entrepreneurship as a scientific research … as a... · entrepreneurship as a scientific research...
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ENTREPRENEURSHIP AS A SCIENTIFIC RESEARCH
PROGRAMME
José Maria VecianaUniversitat Autònoma de Barcelona
ABSTRACT:“In this article entrepreneurship as a scientific research
programme is developed and presented. In this relatively new field of study many different theories have emerged that try to explain the phenomenon of new enterprise or venture creation. After a brief treatment of the antecedents and historic of the author
discusses and suggests what should be development entrepreneurship, the distinctive domain of entrepreneurship research.
He then develops and presents the different paradigms or theoretical approaches that have emerged in this field. An
attempt is made to classify the diverse theories based on the various theoretical approaches to the study of entrepreneurship. The aim of this paper is not only to delimit this broad field of study but also to
offer a guide for future empirical research and theoretical developments.”
SUMMARY
• Develop entrepreneurship as a scientific research programmeObjective
Overview• Overview of origins and evolution, antecedents and historic
development. 4 stages: defining entrepreneur, historical studies, beginning of the scientific research in Business Administration, consolidation and explosion.
Development• Four theoretical approaches that have emerged in
the field of entrepreneurship, trying to explain entrepreneurship from very different perspectives.
4 STAGES
• 1st stage: who an entrepreneur is, what he does and what the entrepreneurial function is (1775-1900).
• 2nd stage: Historical studies (1920’s).
• 3rd stage: The Beginning of the Scientific Research Programme in the Field of Business Administration (1949-1979); Small and Medium-Sized Enterprises (SMEs), Entrepreneur and New Venture Creation.
• 4th stage: Consiolidation and Explosion (1979-...).
ECONOMIC APPROACH
PSYCHOLOGICAL APPROACH
SOCIO-CULTURAL APPROACH
MANAGERIAL APPROACH
MICRO(Individual
level)
• Entrepreneurial function as fourth factor of
production• Theory of the
entrepreneurial profit• Theory of occupational
choice under uncentainty
• Traits theory•Psychodynamic theory
• Margination theory• Role theory• Network theory
• Leibenstein x-efficiency theory
•Behavioral theory of the entrepreneur
• modes of new enterprise creation
• modes to become an entrepreneur
MESO (Corporate
level)
Transaction cost theory X• Network theory• Incubators theory• Evolutionary
theory
• Modes of new enterprise success
and failure• Corporate
entrepreneurship
MACRO (Global-
country level)
• Schumpeter’s theory of economic development• Theory of the
endogenous regional development
Kirzner’s entrepreneur theory
• Weber’s theory of economic development• Theory of social change• Population ecology
theory• Institutional theory
X
THEORETICAL APPROACHES TO THE STUDY OF ENTREPRENEURSHIP
ECONOMIC APPROACH
Micro Level Meso Level
• the transaction costs determine both at an
individual and corporate level to create of a new,
own firm or to sell of the new entrepreneurial idea
or project.
• To be entrepreneur requires the combination of moral
qualities that are not frequently found together.
• Entrepreneur’s profit Include: a) risk premium b) the
entrepreneur’s wage c) the entrepreneur’s rent which is derived from the scarcity of persons with entrepreneurial
capacity.
• The less risk averse individuals become entrepreneurs, while the
more risk averse work as laborers.
Macro Level
• “Entrepreneur is any person that carves out new
combinations of the factors of production”.
• The opportunities of new combinations of factors of
production result mainly from the technological change.
• Each new investments produces a dissemination effect outside the company making the investment (the spillover
effect).
PSYCHOLOGICAL APPROACHMicro Level Macro Level
• Kirzner's Entrepreneur theory
For Kirzner an entrepreneur is a person who is alert to business opportunities that have not
been identified by others.
The central concept is alertness to information (rather than possession).
Kirzner, like Schumpeter, believes that the market is in disequilibrium so there are market
opportunities.
With his behavior the entrepreneur pushes the market towards equilibrium.
• Traits theoryPsychological traits that distinguish
entrepreneurs from non-entrepreneurs and the successful entrepreneurs from the less
successful ones.
Need of independence Need of achievement Internal locus on control Risk taking propensity Unsatisfied or marginated persons Intuition Tolerance of ambiguity
• Psychodinamic Theory of entrepreneurial personality: emphasizes
the unconscious determinants of personality. People are driven by irrational forces.
SOCIO-CULTURAL APPROACH
Micro Level Meso Level Macro Level
Decision to become an independent entrepreneur is conditioned by external or environmental factors.
• Margination theorynew firm formation rate is higher
in the immigrant population (negative factor).
• Role theorywhy in industrial regions with an
entrepreneurial culture new firms are created and why it is so
difficult to foster entrepreneurship in regions with
a lack of these conditions. (i.e. Silicon Valley and Catalunya)
• Network theoryentrepreneurial function exists and develops in a network of
social relations.
• Network theorystrategic alliances are considered to be an intermediate or hybrid form of governance structure.
• Incubator's theoryspin-offs: firms that have been
incubated in other organizations.
• Evolutionary theoryclosely related to the incubator
theory, it could explain why some organizations have generated certain innovation routines.
• Weber's theory of economic developmentthe behavior of the capitalist-
entrepreneur is strongly conditioned by religious beliefs (Max Weber)
• Theory of social changefactors of the entrepreneurial spirit (degree of mobility, both social and
geographical, nature of mobility channels)
• Population ecology theorythe environment determines the birth, growth and death of new
enterprises.
• Institutional Theory"Institutions are the rules of the
game in a society or humanly devised constraints shape human
interaction" (North)
MANAGERIAL APPROACH
Micro Level Meso Level
• Under the managerial approach it is hypothesized that there are other factors that
determine the success and failure of new enterprises and that these variables are under
entrepreneur’s control.
• Corporate entrepreneurship can be described as the activity in a corporation that aims at
identifying new opportunities beyond the core business
The theories included under this approach are based on the assumption that the act of new enterprise formation is the
result of a rational decision.
•The entrepreneur is able to establish guidelines that can guide potential entrepreneurs in the
process of new enterprise creation.
• New enterprise creation is equivalent to the creation of a new system and therefore the
knowledge supplied by the organization theory should be taken into account.
• There are many ways to become an entrepreneur (i.e. franchise, purchasing a
company, inheritance...)
An analysis of big corporates should be developed using the previously described pattern.
It's difficult to reach exhaustive results for what concerns generating useful knowledge for creating new enterprises.
The first three approaches (economic, psychological and socio-cultural) try to explain why new firms are created while the
managerial approach is a useful guideline for generating knowledge, which is useful for future enterprises.
This study concerns a still too much variable context due to the fact that many factors of uncertainty could easily affect it.
CONCLUSION 1/2
CONCLUSION 2/2This new scientific research programme has been formed during the last fifty
years but it's consolidation has occurred in the last three decades.
Even though a sufficient conceptual and research work has been done so far to attempt to tackle this critical matter, there will be definitely much work and research to do from now on in order to face the many uncertainties
that nowadays represent the current situation.
In order to become an entrepreneur and open your very own business, a substantial investment will be required, and many new entrepreneurs
have difficulty obtaining funds on their own.
Now that we are beginning to overcome the financial/economic downturn, high risk investment may be even more difficult to find.