Principles of Management IIB - Entrepreneurship (BUSE2022)
Institution
University Of The Witwatersrand (wits)
Entrepreneurship vs Conventional Management, The Entrepreneurial Process, Theoretical Approaches To Understanding Entrepreneurship, and Behavioural Definitions.
Principles of Management IIB - Entrepreneurship (BUSE2022)
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Principles of Management IIB (Entrepreneurship) by ProfessorBurgerQueen
Chapter 1: Conceptualising Entrepreneurship
Behavioural Definitions
● Schumpeter – The entrepreneur is an innovator who carries out new combinations of
economic development, which are new goods, a new method of production, new
markets, new sources of raw materials, or a new organisational form
● Kirzner – The entrepreneur is someone who facilitates adjustment to change by
spotting opportunities for profitable arbitrage.
● Knight – the entrepreneur deals with the uncertainty attached to the exploitation of
opportunities
● Shane and Venkataraman – Entrepreneurship focuses on the central question of the
entrepreneur – why, when and how some people and not others discover and exploit
Process Definitions
● Stoner, Freeman, and Gilbert – Entrepreneurship is the seemingly discontinuous
process of combining resources to produce new goods and services
● Hisrich & Peters – Entrepreneurship is the process of creating something new with
value by devoting the necessary time and effort, assuming the accompanying
financial, psychic and social risks, and receiving
Outcomes Definitions
● Jean-Baptiste Say – The entrepreneur shifts economic resources out of an area of
low productivity into an area of higher productivity and greater yield
● Gartner – Entrepreneurship is the creation of new organisations
● Wennekers and Thurik – The entrepreneur is considered to be self-employed; based
on the notion that a person can either be unemployed, self-employed, or in wage
employment.
, Principles of Management IIB (Entrepreneurship) by ProfessorBurgerQueen
Theoretical Approaches To Understanding Entrepreneurship:
1. Socio-Psychological
Max Weber’s – The Protestant Ethic and the Spirit of Capitalism:
● Prudence
● Hard work
● Sobriety
● Trustworthiness
● Fulfilment of Promises
● Contribute to the success of Capitalism
2. Socio–Cultural Approach
Cultural change through the transformation of human agents and their socio-economic
setting. Consideration of past and present:
And their associations with current values, motivations and incentives and their conditioning
effect on current role structures
3.Macroeconomic Approach
Recognises that in the formation of a macroeconomic model of entrepreneurship; ‘There are
difficulties distinguishing between supply and demand determinants.
- Supply schedule:
○ Socio-psychological and cultural variables/Stock of Human Capital of the
Individual
- Demand Schedule: Entrepreneurial goods and services
○ Production factor prices
○ Existing and transferable technology
○ Consumer Income
Similarities In Entrepreneurship Definitions:
● Innovation
● Value creation
● Opportunities recognition and exploitation
● Creative process
● Risk-taking
● Resourcefulness.
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