Seminar Topics

Seminar 2: Carland, J. W., Hoy, F., Boulton, W. R., and Carland, J. A. C.

(1984). Differentiating Entrepreneurs from Small Business
Owners. Academy of Management Review, Vol. 9, No. 2, pp.354-
359.
1. What is entrepreneurship? Input? Event? Process?
Entrepreneurship
- The creation of some combination that did not previously exist
- Often equated with small business ownership and management
- Input = Bring everything together
- Event = create the new product, idea and process, do things in new ways
- New firm formation
- Process = they create the innovation
- New firm stimulates in competition
- Entrepreneur improve productivity, efficiency and the production process >>
give consumers more choices and lower product price (benefit)

2. What is the unit / level of analysis in entrepreneurship studies?

– Risk and uncertainty bearing
– Some convert the uncertainty into risk
– Not all entrepreneur are risk taker >> they calculate the risks as they go along
– Entrepreneur start business from develop the business sector and the
opportunities = they have a alertness skill to figure out the needs and missed of
the exist service
– They develop and learn from communication – from the group of audiencs
– Use the sample to link the opportunity and SWOT analysis

3. Why do policymakers and practitioners support entrepreneurship?

- Most of the small businesses  form and create job and engage with
employability
- New firm create wealth  create a high value in Gross National Product
- Governance can increase the TAX and use the payment of firm to reinvest in
the public goods and services (health centre)
- Policymakers only focus on economic benefit
- People try to cover the poverty and people who need support  use the
strategy to cover the disadvantage group benefit

Innovation
- The product and service can be traded anywhere (global)
- Collectively engage in the local and national development and income
- Increase the market shares, more competitive in market position
- Multiplier effect >> can benefit many different aspects
- Can create and nudge new entrepreneur

4. Has Schumpeter (1934) presented a broad definition of entrepreneurship?

- Unique knowledge about the Technology and Science and Engineer
- Radical innovation is what those people are working toward for classifications
- Intro of new goods
- Intro of new methods of production
 - Opening of new market
- Opening of new sources of supply
- Industrial reorganization
- When the entrepreneur cannot do everything  need external supply (local or
oversea)
- The entrepreneur tries to create new product and services and the supply chain
that has not existed before
- Rare number of people are including in a classification. (1 in 5)

5. Are all small firms’ entrepreneurial ventures?

- Not all entrepreneurs are focused on profitability (family firm)
- Born and stay small  operate in a comfort zone
- If want to grow  need external finance sources
- They are not really innovative
- Entrepreneur only think short term – production and sales  they don’t have
long term vision
- Entrepreneur contribute to the employability  give them opportunity to
manage their sustainability
- Governance need to have strategic approach to help the firm owner stay and
create employability (Quality business)

SUMMARY FROM ARTICLES

 Entrepreneur
 an individual whose function was to carry out new combination of means
of production (Schumpeter, 1934) function is fundamental to economic
development
 or a rational decision maker who assumed risk and provided management
for the firm (Kilby, 1971)
 Mill (1848) - a manager difference from an entrepreneur  the bearing of
risks
 Brockhaus (1982) – innovative is a characteristics of entrepreneur >>
Martin (1982) – entrepreneur does not innovate by creating ideas but by
exploiting the value of ideas
 Vesper (1980) – entrepreneur are those whose type is “SOLO self-
employed Individual”
 independent of capitalists and business manager
 -ve: contribute disproportionately to the economy of nation
 Entrepreneur is distinguishable both by type and by conduct  2
conceptualisation are proposed
o Differentiating entrepreneurs from small business owner/manager
o Differentiating entrepreneurial venture from small business
Small Business sector
- Received attention in the economic and management literature – it can make
significant change to the economy  through the control of Small Business
Administration
Small firm
- Cohesive & homogenous & limited
– Independently owned and operated & not dominant in its field of operation
– Be treated as a seperate sector

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