SBE Lect 5_ Part 7: ch7 Global entrepreneurship Monitor (Causal or…
SBE Lect 5_ Part 7: ch7 Global entrepreneurship Monitor
How many individuals are involved?
Not all nascents will become an entrepreneur (dreamers, but learning)
People do business not businesses
How do individuals go about creating a business?
Develop: Intentionality, Resources, Boundary, Exchange
What actually triggers nascents to start a business?
Social context and framework conditions important for start-up and survival
Actual start ups of measurable economic significance
Nascents most similar to actual entrepreneurs
Effectuation: 5 core principles
Implications for teaching entrepreneurship
Cyclical: Diminishing role for the business plan (e.g., at ECE)
In this stage, all the previous principles are put together. The future cannot be predicted, but entrepreneurs can control some of the factors which determine the future
Surprises are not necessarily seen as something bad, but as opportunities to find new markets
Bird in Hand
: Entrepreneur does not start with a given goal, but with the tools he or she has
Entrepreneurs cooperate with parties they can trust. These parties can limit the affordable loss by giving pre-commitment
Entrepreneur does not focus on possible profits, but on the possible losses and how they can minimize those losses
Causal or effectual process?
SEE SLIDE 23/26
‘...organising a new venture is not a patterned or linear process but rather is simultaneous, messy and iterative’
- Others go into their cupboard and investigate what ingredients (means) they have. They then imagine what the meal should look like (effects) before cooking the meal (ends).
- some chefs follow a recipe (means) to cook a meal (ends)
1. How do individuals go about creating a business?
Emerging organisations have four ‘properties’ (Katz & Gartner)
see slide 22/26 for table with examples for each
– transactions (e.g. sales) have to occur
– those seeking to set up a new business have to form some intentions towards setting up their business
– the creation of deliberate psychological (e.g., telling family or friends) or official (e.g., registering a business) boundaries
– resources (e.g. workers, finance) have to be identified, collected, assembled and put to use