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The Evolution of Entrepreneurship

Entrepreneur is derived from the French entreprendre, meaning ―to undertake.‖

The entrepreneur is one who undertakes to organize, manage, and assume the risks of a business.

Although no single definition of entrepreneur exists and no one profile can represent today’s entrepreneur, research is providing an increasingly sharper focus on the subject.

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1 Entrepreneurial Schools-of-Thought Approach 2–2 .Figure 2.

and regulations) • Cultural displacement (preclusion of social groups) • Economic displacement (economic variations) The Financial/Capital School of Thought  The Displacement School of Thought  2–3 . Alienation drives entrepreneurial pursuits • Political displacement (laws. Based on the capital-seeking process—the search for seed and growth capital.Macro View: External Locus of Control The Environmental School of Thought  Considers the external factors that affect a potential entrepreneur’s lifestyle. policies.

and technical knowledge The Venture Opportunity School of Thought  Focuses on the opportunity aspect of venture development—the search for idea sources. • Corridor principle: New pathways or opportunities will arise that lead entrepreneurs in different directions. determination. creativity. 2–4 . the development of concepts. and the implementation of venture opportunities. • Achievement.Micro View: Internal Locus of Control The Entrepreneurial Trait School of Thought  Focuses on identifying traits common to successful entrepreneurs.

Strategic formulation is a leveraging of unique elements: • • • • Unique Markets: mountain gap strategies Unique People: great chef strategies Unique Products: better innovative strategies Unique Resources: water well strategies Ronstadt’s View  2–5 .Micro View… (cont’d) The Strategic Formulation School of Thought  Emphasizes the planning process in successful venture development.

Focuses on the entrepreneurial process itself and identifies five key elements that contribute to the process. Provides a comprehensive picture regarding the nature of entrepreneurship that can be applied at different levels.Process Approaches to Entrepreneurship Integrative Approach  Built around the concepts of input to the entrepreneurial process and outcomes from the entrepreneurial process.   2–6 .

Figure 2.‖ SAM Advanced Management Journal 59(1) (winter 1994): 21–31. 2–7 . Sexton. ―Reconceptualizing Entrepreneurship: An Input-Output Perspective. P. Lewis. and Donald L. Morris.2 An Integrative Model of Entrepreneurial Inputs and Outcomes Source: Michael H.

the venture. quantitatively. and the environment 2–8 . strategically. and ethically in regard to the entrepreneur.Process Approaches… Entrepreneurial Assessment Approach  Stresses making assessments qualitatively.

Ronstadt. 1984). 39.. MA: Lord Publishing Co. 2–9 .Figure 2.3 Entrepreneurial Assessment Approach Source: Robert C. Entrepreneurship (Dover.

and the venture process. multidimensional framework that emphasizes the individual. 2–10 . the organization. the environment.Process Approaches… Multidimensional Approach Views entrepreneurship as a complex.

―A Conceptual Framework for Describing the Phenomenon of New Venture Creation. Reprinted with permission.4 Variables in New-Venture Creation Source: William B.Figure 2. 2–11 .‖ Academy of Management Review (October 1985): 702. Gartner.

Intrapreneurship (Corporate Entrepreneurship) Intrapreneurship  Entrepreneurship that takes place within an organization Intrapreneuring (corporate entrepreneurship)  To create or develop the entrepreneurial spirit within corporate boundaries. 2–12 . thereby allowing an atmosphere of innovation to prosper.