Entrepreneurship Summary Articles
Manon Kooning, S5221838
Week 1
The Promise of Entrepreneurship as a Field of Research
Entrepreneurship = study of how, by whom, and with what effects opportunities to create future
goods and services are discovered, evaluated, and exploited (Venkataraman 1997).
It examines sources of opportunities, processes of discovery/evaluation/exploitation, and
individuals who act on them. It lies at the nexus between lucrative opportunities and enterprising
individuals.
Why Study Entrepreneurship
Although young as a field, it is vital because it:
1. Turns technical knowledge into products (Arrow 1962).
2. Corrects market inefficiencies across time/space (Kirzner 1997).
3. Drives innovation and economic change (Schumpeter 1934).
→ Baumol: studying business without entrepreneurship = Hamlet without the Prince.
Opportunities = situations where new goods, services, raw materials, or organizing methods can be
sold for > production cost.
They are objective—exist even if unrecognized (e.g., telephone).
Three sources:
1. New information – new technologies/innovations.
2. Market inefficiencies – info gaps across time or geography.
3. Shifts in costs & benefits – political, regulatory, demographic changes.
They exist because people hold different information and beliefs (Schumpeter; Kirzner) and
disappear as info diffuses and imitation occurs.
Discovery of Opportunities
Only some recognize them, depending on:
• Prior knowledge (“information corridors”) about technology, user needs, etc.
• Cognitive ability to link new means–ends relationships (creativity, pattern recognition).
Discovery ≠ exploitation. Decision depends on:
1. Opportunity features – expected value, uncertainty, capital cost.
2. Individual traits – resources, risk tolerance/overoptimism, self-efficacy, need for
achievement, tolerance for ambiguity.
Many opportunities remain unexploited when risk or cost is too high.
1
,Modes of Exploitation
Two main forms:
• New firms (startups)
• Existing firms (corporate entrepreneurship)
Choice depends on capital access, uncertainty, IP protection, and complementary assets.
Main Contribution
Provides a unifying framework defining entrepreneurship as the study of:
• Existence, discovery, and exploitation of opportunities,
• Individuals who act on them,
• Their interaction as the engine of innovation and economic progress.
Understanding the Dynamics of Entrepreneurship through Framework
Approaches
Entrepreneurship research has expanded greatly over the past 30 years, yet the field faces persistent
problems:
• Limited theory development – weak independent theoretical foundations.
• Lack of useful conceptual frameworks – studies often lack integration.
• Lack of rigor – inconsistent definitions and methods.
• Difficulty in generalization – findings are highly context-bound.
Because much research borrows from other disciplines, the authors ask:
How can we organize and integrate the many existing perspectives into a coherent, theory-driven
structure for entrepreneurship?
• Entrepreneurship: creating value by assembling a unique resource package to exploit an
opportunity.
• Schools of thought: clusters of theories at macro and micro levels explaining entrepreneurial
activity.
• Typologies, process, and life-cycle frameworks: complementary lenses for analyzing
entrepreneurship.
Six Schools of Thought (Figure 1)
Macro View – external, environmental focus:
1. Environmental School: institutions, culture, and sociopolitical forces shape entrepreneurial
intention and opportunity.
2. Financial/Capital School: success depends on acquiring seed and growth capital; finance
constrains or enables ventures.
2
, 3. Displacement School: people turn to
entrepreneurship when blocked or
displaced by political, cultural, or
economic barriers.
Micro View – individual/organizational focus:
4. Trait School: success linked to personal
characteristics (achievement, creativity,
perseverance, technical skill, upbringing).
5. Venture Opportunity School: key is
recognizing and exploiting opportunities in
the right market at the right time.
6. Strategic Formulation School: emphasizes
planning and leveraging unique resources,
products, or markets through strategy.
The field’s fragmentation calls for integration.
Organizing existing frameworks clarifies multiple
dimensions of entrepreneurship.
The authors propose placing the entrepreneurial
process at the center, linking person, environment,
concept, resources, and organization into a
systemic model explaining outcomes.
Integrative Framework (Figure 2)
Entrepreneurship = interaction of:
• Entrepreneur (traits, cognition,
motivation)
• Environment (institutions, opportunities, constraints)
• Resources (financial, human, social capital)
• Concept (the business idea/opportunity)
• Organizational Context (structure, culture, life-cycle)
→ These elements interact dynamically in the entrepreneurial process, producing outcomes
like innovation, value, and job creation.
Framework of Frameworks (Figure 3)
No single theory captures entrepreneurship’s complexity.
The authors propose a meta-framework combining multiple lenses (schools of thought, process,
typology, life-cycle). This “framework of frameworks” supports multi-level, multi-disciplinary, and
multi-theoretical approaches for richer understanding.
3
Manon Kooning, S5221838
Week 1
The Promise of Entrepreneurship as a Field of Research
Entrepreneurship = study of how, by whom, and with what effects opportunities to create future
goods and services are discovered, evaluated, and exploited (Venkataraman 1997).
It examines sources of opportunities, processes of discovery/evaluation/exploitation, and
individuals who act on them. It lies at the nexus between lucrative opportunities and enterprising
individuals.
Why Study Entrepreneurship
Although young as a field, it is vital because it:
1. Turns technical knowledge into products (Arrow 1962).
2. Corrects market inefficiencies across time/space (Kirzner 1997).
3. Drives innovation and economic change (Schumpeter 1934).
→ Baumol: studying business without entrepreneurship = Hamlet without the Prince.
Opportunities = situations where new goods, services, raw materials, or organizing methods can be
sold for > production cost.
They are objective—exist even if unrecognized (e.g., telephone).
Three sources:
1. New information – new technologies/innovations.
2. Market inefficiencies – info gaps across time or geography.
3. Shifts in costs & benefits – political, regulatory, demographic changes.
They exist because people hold different information and beliefs (Schumpeter; Kirzner) and
disappear as info diffuses and imitation occurs.
Discovery of Opportunities
Only some recognize them, depending on:
• Prior knowledge (“information corridors”) about technology, user needs, etc.
• Cognitive ability to link new means–ends relationships (creativity, pattern recognition).
Discovery ≠ exploitation. Decision depends on:
1. Opportunity features – expected value, uncertainty, capital cost.
2. Individual traits – resources, risk tolerance/overoptimism, self-efficacy, need for
achievement, tolerance for ambiguity.
Many opportunities remain unexploited when risk or cost is too high.
1
,Modes of Exploitation
Two main forms:
• New firms (startups)
• Existing firms (corporate entrepreneurship)
Choice depends on capital access, uncertainty, IP protection, and complementary assets.
Main Contribution
Provides a unifying framework defining entrepreneurship as the study of:
• Existence, discovery, and exploitation of opportunities,
• Individuals who act on them,
• Their interaction as the engine of innovation and economic progress.
Understanding the Dynamics of Entrepreneurship through Framework
Approaches
Entrepreneurship research has expanded greatly over the past 30 years, yet the field faces persistent
problems:
• Limited theory development – weak independent theoretical foundations.
• Lack of useful conceptual frameworks – studies often lack integration.
• Lack of rigor – inconsistent definitions and methods.
• Difficulty in generalization – findings are highly context-bound.
Because much research borrows from other disciplines, the authors ask:
How can we organize and integrate the many existing perspectives into a coherent, theory-driven
structure for entrepreneurship?
• Entrepreneurship: creating value by assembling a unique resource package to exploit an
opportunity.
• Schools of thought: clusters of theories at macro and micro levels explaining entrepreneurial
activity.
• Typologies, process, and life-cycle frameworks: complementary lenses for analyzing
entrepreneurship.
Six Schools of Thought (Figure 1)
Macro View – external, environmental focus:
1. Environmental School: institutions, culture, and sociopolitical forces shape entrepreneurial
intention and opportunity.
2. Financial/Capital School: success depends on acquiring seed and growth capital; finance
constrains or enables ventures.
2
, 3. Displacement School: people turn to
entrepreneurship when blocked or
displaced by political, cultural, or
economic barriers.
Micro View – individual/organizational focus:
4. Trait School: success linked to personal
characteristics (achievement, creativity,
perseverance, technical skill, upbringing).
5. Venture Opportunity School: key is
recognizing and exploiting opportunities in
the right market at the right time.
6. Strategic Formulation School: emphasizes
planning and leveraging unique resources,
products, or markets through strategy.
The field’s fragmentation calls for integration.
Organizing existing frameworks clarifies multiple
dimensions of entrepreneurship.
The authors propose placing the entrepreneurial
process at the center, linking person, environment,
concept, resources, and organization into a
systemic model explaining outcomes.
Integrative Framework (Figure 2)
Entrepreneurship = interaction of:
• Entrepreneur (traits, cognition,
motivation)
• Environment (institutions, opportunities, constraints)
• Resources (financial, human, social capital)
• Concept (the business idea/opportunity)
• Organizational Context (structure, culture, life-cycle)
→ These elements interact dynamically in the entrepreneurial process, producing outcomes
like innovation, value, and job creation.
Framework of Frameworks (Figure 3)
No single theory captures entrepreneurship’s complexity.
The authors propose a meta-framework combining multiple lenses (schools of thought, process,
typology, life-cycle). This “framework of frameworks” supports multi-level, multi-disciplinary, and
multi-theoretical approaches for richer understanding.
3
