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Who is an Entrepreneur?

Is a Question Worth Asking...?

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Importance of Concept

Support and foster entrepreneurship Behaviour modification attempts

Increasing population of entrepreneurs

Increasing survival rate of small businesses Build body of research

Increased focus on individuals.

Full understanding eludes as it is a complex and dynamic process

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Conceptual ambiguity

Who is an entrepreneur? Essential characteristics of entrepreneur? Which firms can be called entrepreneurial ventures?

Benefits of entrepreneurship?

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Some explanations

Schumpeter (1934) on Entrepreneur

Individuals who carry out new combinations of means of production

Gets equated with small business ownership; self employment Essential characteristics of entrepreneur?

Should ownership of enterprise be omitted? Risk bearing Creation or exploitation of ideas Demographics

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Some explanations

Which firms can be called entrepreneurial ventures?


Small firms or large firms (as instigators) Vesper (1980)

Introduction of new good; new methods of production; new market; new sources of supply; industrial reorganization.

Is innovation the key word? Benefits of entrepreneurship?

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Definitions (Carland et.al, 1984)

Entrepreneur

Small Business owner

Establishes and manages a Establishes and manages a business for principal business for principal purpose of profit and growth purpose of furthering personal goals. Characterized by innovative Business primary source of income and consumes behaviour majority of ones time and resources. Will employ strategic management practices in the Business perceived as extension of personality, business family needs, desires.
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Definitions (Carland et.al, 1984)


Entrepreneurial venture

Small business venture


Independently owned and operated Not dominant in its field. Doesnt engage in any new marketing or innovative practices.

Engages in behaviour that is aimed at profitability and growth. Business characterized by innovative strategic practices

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Evolution as an area

Definition

Little convergence among researchers Rare and inconsistent

Phenomenon occurs along continuum


Operationalization through intentionality subjective interpretation To know more about small ventures, need to know about their creators. Two are inextricably bound.

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Evolution as an area

Methodology

Heterogeneous samples issue of comparability, control groups

Difference in approaches: trait school problems with sample identification.

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Entrepreneur: Methodological Issues

Data collection predominantly from small, independent enterprises implications for corporate entrepreneurship. Results of study by Carland et.al

Entrepreneurship distinct from small business ownership in terms of articulated venture strategies

Entrepreneurs exhibit different personality traits and behavioural preferences.

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Debate: Focus of studies?

Intentionality vs. creation (outcome).


Scholars not able to conceptualize motives and cognitive processes. Multiple perceptions exist

Person vs. process (organization creation)

Issue of corporate venturing

Whole vs. part

Success depend on factors prior to, during and after launching of new venture. Need to understand all parts and interaction between them.
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Conclusion

For field to evolve, conceptual and methodological issues need to be resolved. Trait and behaviour are inextricably linked. Probably case study methodology more suited, especially if objective is intervention. Institutional factors need to be incorporated.

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