Enterpreneurship BM/TM
Lecture 1
Defining e’ship (1)
Shane and Venkataraman (2000): e’ship is the discovery and exploitation of ‘entrepreneurial
opportunities’.
Two types of profit opportunities:
Entrepreneurial opportunities: to engage in new ‘activities*’
Non-entrepreneurial opportunities: to enhance efficiency of existing ‘activities*
*Activities = goods/services, markets/customers, sources of supply,
methods of production and/or organization
Defining e’ship (2)
Sharma and Chrisman (1999):
E’ship = acts of organizational creation, renewal or innovation inside or outside an organization.
Entrepreneurs = individuals or groups of individuals, acting independently or as part of a
corporate system, who create new organizations, or instigate renewal or innovation within an
existing organization
E’ship and ‘small business’ (1)
Terms are often used together (for example: Master Small Business & Entrepreneurship), but how
are they related
Innovation/renewal Travelling an extant road
Building a road Running an established firm
New venture creation Management
(Quantitative) Definitions of SMEs
Qualitative criteria:
- Small scale
- Personality
- Independence
,E’ship and ‘small business’ (2)
Views on e’ship: a frameworks of frameworks...
Ad) Schools of thought framework
Ad) Integrative framework
Ad) Venture typology framework (cf. e’ship forms)
,Part III: the importance of e’ship (and SMEs)
From a ‘managed economy’ (ME) to an ‘entrepreneurial economy’ (EE)
The most important differences between ME and EE
Factors underlying the rise of the entrepreneurial economy
The role of SMEs in economies (I)
Schumpeter (1909, Mark I): SMEs are important for ‘creative destruction’.
Schumpeter (1947, Mark II): Importance of SMEs will decrease
The role of SMEs in the EU-27: let’s figure this out...
, Part IV: Stages in e’ship/life cycle models
Shane and Venkataraman (2000): e’ship is the discovery and
exploitation of entrepreneurial opportunities.
My addition:
Business life cycle models: core ideas
Core ideas of business life cycle models:
During their lifetime firms proceed through different stages. Common stages: start,
growth, maturity and decline.
Each stage has its own characteristics and organizational challenge
Pitfalls of ‘traditional’ life cycle models
They assume that firms pass through all stages. Yet:
Firm age and size are not always related (cf. digital businesses).
Not every business owner aims to grow.
They fail to capture the very early stages (inception)
They focus on annual sales, not on other factors.
They focus on internal factors; not on environmental factors (own addition)
A well-known model in small business literature: Churchill and Lewis (1983)
Lecture 1
Defining e’ship (1)
Shane and Venkataraman (2000): e’ship is the discovery and exploitation of ‘entrepreneurial
opportunities’.
Two types of profit opportunities:
Entrepreneurial opportunities: to engage in new ‘activities*’
Non-entrepreneurial opportunities: to enhance efficiency of existing ‘activities*
*Activities = goods/services, markets/customers, sources of supply,
methods of production and/or organization
Defining e’ship (2)
Sharma and Chrisman (1999):
E’ship = acts of organizational creation, renewal or innovation inside or outside an organization.
Entrepreneurs = individuals or groups of individuals, acting independently or as part of a
corporate system, who create new organizations, or instigate renewal or innovation within an
existing organization
E’ship and ‘small business’ (1)
Terms are often used together (for example: Master Small Business & Entrepreneurship), but how
are they related
Innovation/renewal Travelling an extant road
Building a road Running an established firm
New venture creation Management
(Quantitative) Definitions of SMEs
Qualitative criteria:
- Small scale
- Personality
- Independence
,E’ship and ‘small business’ (2)
Views on e’ship: a frameworks of frameworks...
Ad) Schools of thought framework
Ad) Integrative framework
Ad) Venture typology framework (cf. e’ship forms)
,Part III: the importance of e’ship (and SMEs)
From a ‘managed economy’ (ME) to an ‘entrepreneurial economy’ (EE)
The most important differences between ME and EE
Factors underlying the rise of the entrepreneurial economy
The role of SMEs in economies (I)
Schumpeter (1909, Mark I): SMEs are important for ‘creative destruction’.
Schumpeter (1947, Mark II): Importance of SMEs will decrease
The role of SMEs in the EU-27: let’s figure this out...
, Part IV: Stages in e’ship/life cycle models
Shane and Venkataraman (2000): e’ship is the discovery and
exploitation of entrepreneurial opportunities.
My addition:
Business life cycle models: core ideas
Core ideas of business life cycle models:
During their lifetime firms proceed through different stages. Common stages: start,
growth, maturity and decline.
Each stage has its own characteristics and organizational challenge
Pitfalls of ‘traditional’ life cycle models
They assume that firms pass through all stages. Yet:
Firm age and size are not always related (cf. digital businesses).
Not every business owner aims to grow.
They fail to capture the very early stages (inception)
They focus on annual sales, not on other factors.
They focus on internal factors; not on environmental factors (own addition)
A well-known model in small business literature: Churchill and Lewis (1983)
