ECB2ECE
Economics of
Entrepreneurship
Summary
,Content
Alvarez & Barney (2007) - Discovery and Creation ............................................................................... 2
Atkins, R. & Aglionby, J. (2018) - From bean to bar.............................................................................. 3
Coad & Rao (2008) - Innovation and firm growth in high-tech sectors.................................................. 4
World Economic Forum (2020) - COVID alliance for social entrepreneurs .......................................... 5
Dencker et al. (2021) - Reconceptualizing necessity entrepreneurship ................................................... 7
Dew et al. (2004) - Dispersed knowledge and an entrepreneurial theory of the firm ............................. 8
Elert et al. (2019) - The Entrepreneurial Society .................................................................................. 10
Kautonen et al. (2015) - Robustness of the Theory of Planned Behavior in Predicting Entrepreneurial
Intentions and Actions ........................................................................................................................... 12
Massa et al. (2017) - A critical assessment of business model research ............................................... 13
Munoz et al. (2015) - The call of the whole in understanding the development of sustainable ventures
............................................................................................................................................................... 15
O'Connor et al. (2018) - Entrepreneurial Ecosystems – Chapter 1 ....................................................... 15
Parker (2009) - Why do small firms produce the entrepreneurs ........................................................... 16
Santos (2012) - A Positive Theory of Social Entrepreneurship ............................................................ 17
Scheepers et al. (2018) - Regional Entrepreneurship Ecosystem Support ............................................ 18
Sheppard (2016) - Here's how to achieve growth that lasts .................................................................. 18
Sorgner & Fritsch (2017) - Entrepreneurial career paths ...................................................................... 19
Stam (2020) – Introduction to entrepreneurial ecosystems ................................................................... 20
Stenholm et al. (2013) - Exploring country-level institutional arrangements on the rate and type of
entrepreneurial activity .......................................................................................................................... 23
Wennekers & Thurik (1999) – Linking entrepreneurship and economic growth ................................. 24
1
,Alvarez & Barney (2007) - Discovery and Creation
Discovery and creation theory:
- Assume that the goal of entrepreneurs is to form and exploit opportunities
- Recognize that opportunities exist when competitive imperfections exist in a market or
industry
Discovery theory:
- Competitive imperfections are assumed to arise exogenously, from changes in attributes of
the context within which an industry or market exists.
- Entrepreneurs who form and exploit opportunities are significantly different than those
entrepreneurs who do not form and exploit opportunities.
- Risky when the decision makers can collect enough information about a decision to
anticipate possible outcomes associated with that decision and the probability of each of
those possible outcomes. Uncertain when decision makers cannot collect the information
needed to do this.
- Risk-based decision tools are more appropriate.
Creation theory:
- Logical theoretical alternative to discover theory for explaining the actions that
entrepreneurs take to form and exploit opportunities. Unlike discovery, it is a gathering of
a bunch of multiple perspectives/theories.
- Opportunities are created endogenously by the actions, reactions and enactment of
entrepreneurs exploring ways to produce new products or services.
- Opportunities do not necessarily evolve out of pre-existing industries or markets.
- Opportunities do not exist independently of the actions taken by entrepreneurs to create
them. It assumes that entrepreneur’s actions are the essential source of these opportunities.
- Social constructions that do not exist independent of entrepreneur’s perceptions.
- Creation theory suggests that, ex ante, before entrepreneurs create opportunities, they may
or may not be significantly different than those who do not create opportunities.
Alternatively, it acknowledges that even very small differences between entrepreneurs and
non-entrepreneurs, ex ante, could lead some to form opportunities and others not to form
opportunities.
- Decision making is uncertain, because opportunities do not exist until they are created.
Information required to know the possible outcomes associated with this decision, and
their probability does not exist yet.
2
, Entrepreneurship based on opportunity creation Alvarez & Barney 2007): based on individuals’ ability
to act creatively by designing new combinations, and thinking in an innovative manner, and where
entrepreneurs’ interaction with others –their contexts and themselves –is a factor in the creative
process
Atkins, R. & Aglionby, J. (2018) - From bean to bar
Article of the Financial Times is about the mission to keep children out of cacao production. There are
several stories being told about child labour and the farmers of the beans. Tony’s Chocolonely is used
as main company that produces chocolate bars.
The international labour organizations defines child labour as work that deprives children of their
childhood, potential and dignity, interferes with schooling and is harmful to their physical and mental
development.
There is a shortcut to produce child labour-free chocolate. A simple solution is to source all the cocoa
beans from regions outside Africa. Sourcing from places where child labour is less relevant and/or a
less bigger issue. However, this would lead to abandoning farmers, as mentioned in this article, who
just became financially more stable to keep the next generation free from child labour.
3
Economics of
Entrepreneurship
Summary
,Content
Alvarez & Barney (2007) - Discovery and Creation ............................................................................... 2
Atkins, R. & Aglionby, J. (2018) - From bean to bar.............................................................................. 3
Coad & Rao (2008) - Innovation and firm growth in high-tech sectors.................................................. 4
World Economic Forum (2020) - COVID alliance for social entrepreneurs .......................................... 5
Dencker et al. (2021) - Reconceptualizing necessity entrepreneurship ................................................... 7
Dew et al. (2004) - Dispersed knowledge and an entrepreneurial theory of the firm ............................. 8
Elert et al. (2019) - The Entrepreneurial Society .................................................................................. 10
Kautonen et al. (2015) - Robustness of the Theory of Planned Behavior in Predicting Entrepreneurial
Intentions and Actions ........................................................................................................................... 12
Massa et al. (2017) - A critical assessment of business model research ............................................... 13
Munoz et al. (2015) - The call of the whole in understanding the development of sustainable ventures
............................................................................................................................................................... 15
O'Connor et al. (2018) - Entrepreneurial Ecosystems – Chapter 1 ....................................................... 15
Parker (2009) - Why do small firms produce the entrepreneurs ........................................................... 16
Santos (2012) - A Positive Theory of Social Entrepreneurship ............................................................ 17
Scheepers et al. (2018) - Regional Entrepreneurship Ecosystem Support ............................................ 18
Sheppard (2016) - Here's how to achieve growth that lasts .................................................................. 18
Sorgner & Fritsch (2017) - Entrepreneurial career paths ...................................................................... 19
Stam (2020) – Introduction to entrepreneurial ecosystems ................................................................... 20
Stenholm et al. (2013) - Exploring country-level institutional arrangements on the rate and type of
entrepreneurial activity .......................................................................................................................... 23
Wennekers & Thurik (1999) – Linking entrepreneurship and economic growth ................................. 24
1
,Alvarez & Barney (2007) - Discovery and Creation
Discovery and creation theory:
- Assume that the goal of entrepreneurs is to form and exploit opportunities
- Recognize that opportunities exist when competitive imperfections exist in a market or
industry
Discovery theory:
- Competitive imperfections are assumed to arise exogenously, from changes in attributes of
the context within which an industry or market exists.
- Entrepreneurs who form and exploit opportunities are significantly different than those
entrepreneurs who do not form and exploit opportunities.
- Risky when the decision makers can collect enough information about a decision to
anticipate possible outcomes associated with that decision and the probability of each of
those possible outcomes. Uncertain when decision makers cannot collect the information
needed to do this.
- Risk-based decision tools are more appropriate.
Creation theory:
- Logical theoretical alternative to discover theory for explaining the actions that
entrepreneurs take to form and exploit opportunities. Unlike discovery, it is a gathering of
a bunch of multiple perspectives/theories.
- Opportunities are created endogenously by the actions, reactions and enactment of
entrepreneurs exploring ways to produce new products or services.
- Opportunities do not necessarily evolve out of pre-existing industries or markets.
- Opportunities do not exist independently of the actions taken by entrepreneurs to create
them. It assumes that entrepreneur’s actions are the essential source of these opportunities.
- Social constructions that do not exist independent of entrepreneur’s perceptions.
- Creation theory suggests that, ex ante, before entrepreneurs create opportunities, they may
or may not be significantly different than those who do not create opportunities.
Alternatively, it acknowledges that even very small differences between entrepreneurs and
non-entrepreneurs, ex ante, could lead some to form opportunities and others not to form
opportunities.
- Decision making is uncertain, because opportunities do not exist until they are created.
Information required to know the possible outcomes associated with this decision, and
their probability does not exist yet.
2
, Entrepreneurship based on opportunity creation Alvarez & Barney 2007): based on individuals’ ability
to act creatively by designing new combinations, and thinking in an innovative manner, and where
entrepreneurs’ interaction with others –their contexts and themselves –is a factor in the creative
process
Atkins, R. & Aglionby, J. (2018) - From bean to bar
Article of the Financial Times is about the mission to keep children out of cacao production. There are
several stories being told about child labour and the farmers of the beans. Tony’s Chocolonely is used
as main company that produces chocolate bars.
The international labour organizations defines child labour as work that deprives children of their
childhood, potential and dignity, interferes with schooling and is harmful to their physical and mental
development.
There is a shortcut to produce child labour-free chocolate. A simple solution is to source all the cocoa
beans from regions outside Africa. Sourcing from places where child labour is less relevant and/or a
less bigger issue. However, this would lead to abandoning farmers, as mentioned in this article, who
just became financially more stable to keep the next generation free from child labour.
3
