DEFINING

ENTREPRENEURSHIP:
IT ALL DEPENDS
HOW ENTREPRENEURSHIP WORK?

PRESENTATION TITLE 2
 E N TR E P R EN EUR SH IP IS TH E C R E ATIO N O R
E X TR A C TIO N O F E C O N O M IC VA LUE . IT IS VIE W E D
A S CH A N G E , GE N E RA L LY E N TA IL IN G RIS K B E YO N D
W H AT IS N O RM A L LY E N CO UN TE RE D IN S TA RTIN G
A B US IN E S S, W H ICH M AY IN CL UD E OTH E R VA L UE S
TH A N S IM P LY E CO N O M IC
O N E S. E N TRE P RE N E URS H IP A S TH E P RO CE S S O F
D E S IG N IN G , L A UN CH IN G A N D RUN N IN G A N E W
B US IN E S S, W H ICH IS O F TE N S IM IL A R TO A S M A L L
B US IN E S S, O R A S TH E " CA PA CITY A N D
W IL L IN G N E S S TO D E VE L O P, O RG A N IZE A N D
M A N A G E A B US IN E S S VE N TURE A L O N G W ITH A N Y
O F ITS RIS K S TO M A K E A P RO F IT. F O CUS O N TH E
L A UN CH IN G A N D RUN N IN G O F B US IN E S S E S, D UE
TO TH E H IG H RIS K S IN VO LVE D IN L A UN CH IN G
A S TA RT- UP, A S IG N IF ICA N T P RO P O RTIO N O F
S TA RT- UP B US IN E S S E S H AVE TO CL O S E D UE TO
" L A CK O F F UN D IN G , B A D B US IN E S S D E CIS IO N S,
G O VE RN M E N T P O L ICIE S, A N E CO N O M IC CRIS IS,
L A CK O F M A RK E T D E M A N D, O R A CO M B IN ATIO N
O F A L L O F TH E S E .
 INTRODUCTION
While we have used
the terms entrepreneur and entrepreneurship previously,
we have not yet defined what these terms mean. To do
that, the reader must allow us to digress for another
moment into an academic discussion that we feel
ultimately will be informative. One reason we think
stories about various entrepreneurs have been
so intriguing to so many is that these stories reflect a
complex set of interrelated phenomena. Trying to
frame entrepreneurship as a single scholarly domain is
nearly impossible. Yet, many have tried as long as
entrepreneurship has been recognized or existed as
a field of research. Despite plenty of attempts, to date
there is no single definition of entrepreneurship.

PRESENTATION TITLE 4
If you have seven entrepreneurship professors in a
room, you are likely to have seventeen definitions.
Those with psychology backgrounds have one (or
two), those coming out of sociology another,
economists will have several, and then there are
those who come out of finance and management
who carry their own bias about the topic. Even
accountants are engaged in the field, which is
good as too many academics in the field
sometimes confuse revenues with profits.

5
 THAT SAID, THERE SEEMS TO BE A VERY BROAD
AGREEMENT THAT A COMMERCIAL ENTREPRENEUR
(COMPARED TO A SOCIAL ENTREPRENEUR) IS
USUALLY A PERSON WHO EXPLOIT SO
PPORTUNITIES FOR THE PURPOSE OF ECONOMIC
WEALTH CREATION. THIS IDEA HAS EXISTED FOR
CENTURIES STARTING WITH CANTILLION IN 1755.
DIFFERENT AUTHORS HAVE OVER THE YEARS USED
DIFFERENT DESCRIPTIONS, IMPLICITLY AS A RISK
TAKER WHILE EXPLOITING OPPORTUNITIES
(CANTILLON 1755; KNIGHT 1921; AND SAY 1803),
OR MORE EXPLICITLY AS OPPORTUNITY
CREATOR/INNOVA-TOR (SCHUMPETER 1934) OR AS
ALERT SEEKER OF OPPORTUNITIES (KIRZNER 1973;
MISES 1951). IN 1776 ADAM SMITH ACTUALLY SAW
THE ENTREPRENEUR AS A CAPITALIST
(LANDSTRÖM2005). AGAIN, THERE IS STILL LITTLE
AGREEMENT IN THE FIELD ON HOW
TO STUDYHOW OPPORTUNITIES ARE FORMED OR
EXPLOITED.
PRESENTATION TITLE 6
 OPPORTUNITY RECOGNITION
However, there is a common understanding that an opportunity exists when there
are competitive imperfections on a market (Venkatarman1997). While
Schumpeter(1934) and Kirzer (1973) explicitly recognized that opportunities are at
the core of entrepreneurship, they had different views on how opportunities and the
entrepreneur were linked.Schum-peter argued that market imperfections
(opportunities) were created when the entrepreneur introduced new innovations.
Kirzner’s(1973) entrepreneur is alert, discovers some imbalance in the
market(imperfec-tion), and seeks equilibrium through entrepreneurship. Kirzner’s
entrepreneur does not have to create anything new but will have to be able to
recognize and exploit what is already there. In other words, it is fine to be a
copycat.

PRESENTATION TITLE 7
 ACADEMICS LOVE TO ARGUE IN THE TRADITION OF WHICH
CAME FIRST, THE CHICKEN OR THE EGG.THIS IS PLAYED OUT IN
ACADEMIC CIRCLES WITH THE ONGOING DEBATE OF WHETHER
OPPORTUNITIES EXIST OUT THERE FOR EVERYBODY TO
DISCOVER AND THEN EXPLOIT OR WHETHER OPPORTUNITIES
ARE CREATED OR FORMED BY THE ENTREPRENEUR (ALVAREZ
AND BARNEY, 2013). IN THE FORMER CASE, THE EXISTENCE OF
OPPORTUNITIES IS TAKEN AS GIVEN AND THAT HOW
OPPORTUNITIES ARE FORMED HAS NO IMPACT HOW AN
ENTREPRENEUR EXPLOITS THEM. THE LATTER IS A RECENT
REALIZATION THAT OPPORTUNITIES CAN BE FORMED IN VERY
DIFFERENT WAYS AND THAT THE FORMATION PROCESS MAY
ACTUALLY IMPACT THE PROCESS BY WHICH THE
OPPORTUNITIES ARE EXPLOITED.
PRESENTATION TITLE 8
 THE PRACTICAL IMPLICATIONS OF THESE
DIFFERENCES ARE, HOWEVER, IMPORTANT. ONE
APPROACH SAYS THAT ANYONE CAN SEE AN
OPPORTUNITY IF THEY ARE VIGILANT. THE OTHER
SEES THE OPPORTUNITY AS BEING UNIQUE TO THE
INDIVIDUAL. IT IS POSSIBLE THAT BOTH ARE
CORRECT BUT THAT THE OPPORTUNITIES DIFFER.
WE HOPE WE HAVE NOT BORED YOU WITH
THIS ACADEMIC DISCOURSE, BUT WE FEEL THAT
OFTEN THE POPULAR PRESS HAS TENDED TO THINK
THAT ALL ENTREPRENEURS ARE THE SAME AND YET
THE RESEARCH INDICATES SOMETHING FAR
DIFFERENT. AN INTERESTING ENCOUNTER OF
ATTITUDES TOWARD LIFE AND THE PURSUIT OF
OPPORTUNITIES IS OFFERED BY BIRCH (1987: 91):
PRESENTATION TITLE 9
 AMERICA IS A NATION OF IMMIGRANTS, BUT THIS DOES NOT MEAN WE
ARE ACROSS SECTION OF EUROPE AND AFRICA—AND, INCREASINGLY,
LATIN AMERICA AND THE ORIENT. RATHER, THIS COUNTRY HAS ALWAYS
ATTRACTED MALCONTENTS,WHO CHAFED AT FEUDAL RESTRICTIONS IN
THE 18TH CENTURY AND THE LACK OF ECONOMIC AND RELIGIOUS
FREEDOM AND OPPORTUNITY IN THEIR OLD COUNTRIES IN THE 19TH AND
20TH CENTURIES. WARINESS REGARDING GOVERNMENTAL RESTRICTIONS
ON THESE FREEDOMS AND OPPORTUNITIES COULD BE SEEN INCOLONIAL
UNWILLINGNESS TO FOLLOW BRITISH IMPERIAL POLICY, WHICH LED TO
THE REVOLUTION. SOME HAVE ARGUED THIS MELTING POT VIEW OF THE
UNITED STATES IS WHY AMERICANS ARE SO ENTREPRENEURIAL VIS À VIS
MORE HOMOGENEOUS COUNTRIES LIKE JAPAN. CLEARLY CONTEXT AND
CULTURE PLAY A PART IN HOW ENTREPRENEURIAL GOALS ARE
EXPRESSED. IN THIS BOOK WE MAKE EVERY EFFORT TO SHOW EXAMPLES
OF ENTREPRENEURS FROM AROUND THE WORLD WE HAVE WORKED WITH
OR ARE FAMILIAR WITH.
 HOW ENTREPRENEURSHIP
HELPS ECONOMIES

PRESENTATION TITLE 11
NURTURING ENTREPRENEURSHIP
CAN HAVE A POSITIVE IMPACT
ON AN ECONOMY AND A
SOCIETY
IN SEVERAL WAYS. FOR
STARTERS,ENTREPRENEURS
CREATE NEW BUSINESS. THEY
INVENT GOODS SERVICES,
RESULTING IN EMPLOYMENT,
AND MORE DEVELOPMENT.
 ENTREPRENEURIAL ECOSYSTEMS

THERE IS RESEARCH THAT SHOWS

HIGH LEVELS OF SELF-
EMPLOYEMENT CAN STALL
ECONOMIC DEVELOPMENT:
ENTREPRENEURSHIP, IF NOT
PROPERLY REGULATED, CAN LEAD
TO UNFAIR MARKET PRACTICES
AND CORRUPTION, AND TOO
MANY ENTREPRENEURS CAN
CREATE INCOME INEQUALITIES IN
SOCIETY.
 IMPORTANCE OF
ENTREPRENEURSHIP
 ENTREPRENEURS BOOST ECONOMIC GROWTH BY
INTRODUCING INNOVATIVE TECHNOLOGIES, PRODUCTS,
AND SERVICES.

INCREASED COMPETITION FROM ENTREPRENEURS

CHALLENGES EXISTING FIRMS TO BECOME MORE
COMPETITIVE.

ENTREPRENEURS PROVIDE NEW JOB OPPORTUNITIES IN THE

SHORT AND LONG TERM.

PRESENTATION TITLE 15
ENTREPRENEURIAL ACTIVITY RAISES THE PRODUCTIVITY OF
FIRMS AND ECONOMIES.

ENTREPRENEURS ACCELERATE STRUCTURAL CHANGE BY

REPLACING ESTABLISHED, SCLEROTIC FIRMS.

PRESENTATION TITLE 16
THANK YOU
Samson, Shamier Khent A.

Dayaganon, Dennis M.

Umpa, Nasra

Jane Bagondol

PRESENTATION TITLE 17