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THEORIES OF ENTREPRENEURSHIP: THE

END OF THE HEROIC ENTREPRENEUR

Teaching Team:

Dr Jane Chang RM M117

Dr Frances Ekwolugo RM M117

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To introduce this module To discuss your views on entrepreneurship To examine entrepreneurship in the UK To consider some ideas about entrepreneurship To show the importance of moving from thinking

about entrepreneurship as just single individuals

To understand entrepreneurship as a process To engage in practical activities around

entrepreneurship

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to critically analyse a range of business concepts anddefinitions in specific Entrepreneurial contexts asapplicable.

to deliver new answers for micro and small businesses

with limited resources and in specific time frameworks astransferable skills for later employability or selfemployment.

To practically develop business ideas using research and ITcritically for Entrepreneurial development within their

social, cultural and economic environments. Where appropriate analyse leadership and staff

development in small businesses. To develop communication skills in groups and individually

using a range of formats

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Critically evaluate the context and significance of the business environmentwithin which all profit and not for profit organisations operate specifically but notexclusively in the UK.

Critically review the concepts and practices of Micro and Small BusinessEntrepreneurship

Be informed critically of a range of Entrepreneurial factors that affect the successor failure of small business organisations in the for profit or not for profit marketsectors of the economy. These would include the current and future economic,legal, cultural and social context in which they operate.

Analyse and evaluate data and information from multiple sources with onlylimited guidance to formulate a clear position/opinion on this data/information.

Interact effectively within a group context as well as individually and workcollaboratively with limited supervision within agreed guidelines using a range of

communication skills. This will require reflection, judgement and analysis. Use various software and Internet resources critically to deliver their work

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Assessment Due Date Grading

Assignment 1 (Group work) MOA 11/11/11 (10%)BMP 25/11/11 (10%)FSP 12/12/11(20%)

40%

Assignment 2(Individual ) Individual participation(10%)- every seminarEntrepreneur Interview &Reflection (45%)-19/12/2011

Peer Review (5%)9/12/2011

60%

The best proposal will be selected for Santander

Entrepreneurship Award Competition /this is not assessed

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Arrive on time Turn off mobile phone, MP3, smart phone

No food allowed except bottled drinks Bring relevant materials to

lecture/seminar/workshop No disruptive behaviour If individual engages in ANTI social behaviour

will be asked to leave the class by UniversitySecurity Staff if necessary

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Divide into groups of five people and discuss:

Can you point to examples of entrepreneurship in

any aspect of your life? What is entrepreneurship? How would you define an entrepreneur? Who would you identify as an entrepreneur? Draw out the differences between entrepreneurs

and entrepreneurship

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Created:

Virgin musiclabel

Virgin Atlantic

Airways

Virgin Cola

Virgin Mega

Stores

or

SPECIAL

PERSONALITY?

EFFECTIVEACTIVITIES?

ENTREPRENEURSHIP:

PERSONALITY OR PROCESS?

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1970s - Crisis in UK economy, large companiesinflexible and slow. (Bolton, 1971)

1980s Growth of small firm sector, Enterprise

culture 1990s to Now entrepreneurship growing in

importance as a response to rapidly changing globaleconomy

Extended to health, policing and education at alllevels - entrepreneurial child Governments want to find special individuals

psychological profiling techniques (Carr and Beaver, 2002)

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UK has one of the most manageable administrativeregimes for start-up in EU - register within a day

Region with the highest level of independent start-

ups is London (8.3% of adult population), lowest isthe North East Business Angel activity is highest in London & South

East London has a substantially higher proportion of the

regional population expecting to start a businessover the next 3 years (14.9%) Respondents in South East are most positive about

start-up opportunities 46.5%

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Encourage more enterprise in disadvantagedcommunities and under-represented groups

Improve access to finance and support Make available suitable Education and training for

entrepreneurship Movement away from entrepreneurship as special

individual - entrepreneurship as Process Limits development of entrepreneurs as

entrepreneurs are seen as born not made

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To understand why there is a focus on personality ratherthan skills look at history of entrepreneurship theory

nobody can hope to understand the economic phenomenon

of anyepoch who has not adequate command of thehistorical facts (Schumpeter, 1934: 36)

French tradition - the Physiocrats Cantillon (1755) Foresight to assume uncertainty

Reacts to profit opportunities Bears uncertainty Brings about a balance between supplies & demands

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The Modern Austrian Tradition: Main representativeKirzner (1973)

The entrepreneur as a coordinating agent who iscapable of exploiting unnoticed opportunities dueto his/her specialalertness.

Has knowledge not available to everybody whichleads to creative discoveries

Facilitates exchange between suppliers and

customers Profit as reward for recognising a market

opportunity & acting as middleman

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Schumpeter (1934) Entrepreneur as innovator, creator and catalyst

for change Only certain extraordinary people have the ability to

be entrepreneurs and they bring aboutextraordinary events

Brings about change through introduction of newtechnological process/product

About dream/vision and impulse to fight Creative destruction of existing combinations of

resources

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Various Epochs and traditions have contradictedand criticised one another

At odds with economic principles which tend to be

able to predict, repeat analysis backed up by naturalscientific laws

Theories are specific to the context in which theyare created

However, at one point they all agree the focus onthe entrepreneur as special individual (Chell, 1991)

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THE TRAIT APPROACH Need for Achievement Locus of Control Risk-taking Innovation and creativity General Personality Scales 16PF, The Big Five

CONSTRUCTION OF THE TRAIT APPROACH Biased towards Western culture Gender-biased, Ethnocentric (Chell, 2001)

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COGNITIVE STUDIES Propose to focus on the behaviours of

entrepreneurs rather than their personalities Entrepreneurs have certain heuristics, schemas that

allow him/her to examine the environment and findexisting opportunities (Mitchell, 2002)

However, now focus on special thinking Still focuses on entrepreneur as having special

abilities rather than focusing on the process ofentrepreneurship Impossible to develop such schemas need a

different approach

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Psych studies treat entrepreneur as disconnectedfrom context

Individuals not distinct from their activities - they

are part of and create the systems within which theyare situated

Focus on what the entrepreneur does, not whothe entrepreneur is (Gartner, 1988)

This view leaves open the possibility of developingentrepreneurship in individuals Entrepreneurs made not born (Chell, 2001;Kuratko,2005)

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As a process, not an attribute of a person (Stevenson andJarillo, 1990)

An individual is not always entrepreneurial, may be

team-effort Necessity vs. opportunity entrepreneurship Innovations as a response to the need for making

un-programmed decisions Transcends the limits imposed by the owner

manager Possible at any stage of the life cycle of a business

enterprise (Handy, 2004)

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1.Motivation

to make a

difference

2. Spotting

opportunities

4.Dealing withObstacles

3. FindingThe resources

required

7. UsingNetworks

extensively

8. Controlling

the business

9.

Financial,

Social &

capital

5.Showing

Determination

in the face of

adversity

6.Managing

risk

THE ENTREPRENEURIAL PROCESS: 9 KEY

ACTIVITIES

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Responding to opportunities in context Finding out about your market Planning effectively Finding the resources required Using networks Managing risk

Financial and social capital Managing the business effectively

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Teams of 5 individuals Discuss the cases which have been set in front of

you Discuss how you could see the cases as both

individual personality trait or rather necessityordinary people who have been put intoextraordinary situations

E.g. Others in context

E.g. Necessity of situation Second partlist the processes that theseindividuals went through to make sure their venturesucceeded.