A. The schools of entrepreneurial thought


l.    The macro view

a.   Presents a broad array of factors that relate to success or failure in contemporary entrepreneurial ventures

b.   Three schools of entrepreneurial thought

l.    The environmental school of thought

a.   Deals with the external factors that affect a potential entrepreneur’s lifestyle

b.   Focuses on institutions, values, and morals

2.   The financial/capital school of thought

a.   Deals with the search for seed capital and growth capital

b.   Views the entire entrepreneurial venture from a financial management standpoint

3.   The displacement school of thought

a.   Holds that the group hinders a person from advancing or eliminates certain factors needed to advance; the individual is projected into entrepreneurship in order to succeed

b.   Three major types of displacement

l.    Political displacement: Deals with government’s policies and regulations

2.   Cultural displacement: Deals with social groups precluded from professional fields

3.   Economic displacement: Deals with economic variations of recession and depression

2.   The micro view

a.   Examines the factors that are specific to entrepreneurship

b.   Holds that the potential entrepreneur has the ability or control to direct or adjust the outcome of each major influence

c.   Three schools of thought

l.    The entrepreneurial trait school of thought

a.   The study of successful people who tend to exhibit similar characteristics that would increase successful opportunities

b.   Four factors usually exhibited by successful entrepreneurs

l.    Achievement

2.   Creativity

3.   Determination

4.   Technological knowledge

c.    Deals with the family development idea

l.    Focuses on the nurturing and support that exists within the home atmosphere

2.   The venture opportunity school of thought

a.   The search for sources of ideas, the development of concepts, and the implementation of venture opportunities

b.   Views creativity and market awareness as essentials

c.   Deals with the ability to recognize new ideas and opportunities and to implement the necessary steps of action

3.    The strategic formulation school of thought

a.   Emphasizes the planning process in successful venture development

b.   Four major factors in considering the strategic formulation

l.    Unique markets

2.   Unique people

3.   Unique products

4.   Unique resources

3.   Summary of schools of entrepreneurial thought

a.   Knowledge and research available is in its embryonic stage

b.   The field of entrepreneurship uses a number of theories in its growth and development


         B.  Process Approaches


1.   The integrative approach

a.   Focuses on and includes three factors

1.   Inputs

2.   Outputs

3.   Entrepreneurial intensity

2.   Entrepreneurial assessment approach

a.   Focuses on the entrepreneur, the venture, and environment

b.   Assessments are made qualitatively, quantitatively, strategically, and ethically

c.   Career stage¾early, middle, or late¾is also considered

3.   Multidimensional approach

a.   Emphasizes the individual, the environment, the organization, and the venture process

b.   Dimensions that relate

1.   The individual

2.   The environment

3.   The organization

4.   The process

c.   Moves entrepreneurship from a segmented school of thought to a dynamic, interactive process approach


IV.    Intrapreneurship (Corporate Entrepreneurship)

A.  Very few executives understand the concept.

B.  Pinchot’s definition: those who take hands-on responsibility for creating innovation of any kind within an organization.

C.  Major thrust in intrapreneuring is to create or develop the entrepreneurial spirit within corporate boundaries.


V.     Key Concepts

A.  Entrepreneurship

l.    A process of innovation and new-venture creation through four major dimensions

a.   Individual

b.   Organization

c.   Environment

d.   Process

B.  Entrepreneur

l.    A catalyst for economic change who uses purposeful searching, careful planning, and sound judgment in carrying out the entrepreneurial process

C.  Entrepreneurial management

l.    All the rules, things that work, and the kinds of innovations are the same.

2.   The techniques and principles of this emerging discipline will drive the entrepreneurial economy of our time.


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