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Essentials of Entrepreneurship Summary week 1-8 - EC2EBE4
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summary of the essentials of entrepreneurship, year 2, block 4
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Essentials of Entrepreneurship -EC2EBE4
Summary lectures + literature
Lecture 1: Entrepreneurial Opportunities
In every lecture 2 literatures -> 2 articles
Literature week 1:
- Shane & Venkataraman: promise of entrepreneurship is a field of research
- Alvarez & Barney: discovery and creation: alternative theories of entrepreneurial
action
Learning objectives:
- Different processes of opportunity recognition, opp. evaluation and opp. exploitation
- Why and how some identify + exploit entrepreneurial opportunities
- Difference between opportunity discovery and opportunity creation; + implication
entrepreneurial actions
Literature 1: views on entrepreneurship
Jean-Baptiste Say (1767 – 1832)
Production process requires 3 operations:
- Theoretical knowledge construction
- The application of knowledge (entrepreneurs)
- Execution
Successful entrepreneur: rare combination of qualities and experiences
Entrepreneur: coordinator, modern leader and manager
Alfred Marshall 1842-1924
Drive the production and distribution process, coordinate supply and demand on the market
and capital and labour within the firm
Sees entrepreneurship as provision of innovations and progress
- General ability depends on family background, education etc
- Specialized abilities
- A natural leader of men
Joseph Schumpeter 1883 – 1950
Innovation is and endogenous process – created within the economic, innovation
Not available out there, the problem has to be solved in a specific way, see a problem and
doing your own research with your own thoughts
The innovation and technological change comes from entrepreneurs or wild spirits
Entrepreneur is prime mover of the economic systems
, Entrepreneur creates new equilibriums in the economy -> creative destruction
- Seek + create new opportunities
- Destroy old equilibrium
o Example: 5 years ago old way of e-learning, now it is different from years ago.
Frank Knight 1885 – 1972
Distinguish between uncertainty and risk -> measuring the risk. Risk: The ability of expect the
outcome, uncertainty: don’t have the ability
Entrepreneurs are held responsible for economic progress
The essence of entrepreneurship: his responsibility for direction and control whenever
uncertainty is involved
Entrepreneurial ability: degree of self-confidence, power to judge personal qualities etc.
Israel Kirzner
Define entrepreneurship: being alert to new opportunities -> recognition (identification by
means of discovery or creation)
How to be alert: have a good background
Requires no special ability or personality: only: special type of knowledge, knowing where to
look for knowledge
- Being alert to discover and exploit profit opportunities
- Alertness to match between supply and demand
Defining an entrepreneur
Individual differences:
- Greated self-efficacy
- More internal locus of control
- Greater tolerance for ambiquity
- Higher need for achievement
Individual differences: social ties -> family etc
Literature 1: Shane & Venkataraman 2000:
How and why are opportunities discovered?
- Technological, political, regulatory and demographic changes: new/different
information, economies in constant disequilibrium
- Information not known to all parties -> asymmetries of information and beliefs
across time and space
o Information corridors cognitive properties
- Different assumptions about the accuracy of resource value, not accurate
information -> wrong decision, shortage (problem not solved or partially solved)
- Exploitation of market inefficiencies
Academic challenge: can it be taught, what should be taught:
- Shift psychological characteristics towards behavioural aspects
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