Showing papers on "Entrepreneurship published in 1997"

Academic Capitalism: Politics, Policies, and the Entrepreneurial University

Abstract: The globalization of the political economy at the end of the twentieth century is destabilizing the patterns of university professional work developed over the past hundred years. One of the major changes that has taken place as a result of globalization is that faculty, who were previously situated between capital and labor, are now positioned squarely in the marketplace. To grasp the extent of changes taking place and to understand the forces of change, Academic Capitalism examines the current state of academic careers and institutions, with a particular focus on public research universities in the United States, Canada, the United Kingdom, and Australia. In this wide-ranging analysis, Slaughter and Leslie leave no aspect of academic work unexplored: undergraduate and graduate education, teaching and research, student aid policies, and federal research policies. All are part of the equation. The authors pay particular attention to how faculty spend their time, what forces drive their choices of activities, and what this means for higher education.

Entrepreneurship in multinational corporations : The characteristics of subsidiary initiatives

Abstract: This paper defines initiative as a key manifestation of corporate entrepreneurship, and examines the types of initiative exhibited in a sample of six subsidiaries of multinational corporations. From a detailed analysis of 39 separate initiatives, four distinct types are identified, which we refer to as ‘global,’ ‘local,’ ‘internal’ and ‘global–internal hybrid,’ to correspond to the locus of the market opportunity whence each arose. Two important conclusions are indicated. First, entrepreneurship at the subsidiary level has the potential to enhance local responsiveness, worldwide learning and global integration, a much broader role than previously envisioned. Second, the use of contextual mechanisms to create differentiated subsidiary roles has its limitations because each initiative type is facilitated in different ways. © 1997 by John Wiley & Sons, Ltd.

Some Research Perspectives on Entrepreneurship Education, Enterprise Education and Education for Small Business Management: A Ten-Year Literature Review

Abstract: GARY GORMAN IS AN ASSOCIATE DEAN AND associate professor and Dennis Hanlon an assistant professor at the Faculty of Business Administration, Memorial University ofNewfoundland, Canada, and Wayne Ki...

Women's Organizational Exodus to Entrepreneurship: Self-Reported Motivations and Correlates with Success

Abstract: Women-owned businesses are a powerful force in today's American economy Twenty-nine percent of all businesses are owned by women (Census Bureau 1991) Women employ over fifteen million American workers, over one-third more than all the Fortune 500 companies worldwide (National Foundation for Women Business Owners [NFWBO] and Dunn and Bradstreet Information Services 1995) Operating in all industries, female entrepreneurs have more than tripled in number from 25 million in 1980 to 77 million in 1994, representing a rate of increase which is double that of male-owned businesses (NFWBO 1995) The Committee on Small Business (1988) estimated that by the year 2000 about half of all businesses will be owned by women Nearly 31 percent of these women have had previous executive/management or supervisory experience prior to starting their own businesses (Census Bureau 1991) Few researchers have examined this highly-trained group of women entrepreneurs who leave corporate environments to start businesses of their own This study investigates four important issues: (1) What motivational influences affect former managerial or professional women's entrepreneurial decisions; (2) What role family concerns play in these former corporate women's entrepreneurial motivation; (3) How these female entrepreneurs measure success in their ventures; and (4) Whether the women's entrepreneurial motivation is related to the ways they measure success in their own businesses The findings of this research are important for several reasons Women's career motivation currently receives little research attention Investigation of women's entrepreneurial motivation and success measures will provide needed insight into women's career development Consultants to women considering entrepreneurship would better understand their clients' motivation and would be better able to help the women make informed career decisions The results could also help women who seek greater self-awareness about their motivation and its influence on their personal and professional success This awareness would help them integrate the work and personal dimensions of their lives Past Research on Entrepreneurial Motivation and Success Measures While investigations into the reasons women start businesses have been sparse, over the past twenty years a number of studies have examined the reasons men initiate ventures (Birley and Westhead 1994; Cooper and Dunkelberg 1981; Denison and Alexander 1986; Dubini 1988; Scheinberg and MacMillan 1988; Shane, Kolvereid, and Westhead 1991; Shapero 1975) In general, researchers have found that men start their businesses primarily as a result of such "pull" factors as the opportunity to work independently, to have greater control over one's work, and to earn more money There is a lesser influence from such "push" factors as limited advancement opportunities, job frustration, and avoiding an unreasonable boss or unsafe working conditions With one exception, in none of these studies were women entrepreneurs addressed separately or did they constitute more than ten percent of the sample The exception, Shane, Kolvereid, and Westhead (1991), studied non-US entrepreneurs, including women, and reported that the male entrepreneurs were most motivated by the need to improve their positions in society for themselves and their families, while the female entrepreneurs were most motivated by the need for achievement However, the authors cautioned that cultural differences across samples precluded generalizing findings to US entrepreneurs Research on Women's Entrepreneurial Motivation In one study of women's entrepreneurial motivation, Hisrich and Brush (1985) asked their women business-owner respondents for the reasons they started their businesses Most frequently cited were "push" factors of frustration and boredom in their previous jobs, followed by interest in the business, with "pull" factors such as autonomy a distant third …

Essentials of Entrepreneurship and Small Business Management

Abstract: Section I. The Challenge of Entrepreneurship Chapter 1. The Foundations of Entrepreneurship Chapter 2. Inside the Entrepreneurial Mind: From Ideas to Reality Section II. Building the Business Plan: Beginning Considerations Chapter 3. Designing a Competitive Business Model and Building a Solid Strategic Plan Chapter 4. Conducting a Feasibility Analysis and Crafting a Winning Business Plan Chapter 5. Forms of Business Ownership Chapter 6. Franchising and the Entrepreneur Chapter 7. Buying an Existing Business Section III. Building the Business Plan: Marketing and Financial Considerations Chapter 8. Building a Powerful Marketing Plan Chapter 9. E-Commerce and the Entrepreneur Chapter 10. Pricing Strategies Chapter 11. Creating a Successful Financial Plan Chapter 12. Managing Cash Flow Section IV. Putting the Business Plan to Work: Sources of Funds Chapter 13. Sources of Financing: Debt and Equity Chapter 14. Choosing the Right Location and Layout Chapter 15. Global Aspects of Entrepreneurship Chapter 16. Building a New Venture Team and Planning for the Next

An Examination of Owner's Goals in Sustaining Entrepreneurship

Abstract: Many entrepreneurs continue to pursue independent employment throughout their careers in spite of adverse events or lack of financial success. In fact, entrepreneurship becomes their career in a manner similar to an individual who climbs the ladder of a Fortune 500 firm. Bird's (1989) work on entrepreneurial behavior discussed the long-term, career-oriented nature of entrepreneurship commonly neglected in defining the term. Bird defined an entrepreneurial career as "the process of deciding to begin and to continue operating as an entrepreneur" (p. 173). The concepts of motivation, goal-directed behavior, and perception of successful outcomes are all important elements in the entrepreneurial process. Understanding entrepreneurial motivation is critical to understanding the complete entrepreneurial process. Herron and Sapienza (1992) stated that "because motivation plays an important part in the creation of new organizations, theories of organization creation that fail to address this notion are incomplete" (p. 49). While Herron and Sapienza concentrated on the interactive nature of variables leading up to the launch of a venture, Herron and Robinson (1993) extended this model into a more complete description of the venture performance process. In developing a model of entrepreneurial motivation, Naffziger, Hornsby, and Kuratko (1994) contended that a more complete view of entrepreneurship should include the entirety of the entrepreneurial experience - that is, behaviors necessary to the operation of the firm and its performance, as well as the psychological/non-psychological outcomes resulting from firm ownership. Thus they integrated existing research and theory into a model which incorporated both the decision to create a new venture and the motivation to sustain entrepreneurship (sustained entrepreneurship means to remain with a venture or to start additional ventures versus abandoning entrepreneurship as a career choice). An important aspect of these motivational models is the role of entrepreneurial goals in motivating business founders to sustain their pursuit of entrepreneurial activity. The purpose of this study is to investigate empirically the existence of a set of goals that when achieved, motivate entrepreneurs to sustain their venture efforts. Whether or not this collection of goals can be synthesized into a more concise description was addressed through the use of factor analysis. Literature Concerning the Entrepreneurial Process In the recent past, the entrepreneurial process has been examined from a theoretical point of view. Bygrave (1993) defined an entrepreneurial event as the creation of a new organization to pursue an opportunity. Some of the characteristics that Bygrave used to describe the entrepreneurial event were: discontinuity, holistic, change of state, dynamic, unique, extremely sensitive to initial conditions, involving numerous antecedent variables, and initiated by an act of human volition. However, he admitted that "if researchers could develop a theory to explain entrepreneurial events, then they would have the key that unlocks the mystery of entrepreneurship" (p. 257). Bull and Willard (1993) offered a tentative theory of entrepreneurial activity extracted from anecdotal observations and extant literature. Their definition of entrepreneurship states that "A person will carry out a new combination, causing discontinuity, under conditions of task-related motivation, expertise, expectation of personal gain, and a supportive environment" (p. 186). A number of attempts have been made to construct theoretical models of the entrepreneurial process (Gartner 1985; Greenberger and Sexton 1988; Learned 1992; Herron and Sapienza 1992; Herron and Robinson 1993; Naffziger, Hornsby, and Kuratko 1994; and Bhave 1994). Specific to this study Herron and Robinson (1993) proposed a causal model of the relationships between entrepreneurial characteristics and venture performance. …

Entrepreneurship among Business Graduates: Does a Major in Entrepreneurship Make a Difference?.

Abstract: Entrepreneurship has become a widely taught subject in universities and business schools. However, only a very small number of studies have investigated the effect of entrepreneurship education. The present research compares the behaviour of business graduates with a major in entrepreneurship and graduates with other majors from a Norwegian business school. The results indicate that graduates with an entrepreneurship major are more likely to start new businesses and have stronger entrepreneurial intentions than other graduates.

The Asian Miracle and Modern Growth Theory

Abstract: The policy differences between accumulation and assimilation growth theories may be much smaller than the conceptual or analytic differences. Can the Asian miracle be explained in terms of capital investments? Or were entrepreneurship, innovation, and learning significant factors in the rapid growth of the Asian tigers? In the past 35 years, China, Hong Kong, Korea, Singapore, and Taiwan (China) have transformed themselves from technologically backwards and poor economies to relatively modern, affluent economies. Each has experienced more than a fourfold increase in per capita income. In each, a significant number of firms are producing technologically complex products competitive with firms in Europe, Japan, and the United States. Their growth performance has exceeded that of virtually all comparable economies. How they did it is a question of great importance. Virtually all theories about how they did it place investments in capital stock at the center of the explanation. Nelson and Pack divide most growth theories about the Asian miracle into two groups: The accumulation theories stress the role of capital investments in moving these economies along their production functions. What lies behind rapid development, according to this type of theory, is very high investment rates. If a nation makes the investments, marshals the resources, development will follow. The assimilation theories stress the entrepreneurship, innovation, and learning these economies went through before they could master the new technologies they were adopting from more advanced industrial nations. They see investment in human and physical capital as an essential but far from sufficient part of assimilation. In addition, people must learn about, take the risk of operating, and come to master technologies and other practices new to the country, if not the world. The emphasis for assimilation theorists is on innovation and learning, rather than on marshalling. If one marshals but does not innovate and learn, development does not follow. These are complex theories that raise as many questions as they answer. Nelson and Pack discuss differences in the way the two groups of theorists treat four matters: Entrepreneurial decisionmaking. The nature of technology. The economic capabilities possible with a well-educated work force. The role exports play in a country`s rapid development. The differences between the theories matter because they affect our understanding of why the Asian miracle happened and because they imply different things about appropriate economic development policy. This paper-a product of the Development Research Group-is part of a larger effort in the group to study the impact of public policy on growth.

Organizing in the knowledge age: Anticipating the cellular form

Abstract: Executive Overview Each major era in business history has featured a particular form of organization. Early hierarchical, vertically integrated organizations have largely given way to network organizations that link the assets and know-how of numerous upstream and downstream industry partners. A number of leading companies today are experimenting with a new way of organizing—the cellular form. Cellular organizations are built on the principles of entrepreneurship, self-organization, and member ownership. In the future, cellular organizations will be used in situations requiring continuous learning and innovation.

Who Starts New Firms? - Preliminary Explorations of Firms-in-Gestation

Abstract: Presents preliminary analysis of a pilot research program in development, that uses a new survey research technique to investigate the factors that lead individuals to start firms. It seeks to analyze data about the gestation process that precedes firm creation. Previous models are found not to be very successful for prediction and are at odds with the unique combinations of events leading to firm formation reported in personal accounts.Describes the data issues, such as the treatment of self-employment as small business ownership or entrepreneurship. A sample of nascent U.S. entrepreneurs was developed from the 1993 University of Michigan Survey of Consumers. Statistically significant differences associated with prevalence of nascent entrepreneurs were identified. The Automatic Interaction Detection (AID) technique is used to identify the major combinations among multiple independent variables affecting the decision to start a firm. The analysis indicates the significance of two variables relating to new-firm startup: unemployment and personal liquidity. Results indicate most efforts to start firms are not begun by the unemployed. The amount of variance explained by increased personal liquidity is modest. The AID technique has identified unique situations where participation in startups is increased. Concludes that participation in the entrepreneurial process is a major activity in the U.S. workforce, and is concentrated among young adults. The process leading to startups reflects personal, life course, and contextual variables that fall into a small number of well-defined groups. (TNM)

Entrepreneurial creativity through motivational synergy.

Abstract: This paper defines and describes entrepreneurial creativity, which is the generation and implementation of novel, appropriate ideas to establish a new venture. Entrepreneurial creativity can be exhibited in established organizations as well as in start-up firms. The central thesis of this paper is that entrepreneurial creativity requires a combination of intrinsic motivation and certain kinds of extrinsic motivation — a motivational synergy that results when strong levels of personal interest and involvement are combined with the promise of rewards that confirm competence, support skill development, and enable future achievement.

A prisoner's dilemma approach to entrepreneur-venture capitalist relationships

Abstract: New business startups with venture capital backing depend on mutual cooperation between entrepreneurs and venture capitalists, but little is known about what makes these relationships work. The present article considers the implicit similarities between entrepreneur-venture capitalist relationships and the Prisoner's Dilemma frame-work. using this paradigm to develop a conceptual model of entrepreneurs' and venture capitalists' decisions to cooperate. The model is used to generate a number of testable propositions concerning long-term cooperation between entrepreneurs and venture capitalists. Implications of the model for researchers, entrepreneurs, and venture capitalists are discussed, and the paper concludes by examining Implications of the entrepreneur-venture capitalist context for the traditional Prisoner's Dilemma framework.

Technology and Economic Development: The Dynamics of Local, Regional, and National Change

Abstract: This study examines the effects of technological change on economic growth and development, synthesizing extensive research from multiple disciplines, including geography and planning, regional science, entrepreneurship, technology policy and economics. It uses the framework of regional development to encompass economic dynamics at all spatial scales: national, regional and local. The concept of regional development is introduced as the qualitative or structural features of a region's economy, as opposed to its sheer size or growth rate. The analysis also examines the core-periphery dichotomy, where the core is defined as a set of regions in which complexity, technology, and control are the norm, and where linkages to other nodes and the global system are common. The discussion also draws a distinction between economic growth and economc development; the former designates increases in population within a specific area, or increases in the quantity or the value of the goods and services, and does not necessarily lead to qualitative improvements in life, the way development does. Technological capability is closely related to capability in RD conventional strategies are changing to encompass people -- their contacts and skills -- as another vital basis for success of firms in new technologies and in alliances and other cooperations. The location of economic activities is explored. There are two major sets of influences on the innovativeness and competitiveness of places: (1) technical skills and information are key in the process of technological change and competition; and (2) urban areas contain a complex synergy of factors that smaller, more remote places cannot attain. Producer services, which are strongly based on knowledge and symbolic analysis, are therefore typically clustered in cities. Small firms and entrepreneurship are examined as a crucial part of a well-functioning regional economy. Research has demonstrated the close relationship between entrepreneurship and regional and local development. Innovativeness developed within local inter-firm networks both supports existing firms and presents opportunities for starting new businesses in order to serve newly identified markets. Networks of firms complement and sometimes substitute for a firm's own technological capability. Networks of large firms and the globalization of economic activity are then considered. Policy attempts at national, regional and local scales to influence the location of economic activity are analyzed. The economic progress and prospects of developing countries are assessed. Policies for innovation, entrepreneurship, and the functioning of the economy are essential, and require flexibility in order to respond to changing conditions in the world economy, in specific product markets, and in technology. Concludes with a discussion of some of the central themes that were facing society at the end of the 1990s, including basic needs for human development, environmental issues, employment and human capital, and infrastructures for future technologies. (AT)

Between the gift and the market: the economy of regard

Abstract: The original insight of economics is contained in Adam Smith's account of the efficiency of an impersonal market, in which every individual seeks his own advantage, with no regard for the welfare of others. Polanyi posited a 'great transformation', from socially embedded reciprocity, to impersonal price-driven market exchange, which he saw as culminating in late eighteenth-century Britain. 2 This trajectory is disputed by writers who identify pervasive market exchange in antiquity, the early middle ages, and pre-modern Africa.3 What is less noted is the persistence of non-market exchange into modern times. Goods and services continue to be transferred without the benefit of markets or prices, to be exchanged as gifts. There are unilateral transfers in the form of organ donations, charity contributions, and bequests. There is an important non-profit sector, providing 4 per cent and 7 per cent of employment in Britain and the United States respectively.4 Most gifting, however, takes place in a context of reciprocity. Foremost is exchange within the household. But gift giving also motivates much retail purchasing. Reciprocity abounds at work; it affects management, agriculture, marketing, entrepreneurship, and politics. It mobilizes resources for growth, and is also implicated in corruption and crime. The persistence of non-market exchange on such a scale indicates that gifting may be, if not always 'efficient' in the formal sense, at the very least a viable alternative to the market system. This preference, it is argued here, arises out of the intrinsic benefits of social and personal interaction, from the satisfactions of regard. Prices facilitate exchange when information is scarce and coordination difficult, when goods are standardized and cheap. The market works best when the efficiency of production runs ahead of the efficiency of cognition and communication. It economizes on costly information. That was Hayek's key insight.5 Conversely, reciprocal exchange has been preferred when trade involves a personal interaction, and when goods or services are unique, expensive, or have many dimensions of quality. This study examines the dynamics

Disclosing New Worlds: Entrepreneurship, Democratic Action, and the Cultivation of Solidarity

Abstract: Both the commonsensical and leading theoretical accounts of entrepreneurship, democracy, and solidarity fail to describe adequately entrepreneurial, democratic, and solidarity‐building practices. T...

Who Starts New Firms? – Preliminary Explorations of Firms-in-Gestation

Abstract: Little is known about the factors which lead individuals to start a new firm. This hiatus is due to an absence of data about the gestation processes that precedes a firm birth. Most analyses have used reported self-employment as an indicator of entrepreneurial behavior and resorted to linear additive models to account for "entrepreneurship." The resulting models have not been very successful for predictions and the conception is at odds with the most salient characteristics of entrepreneur's start-up stories. These personal accounts emphasize the unique combination of events that led to a new businesses start-up. A pilot study that identified those developing new firms provides information on firms-in-gestation. Preliminary analysis using Automatic Interaction Detection (AID) explores the unique combinations of events that underlay a decision to start a new firm. Seven-in-ten startups in the U.S. may be initiated by those 25–34 years old with full-time jobs, part-time jobs, or managing another business. There is some limited support for an impact of unemployment or a "liquidity constraint" on initiating start-ups.

Product Innovation and Small Business Growth: A Comparison of the Strategies of German, U.K. and Irish Companies

Abstract: Innovation in small firms is important both because of its direct contribution to the competitiveness of those companies but also because of the potential for the small firm sector to act as the initiator, catalyst and medium for wider technical change. In this paper data from the Product Development Survey, a new international survey of firms' product innovation activity and strategy, is used to examine the relationship between product innovation and growth in German, Irish and U.K. small firms. In each country the output of innovative small firms was found to grow significantly faster than that of non-innovators. In Germany, output growth was achieved by a product innovation strategy which sharply increased productivity but reduced employment. U.K. and Irish small firms adopted a more balanced approach with increases in both employment and productivity associated with innovative behaviour. Comparison of the organisation of product innovation indicated that German small firms adopted a less market-oriented, less risky, and more formally organised approach than their U.K. and Irish counterparts. The revealed characteristics of U.K. and Irish small firms suggested that they may be the most effective initiators and catalysts for wider technological change. The larger proportion of German small firms which were innovating, however, suggested that the German small firm sector may be the more effective technology transfer medium.

Small business use of the Internet: Findings from Australian case studies

Abstract: Internet use among small businesses has recently become a popular topic for researchers in the fields of marketing, information systems and entrepreneurship. In view of the media hype this topic has received over recent months, it is important for small businesses to learn from the experiences of early adopters of the Internet. Presents the results of a case study research involving 23 Australian small businesses which were early adopters of the Internet ‐ and which are still users. Finds that they are predominantly using the Internet as a communications medium and, to a lesser extent, as a document transfer and advertising channel. Management enthusiasm and perceived benefits seem to be the driving force for ongoing Internet use, although little or no integration was discovered between internal applications and Internet inter‐organizational functions. Findings also point to the importance of entrepreneurship for successful Internet use.

Contextualizing Entrepreneurial Networking

Abstract: (1997). Contextualizing Entrepreneurial Networking. International Studies of Management & Organization: Vol. 27, Entrepreneurship Research in Europe, pp. 109-136.

Invisible entrepreneurs:the neglect of women business owners by mass media and scholarly journals in the USA

Abstract: (1997). Invisible entrepreneurs:the neglect of women business owners by mass media and scholarly journals in the USA. Entrepreneurship & Regional Development: Vol. 9, No. 3, pp. 221-238.