Entrepreneurship - study notes

Entrepreneurship study notes

References with extracted contents

Qureshi, S. and E. Aftab. 2015. "KoldKraft Pakistan: An Entrepreneurial Journey"  Asian Journal of Management Cases 12(1), Sage: 29-41.

"the future was not only unknown, but unknowable";

"The knowledge, experience and networks developed in his previous jobs enabled him to proceed with his own entrepreneurial venture";

"The growth of the KoldKraft business was directly associated with the progress of the economy of the country";

Kirkley, W.W. 2016. "Creating ventures: decision factors in new venture creation", Asia Pacific Journal of Innovation and Entrepreneurship 10(1): 151-167.

"The increasing awareness of global markets and rapid market expansion has served to create a wide and varied range of new potential which allows businesses to expand their scope of operations across international borders (Knight, 2001; European Commission, 2011). The increasing pace of  technological development has furthermore significantly improved the potential for new venture creation";

"An entrepreneur, in the context of this study, is an individual who typically has limited resources, which he/she attempts to efficiently utilise to exploit a viable business idea through new venture creation (Sobel, 2008). By creating a new venture, the entrepreneur gains access to additional resources, which assist in increasing the point of differentiation and competitiveness of the new venture".

"In new venture creation, entrepreneurs need to focus on strategically analysing the external macro-environment to determine gaps and deficiencies where exploitable needs/problems may exist. Such analysis enables the entrepreneur to learn and discover new information, analyse it for trends and possibilities and develop unique, innovative solutions to identify problems or needs in the marketplace".

"Besides factors such as economic conditions, the changing social environment, market demands, trends, supply chain viability and so on, the most pervasive factor that currently influences new venture creation appears to be technological change. This factor represents a major source of innovation and features prominently in entrepreneurial decision-making, leading to new venture creation";

"According to Cornelissen and Clarke (2010), entrepreneurship, as a process of economic activity, is widely recognised as a source of innovation that has an impact on economic development. Part of this process of economic activity involves the establishment of new ventures targeted at providing specific solutions to identified needs or problems in the marketplace. The underlying premise that drives new venture creation is to provide a significant value to an identified segment of the market, which in turn supports and justifies the  establishment of a sustainable business".

"Mehdivand et al. (2012) state that the notion of new venture creation is primarily explained through a cognitive perspective. According to this view, new ventures are designed and established on the basis of the cognitive  characteristics of entrepreneurs. Prior knowledge, experience and skill is needed when establishing a start-up (Shane, 2003). The entrepreneur’s identification and resolution of unresolved problems or unsatisfied needs are best understood and made sense of through the cognitive processes of the individual. The other approach used to explain new venture creation is institutional theory (Platzek et al., 2010). According to this theory, entrepreneurs are influenced by the social and cultural contexts within which they operate and are more focused on providing meaning to these constructs through new venture creation";

"According to Krlev (2012), the entrepreneurship process is based on identifying and exploiting needs/problems well ahead of potential competitors and through the use of unique and creative approaches. To achieve a measure of confidence prior to start-up, entrepreneurs need to focus on the industry, macro-environmental and competitive landscapes they are planning to enter. Strategically, it is important to analyse and quickly evaluate the key forces a new venture will need to contend with prior to launch. Entrepreneurs are generally considered to have a favourable disposition to risk, ...";

"There are a number of different strategies an entrepreneur might choose to achieve a successful outcome as follows:

Transcendent-based approach: .....  Product-based approach: ...  User-based approach .... Manufacturing-based approach ....   The strategy best suited to new venture creation is primarily the user-based approach. One of the most significant problems facing entrepreneurs at start-up is the belief that they somehow intuitively “know” what users are looking for or what the problem is.."

Fisher, R., A. Maritz and A. Lobo. 2014. "Evaluating entrepreneurs' perception of success: Development of a measurable scale" International Journal of Entrepreneurial Behavior & Research 20(5): 478-492.

"A review of the entrepreneurship literature suggests entrepreneurial success is understood to be present by its indicators; however, these indicators are broadly conceived. The indicators can exclude or include typical business, economic, psychological, and social indicators; include survival beyond a certain timeframe; or simply constitute being in existence (that is, being a registered business entity)";

"Entrepreneurial success is informed by cultural issues or is dependent on individual perspective (Rauch and Frese, 2000). For example, venture capitalists and the entrepreneurs seeking their funds were found to have different perceptions of entrepreneurial success (Black et al., 2010). The attainment of wealth is a typical indicator of success (McMullen and Shepherd, 2006); yet other research shows many entrepreneurs do not necessarily consider attainment of wealth as a measure of their success";

"Fried and Tauer (2009) propose an index of entrepreneur success that comprises total cost (the resources used by the enterprise), owner hours (the commitment and effort of the entrepreneur to the enterprise), total revenue, and revenue growth. Liechti et al. (2009) develop performance factors that comprise entrepreneurial success using industry-adjusted scales, aggregate income and return on initial invested capital. Caliendo and Kritikos (2008) measure entrepreneurial success in terms of how many employees were hired after a venture launch. Entrepreneurial success is also variously measured by goal achievement, economic success, lifestyle success, and company growth (Rauch and Frese, 2000; Steffens et al., 2012)";

Cha, M.S. and Z.T. Bae. 2010. "The entrepreneurial journey: From entrepreneurial intent to opportunity realization" Journal of High Technology Management Research 21: 31-42.

"In the course of opportunity realization, entrepreneurs create new ventures from scratch. Although the interaction between the entrepreneur and  opportunity is the essence of entrepreneurship, no distinctive theory exists to explain it (Shane & Venkataraman, 2000). Opportunity, which is the potential state of value creation, is realized through the emergent process (Phan, 2004). Emergence means that opportunity comes into reality in the multiple level processes where entrepreneurs interact with many other economic agents that possess resources for creating a new venture that can, in turn, deliver value in the marketplace".

"New ventures must confront a number of diverse problems, pitfalls, and obstacles. Although the dominant problems, like new product development and commercialization, are predictable (Kazanjian, 1988), a multitude of other serious potential problems are not. Entrepreneurs try to solve these unpredictable problems throughout the new-venture-creation process. We call “the series and combinations of entrepreneurs' autonomous, innovative, and unpredictable or improvised actions and interactions” the entrepreneurial journey. This underlying and interacting journey of entrepreneur is for transforming potentiality of opportunity into actual value in new business".

"... a new venture experiences the “liability of newness” (Stinchcombe, 1965). Initial conditions such as assets, networks, legitimacy, and capabilities are disadvantageous to new organizations. A lack of resources and legitimacy cannot

guarantee the competitive advantage of new entrants (Alvarez & Busenitz, 2001). The traditional resource-based view cannot illuminate the future of new ventures. However, the concept of “entrepreneurial capability” has been suggested as a means for developing a theory of entrepreneurship.  Entrepreneurial capability is the capability to combine new resources that will carry new values in the future market";

"Several researchers have studied the processes and the driving forces of realizing opportunities. Ajzen (1985) proposed the “theory of planned behavior,” which predicts human behavior with consideration of intention. Hamel and Prahalad (1989) suggested the concept of “strategic intent,” or an obsession to stretch goals, as a source of winning in the world market. Shepherd and Krueger (2002) illustrated “entrepreneurial intention,” which can be used to predict the intention of founding a venture";

"The entrepreneurial process is composed of three activities: opportunity recognition, gap-filling, and opportunity realization. In this paper, we conceptualize the obsessive motivation and internal driving forces that underlie the entrepreneurial process or journey as “entrepreneurial intent,” which will be defined as a type of strategic intent characterized by an entrepreneurial mindset that can be defined as “an aroused state of entrepreneurial motivation to complete the entrepreneurial journey toward opportunity realization.”

Zhang, Z. and D. Chun. 2017. "Becoming entrepreneurs: how immigrants developed entrepreneurial identities" International Journal of Entrepreneurial Behavior & Research [URL address: https://doi.org/10.1108/IJEBR-07-2016-0214].

"Entrepreneurial identities refer to cognitive schemas of oneself and a set of behavioral expectations that allow individuals to interpret what it means to be an entrepreneur (Hoang and Gimeno, 2010; Murnieks et al., 2014). Research has shown that the salience of the entrepreneurial identity explains why individuals give up their old work roles and engage in entrepreneurship. For instance, Farmer et al. (2011) suggested that possible entrepreneurial selves motivate actions to fulfill the desire to become an entrepreneur. In particular, when individuals’ perceptions of the entrepreneurial role and their self-conceptions are congruent, strong aspiration toward a possible entrepreneurial self is generated. Entrepreneurial identities are also tied directly to the experiences of venture creation....".

Tipu, S.A.A. and F.M. Arain. 2011. "Managing success factors in entrepreneurial ventures: a behavioral approach" International Journal of Entrepreneurial Behavior & Research 17(5): 534-560.

"Robbins and Coulter (2007) defined behavior as “how people act.” Some authors have defined entrepreneurial behavior as a set of activities performed by an entrepreneur (Mair, 2002) while others have referred to entrepreneurial behavior as entrepreneurial actions (Bateman and Crant, 1993; He´bert and Link, 1998). Gartner (1985) discussed the behavioral approach towards entrepreneurship in lieu of the emergence of an  organization and highlighted the entrepreneur’s interaction with environment. The behavioral approach focuses on activities performed by an entrepreneur and the personality traits are  considered as ancillary to behavior (Gartner, 1988). The behavioral approach portrays an entrepreneur who exhibits opportunistic behavior of identifying and exploiting potential opportunities".