HC 4 – Entrepreneurship process and the role of
innovation 03-05-2016
Definition on slide of entrepreneurship Academy of Management
The entrepreneurial process
Opportunity is also associated with something new close to innovation.
Entrepreneurship = Existence, Recognition and Exploitation of opportunities
(Article Shane & V)
- Existence (situation (growth), individual (asymmetries of info)
- Recognition (individual (perceptions, heuristics)
- Exploitation also implemented innovation (situation (costs),
individual (self-efficacy).
Relationship between entrepreneur and the environment.
Three perspectives about opportunity recognition
1. Info based perspective
a. Try to achieve equilibrium, role entrepreneurship job to come
close to the equilibrium, but never achieve the equilibrium = not
possible.
b. People process different info (how people perceive the
disequilibrium, most of the time specialists in the field e.g.
economist or engineering students).
c. People cannot recognize all opportunities
d. Info determines who becomes an entrepreneur
e. Knowledge and discovery are driving forces (so start an
enterprise in your specialist area)
Macroeconomic consequences:
o Policy fund frequently disadvantaged groups, but these groups
might fail because of lack in knowledge
o Policy should invest in knowledge
o Centralized economies procedure because they reduce
uncertainty and difference in knowledge
o Patent holding and licensing produce disadvantages because it
prevents the exploitation of more valuable opportunities.
Critique:
o Search can be deliberately done
o Knowledge and info should not always lead to new business
entry
o The approach lacks explaining radical innovations
o Purely focused on knowledge, ignoring e.g., creativity, optimism.
2. Person based perspective
- Memory is essential
- Entrepreneurs perceive/organize/transform/use info differently
Cognitive process related to opportunity recognition:
- Pattern recognition
o E.g. characteristic opportunity = solve a problem, need, gaining
something, improve something, innovative
innovation 03-05-2016
Definition on slide of entrepreneurship Academy of Management
The entrepreneurial process
Opportunity is also associated with something new close to innovation.
Entrepreneurship = Existence, Recognition and Exploitation of opportunities
(Article Shane & V)
- Existence (situation (growth), individual (asymmetries of info)
- Recognition (individual (perceptions, heuristics)
- Exploitation also implemented innovation (situation (costs),
individual (self-efficacy).
Relationship between entrepreneur and the environment.
Three perspectives about opportunity recognition
1. Info based perspective
a. Try to achieve equilibrium, role entrepreneurship job to come
close to the equilibrium, but never achieve the equilibrium = not
possible.
b. People process different info (how people perceive the
disequilibrium, most of the time specialists in the field e.g.
economist or engineering students).
c. People cannot recognize all opportunities
d. Info determines who becomes an entrepreneur
e. Knowledge and discovery are driving forces (so start an
enterprise in your specialist area)
Macroeconomic consequences:
o Policy fund frequently disadvantaged groups, but these groups
might fail because of lack in knowledge
o Policy should invest in knowledge
o Centralized economies procedure because they reduce
uncertainty and difference in knowledge
o Patent holding and licensing produce disadvantages because it
prevents the exploitation of more valuable opportunities.
Critique:
o Search can be deliberately done
o Knowledge and info should not always lead to new business
entry
o The approach lacks explaining radical innovations
o Purely focused on knowledge, ignoring e.g., creativity, optimism.
2. Person based perspective
- Memory is essential
- Entrepreneurs perceive/organize/transform/use info differently
Cognitive process related to opportunity recognition:
- Pattern recognition
o E.g. characteristic opportunity = solve a problem, need, gaining
something, improve something, innovative
