will be firmly on entrepreneurs throughout this book we do want to note that individuals can act
entrepreneurially in several different contexts, including large, existing companies.

Entrepreneurship: A Process Perspective

Learning objective 3
Describe the process perspective of entrepreneurship, and list the major phases of this process.

"Connecting the Dots" To Recognize New Business Opportunities

Opportunities for new ventures often emerge out of changes in a wide range of economic, technological, governmental, and
social factors. Even though these trends and changes may seem, at first glance, to be unrelated, successful entrepreneurs
perceive meaningful patterns that point to potentially profitable business opportunities. This was certainly true for Bill and
Cheryl Brown who recognized the fact that millions of people in the United States who are getting married for the second or
third time might need the help of a wedding service specifically focused on their needs. The company they founded, The
Second Time Around; has been highly successful.

Now that we have offered a working definition of entrepreneurship, highlighted its importance, and briefly described
its roots in related disciplines, we will turn to another key task: suggesting a framework for understanding it as a
process. This will be a guiding theme for the remainder of this book, so it is important that we present it clearly and
that you understand fully what it implies.
The view that entrepreneurship is a process rather than a single event is certainly not new or unique to this text;
on the contrary, there is a growing consensus in the field that viewing entrepreneurship as a process which unfolds
over time and which moves through distinct but closely interrelated phases is both useful and accurate. IS Further,
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there is general agreement that the key phases in this process are as follows:
Recognition of an Opportunity: The entrepreneurial process often begins when one or more individuals
recognize an opportunity-the potential to create something new (new products or services, new markets, new
production processes, new raw materials, new ways of organizing existing technologies, etc.) that has emerged
from a complex pattern of changing conditions-changes in knowledge, technology, economic, political, social,
and demographic conditions. Opportunities have the potential to generate economic value (i.e., profit) and are
viewed as desirable in the society in which they occur (i.e., development of the opportunity is consistent with
existing legal and moral standards, and would, therefore, not be blocked or constrained by these standards).
We will examine the emergence of opportunities and the cognitive roots of entrepreneurship, but for the
moment, we want to emphasize just one point: in a sense, there really is nothing "entirely new under the sun."
Ideas do not emerge out of a void; on the contrary, they almost always consist of a novel combination of
elements that already exist. What are new are the combination and the recognition of links or connections
between the various elements of which the ideas are composed. To take a striking example from history,
Alexander Graham Bell did not invent the telephone out of sheer creative genius. Rather, he combined
component ideas that already existed and had been generated by other people (e.g., electric batteries, basic
research on the nature of sound, etc.) in a new way and invented a product that revolutionized human
communication.
Similar argument holds for recognizing opportunities. The opportunities themselves often emerge from
changes in economic, technological, governmental, and social factors. When entrepreneurs notice links or
connections between these changes (i.e., when they notice patterns in these changes), ideas for new
ventures may quickly follow. For instance, consider Bill and Cheryl Brown, who recently started The Second
Time Around, Inc., a company that helps people getting married for the second (or third or fourth) time plan
their weddings. The company experienced tremendous growth because, in essence, its competitors—
existing wedding services-focus entirely on young people getting married for the first tune. Bill and Cheryl
Brown noticed, however, that several recent trends converge to suggest the need for a company like theirs.
First, the number of people getting married who have been married before has increased dramatically.
Second, because these individuals tend to be older than people marrying for the first time, they often have
greater financial resources. Another and seemingly unrelated trend is that older people in many societies
seem increasingly willing to "indulge" themselves-they do not want to miss out on experiences simply because
they are in their forties or fifties instead of their twenties and thirties. At first glance, these trends and events might
seem to be unrelated, but when considered together, a striking pattern emerges: Millions of people in the United
States who need help planning their second or third wedding. The idea for Second Time Around was suggested
by this emergent pattern, and the company provides a clear illustration of how diverse events and trends can
combine to produce a new and potentially profitable business opportunity.
Deciding to Proceed and Assembling the Essential Resources:
Having an idea for a new product or service or recognizing an opportunity is only, of course, the first step in the
process. At that point, an initial decision to proceed-to do something active about the idea or opportunity-is
required. As Shane, Locke, and Collins suggest, the entrepreneurial process occurs because specific individuals
make this decision and act upon it. So, in their view, understanding entrepreneurs' motives is crucial to
comprehending the entire process. Deciding to start a business is one thing; actually doing so is quite another,
and would-be entrepreneurs quickly discover that they must assemble a wide array of required resources: basic
information (about markets, competitors, environmental and legal issues), human resources (partners, initial
employees), and financial resources. Gathering these resources is one of the most crucial phases of the
entrepreneurial process, and unless it is completed successfully, opportunities, no matter how attractive, or ideas
for new products and services, no matter how good, "die on the vine," so to speak. It is at this stage, and
especially when seeking financial backing, that entrepreneurs typically prepare a formal business plan-a detailed
description of how they plan to develop their new venture.

:Launching a New Venture; Once the required resources are assembled, the new venture can actually be launched.
Doing so involves a wide range of actions and decisions: choosing the legal form of the new venture, developing the new
product or service, establishing the roles of the top management team, and so on. Sadly, many new entrepreneurs do not
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fully grasp the complexities of starting a new venture, and as we will note in later chapters, this can burden them with
problems that could, in fact, have been avoided.

Building Success and Managing Growth: Although moving from an idea to an actual, going concern represents major
progress, it is just the start of another key phase in the entrepreneurial process: running the new venture and building it into
a growing, profitable business. Many entrepreneurs recognize that this phase requires additional financial resources.
However, in our experience, a smaller proportion fully recognizes the importance of two key factors in the process:
developing effective strategies for encouraging and managing growth, and management issues relating to growth (e.g.,
being able to attract, motivate, and retain high-quality employees; building effective relationships among founders of the
new venture).
Harvesting the Rewards: In this final phase, founders choose an exit strategy that allows them to harvest the
rewards they have earned through their time, effort, and talents. Individual entrepreneurs must choose carefully
among the many ways of reaping the benefits of successful entrepreneurship so as to maximize the benefits
they gain from, in many cases, years of sacrifice and commitment.
One additional comment: We do not mean to imply here that entrepreneurship can be readily divided into neat
and easily distinguished phases. In fact, the process is far too complex for that to be true. But the activities just
described do tend to unfold over time in an orderly sequence, with idea generation or opportunity recognition
occurring first, an active decision to proceed, next, and so on. We believe that viewing entrepreneurship in this
manner offers several benefits. First, it helps avoid a static view of entrepreneurship -one that sees it as a specific
act (launching of a new venture) that occurs and is then complete. Such a view ignores the fact that
entrepreneurs face an ever-changing array of tasks and challenges, and that they often think and feel differently
about these tasks and challenges as they change and unfold.
Second, viewing entrepreneurship as an ongoing process draws attention to the key activities entrepreneurs must
perform as they proceed with their efforts to convert ideas for new products or services into success ful
businesses. How well entrepreneurs perform these activities is often more central to their success than their
personal characteristics or background-although, of course, these are important, too. Attention to the tasks
entrepreneurs perform, in turn, gives us a good handle on identifying the skills, knowledge, and characteristics
they need to function effectively in this role. So from this angle, too, a process perspective is useful. Finally,
viewing entrepreneurship as a process suggests very strongly that different factors may affect it at different points
in time, and that the effects or importance of specific factors may well change over the course of new venture
creation. For example, consider the question of whether entrepreneurs are more "risk prone" than other people-a
question that has received a great deal
of attention in recent years. Some research findings suggest that entrepreneurs are indeed "riskier" than other
people, while other findings from equally careful research point to the opposite conclusion-that entrepreneurs are
less willing to take risks than other groups, such as managers. How can both findings be true? One possibility is
that whether entrepreneurs are more or less risk-prone than other people depends on which phase of the
entrepreneurial process we are considering. For instance, early on, entrepreneurs must, almost by definition, be
relatively willing to accept risk: If they were not, they would never give up secure jobs to start new ventures. But
later on, once they have launched a new venture and must pay bills, meet payrolls, and manage limited resources,
they may shift toward becoming much less accepting of risk. In essence, entrepreneurs' behavior-and the role of
risk in their decisions and strategies-may change considerably over the entrepreneurial process. Recent findings
suggest that as this logic suggests, the Impact of many factors on entrepreneurs' behavior and Success does
indeed change over the Course of new venture creation. An overview of the major phases of new
venture creation is shown in Figure 1.7.

Figure 1.7 Entrepreneurship as a Process: Some Key Phases

The entrepreneurial process unfolds over time and moves through a number of different phases. Events and outcomes
during each phase are affected by many individual-level, group-level, and societal-level factors.

6
LEVELS OF ANALYSIS: MICRO VERSUS MACRO REVISITED

Until recently, considerable disagreement existed in the field of entrepreneurship over the following question: In
studying the entrepreneurial process should we focus primarily on the entrepreneur (e.g., this person's skills;
abilities, talents, motives, traits-and perhaps, as we'll explain in a later section, even biological. or genetic factors),
or primarily on the economic, technological, and societal context in which the entrepreneur operates (economic
and market conditions, government policy, etc.)? As you can guess from our earlier comments on the macro/micro
issue, we view this question as largely irrelevant. We believe that at every stage of the entrepreneurial process,
individual-level (i.e., micro) variables, group or interpersonal-level variables, and societal-level (macro) variables all
play a role (please refer again to Figure 1.7.)

For instance, consider the question of opportunity recognition. Certainly, this crucial process occurs in the minds of
specific individuals and must, therefore, reflect the impact of individual-level variables such as the existing
knowledge structures and the unique life histories of these individuals. But nothing that has to do with people-not
even basic aspects of cognition occurs in a social vacuum. The kinds of ideas people generate reflect the times in
which they live, the current state of technological knowledge, and many other aspects of the societies. Further, other
people with whom the entrepreneur has contact-friends, associates, or even figures in the mass media-often suggest
the basis of an idea for a new product or service. For instance, recent findings indicate that entrepreneurs who have
a mentor-an older and more experienced person with whom they work and who influences their career tend to
recognize more opportunities than entrepreneurs who do not enjoy the benefits of having a mentor. In short, all three
levels of analysis (individual, group, societal) are relevant and must be considered in order to understand idea
generation fully.

Here's another example of the importance of considering both micro and macro factors (individual-level, group-level,
and societal-level variables) in our efforts to understand entrepreneurship: Why do some individuals, but not others,
choose to become entrepreneurs? Again, all three categories of variables play a role. With respect to individual
factors, some individuals have higher energy, are more willing to accept risk, and have greater self confidence (self-
efficacy) and greater tolerance for stress than others; those high on these dimensions-and especially self-efficacy-
are probably more likely to choose the entrepreneurial role. Direct evidence for the role of individual-level factors in
choosing to become an entrepreneur is provided by many studies. Among these studies, one of the most unusual
compared the levels of testosterone shown by male MBA students who had previously started new ventures and
those who had not. Results indicated that those who had previously chosen to become entrepreneurs had higher
levels of this male hormone! Further evidence suggested that this difference stemmed from a greater tendency toward
risk on the part of the entrepreneurs, at least early in the process.

The Possible Role of Genetic and Other Biological Factors:

The "Micro" Perspective Carried to the Limit

The findings we just described, surprising as they may be, are actually related to a suggestion you may well find even
more provocative-the idea that genetic or biological factors, too, may play a role in entrepreneurship! How can this be? The
authors who propose this idea note that genetic factors have been found to play a role in several tendencies and
predispositions that have been found, in turn, to be closely related to entrepreneurship. For instance, a genetic component
is a factor in how individuals' brains react to high levels of risk; some people find such conditions more pleasant or
acceptable than others because, in part, they have genetically inherited tendencies to respond positively or negatively to
risk. Some enjoy it, while others dislike it, which, in part, reflects differences in how their brains function.

Similarly, genetic factors play a role in how people react to overcoming obstacles or to engaging in the same activities
for a long period of time. These factors, too, have been found to be related to entrepreneurship: Entrepreneurs show
greater persistence than most people in overcoming~ obstacles and in engaging in the same activity for long periods of
time. Third, it is well established that genetic factors play a role in the development of specific skills or abilities. These
skills and abilities, in turn, lead individuals to pursue different kinds of careers and to seek employment in different
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 industries. For instance, people with high mathematical or quantitative abilities may choose to work in technical or scientific
fields. Because these areas offer greater opportunity for engaging in entrepreneurship than other fields or industries, the
likelihood that such individuals will become entrepreneurs is enhanced. So, through this indirect route, genetic factors can
influence entrepreneurship. We could continue because several other factors found to play a role in entrepreneurship
-are ones that are determined, at least in part, by genetic factors.

Please don't misunderstand: There is no suggestion here that genetic factors directly lead individuals to become
entrepreneurs. Rather, the basic idea is that genetic and biological factors predispose individuals to develop certain
characteristics, skills, or preferences, which in turn lead them to be more or less attracted to the kind of activities
entrepreneurs perform and the kinds of environments in which they operate (see Figure 1.8). This intriguing possibility is
just now becoming the focus of careful research. Stay tuned: The findings promise to be both interesting and surprising.

Figure 1.8
Are Entrepreneurs "Born"? The Possible Role of Genetic Factors in Entrepreneurship

Recently, it has been proposed that genetic factors may play a role in entrepreneurship. One mechanism through which
genetics may exert such effects is indirect in nature. Genes have been found to strongly influence several characteristics
personal dispositions that have also been shown to increases the likelihood that people will become entrepreneurs. In
essence, then, some individuals may be predisposed to become entrepreneurs by their own genetic nature.

Group-Level and Societal-Level Factors

Turning to group-level factors, it seems possible that individuals who receive encouragement from friends or family
members and those who have been exposed to entrepreneurs in their own lives are more likely to proceed than ones
who do not receive encouragement and have not been exposed to models of entrepreneurs. For instance, when
Enron, a huge energy company based in Houston imploded as a result of a series of accounting scandals (October,
2001), members of the local business community feared that a large number of highly talented people would leave the
Houston area. To keep them around, they organized Resource Alliance Group, a company whose sole mission was that of
helping former-and highly talented-Enron employees to become entrepreneurs. They succeeded to an amazing degree:
Within just three months, they had helped 25 senior Enron employees to found new ventures. Just a few short years later,
several of these companies became profitable and were adding good jobs to the Houston-area economy. So clearly,
group-level (i.e., social) factors such as help and encouragement from others can play a key role in the entrepreneurial
process.
Societal-level factors, too, are important. Individuals who come from certain social and economic backgrounds, or
who live in countries where government policies are favorable to starting new ventures, are more likely to choose this
role than individuals from other backgrounds or who live in other countries. We could continue with other exa mples,
but by now, the main point should be clear: Individual-level, group-level, and societal-level factors influence every
action and every decision taken by entrepreneurs during all phases of the entrepreneurial process. Taking note of this fact, we will
employ all three levels of analysis throughout this text. Although this approach adds complexity to our discussions of
8
many topics, it will also offer a more complete, accurate, and useful picture of what we know about the process of
entrepreneurship and how, perhaps, it can be made to run more smoothly for entrepreneurs. If those are not the
ultimate goals of any text, then we, as authors, researchers, and entrepreneurs, have no idea as to what they should
be!

ENTERPREWNEURSHIP: THE INTERSECTION OF VALUABLE OPPORTUNITIES AND ENTERPRISING INDIVIDUALS

Learning objective 4
Explain why entrepreneurship can be viewed as arising out of the intersection of enterprising people and opportunities.
Several years ago, one of us (Robert Baron) had the honor of introducing a highly successful entrepreneur, Mukesh
Chatter, at a banquet held in his honor. (Mr. Chatter was receiving the "Entrepreneur of the Year" award given
annually by Prof. Baron's university, and had just sold his company to Lucent Technologies for almost one billion
dollars.) During his acceptance speech, Mr. Chatter made the following remarks:
Success comes from many sources. Yes, you have to recognize an opportunity.... But to recognize it, it has to be there in the first
place-something must have changed so as to generate the opportunity. After that, you have to recognize it and be able to tell that it
is a good one-something you can turn into a successful business. Luck definitely plays a role; you have to be in the right place at
the right time and know the right people who can help you. But after that, it's largely a matter of hard, mind-bending work; if you are
not willing to put in the hours and give up lots of other things in your life, you won't succeed-you won't make it happen.
We view these remarks as highly insightful. In just a few sentences, Mr. Chatter captured another key theme in
entrepreneurship-and this book. Briefly stated, this theme suggests that it is the intersection of valuable opportunities
and enterprising individuals that is the essence of entrepreneurship. Opportunities, as Mr. Chatter pointed out, are
generated by changing economic, technological, and social conditions; but nothing happens with respect to these
opportunities until one or more energetic, highly motivated individuals recognizes them and the fact that they are worth
pursuing. This is an important point: Opportunities vary greatly in their potential value, with the result that only some are
worth pursuing. In other words, only for some opportunities is the ratio of risk- to-potential benefits sufficiently favorable to
justify efforts to exploit them. As you have probably observed yourself, some business opportunities are superior to others.
They occur in industries that are faster growing or ones in which customer needs are easier to identify or satisfy. Further,
some opportunities are easier to protect against competition., we carefully examine the specific characteristics that make
some opportunities more promising than others. The key point we wish to make here, however, should be obvious: At the
very heart of entrepreneurship is a nexus (connection) between opportunities and people (see Figure 1.9). It is this
connection or intersection that starts the process-and sometimes changes the world!

Figure 1.9 Entrepreneurship: What Sometimes Happens When Enterprising Individuals Meet New Opportunities?
What is the essential nature of entrepreneurship? Shane (2003) suggests that it occurs when individuals willing to assume
some risk recognize new business opportunities-and decide to act on them.

9
The Cutting Edge: Emerging Issues and Questions
Learning objective 5

Understand why this text will both describe what entrepreneurs actually do and what, perhaps, they
should do!
There can be no doubt that entrepreneurs encounter change on a daily basis when starting and running their new ventures.
In fact, in a sense, change is what entrepreneurship is all about: creating something' new-profitable new ventures-where
none existed before, bringing new products and services to market, meeting new and emerging customer needs. As a field
of study in business, entrepreneurship reflects this basic reality. Partly because it draws on several different existing
disciplines (strategy, organizational behavior, cognitive science, etc.), and partly because it is still quite new, it is literally
overflowing with interesting issues and questions. To provide you with a sense of the breadth this work, We'll now highlight
just a few of the topics that many researchers would view as "on the cutting edge"-topics related to important aspects of the
entrepreneurial process that have recently become the focus of increased attention and study.

SOURCES OF KNOWLEDGE ABOUT ENTREPRENEURSHIP: HOW WE KNOW WHAT WE KNOW

LEARNING OBJECTIVE 7

Explain why certain sources of knowledge about entrepreneurship are more reliable and useful than others.

In the remaining chapters of this book, we will discuss many aspects of entrepreneurship-how opportunities arise, how
some people recognize them, why some means of developing opportunities are better than others (at least in some
contexts), why some entrepreneurs are successful while others fail, and so on. As we discuss each of these issues, we will
present the most accurate and up-to-date information available. This goal, in turn, raises an important question: How do we
know which information is the most accurate and useful? As any visit to a local bookstore will suggest, many potential
sources of information about entrepreneurship exist, with no shortage of self-proclaimed experts on this topic. So how have
we chosen the information to include in this book? The answer is straightforward: We have selected information that has
been gathered in accordance with a set of rules or methods for acquiring reliable knowledge-methods that prove extremely
helpful in many fields ranging from the physical sciences on one hand, through various branches of management on the
other. What are these methods, and can they really be applied to the study of entrepreneurship? The methods themselves
are quite complex and well beyond the scope of this brief discussion; but their essential nature was stated concisely by the
French philosopher Diderot (1753) more than 250 years ago:

There are three principal means of acquiring knowledge: observation, reflection, and experimentation. Observation collects facts;
reflection combines them; experimentation verifies the result of that combination

That these methods can be used to study entrepreneurship is strongly suggested by the fact that they are currently
being employed in a large volume of entrepreneurship research. Since this is the case, and since much of the information
presented in this text has been gathered through these methods, we will describe them briefly here. Our goal is certainly not
that of turning you into an entrepreneurship researcher; on the contrary, it is simply to provide you with a basic
understanding of these methods so that you can become a more informed consumer of knowledge about entrepreneurship,
deciding for yourself whether, and to what extent, alleged "facts" about it are really accurate.

10
OBSERVATION, REFLECTION AND EXPERIMENTATION: ALTERNATIVE ROUTES TO KNOWLEDGE
LEARNING OBJECTIVE 8
Describe the nature of three basic means for obtaining knowledge about entrepreneurship systematic observation, the case
method, and experimentation-and the role of theory in the field of entrepreneurship.
Because it is the method most frequently used to study entrepreneurship, we'll start with systematic observation.
The basic idea is straightforward: We observe certain aspects of the world systematically, keeping careful records of
what we notice. Then, we use this information as a basis for reaching conclusions about the topics we wish to study-
and understand. For example, suppose that a researcher is interested in increasing our knowledge of opportunity
recognition-the process through which entrepreneurs identify opportunities for profitable new businesses. Imagine
that this researcher has reason to believe that opportunity recognition involves noticing or recognizing patterns-
connections between seemingly unrelated events, changes, or trends. In other words, recognizing opportunities
involves "connecting the dots" between such factors as advances in technology, changes in markets, shifts in
government policies, and other factors so as to form a recognizable pattern." The patterns entrepreneurs detect then
point to opportunities for new ventures. For instance, do you recall our discussion of Expedia.com? In that discussion
we pointed out that the idea for this new business involved connecting several independent events and trends-the
growing number of individuals with personal computers, the development of secure means for making purchases
online, deregulation of the airline industry-which produced huge variations in ticket prices. This basic process-
perceiving connection between various events and trends-may play a role in the identification of many opportunities.
How would a researcher study this basic idea? One way to do so would involve deriving from this reasoning one or
more hypotheses, as yet untested predictions or explanations for a set of facts, and then proceeding to test these
predictions by collecting relevant data. For instance, the researcher might reason that if recognizing patterns plays a
key role in opportunity recognition, then the broader or more varied the work experience individuals have, the better
they will be at recognizing opportunities. Why? Because broad experience helps individuals perceive connections
between seemingly independent events or trends. To test this idea, the researcher might then obtain information on
two variables-aspects of the world that can take different values. One variable would be the breadth of work
experience individuals have had (from very narrow to very broad) and the other would be the number of
opportunities they have recognized (perhaps, the number of companies they have started or the number of patents
they have received this variable could potentially be measured in several different ways). The researcher might then
predict that these two variables will be correlated, where changes in one are accompanied by changes in the other.
Specifically, she might predict that the more varied individuals' work experience, the more opportunities they will
recognize or the greater the number of companies they will start. Correlations can range from -1.00 to + 1.00.
Negative numbers indicate that as one variable increases, the other decreases. Positive numbers indicate that as
one increase, so does the other. So in this case, the researcher would predict a positive correlation between breadth
of work experience and number of opportunities recognized.
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 Research conducted in this manner can, and often does, add much to our understanding of entrepreneurship. In
fact, there is simply no substitute for careful research if we really want to understand how the entrepreneurial
process unfolds and what factors influence it. All the "educated guesses" offered by self-proclaimed "experts" on
entrepreneurship are not, in our view, nearly as informative as the findings of careful research. (By the way, actual
research on this topic suggests that in fact, breadth of experience is positively related to opportunity recognition.

The Case Method

Systematic observation is an important method of research in entrepreneurship, and perhaps the one most
frequently used, but it is certainly not the only one. Another involves what Diderot described as reflection. In
entrepreneurship research, this approach is the basis for the case method, which involves gathering large amounts
of data about one organization or specific individuals, and then using this information to reach conclusions about
what factors influenced important outcomes such as economic success. How could this method be used to
investigate opportunity recognition? One possibility is to gather detailed information on famous entrepreneurs, to
determine whether they recognized important opportunities by "connecting the dots" between various events and
trends. As an example, consider Chester Carlson, the individual credited with inventing the modern copy machine
and laser printers (see Figure 1.11).
Figure 1.11
Chester Carlson: A Case Study in Entrepreneurship
Why was Chester Carlson able to come up with a practical and cost-effective technology for making dry, permanent copies-
an invention with far-reaching effects? Detailed study of his life and activities through the case method offers some
intriguing possibilities and in this way, sheds important new light on the basic, nature of opportunity recognition.

At the time he invented (or rather, adapted) the basic process used in copy machines (and in laser printers), the
need for better means of making copies, especially in business and educational settings, was clear. During the
1940s and 1950s, many products for making copies had been invented, but none seemed to work very well. Why,
then, was Chester Carlson able to come up with one that worked well? Careful study of his background and life
suggest some intriguing possibilities. First, he held both a law degree and a technical degree. As a result, he
understood both the strong need for improved means of making copies as well as several of the technical processes
that might be used to meet this need. Further, once he decided to try to solve this problem, he restricted his efforts
(i.e., search) to technologies and processes he understood well. By focusing on these processes, he may have
enhanced his own ability to perceive ways of connecting several processes into a means of making dry, permanent
copies. In other words, a detailed case study of Carlson's activities offers support for the hypothesis that opportunity
recognition does indeed involve perception of complex patterns. Moreover, using the case method also suggests
that often those individuals who possess the "cognitive equipment" needed to perceive such patterns are the ones
who then become highly successful entrepreneurs.

We should hasten to add that the case method, by itself, does not in any sense prove that this is so. Findings
obtained through the case method are often highly valuable and can offer useful insights into how complex
processes occur. But since they often rely on somewhat informal means and on the judgment and intuition of
researchers, they provide a different kind of knowledge than systematic observation or another method we will now
describe—experimentation.
In essence, experimentation involves systematically changing one variable in order to see whether such changes
affect one or more other variables. Note that this approach involves active interventions by the researcher; in
systematic observation, in contrast, the researcher merely observes the variables of interest without attempting to
change them. Similarly, in the case method, a researcher observes the people or companies of interest and makes
no attempt to change them in any way.

Experimentation: Knowledge Through Intervention

When it is conducted carefully, and in accordance with certain basic rules, experimentation is a powerful tool. The
reasoning behind it is impeccable: If we change one variable while holding everything else constant, and these
changes affect another variable, we can conclude that changes in the first cause changes in the second. Can this
12
method actually be used to study entrepreneurship? In many instances, not very readily, because researchers simply
cannot change many variables that are of interest to them. For instance, they cannot alter government policies or
demographic trends, or change amount of capital available in economic markets. But in some contexts-especially in
research relating to the behavior of individual entrepreneurs-it is possible to use experimentation. For example,
consider, again, the possibility that recognizing opportunities involves "connecting the dots" between seemingly
unrelated events or trends so that meaningful patterns emerge and point to ideas for new products or services. This
suggestion could be studied by experimentation. For instance, one group of individuals could be given training in
recognizing patterns-that is, they would be trained in techniques that help in searching for and noticing patterns in
complex events or trends. Another group, carefully matched to the first in as many respects as possible (e.g.,
education, age, work experience), would not receive such training. Then, both groups would be asked to read
materials carefully designed to contain information that can be combined into patterns pointing to new business
opportunities. For instance, these materials could be based on new ventures that actually developed in the past, but
about which the participants in the study do not know. If recognizing patterns does indeed play a role in identifying
opportunities, then the individuals given training in pattern recognition would be more successful at this task than
those not given such training (see Figure 1.12).

Figure 1.12 Experimentation in Entrepreneurship Research: an Example

In the study illustrated here, one group of participants was given training in recognizing patterns while the other was not.
When both groups then read materials containing potential opportunities for new ventures, the group given training was
more successful in recognizing these opportunities. This research suggests that recognizing patterns in complex trends and
changes may indeed play an important role in opportunity recognition.

We realize that this scenario may seem very far removed from the chaotic, ever-changing world in which
13
entrepreneurs normally operate. However, the purpose of experimentation is not to simulate or reproduce these
conditions; rather, it is to gain insights into the nature of complex processes such as opportunity recognition insights
that cannot readily be gained through the case method or systematic observation.

Experimentation offers one additional important advantage: It is useful for establishing causality. When changing one
variable in an experiment produces changes in another, it provides strong evidence that the first variable caused
changes in the second. In the experiment we just described, differences in the performance of the two groups (one
with training in pattern recognition and the other: without such training) would point clearly to the potential role of
connecting the dots" in opportunity recognition. Moreover, this evidence would be stronger and more conclusive than
that obtained by other methods.
Because of practical constraints (e.g., it is difficult to vary the factors of merest systematically), experimentation is not
often used in the study of entrepreneurship, Instead, researchers employ a wide range of statistical techniques to
help determine causality on the basis of other methods such as systematic observation. One approach is to
determine whether one variable or change Occurs before another. Something that occurs later in time cannot
reasonably be the cause of something that occurred earlier. This concept, called Granger causality, can be used to
establish the direction of causality in systematic observation. So, for instance, suppose that research findings
indicate that the more varied individuals' work experience, the more opportunities they later recognize. Because work
experience precedes recognizing opportunities, it makes sense to conclude that the experience produced (caused)
opportunity recognition. The opposite-that—discovering opportunities produces varied work experience—makes little
or no sense.
In sum, there are several different methods for gathering useful—and accurate—information about various
aspects of entrepreneurship. None are perfect, but it is our strong conviction that all are very useful, and is greatly
superior to the kind of informal, "shoot from the hip" approach taken in many popular books on entrepreneurship.
Don't misunderstand: We do not mean to imply that the people writing such books are ill-intentioned or totally lacking
in useful insights about the entrepreneurial process. Rather, we only wish to note that the information they
communicate is based almost entirely on their own experience and other informal sources. Although these sources
may sometimes provide important insights, they rest on less certain (i.e., reliable) foundations than information
gathered through the use of systematic observation, experimentation, or the case method.

THEORY: ANSWERING THE QUESTIONS “WHY” AND “HOW”

We need to mention one more aspect of the quest for knowledge about entrepreneurship before concluding: the role
of theory in this endeavor. The term theory has a special meaning in the realm of science. It refers to efforts to go
beyond merely describing various phenomena to the point at which we can explain them—understanding why and how
they happen or take place as they do. For instance, with respect to opportunity recognition, we don't want merely to
be able to state that some people are better at recognizing opportunities than others or to report the percent of
people who are highly skilled at this task: We want to be able to explain why they are better and how they go about
recognizing these opportunities. In other words, we want to know just what it is about certain people that allow them
to be so good at recognizing opportunities, especially, perhaps, ones that other people miss. As we noted earlier, one
such theory might involve the ability to perceive meaningful patterns in diverse trends and events.

In sum, theories are frameworks for explaining various events or processes. Given the fact that the field of
entrepreneurship has been in existence for only a relatively short period of time, it is not surprising to learn that it has
few well-developed theories of its own; in fact, it has sometimes been criticized for lacking such frameworks. Up to
this point in time, entrepreneurship has largely borrowed theories from other fields, such as economics, psychology,
and cognitive science. For instance, efforts have recently been made to apply prospect theory, a well-developed
theory of decision making, to several important issues relating to entrepreneurship (e.g., the question of how
entrepreneurs perceive risk) to answering the question above. On the other hand, there is a growing body of theory
developed specifically to help explain various aspects of the entrepreneurial process. For instance, one theory
designed to explain why some family-owned businesses are more successful than others, calls attention to the joint
effects of several factors, such as pay incentives for family members, their belief that the firm will or will not be sold,
and the extent to which family members know the share of the business they will inherit. Offering family members pay
14
incentives (e.g., year-end cash bonuses) is quite common, but whether, and to what extent, doing so contributes to
the company's success is not yet clear. The theory just mentioned suggests that pay incentives for family members
will enhance firm performance when these persons believe the business will be sold but will not enhance
performance when they believe the company will remain in the family. Why? Perhaps because when they believe the
firm will be sold, their feelings of commitment toward the family business are reduced, thus allowing greater latitude
for the impact of economic factors such as pay incentives. In situations like this, we say that the effects of one
variable are moderated by another variable. In this case, the effects of pay incentives are strong when family
members expect the business to remain with the family, but are weak when they expect that the business will be sold.
In other words, the effects of pay incentives are moderated (changed, affected) by expectations about ownership of
the business. We will encounter many instances in this book when one variable moderates the effects of another;
that's why we introduce this concept here.

As you can see, theories are extremely useful because they help explain why certain events or processes occur
as they do. For instance, as the preceding example suggests, why pay incentives improve the performance of family
businesses under some circumstances but not under others. So, how are theories derived in the first place? Briefly,
the process goes something like the following:
1. On the basis of existing evidence or observations, a theory reflecting the evidence is proposed.

2. The theory, which consists of basic concepts and statements about how these concepts are related, helps to
organize existing information and makes predictions about observable events. For instance, the theory might
predict the conditions under which individuals recognize or do not recognize opportunities.

3. These predictions, known as hypotheses, are then tested by actual research.

4. If results are consistent with the theory; confidence in its accuracy is increased. If they are not, the theory is
modified and further tests are conducted.

5. Ultimately, the theory is either accepted as accurate or rejected as inaccurate. Even if it is accepted as
accurate, however, the theory remains open to further refinement as improved methods of research are
developed and additional evidence relevant to the theory's predictions is obtained. (Please see Figure 1.13
for a summary of these steps.)

Figure 1.13
The Role of Theory in Entrepreneurship Research
Theories both organize existing knowledge and make predictions about how various events or processes will occur. Once
theories are formulated, hypotheses derived logically from them are tested through careful research. If results agree with
predictions, confidence in the theory is increased. If results disagree with such predictions, the theory may be modified or
ultimately rejected as false. Even if initial predictions are confirmed, further tests of the theory are generally required.
15
 Perhaps another concrete example will help clarify the importance of theory. Suppose that on the basis of careful
observations and existing findings, an entrepreneurship researcher formulates the following theory: Individuals who
choose to become entrepreneurs think differently, in various ways, from people who do not choose this role .
Specifically, individuals who choose to become entrepreneurs are:
(1) more likely than others to be susceptible to several kinds of cognitive errors or biases (e.g., they are more likely
to be overly optimistic and to suffer from the illusion of control-they overestimate their ability to control the outcomes
they experience, etc.)
(2) more likely than others to think about situations in terms of the gains they will give up if they do not launch a new
venture, which, in turn, causes them to be more accepting of risk.
These predictions are then formulated as specific hypotheses and tested in actual research. For instance, actual or
would-be entrepreneurs could be compared with people who have no interest in starting new ventures in terms of
their susceptibility to cognitive errors and their tendency to think about various situations in terms of losses.
Measures of all these variables already exist and have been used in previous studies, so designing research to test
these hypotheses is quite feasible. If results are consistent with predictions derived from the theory, confidence in it
is increased: there would be a stronger basis for accepting the theory's premise that entrepreneurs do indeed think
differently from other people. On the other hand, if results are not consistent with predictions derived from the theory,
confidence in it is reduced.

Why should the field of entrepreneurship, which is eminently practical in orientation, be interested in theory?
Because, as one social scientist remarked many years ago, "There is nothing as practical as a good theory." By this
statement he meant that having a good theory-a clear understanding of why or how a process occurs as it does-is
very useful from the point of view of intervening in it in beneficial ways. In other words, if we have good and well
verified theories about entrepreneurship, we will understand this process in ways that enhance our ability to assist
entrepreneurs in their efforts to start new ventures. And that, of course, would be a very positive ou tcome. In short,
developing good theories is more than an exercise in basic science: It is an important step toward attaining
valuable, practical results.
Two final points: First, theories are never proven in any ultimate sense.
Rather, they are always open to testing and are accepted with more or less confidence depending on the weight of
available evidence relating to them. Second, research should never be undertaken to prove or verify a theory; it is
performed to gather evidence relating to the theory. If a researcher sets out to prove her or his pet theory, the
researcher commits a serious violation of the methods that should be followed to gather accurate information about
any topic. Why? Because in this case, the researcher may lose objectivity, and either unconsciously (or even
consciously) design her or his research so that it tips the balance in favor of the theory. Clearly, any results obtained
under these conditions are on shaky ground.

16