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Title of The Article reviewed: "Entrepreneurial skill-building in rural

ecosystems framework for applying the Readiness Inventory for
Successful Entrepreneurship (RISE"

Author: Thomas S. Lyons

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June, 2020
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Author: Thomas S. Lyons
Gary W. Rollins College of Business,
University of Tennessee at Chattanooga, Chattanooga, Tennessee, USA
John S. Lyons
Center for Innovation in Population Health,
University of Kentucky, Lexington, Kentucky, USA, and
G. Jason Jolley Voinovich School of Leadership and Public Affairs, Ohio University,
Athens, Ohio, USA
1. Introduction
The concept of entrepreneurial ecosystem (EE) has recently attracted much attention (Stam,
2015; Stam & Spigel, 2017). Cohen (2006) was the first to use the concept of EE and defined it
as an interconnected group of actors in a local geographic community committed to sustainable
development through the support and facilitation of new sustainable ventures’ (p. 3).
Nevertheless, the ideas behind a systemic view on entrepreneur- ship are much older (Dubini,
1989; Van de Ven, 1993). Scholars have stressed the importance of interactions between
elements of an entrepreneurial system (ES) that would increase entrepreneurial performance
The entrepreneurial ecosystem is a set of different individuals who can be potential or existing
entrepreneurs, organizations that support entrepreneurship that can be businesses, venture
capitalist, business angels and banks, as well as institutions like universities, public sector
agencies and the entrepreneurial processes that occur inside the ecosystem such as the business
birth rate, the number of high potential growth firms, the serial entrepreneurs and their
entrepreneurial ambition (Mason & Brown, 2014).

Stam & Spigel (2016) define an entrepreneurial ecosystem as a set of interdependent actors and
factors coordinated in such a way that they enable productive entrepreneurship within a
particular territory’.

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 2. Objective of the review
The general objective of this paper is to review the article written by Thomas S. Lyons entitled
"Entrepreneurial skill-building in rural ecosystems framework for applying the Readiness
Inventory for Successful Entrepreneurship (RISE")
2.1 Specific objectives
 o identify the meaning of Entrepreneurship skills and theories on entrepreneurial success
 To identify what is the meaning and importance Entrepreneurship Skill-building
Framework (ESBF)
 To identify the Implications of the ESBF and the RISE for rural entrepreneurship
 To Show the relevance of the topic to the present day Ethiopia
3 Major issues mentioned by the Author inside the Article
3.1 Entrepreneurship skills
In the introduction part of the article the Author tried to show different literatures on
entrepreneurial skill and successful entrepreneur as one who is able to generate individual and
community wealth by developing a business asset, and can do this repeatedly under a variety of
circumstances.” This definition further “requires that an entrepreneur consistently overcome the
obstacles faced in obtaining and using the resources required to start, grow, and sustain a
business.” Starting, growing and sustaining represent three different activities which may require
different abilities. Searching for new explanations for entrepreneur success, some researchers
turned to the study of entrepreneurial behavior. Gartner (1989).
According to the Author there are four theories mentioned to study entrepreneurial skill and
success these were
 Attributes or traits theory: Original thinking about entrepreneur success focused on the
identification of an individual’s innate characteristics that positioned them to effectively
pursue their craft. In other words, according to this view, some people are “born
entrepreneurs” and others simply are not. These scholars argued that successful
entrepreneurs were naturally willing to take risks, prone to pursuing achievement,
exceptionally creative, highly flexible or desirous of control. This theory has had a
powerful effect on how we think about entrepreneurship.

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  Behavioral theory: some researchers turned to the study of entrepreneurial behavior.
Gartner (1989) spurred this work by suggesting that behavior should be primary because,
even if innate traits exist, they are reflected in behavior. Behaviorists focused on the
essential activities of creating and building an organization and the appropriate order in
which these activities should unfold (Block and MacMillan, 1985; Carter et al., 1996).
 Cognitive theory; which suggests that understanding how entrepreneurs process
information holds the key to knowing what works and what does not (Siegel et al., 1993;
Mitchell and Chesteen, 1995; Krueger, 2000; Shane and Venkataraman, 2000; Minniti
and Bygrave, 2001; Gatewood et al., 2002; Politics, 2005). These scholars explored the
importance of self-efficacy, feedback, and experience and perception bias, among other
contributors to successful entrepreneurship.
 Skills theory: Fischer and Bidell (2005, p. 5) defined skill as “a capacity to act in an
organized way in a specific context.” Boyatzis and Kolb (1995) emphasized the
integration between the individual and her/his environment when skills are developed.
Skills are actionable; they underlie the entrepreneur’s decision-making processes and
behaviors; and they can be improved through learning and practice/experience (The
individual entrepreneur applies knowledge through practice within a given social context
(Mascolo and Fischer, 1999). Based on skills theory entrepreneurial success is the result
of learning and practice/experience.
3.2 The Entrepreneurship Skill-building Framework (ESBF)

The Author tried to show a four-dimensional framework which is proposed for understanding,
cataloging and assessing these skills of entrepreneurs. The four skill dimensions, or domains, of
ESBF represent the full array of activities ofman entrepreneur:
(1) Can they manage the business structure?
(2) Can they manage the business process?
(3) Can they manage the people (internal and external to the business) involved?
(4) Can they manage the overall process of change required for innovation?
The above four dimensions might be called business management, organizational process
management, relationship management and transformation management, respectively.

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Entrepreneurs do not become successful merely because they know the skills they need. They
must develop those required skills through practice and feedback on that practice. The continuum
of entrepreneurship skills and their development might be thought of as rungs on a ladder (see
Figure 1), with each rung representing a discrete level of skill (Lichtenstein and Lyons, 2010).
Metaphorically, the goal of the entrepreneur should be to climb the ladder, thereby mastering the
skills of successful entrepreneurship.
Technical skills are specific to creating a product or service in a given industry.
Managerial skills include those skills necessary to manage an enterprise on a daily basis.
Entrepreneurial skills are required for recognizing or creating opportunities and acting on
them.
Personal maturity skills have to do with emotional intelligence.
3.3 Implications of the ESBF and the RISE for Rural Entrepreneurship
Rural economies have characteristics distinctly different from urban markets that often limit rural
entrepreneurship and the growth of rural enterprises. Lichtenstein and Lyons (1996) identified
three key obstacles to rural development: rural economies are not diverse and rely extensively on
agriculture, causing the former to focus on programs that support innovations in production cost
savings and not a broader portfolio of innovation. Dabson (2001) noted that rural entrepreneurs
have few, if any, support networks, which limit new firm formation.
The self-sufficiency of rural people also reduces their likelihood of “seeking assistance and
reduces interactions” even if such support networks existed (Dabson, 2001, p. 37). Dabson
(2001, p. 37 the “intensity of family and personal relationships in rural communities,” or bonding
social capital (sometimes referred to as “strong ties”), limits the objectivity and effectiveness of
business relationships. Levitte (2004) found bonding social capital in Aboriginal communities
was linked with reluctance to seek additional skills training among entrepreneurs.
ESBF is focused on developing the skills of entrepreneurs, and the RISE is a model for
measuring those skills in a way that is meaningful to both an entrepreneur and her/his coach,
thereby making strategic intervention for skill development possible, they have a number of
implications for practice of generating endogenous growth in rural areas.
The ESBF places the ecosystem’s focus on developing entrepreneurs so that they can develop
their businesses successfully.
The RISE permits the entrepreneurs within the ecosystem to be organized by skill level.

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They can be put into peer coaching teams at each skill level. Similarly, entrepreneur support
organizations (ESOs) in the ecosystem can be organized by the entrepreneurship skill level (s)
that their capacity and capability best allows them to serve.
Based on the above mentioned ideas both ESBF and the RISE play a major role to capacitate and
expand the theory of entrepreneurship among rural parts of the society.
4 Conclusion

Rural development is more than ever before linked to entrepreneurship. Institutions and
individuals promoting rural development now see entrepreneurship as a strategic development
intervention that could accelerate the rural development process. Furthermore, institutions and
individuals seem to agree on the urgent need to promote rural enterprises: development agencies
see rural entrepreneurship as an enormous employment potential; politicians see it as the key
strategy to prevent rural unrest; farmers see it as an instrument for improving farm earnings; and
women see it as an employment possibility near their homes which provides autonomy,
independence and a reduced need for social support. To all these groups, however,
entrepreneurship stands as a vehicle to improve the quality of life for individuals, families and
communities and to sustain a healthy economy and environment.

The entrepreneurial orientation to rural development accepts entrepreneurship as the central

force of economic growth and development, without it other factors of development will be
wasted or frittered away. However, the acceptance of entrepreneurship as a central development
force by itself will not lead to rural development and the advancement of rural enterprises. What
is needed in addition is an environment enabling entrepreneurship in rural areas. The existence of
such an environment largely depends on policies promoting rural entrepreneurship.

4.1 The relevance of the topic to the present day Ethiopia

Ethiopia is the second most populous country in Africa and has one of the fastest-growing
economies in the world, which, with the right kind of policies and ways to ensure that growth is
not just concentrated at the top, could result in an expanding middle class with more purchasing
power. A relatively young population is an advantage that is yet to be fully utilized.
Entrepreneurship programs could focus more on developing the entrepreneurship abilities of
young people.

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Based on the above idea the rural population (% of total population) in Ethiopia was reported at
79.24 % in 2018, according to the World Bank collection of development indicators, compiled
from officially recognized sources. Rural development is at the centre of Ethiopia’s national
development agenda. Indeed, the Government of Ethiopia has put considerable efforts and
resources in establishing an explicit rural development strategy, as well as launching a series of
sectoral programmes targeting the multidimensional needs of rural areas. Rural development is
also at the heart of Ethiopia’s national development strategies. Given the size of the rural
population, and the importance of agriculture for Ethiopia’s development, the country’s efforts to
effectively foster rural development constitute as a national development objective. By
considering this truth the government of Ethiopia should encourage Entrepreneurial skill-
building in rural parts of Ethiopia by using the following methods and strategies .These are

 Preparing sound national economic policy with respect to agriculture, including

recognition of the vital contribution of entrepreneurship to rural economic development;

 Prepare policies and special programmes for the development and channeling of
entrepreneurial talent in rural parts of Ethiopia.

 Create a conducive environment for entrepreneurial thinking about rural development,

not only by farmers but also by everyone and every rural development organization; and

 By providing institutional support for those who are working on development of rural
entrepreneurship as well as creating strategic development alliances with other
development partners.

In general encouraging entrepreneurship and entrepreneurial skill building in rural areas need
strong and visionary leadership skill is essential. So the government of Ethiopia should
encourage leaders to work and expand the idea of entrepreneurial skill building policies in the
rural parts of Ethiopia.

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References

 The SAGE handbook of small business and entrepreneurship.

 Hints for public policies. Journal of Business Venturing, 4(1), 11–26. doi:10.1016/0883-
9026
 London: SAGE. Retrieved from https://us.sagepub.com/en-us/nam/the-sage-handbook
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inside the spiky bits: A critical review and conceptualization of entrepreneurial
ecosystems. Small Business Economics, 49(1), 11-30.
 Cohen, B. (2006). Sustainable valley entrepreneurial ecosystems and Business Strategy a
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 Thomas S. Lyons(2019): Entrepreneurial skill-building in rural ecosystems A framework
for applying the Readiness Inventory for Successful Entrepreneurship (RISE)