This summary was created based on the book: Exploring entrepreneurship 3th edition and the slides from the lectures. As a result, this summary includes all available substances. Good luck with your exam!
Summary Introduction to Entrepreneurship and Corporate Strategy
Note: cases are not included in this summary, so read them yourself!
Chapter 1: Introduction
Enterprise of entrepreneurship are sometimes called ‘slippery concept’ because they are
closely associated with the temperament or personal qualities of individuals.
Entrepreneurs definition we use: “persons (business owners) who seek to generate value,
through the creation or expansion of economic activity, by identifying and exploiting new
products, processes or markets.”
Entrepreneurship definition we use from OECD and Eurostat’s EIP: “the phenomenon
associated with entrepreneurial activity, which is the enterprising human action in pursuit of
the generation of value, through the creation or expansion of economic activity, by
identifying and exploiting new products, processes or markets.”
Enterprise definition: “alternative term for a business or firm, as in the widely used term
‘small and medium-sized enterprise’ (SME). They include ‘social enterprises’, which are
trading organizations that serve a primary social purpose, and which can take a variety of
legal forms, including cooperative, a limited company and a community interest company.”
An entrepreneurial venture:
Responds to a market opportunity and/or social/environmental need.
Has the potential to add economic/social value compared to existing
offering?
Can be achieved in a cost-effective way.
Is based around a realistic business model.
Is being delivered by a capable and credible team.
Three main sources of variety in entrepreneurial activity:
1. Context in which it takes place
2. The way entrepreneurial activity is organized
3. The goals that it pursues
Chapter 2: Varieties of Entrepreneurship
Different types of entrepreneurs:
Corporate entrepreneur/intrapreneur, someone who acts entrepreneurially inside
an existing organization. The key feature is that the person operates within an
organizational hierarchy, rather than being free to act independently. Richard
Montanez
E-preneur, people that run businesses that depend entirely on the Internet. Where
they sell specialist products from home. Ali Niknam
Ecopreneur, entrepreneurs who establish ventures or introduce new initiatives with
the aim of tackling specific environmental problems. Boyan Slat
, Lifestyle entrepreneur, person who has set up a small business to pursue a personal
interest such as craft or a sporting activity. Sometimes this has a negative meaning
because people think that they prioritize quality of life over common motivations of
running a business. Sage Canaday
Portfolio entrepreneur, someone who operates several different ventures at the
same time. They differ from extremely wealthy to less prosperous people. Note
distinction with serial entrepreneur! Elon Musk
Rural entrepreneur, people who create or operate businesses in the countryside.
Sometimes also businesses who happened to be located in rural areas. Gilbert
Cardon
Serial entrepreneur, someone who sets up several different ventures over a period of
time, often reinvesting profits from the sale of an existing business in order to finance
a new one. The serial entrepreneur prefers creating new ventures over managing
larger established businesses. Ali Niknam
Social entrepreneur, founders of a social venture or someone who initiates a larger
programme of social change. The primary purpose is to address social or
environmental problems rather than simply to achieve commercial goals.
Muhammad Yunus
Technology entrepreneur, a person who has founded a new venture in order to
develop some form of advanced technology, most commonly in industry sectors such
as information and communications technology, biotechnology, nanotechnology, and
other applied sciences. Sam Altman
There are also different ways of categorizing entrepreneurship:
1. Immigrant and ethnic minority entrepreneurship, ‘the most entrepreneurial group in
the US wasn’t born in the US’. This statement describes what kind of kind of
entrepreneurship category is meant. There are two main schools of thought on the
issue. Culturalist perspective, which says that ethnic minority entrepreneurs are
intrinsically intertwined in their family and co-ethnic networks in which individual
behavior, social relations and economic transactions are shaped by the cultural
heritage. The Structural perspective, says that ethnic minorities start up their own
businesses not because of the unique advantage associated with their ethos, culture
or embeddedness in the ethnic community, but because self-employment is the most
effective strategy to pursue upward socio-economic mobility.
Structural barriers in the socio-economic context form a ‘push’ factor, and ethno-
cultural are a ‘pull’ factor. Or the ethno-cultural resources provide the means for
entrepreneurship, and the labour market disadvantage provides the motive.
2. Replicative and Innovative entrepreneurship, Baumol distinguishes two types of
entrepreneurs and indicates how they are engaged in different kinds of economic
activity. Innovative entrepreneurs, who create something new and go on to
commercialese it in the marketplace. Replicative entrepreneurs, people who set up
businesses based on tried-and-tested business models and sell conventional products
and services to existing markets.
3. Social entrepreneurship, has really struck a chord with may entrepreneurs who are
keen to combine their passion for a social mission with an image of business
discipline, innovation and determination in their ventures. A social entrepreneur: a
person driven by an innovative idea that can help correct an entrenched global
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