essay on entrepreneurial environment

Essay on Entrepreneurship

Introduction to Entrepreneurship

Entrepreneurship is the cornerstone of innovation, economic growth, and societal progress. Entrepreneurship embodies risk-taking, innovation, and determination as entrepreneurs actively identify, create, and pursue opportunities to build and scale ventures. From the inception of small startups to the expansion of multinational corporations, entrepreneurial endeavors permeate every facet of our global economy.

This essay delves into the complex world of entrepreneurship, examining its importance, traits of prosperous businesspeople, function in economic growth, kinds of entrepreneurship, how to start one, obstacles to overcome, the ecosystem surrounding entrepreneurship, and motivational success stories of well-known businesspeople. Through this exploration, we aim to shed light on the dynamic nature of entrepreneurship and its profound impact on shaping our world.

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Historical Context of Entrepreneurship

Entrepreneurship, as a concept, has roots that stretch back centuries. It evolved in response to changing economic, social, and technological landscapes. While the term “Entrepreneurship” may be relatively modern, the spirit of entrepreneurship has been evident throughout human history.

1. Early Civilization and Trade

• Ancient Mesopotamia and Egypt: Merchants in ancient civilizations like Mesopotamia and Egypt actively engaged in trade, barter, and commerce, marking the earliest forms of entrepreneurship.
• Medieval Guilds: During the Middle Ages, guilds emerged as entrepreneurship centers, bringing together artisans and craftsmen to regulate trade, ensure quality standards, and foster innovation.

2. Age of Exploration and Colonization

• Age of Exploration: During the Age of Exploration, which lasted between the 15th and 16th centuries, international trade networks were formed, and as explorers looked for new trade routes, this encouraged commercial ventures.
• Colonialism: European colonial expansion in the 17th and 18th centuries created opportunities for entrepreneurial endeavors in trade, agriculture , and resource extraction, albeit often at the expense of indigenous populations.

3. Industrial Revolution

• Transition to Industrialization: The emergence of factories, mechanization, and mass production during the Industrial Revolution of the 18th and 19th centuries drove economic expansion and urbanization, so ushering in a revolutionary era for entrepreneurship.
• Innovations and Entrepreneurs: Visionary entrepreneurs like James Watt, Thomas Edison , and Henry Ford revolutionized industries through technological innovations, shaping the modern world.

4. 20th Century and Beyond

• Post-World War II Reconstruction: The aftermath of World War II saw a resurgence of entrepreneurship driven by reconstruction efforts, technological advancements, and the rise of consumer culture.
• Digital Revolution: The digital revolution, which began in the late 20th century and was marked by the widespread use of computers, the Internet, and information technology, fostered a new era of entrepreneurship focused on innovation, startups, and digital commerce.

5. Contemporary Entrepreneurship

• Globalization: In the 21st century, globalization has expanded opportunities for entrepreneurship, enabling businesses to operate across borders, access global markets, and collaborate on a scale never before seen.
• Social Entrepreneurship: Alongside traditional business ventures, the rise of social entrepreneurship reflects a growing emphasis on addressing societal challenges, promoting sustainability, and creating positive social impact.

Characteristics of Successful Entrepreneurs

• Visionary Leadership : Successful entrepreneurs have a clear vision of their goals and are adept at inspiring others to share. They can successfully communicate their vision and mobilize stakeholders behind it.
• Resilience and Persistence : Entrepreneurship is fraught with setbacks and obstacles, but successful entrepreneurs exhibit resilience in adversity. Despite obstacles, they continue to work toward their objectives and see setbacks as teaching opportunities.
• Risk-taking Propensity : Risk is a natural part of entrepreneurship, and prosperous businesspeople aren’t afraid to take calculated chances to seize opportunities. They possess the courage to step outside their comfort zones and embrace uncertainty.
• Creativity and Innovation : Entrepreneurs are creative people who are always looking for innovative approaches to addressing issues and satisfying consumer demands. Their imaginative mindset enables them to come up with original ideas and think outside the box.
• Adaptability and Flexibility : The business landscape is dynamic, and successful entrepreneurs demonstrate adaptability in response to changing circumstances. They are flexible and willing to pivot and adjust strategies as needed.
• Passion and Commitment : Passion fuels the entrepreneurial journey, driving entrepreneurs to pour their time, energy, and resources into their ventures. Successful entrepreneurs are deeply committed to their work and willing to make sacrifices to succeed.
• Strong Work Ethic : Entrepreneurship requires hard work, dedication, and perseverance. Successful entrepreneurs are willing to work long hours and exert the effort to build and grow their businesses.
• Effective Communication Skills : Effective communication depends on establishing and maintaining connections, obtaining funding, and promoting goods and services. Successful entrepreneurs possess strong communication skills, both verbal and written, enabling them to convey their ideas persuasively.
• Empathy and Emotional Intelligence : Understanding the needs and perspectives of others is crucial in entrepreneurship. Empathy and emotional intelligence are hallmarks of successful entrepreneurs. They build strong relationships with employees, customers, and partners.
• Strategic Thinking : Entrepreneurs must think strategically to navigate complex business environments and make informed decisions. Successful entrepreneurs possess strategic thinking skills, enabling them to set clear objectives, prioritize tasks, and allocate resources effectively.

The Entrepreneurial Process

The entrepreneurial process encompasses the journey from ideation to establishing and growing a successful venture. Entrepreneurs must go through several phases and processes to realize their ideas and add value to the market.

• Opportunity Identification : The entrepreneurial process often begins with identifying opportunities in the market or recognizing unmet needs and problems. Entrepreneurs may draw inspiration from personal experiences, industry trends, market gaps, or technological advancements.
• Market Research and Validation : Once entrepreneurs identify an opportunity, they conduct thorough market research to assess the viability of their ideas. It involves analyzing target markets, understanding customer preferences, evaluating competitors, and validating demand for the proposed product or service.
• Business Planning : With a clear understanding of the market opportunity, entrepreneurs develop a comprehensive business plan outlining their vision, goals, strategies, and operational plans. The business plan serves as a roadmap for the venture, guiding decision-making and resource allocation.
• Resource Acquisition : Entrepreneurs must secure the resources necessary to realize their ideas. This may involve raising capital through investments, loans, or crowdfunding, recruiting talent, acquiring technology or equipment, and establishing partnerships.
• Venture Launch : The launch phase marks the official start of the venture, where entrepreneurs execute their business plans and introduce their products or services to the market, involving product development, marketing and branding efforts, setting up operations, and launching sales channels.
• Growth and Scaling : As the venture gains traction and generates revenue, entrepreneurs focus on scaling operations and expanding their market reach, often involving refining business processes, optimizing efficiency, entering new markets, and diversifying product offerings.
• Risk Management : Entrepreneurship inherently involves risk, and successful entrepreneurs must proactively identify, assess, and manage risks throughout the venture lifecycle. They must also implement risk mitigation strategies, diversify revenue streams, and maintain financial resilience.
• Innovation and Adaptation : In a rapidly evolving corporate environment, entrepreneurs need to innovate and adapt to stay competitive continuously. It includes launching new goods and services, utilizing cutting-edge technologies, and reacting to shifting consumer demands and industry trends.
• Network Building and Relationship Management : Entrepreneurs must build a strong network of relationships to access resources, expertise, and opportunities. It includes cultivating relationships with investors, customers, suppliers, mentors, and other stakeholders.
• Continuous Learning and Improvement : Entrepreneurship is a dynamic and iterative process, and successful entrepreneurs are committed to lifelong learning and improvement. They seek feedback, learn from failures and successes, and adapt their strategies based on new insights and experiences.

Types of Entrepreneurship

Entrepreneurship manifests in various forms, each characterized by distinct goals, approaches, and impacts on society and the economy. Understanding the different types of entrepreneurship provides insights into how individuals and organizations engage in entrepreneurial activities to create value and drive innovation.

1. Small Business Entrepreneurship : Small business entrepreneurship involves creating and managing small-scale enterprises typically operated by a single individual or a small team. These ventures often serve local markets and focus on providing goods or services tailored to specific customer needs.

Examples: Family-owned businesses, local restaurants, independent retailers, and service providers such as plumbers or electricians actively operate within their respective domains.

2. Social Entrepreneurship : Social entrepreneurship blends entrepreneurial principles that address social, environmental, or humanitarian challenges. These ventures aim to create a positive social impact while generating sustainable financial returns.

Examples: Nonprofit organizations, social enterprises, and initiatives focused on poverty alleviation, environmental conservation, healthcare access, education, and community development.

3. Corporate Entrepreneurship : Corporate entrepreneurship refers to activities undertaken within established organizations, including corporations, companies, and institutions. These activities foster innovation, explore new business opportunities, and drive organizational growth and competitiveness.

Examples: Corporate innovation labs, intrapreneurship programs, new product development initiatives, and strategic partnerships with startups or external innovators drive innovation within established organizations.

4. Technology Entrepreneurship : Technology entrepreneurship revolves around the development, commercialization, and utilization of technological innovations to create new products, services, or solutions. These ventures often operate at the intersection of science, engineering, and business.

Examples: Software-development startups, biotechnology companies, hardware producers, and businesses concentrating on cutting-edge technologies like blockchain, artificial intelligence, and renewable energy are some examples of tech startups.

5. Serial Entrepreneurship : Serial entrepreneurship involves individuals who repeatedly start, grow, and exit multiple ventures throughout their careers. These entrepreneurs leverage their experience, networks, and insights from previous ventures to launch new initiatives.

Examples: Entrepreneurs who have founded and successfully scaled multiple startups across different industries or sectors, such as Elon Musk (PayPal, SpaceX, Tesla) and Richard Branson (Virgin Group).

6. Innovative Entrepreneurship : Innovative entrepreneurship emphasizes the creation of groundbreaking innovations and disruptive technologies that transform industries and markets. These ventures challenge existing norms and paradigms and introduce novel solutions to complex problems.

Examples: Startups like Airbnb, Uber, and SpaceX are pioneering revolutionary technologies or business models, such as peer-to-peer lodging, ride-sharing, and space exploration and transportation, respectively.

7. Cultural Entrepreneurship : Cultural entrepreneurship involves the creation, preservation, and promotion of cultural products, experiences, and heritage. These ventures contribute to the enrichment of cultural diversity, identity, and expression.

Examples: Art galleries, museums, cultural festivals, heritage tourism initiatives, and creative industries like film, music, literature, and fashion contribute actively to the enrichment of cultural diversity, identity, and expression.

Challenges Faced by Entrepreneurs

1. Financial Constraints

• Limited Capital: Accessing sufficient funding to start and sustain operations is a common challenge for entrepreneurs, especially in the early stages of venture development.
• Cash Flow Management: A company’s capacity to remain viable and sustainable depends on its ability to manage cash flow, especially in times of variable revenue and expenses.

2. Market Competition

• Competitive Landscape: Entrepreneurs must contend with intense competition from existing incumbents, emerging startups, and disruptive innovators who are vying for market share and customer attention.
• Market Saturation: Saturated markets pose challenges for entrepreneurs seeking to differentiate their offerings and carve out a niche amidst a crowded marketplace.

3. Regulatory and Legal Hurdles

• Compliance Requirements: Entrepreneurs must navigate complex regulatory frameworks and legal requirements governing business operations, taxation, licensing, permits, and intellectual property rights.
• Litigation Risks: Legal disputes, lawsuits, and regulatory penalties can pose significant risks to entrepreneurs, requiring proactive risk management and legal counsel.

4. Failure and Resilience

• Fear of Failure: Fear of failure can immobilize business owners and inhibit their willingness to take risks, which keeps them from taking advantage of chances and exploring novel concepts.
• Resilience and Grit: Building resilience and maintaining a positive mindset are essential for overcoming setbacks, learning from failures, and persevering in adversity.

5. Market Uncertainty and Volatility

• Economic Fluctuations: Entrepreneurs must navigate economic uncertainties, market downturns, and macroeconomic factors that impact consumer spending, business investment, and market demand.
• Technological Disruption: Rapid technological advancements and disruptive innovations can render existing business models obsolete, requiring entrepreneurs to adapt and innovate to stay competitive.

6. Talent Acquisition and Retention

• Recruitment Challenges: Hiring and retaining skilled talent is a persistent challenge for entrepreneurs, particularly in competitive industries and niche sectors with high demand for specialized expertise.
• Team Building and Management: Building cohesive teams, fostering a positive work culture, and managing interpersonal dynamics are essential for organizational success and employee engagement.

7. Scaling and Growth

• Operational Scalability: Scaling operations to accommodate growth while maintaining efficiency and quality requires strategic planning, infrastructure investment, and process optimization.
• Resource Allocation: Entrepreneurs at every stage of venture development face the strategic challenge of effectively allocating resources to support growth initiatives, expand market reach, and capitalize on new opportunities.

8. Market Disruption and Adaptation

• Disruptive Forces: Entrepreneurs must foresee and react to disruptive factors that have the potential to transform sectors and jeopardize established business models. These forces include technology innovation, shifting customer preferences, and shifting market dynamics.
• Adaptability and Agility: It takes agility, flexibility, and capacity to change course in reaction to shifting market conditions so business owners can stay ahead of the curve and profit from new trends.

9. Mental Health and Well-being

• Stress and Burnout: Entrepreneurship can damage mental health and well-being due to the pressures of running a business, managing uncertainties, and balancing work-life demands.
• Self-care and Support Systems: Long-term business success depends on prioritizing self-care, getting help from peers, mentors, and mental health specialists, and maintaining a healthy work-life balance.

The Role of Entrepreneurship in Economic Development

• Job Creation : Entrepreneurship is a primary engine of job creation, as new ventures often require a workforce to support their operations. Entrepreneurs generate employment opportunities, reduce unemployment rates, and promote economic inclusion by starting and expanding existing businesses.
• Innovation and Technological Advancement : Entrepreneurs are at the forefront of innovation, pioneering new technologies, products, and services that disrupt industries and drive progress. Entrepreneurs introduce novel solutions to market needs through research, experimentation, and risk-taking, fueling technological advancement and enhancing productivity.
• Wealth Creation and Economic Growth : Successful entrepreneurship leads to wealth creation, as ventures generate profits, attract investment, and increase the overall wealth of individuals and communities. This wealth is reinvested in the economy through spending, savings, and investment, contributing to economic growth and prosperity.
• Regional Development and Economic Diversification : Entrepreneurship promotes regional development by spurring economic activity in previously underserved or marginalized areas. By establishing businesses and investing in local infrastructure, entrepreneurs contribute to diversifying regional economies, reducing dependence on specific industries, and enhancing resilience to economic shocks.
• Income Generation and Poverty Alleviation : Entrepreneurship allows people from various backgrounds to increase their wealth, create income, and enhance their quality of life. By creating self-employment opportunities and empowering marginalized groups, entrepreneurship serves as a pathway out of poverty and promotes social mobility.
• Export Promotion and International Trade : Entrepreneurial ventures often engage in international trade, exporting goods and services to foreign markets and contributing to trade balances. By tapping into global markets, entrepreneurs access new growth opportunities, expand their customer base, and drive economic integration and globalization.
• Ecosystem Development and Knowledge Spillovers : Entrepreneurship fosters the development of vibrant ecosystems comprised of startups, investors, incubators, accelerators, and support organizations. These ecosystems facilitate knowledge sharing, collaboration, and networking, leading to the diffusion of ideas and best practices across industries and regions.
• Cultural and Social Impact : Entrepreneurship transcends economic boundaries, shaping cultural norms, values, and attitudes towards innovation and risk-taking. Successful entrepreneurs are role models, inspiring others to pursue their aspirations and contribute to societal progress.

Entrepreneurship and Innovation

• Catalysts of Change : Entrepreneurship acts as a catalyst for innovation, sparking the creation of groundbreaking ideas, technologies, and business models. Innovators, in turn, fuel entrepreneurial endeavors by presenting new solutions and opportunities ripe for exploration.
• Market Disruption : Entrepreneurs often disrupt markets through innovative products or services, challenging established norms and creating new market segments. This disruption prompts further innovation as incumbents respond with their advancements, leading to a cycle of continuous improvement and evolution.
• Risk-Taking and Experimentation : Entrepreneurship thrives on risk-taking and experimentation, essential ingredients for innovation. Recognizing that failure is often a prerequisite for eventual success, entrepreneurs strategically take calculated risks to transform their creative visions into reality.
• Ecosystem Collaboration : Vibrant entrepreneurial ecosystems foster collaboration between entrepreneurs, researchers, investors, and policymakers. By combining varied knowledge and resources, these collaborations promote innovation by quickening the development and commercialization of innovative ideas.
• Customer-Centric Solutions : Successful entrepreneurs understand the importance of innovation in addressing customer needs and pain points. They leverage innovation to create customer-centric solutions, driving adoption and loyalty while continuously refining their offerings based on feedback and market insights.
• Technological Advancements : Entrepreneurial ventures often drive the adoption and commercialization of emerging technologies. Entrepreneurs propel technological advancements forward by recognizing new technologies’ potential and integrating them into innovative products or processes.
• Social and Environmental Impact : Entrepreneurship and innovation increasingly address pressing social and environmental challenges. Social entrepreneurs leverage innovative business models to tackle issues such as poverty, healthcare, education, and environmental sustainability, creating positive change on a global scale.
• Economic Resilience and Competitiveness : Nations with thriving entrepreneurial ecosystems and a culture of innovation are better positioned to adapt to economic disruptions and maintain competitiveness in the global marketplace. Entrepreneurship and innovation foster economic resilience by driving productivity, creating jobs, and fostering economic diversification.

Ethical Considerations in Entrepreneurship

• Transparency and Honesty : Entrepreneurs should prioritize transparency and honesty in their dealings with stakeholders, including customers, employees, investors, and partners. Providing accurate information, being truthful about risks, and avoiding deceptive practices build trust and credibility.
• Fair Treatment of Stakeholders : Entrepreneurs should treat all stakeholders fairly and equitably, considering the interests and well-being of employees, suppliers, customers, and the community. Fair labor practices, non-discriminatory policies, and responsible supply chain management demonstrate a commitment to ethical conduct.
• Responsible Innovation : Entrepreneurs should pursue innovation responsibly, actively considering the potential social, environmental, and ethical implications. Entrepreneurs should consider the broader impact of their products or services, prioritizing safety, sustainability, and ethical use.
• Respect for Intellectual Property : Entrepreneurs must respect intellectual property rights and avoid infringing on others’ patents, trademarks, copyrights, or trade secrets. Protecting intellectual property created by the venture also safeguards against unfair competition and promotes innovation.
• Environmental Sustainability : Entrepreneurs should integrate environmental sustainability into their business practices, minimizing negative environmental impacts and promoting resource efficiency. Sustainable sourcing, eco-friendly manufacturing processes, and carbon footprint reduction initiatives demonstrate a commitment to environmental stewardship.
• Social Responsibility : Entrepreneurs are responsible for contributing positively to society, addressing social issues, and supporting community development. Socially responsible initiatives such as charitable giving, volunteerism, and ethical sourcing enhance the venture’s reputation and foster goodwill among stakeholders.
• Ethical Marketing and Advertising : Entrepreneurs should adhere to ethical standards in marketing and advertising, avoiding deceptive or manipulative tactics that mislead consumers. Clear and truthful communication, respecting consumer privacy, and avoiding false claims uphold integrity in marketing practices.
• Data Privacy and Security : Entrepreneurs must prioritize protecting customer and employee data, respecting privacy rights, and implementing robust cybersecurity measures. Safeguarding sensitive information against unauthorized access, breaches, or misuse is essential for maintaining trust and compliance with data protection regulations.
• Corporate Governance and Accountability : Entrepreneurs should establish sound corporate governance practices that promote accountability, integrity, and ethical behavior within the organization. Transparent decision-making processes, independent oversight, and ethical leadership foster a culture of accountability and responsibility .
• Continuous Ethical Reflection and Improvement : Entrepreneurs should actively integrate ethical considerations into the fabric of their ventures, engaging in continuous reflection and improvement. Regular ethical assessments, stakeholder engagement, and responsiveness to feedback help ensure ethical conduct remains a priority as the venture evolves.

Case Studies

Success Stories of Entrepreneurs and Lessons Learned from Failures

1. Steve Jobs (Apple Inc.)

• Success Story: Steve Jobs co-founded Apple Inc., leading it to become one of the world’s most valuable companies. He revolutionized industries with products like the iPhone, iPad, and Macintosh.
• Lessons Learned from Failure: Throughout his career, Jobs experienced many failures, including being fired from Apple in 1985 due to internal strife. However, in 1997, Steve returned to Apple, helping it achieve remarkable success. However, he returned to Apple in 1997, leading it to unprecedented success. His failures taught him the importance of perseverance, innovation, and resilience in adversity.

2. Sara Blakely (Spanx)

• Success Story: Sara Blakely transformed the fashion industry and empowered women worldwide by founding Spanx, a multi-billion-dollar shapewear company.
• Lessons Learned from Failure: Blakely faced multiple rejections when pitching her idea to manufacturers and investors. However, she persisted, self-funding her venture and learning from each rejection. Her experience taught her the value of persistence, self-belief, and resilience in overcoming obstacles.

3. Elon Musk (SpaceX, Tesla)

• Success Story: Elon Musk co-founded SpaceX, which revolutionized space exploration, and Tesla, which pioneered electric vehicles and sustainable energy solutions.
• Lessons Learned from Failure: Musk experienced numerous setbacks and near-bankruptcy with SpaceX and Tesla. Despite facing criticism and skepticism, he remained steadfast in his vision, learning from failures and leveraging them to fuel future successes. His journey underscores the importance of resilience, risk-taking, and relentless pursuit of goals.

4. JK Rowling (Harry Potter)

• Success Story: The Harry Potter series, authored by J.K. Rowling, became a global phenomenon, inspiring generations of readers and selling over 500 million copies worldwide.
• Lessons Learned from Failure: Rowling faced rejection from multiple publishers before finally securing a book deal for Harry Potter. Her experiences taught her the value of perseverance, belief in oneself, and the transformative power of resilience. Rowling’s journey exemplifies the importance of resilience in facing rejection and adversity.

5. Jeff Bezos (Amazon)

• Success Story: Jeff Bezos founded Amazon, which he turned from an online bookshop into the biggest e-commerce platform in the world and one of the most valuable firms.
• Lessons Learned from Failure: Bezos experienced failures and setbacks throughout Amazon’s journey, including failed product launches and financial challenges. However, he embraced failure as a learning opportunity, iterating on ideas and remaining focused on long-term goals. Bezos’ experience underscores the importance of adaptability, customer obsession, and a willingness to experiment.

Entrepreneurship is a beacon of innovation, economic dynamism, and societal progress. From the visionary leadership of pioneers like Steve Jobs to the relentless determination of trailblazers like Sara Blakely, the entrepreneurial journey is marked by triumphs forged from failures. Aspiring entrepreneurs must embrace resilience, creativity, and ethical conduct to navigate the challenges and opportunities that lie ahead in shaping a brighter future through entrepreneurship.

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Home » Home » Essay » Essay on entrepreneurship (100, 200, 300, & 500 Words)

Essay on entrepreneurship (100, 200, 300, & 500 Words)

Essay on entrepreneurship (100 words), essay on entrepreneurship (200 words), essay on entrepreneurship (300 words), the importance of entrepreneurship.

• Economic Growth : Entrepreneurship plays a crucial role in driving economic growth by creating new businesses, products, and services. It fosters competition and encourages innovation, leading to increased productivity and efficiency in the economy.
• Job Creation : Entrepreneurs are job creators. They not only create jobs for themselves but also generate employment opportunities for others. Startups and small businesses are known to be significant contributors to job creation, especially in developing economies.
• Innovation and Technology : Entrepreneurs are at the forefront of innovation and technological advancements. They constantly challenge the status quo and introduce new ideas, products, and processes, driving progress in various industries.
• Societal Development : Entrepreneurship has a positive impact on society by addressing social problems and meeting unmet needs. Social entrepreneurs focus on creating ventures that tackle issues like poverty, education, healthcare, and environmental sustainability.

Qualities of Successful Entrepreneurs

• Passion and Motivation : Successful entrepreneurs are driven by a strong passion for their ideas, products, or services. They are motivated to overcome challenges and persevere through setbacks, fueling their determination to succeed.
• Creativity and Innovation : Entrepreneurs possess a high degree of creativity and are constantly seeking new and innovative solutions. They think outside the box, challenge conventions, and find unique ways to add value to the market.
• Risk-taking and Resilience : Entrepreneurs are willing to take calculated risks and step out of their comfort zones. They understand that failure is a part of the journey and are resilient enough to bounce back from setbacks and learn from their mistakes.
• Adaptability and Flexibility : The business landscape is ever-evolving, and successful entrepreneurs are adaptable and flexible. They embrace change, pivot when necessary, and stay ahead of market trends and customer demands.
• Leadership and Vision : Entrepreneurs are visionaries who can inspire and lead their teams. They have a clear vision of what they want to achieve and possess the ability to communicate and align their goals with others, turning their vision into reality.

Key Steps in the Entrepreneurial Journey

• Identifying Opportunities : Successful entrepreneurs have a keen eye for identifying market gaps, unsolved problems, and emerging trends. They conduct thorough market research to understand customer needs and assess the viability of their ideas.
• Business Planning : Once an opportunity is identified, entrepreneurs develop a comprehensive business plan. This includes defining their target market, analyzing competitors, outlining their value proposition, and formulating a strategic roadmap.
• Securing Funding : Entrepreneurs often require financial resources to launch and grow their ventures. They explore different funding options such as bootstrapping, seeking loans, attracting investors, or crowdfunding to secure the necessary capital.
• Building a Team : Entrepreneurship is rarely a solo journey. Successful entrepreneurs build a team of skilled individuals who complement their strengths and contribute towards achieving the company’s goals. They understand the importance of delegation and collaboration.
• Execution and Iteration : Entrepreneurs turn their ideas into action by executing their plans and continuously iterating their products or services based on customer feedback. They are agile and adaptable, making changes and improvements as they learn from the market.
• Scaling and Growth : As the venture gains traction, entrepreneurs focus on scaling their operations. They explore opportunities for expansion, enter new markets, and invest in resources to support growth while maintaining a strong customer-centric approach.

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So You Want to Be an Entrepreneur?

• Emily Heyward

One founder’s advice on what you should know before you quit your day job.

Starting a business is not easy, and scaling it is even harder. You may think you’re sitting on a completely original idea, but chances are the same cultural forces that led you to your business plan are also influencing someone else. That doesn’t mean you should give up, or that you should rush to market before you’re ready. It’s not about who’s first, it’s about who does it best, and best these days is the business that delivers the most value to the consumer. Consumers have more power and choice than ever before, and they’re going to choose and stick with the companies who are clearly on their side. How will you make their lives easier, more pleasant, more meaningful? How will you go out of your way for them at every turn? When considering your competitive advantage, start with the needs of the people you’re ultimately there to serve. If you have a genuine connection to your idea, and you’re solving a real problem in a way that adds more value to people’s lives, you’re well on your way.

When I graduated from college in 2001, I didn’t have a single friend whose plan was to start his or her own business. Med school, law school, finance, consulting: these were the coveted jobs, the clear paths laid out before us. I took a job in advertising, which was seen as much more rebellious than the reality. I worked in advertising for a few years, and learned an incredible amount about how brands get built and communicated. But I grew restless and bored, tasked with coming up with new campaigns for old and broken products that lacked relevance, unable to influence the products themselves. During that time, I was lucky to have an amazing boss who explained a simple principle that fundamentally altered my path. What she told me was that stress is not about how much you have on your plate; it’s about how much control you have over the outcomes. Suddenly I realized why every Sunday night I was overcome with a feeling of dread. It wasn’t because I had too much going on at work. It was because I had too little power to effect change.

• EH Emily Heyward is the author of Obsessed: Building a Brand People Love from Day One (Portfolio; June 9, 2020). She is the co-founder and chief brand officer at Red Antler, a full-service brand company based in Brooklyn. Emily was named among the Most Important Entrepreneurs of the Decade by Inc.  magazine, and has also been recognized as a Top Female Founder by Inc. and one of Entrepreneur’s Most Powerful Women of 2019.

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Essay Samples on Entrepreneurship

What is entrepreneurship in your own words.

What is entrepreneurship in your own words? To me, entrepreneurship is the art of turning imagination into reality, the courage to chart unexplored territories, and the commitment to leave a lasting mark on the world. It's a journey of boundless creativity, relentless innovation, and unwavering...

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What is Entrepreneurship: Unveiling the Essence

What is entrepreneurship? This seemingly straightforward question encapsulates a world of innovation, risk-taking, and enterprise. Entrepreneurship is not merely a business concept; it's a mindset, a journey, and a force that drives economic growth and societal progress. In this essay, we delve into the multifaceted...

Social Entrepreneurship: Harnessing Innovation

Social entrepreneurship is a transformative approach that merges business principles with social consciousness to address pressing societal challenges. This unique form of entrepreneurship goes beyond profit-seeking and focuses on generating innovative solutions that create positive change in communities. In this essay, we explore the concept...

Evolution of Entrepreneurship: Economic Progress

Evolution of entrepreneurship is a fascinating journey that mirrors the changes in society, economy, and technology throughout history. From humble beginnings as small-scale trade to the modern era of startups, innovation hubs, and global business networks, entrepreneurship has continuously adapted to the dynamic landscape. This...

Importance of Entrepreneurship: Economic Growth and Societal Transformation

Importance of entrepreneurship transcends its role as a mere business activity; it stands as a driving force behind innovation, economic growth, and societal transformation. Entrepreneurship fosters the creation of new products, services, and industries, while also generating employment opportunities and catalyzing economic development. This essay...

• Economic Growth

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Entrepreneurship as a Career: Navigating the Path of Innovation

Entrepreneurship as a career is a compelling journey that offers individuals the opportunity to create their own path, shape their destiny, and contribute to the economy through innovation. While the road to entrepreneurship is laden with challenges and uncertainties, it is also marked by the...

Corporate Entrepreneurship: Fostering Innovation

Corporate entrepreneurship represents a strategic approach that empowers established organizations to embrace innovation, take calculated risks, and explore new opportunities. In an ever-evolving business landscape, the concept of corporate entrepreneurship has gained prominence as companies seek to maintain their competitive edge and adapt to changing...

Challenges Faced by Entrepreneurs: Innovation and Success

Challenges faced by entrepreneurs are a testament to the intricate journey of turning visionary ideas into tangible realities. While entrepreneurship is often associated with innovation and opportunity, it's also characterized by a multitude of hurdles and obstacles that test an entrepreneur's resilience and determination. In...

300 Words About Entrepreneurship: Navigating Innovation and Opportunity

About entrepreneurship is a dynamic journey that involves the pursuit of innovation, creation, and the realization of opportunities. It is the process of identifying gaps in the market, envisioning solutions, and taking calculated risks to bring new products, services, or ventures to life. Entrepreneurs are...

Best topics on Entrepreneurship

1. What is Entrepreneurship in Your Own Words

2. What is Entrepreneurship: Unveiling the Essence

3. Social Entrepreneurship: Harnessing Innovation

4. Evolution of Entrepreneurship: Economic Progress

5. Importance of Entrepreneurship: Economic Growth and Societal Transformation

6. Entrepreneurship as a Career: Navigating the Path of Innovation

7. Corporate Entrepreneurship: Fostering Innovation

8. Challenges Faced by Entrepreneurs: Innovation and Success

9. 300 Words About Entrepreneurship: Navigating Innovation and Opportunity

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1.10: Chapter 10 – The Entrepreneurial Environment

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• Page ID 21262

• Lee A. Swanson
• University of Saskatchewan

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Entrepreneurs adopt the ways of the adept and adapt to a changing environment. Actually, entrepreneurs are more entrepreneurs, because they are forever entering into new territory. – Jarod Kintz

Entrepreneurship rests on a theory of economy and society. The theory sees change as normal and indeed as healthy. And it sees the major task in society—and especially in the economy—as doing something different rather than doing better what is already being done. That is basically what Say, two hundred years ago, meant when he coined the term entrepreneur. It was intended as a manifesto and as a declaration of dissent: the entrepreneur upsets and disorganizes. As Joseph Schumpeter formulated it, his task is “creative destruction. – Peter Drucker

Learning Objectives

After completing this chapter you will be able to

• Explain what an entrepreneurial ecosystem is as a form of complex adaptive system while explaining its relevance to the study of entrepreneurship
• Describe various entrepreneurship concepts, such as intrapreneurship and social entrepreneurship, while explaining their relevance to the study of entrepreneurship

In this chapter several entrepreneurship topics are introduced, including: entrepreneurial ecosystems, intrapreneurship, social entrepreneurship, Indigenous entrepreneurship, community-based entrepreneurship, and family business. This overview of just a few of the branches of entrepreneurship thought and research is intended to provide the reader with an idea of the breadth of this field of study. There are many other categories of entrepreneurship, from women entrepreneurs to technology entrepreneurs, which provide interesting and important study topics.

The Entrepreneurial Environment

Entrepreneurial ecosystems.

An entrepreneurial ecosystem might be viewed as a complex adaptive system that can be compared to a natural ecosystem, like a forest. This complexity theory perspective can help us better understand the nature of an entrepreneurial ecosystem.

A forest is a complex adaptive system made up of many, many different elements, including the plants and animals that live in it or otherwise influence how it works. Those many different elements behave autonomously from each other in most ways; but as they do what is necessary to ensure their own survival—and as they attempt to thrive—the end result of their collective behaviours is a forest that exists in a somewhat stable state of being.

The forest is in a somewhat stable state because it is ever evolving and changing to some degree as variables change. Changing variables include new insect species that move in and out, new plants that try to establish roots there, and similar changes that regularly happen to cause some change, but that don’t necessarily change the fundamental nature of the forest.

Sometimes, however, a parameter change occurs when something more substantial happens, like a forest fire. When a fire burns down the plants and chases many of the animals away, the forest fundamentally changes to a very different state (the change from the first state to a new and very different one is called bifurcation ).

An entrepreneurial ecosystem is similar in that the nature of entrepreneurship—thriving or not—across a geographic region remains in a somewhat stable state of being even though it is made up of a complex network of independent elements that continually adapt to the organizational environments in which they operate; it is a complex adaptive system. The variable changes, including new leaders that replace the old ones, new rules and regulations, and entrepreneurial support systems that come and go do not necessarily change the fundamental nature of the entrepreneurial ecosystem (although the residents of the region might actually want substantial change leading to a more vibrant economic situation). A parameter change, however, might cause a bifurcation that leaves the system in a very different state—maybe one where entrepreneurship thrives and prosperity prevails much more than it did before. The introduction of a major new project that, in turn, spawns new spin-off businesses and gives the region a needed economic boost, and maybe even leaves it with a new entrepreneurial culture, is an example of a parameter change.

In a more formal sense, an entrepreneurial ecosystem can be described as

a set of interconnected entrepreneurial actors (both potential and existing), entrepreneurial organisations (e.g. firms, venture capitalists, business angels, banks), institutions (universities, public sector agencies, financial bodies) and entrepreneurial processes (e.g. the business birth rate, numbers of high growth firms, levels of ‘blockbuster entrepreneurship’, number of serial entrepreneurs, degree of sell-out mentality within firms and levels of entrepreneurial ambition) which formally and informally coalesce to connect, mediate and govern the performance within the local entrepreneurial environment (Mason & Brown, 2014, p. 5).

Definitions of entrepreneurial ecosystems can include the suppliers, customers and others that any particular firm in that ecosystem directly interacts with as well as other individuals, firms, and organizations that the firm might not directly interact with, but that play a role in shaping the ecosystem. While framing it as an innovation ecosystem rather than an entrepreneurial ecosystem, Matthews and Brueggemann (2015) described an internal ecosystem as a company’s activities that are independent of other companies and an external ecosystem that includes all of the other actors that the company is dependent upon in some way.

While some researchers have studied how entrepreneurial ecosystems can generate geographic clusters of technology-based ventures, like in Silicon Valley (Cohen, 2006) or how these ecosystems can facilitate growth in entrepreneurship in cities and similarly defined regions (Neck, Meyer, Cohen, & Corbett, 2004), Mason and Brown (2014) suggest that even traditional industries can “provide the platform to create dynamic, high-value-added entrepreneurial ecosystems” (p. 19).

Types of Entrepreneurship

Intrapreneurship.

According to Martiarena (2013) “the recognition of intrapreneurial activities has widened the notion of entrepreneurship by incorporating entrepreneurial activities undertaken within established organisations to the usual view of entrepreneurship as new independent business creation.” (p. 27). Intrapreneurship, then, is a form of entrepreneurship that occurs within existing organizations, but intrapreneurs are generally considered to be “significantly more risk-averse than entrepreneurs, earn lower incomes, perceive less business opportunities in the short term and do not consider that they have enough skills to succeed in setting up a business” (Martiarena, 2013, p. 33).

Merriam-Webster (n.d.) defines an intrepreneur as “a corporate executive who develops new enterprises within the corporation” (Intrapreneur, n.d.); however some might consider some employees who are not corporate executives to also be intrapreneurs if they demonstrate entrepreneurial behaviour within the company they work for.

Social Entrepreneurship

Social entrepreneurship involves employing the principles of entrepreneurship to create organizations that address social issues.

Martin and Osberg (2007) defined a social entrepreneur as an individual who

targets an unfortunate but stable equilibrium that causes the neglect, marginalization, or suffering of a segment of humanity; who brings to bear on this situation his or her inspiration, direct action, creativity, courage, and fortitude; and who aims for and ultimately affects the establishment of a new stable equilibrium that secures permanent benefit for the targeted group and society at large. (p. 39)

Martin and Osberg’s (2007) definition encompasses for-profit and not-for-profit organizations created by these entrepreneurs and also some government initiatives, but it excludes entities that exist solely to provide social services and groups formed to engage in social activism.

An idealized definition of social entrepreneurship developed by Dees (2001) is informative in that it supports Martin and Osberg’s (2007) definition while complementing it with a set of criteria against which organizations can be assessed to determine whether they are socially entrepreneurial.

Social entrepreneurs play the role of change agents in the social sector, by

• adopting a mission to create and sustain social value (not just private value)
• recognizing and relentlessly pursuing new opportunities to serve that mission
• engaging in a process of continuous innovation, adaptation, and learning
• acting boldly without being limited by resources currently in hand
• exhibiting heightened accountability to the constituencies served and for the outcomes created (Dees, 2001, p. 4)

Social entrepreneurs “use their skills not only to create profitable business ventures, but also to achieve social and environmental goals for the common good” (Zimmerer & Scarborough, 2008, p. 25). They are “people who start businesses so that they can create innovative solutions to society’s most vexing problems, see themselves as change agents for society” (Scarborough, Wilson, & Zimmer, 2009, p. 745).

Social entrepreneurship

• addresses social problems or needs that are unmet by private markets or governments
• is motivated primarily by social benefit
• generally works with—not against—market forces (Brooks, 2009, p. 4)

A social entrepreneur might

• start a new product or service
• expand an existing product or service
• expand an existing activity for a new group of people
• expand an existing activity to a new geographic area
• merge with an existing business (Brooks, 2009, p. 8)

What social entrepreneurship is not: it is not anti-business:

• Many social entrepreneurs came from the commercial business world.
• Sometimes commercial and nonprofit missions align for mutual benefit.
• The difference between it and commercial entrepreneurship is not greed.
• There is no evidence commercial entrepreneurs are especially greedy—they are more likely to be goal-obsessed than money-obsessed.
• Social entrepreneurs are also commercial entrepreneurs.
• Social entrepreneurs do not only run non-profits.
• Social entrepreneurship can occur in any sector and with any legal status. (Brooks, 2009, pp. 16-17)

The social entrepreneurship zone:

From Swanson and Zhang (2010, 2011, 2012)

Figure 7 – The Social Entrepreneurship Zone (Illustration by Lee A. Swanson)

Aboriginal (Indigenous) Entrepreneurship

Swanson and Zhang (2014) described a range of perspectives on what Indigenous entrepreneurship means and what implications it holds for social and economic development for Indigenous people.

Indigenous entrepreneurship might simply be entrepreneurship carried out by Indigenous people (Peredo & Anderson, 2006), but it can also refer to the common situation where Indigenous entrepreneurs—sometimes through community-based enterprises—start businesses that are largely intended to preserve and promote their culture and values (Anderson, Dana, & Dana, 2006; Christie & Honig, 2006; Swanson & Zhang, 2011). Dana and Anderson (2007) expanded upon that notion when they described Indigenous entrepreneurship as follows:

There is rich heterogeneity among Indigenous peoples, and some of their cultural values are often incompatible with the basic assumptions of mainstream theories. Indigenous entrepreneurship often has non-economic explanatory variables. Some Indigenous communities’ economies display elements of egalitarianism, sharing and communal activity. Indigenous entrepreneurship is usually environmentally sustainable; this often allows Indigenous people to rely on immediate available resources and, consequently, work in Indigenous communities is often irregular. Social organization among Indigenous peoples is often based on kinship ties, not necessarily created in response to market needs. (p. 601)

Lindsay (2005) described Indigenous entrepreneurship as something even more complex:

Significant cultural pressures are placed on Indigenous entrepreneurs. These pressures will manifest themselves in new venture creation and development behavior that involve the community at a range of levels that contribute toward self-determination while incorporating heritage, and where cultural values are an inextricable part of the very fabric of these ventures. Thus, the Indigenous “team” involved in new venture creation and development may involve not only the entrepreneur and the business’ entrepreneurial team but also the entrepreneur’s family, extended family, and/or the community. Thus, in Indigenous businesses, there are more stakeholders involved than with non-Indigenous businesses. For this reason, Indigenous businesses can be regarded as more complex than non-Indigenous businesses and this complexity needs to be reflected in defining entrepreneurship from an Indigenous perspective. (p. 2)

Community-Based Enterprises and Community-Based Entrepreneurship

Peredo and Chrisman (2006) described community-based enterprises (CBEs) as emerging from “a process in which the community acts entrepreneurially to create and operate a new enterprise embedded in its existing social structure” (p. 310). CBEs emerge when a community works collaboratively to “create or identify a market opportunity and organize themselves in order to respond to it” (p. 315). These ventures “are managed and governed to pursue the economic and social goals of a community in a manner that is meant to yield sustainable individual and group benefits over the short and long term” (p. 310). CBEs are positioned in a sector of the economy that is not dominated by a profit motive, often because there is little profit to be made, or by government. As illustrated in the next paragraphs, they also serve what we can refer to as the social commons .

Modern societies are comprised of three distinct, but overlapping sectors (Mook, Quarter, & Richmond, 2007; Quarter, Mook, & Armstrong, 2009; Quarter, Mook, & Ryan, 2010). Businesses operating in the private sector primarily strive to generate profits for their owners by providing goods and services in response to market demands. “While this sector provides jobs, innovation, and overall wealth, it is not suited to addressing most social problems because there is usually no profit to be made by doing so” (Swanson & Zhang, 2012, p. 177). The public sector redistributes the money it collects in taxes to provide public goods and to serve needs not met by the private sector. “While this sector provides defence, public safety, education and a range of other public needs and social services, it has limited capacity to recognize and solve all social needs” (Swanson & Zhang, 2012, p. 177). The remaining sector—referred to by a variety of names including the third sector, the citizens’ sector, the voluntary sector, the non-profit sector, and more recently by Mintzberg, the plural sector (Mintzberg, 2013; Mintzberg & Azevedo, 2012)—is comprised of organizations that deliver goods and services the other sectors do not provide and are either owned by their members (with limited or no potential for individuals or small groups to gain a controlling interest in the organization) or not owned by any individuals, governments, businesses, other organizations, or any particular entity at all.

Bollier (2002) used the term the commons to distinguish the collaborative community-based concern for particular kinds of resources from the management interests in resources assumed by the markets and governments. He pointed out that “people have interests apart from those of government and markets” (p. 12). One of his categories of the commons is the social commons, which involves “pursuing a shared mission as a social or civic organism” (p. 12). The social commons is comprised of community members who contribute energy and resources as they work together to create value.

Scholars have studied CBEs’ role in promoting socio-economic development in developing countries (Manyara & Jones, 2007; Torri, 2010) and some have conceptualized Indigenous entrepreneurship as based on a community-based orientation (Kerins & Jordan, 2010; Peredo & Anderson, 2006; Peredo, Anderson, Galbraith, Honig, & Dana, 2004). Social enterprises are sometimes considered to be a form of CBE (Leadbeater, 1997); however, Somerville and McElwee (2011) interpreted Peredo and Chrisman’s (2006) work to mean that a CBE is “a special kind of community enterprise where the community itself is the enterprise and is also the entrepreneur. Consequently, a CBE is an enterprise whose social base (the social structure of the community) lies in the CBE itself” (Somerville & McElwee, 2011, p. 320). This interpretation might distinguish CBEs from some types of social enterprises.

Some scholars refer to CBEs as being owned by the community while others indicate they can be owned by individuals or groups of people on behalf of the communities they serve. Lehman and Lento (1992) referred to “owners and managers” (p. 70) of CBEs when they argued that the value generated by these types of enterprises often benefit neighbouring residents and businesses more so than the direct owners.

While CBEs in the form of cooperatives have proven to be both prominent and resilient in many parts of the world (Birchall & Hammond Ketilson, 2009), there are also other forms of community-based or mutually owned enterprises as described by Woodin, Crook, and Carpentier (2010). They identified five general models of community-based or mutual ownership while explaining that new models continue to develop.

CBEs involved with housing developments, energy production initiatives, financial services, retail and wholesale trade, health care and social services, education, and other types of activities is relatively well documented (Woodin et al., 2010). There are also examples of symphony orchestras (Boyle, 2003) and other arts organizations that are community-based, sometimes through direct community ownership. Examples of community-owned sports franchises in Canada include the Saskatchewan Roughriders (Saskatchewan Roughrider Football Club Inc., 2012), Edmonton Eskimos (Edmonton Eskimos, 2011), and Winnipeg Blue Bombers (Winnipeg Blue Bombers, 2012) of the Canadian Football League. The Green Bay Packers, a professional American football team in the United States is also community-owned (Green Bay Packers, 2012). In the association football (soccer) world, the Victoria Highlanders’ F. C. (Dheensaw, 2011) and F. C. Barcelona (Schoenfeld, 2000) are examples of community-owned teams.

The Role of Community-Based Enterprises

According to Gates (1999), the free enterprise system that has dominated the economic landscape of many developed countries since the end of the Cold War has often proven to be insensitive to the needs of communities. “The result is to endanger sustainability across five overlapping domains: fiscal, constitutional, civil, social and environmental” (p. 437). He suggested that the policy environment should be adjusted to encourage more connection between people and the results from the investments they make. With a revised capitalist goal to improve societal well-being rather than the current imperative to maximize financial returns with little or no regard for the associated public outcomes, the current and growing divide between our richest and poorest should narrow and we should end up with a more sustainable economic system.

Gates (1999) suggested that one approach to establishing a closer connection between people and the effects from their investments is to re-engineer capitalism in a way that encourages a shift in ownership types toward more members of society directly and collectively owning elements of the organizations that affect their lives through the social, environmental, and other impacts they have. CBEs appear to be one form of organization that can fulfill part of the role advocated by Gates (1999).

Community context plays an important role in how entrepreneurial processes evolve and in their resulting outcomes. According to Hindle (2010), to understand the community context requires an “examination of the nature and interrelationship of three generic institutional components of any community: physical resources, human resources and property rights, and three generic human factors: human resources, social networks and the ability to span boundaries” (p. 599). When communities face social and economic challenges, some are able to mobilize physical and human resources, particularly when these communities “are rich in social capital and are able to learn from collective experiences” (Ring, Peredo, & Chrisman, 2010, p. 5). Communities within this context are often equipped to identify opportunities and capitalize on them. This can give rise to CBEs that can contribute to capacity building in their communities (Peredo & Chrisman, 2006).

Community Capacity Building through Community-Based Enterprises

Similar to entrepreneurial capacity in that it refers to evaluating and capitalizing upon the potential to create value (Hindle, 2007), community capacity “is the interaction of human capital, organizational resources, and social capital existing within a given community that can be leveraged to solve collective problems and improve or maintain the well-being of a given community” (Chaskin, 2001, p. 295). Borch et al. (2008) indicated that CBEs play a community-capacity-building role when they mobilize physical, financial, organizational and human resources. Their role in organizing “voluntary efforts and other non-market resources” (p. 120) is also of particular importance in this regard.

Economists have generally suggested that for-profit, privately held organizations occupy different market segments than publicly funded and community-based organizations. For-profit entities normally seek markets that are easiest to access and profit from, but their activities in these markets do not necessarily generate social return beyond that provided by increased employment and the services that are funded by the taxes they pay. On the other hand, publicly funded and community-based organizations generally serve a different market segment focused on generating some sort of social return (Abzug & Webb, 1999).

For-profit entities are usually subject to significant influence from the suppliers of the capital used to support the organization’s operations. Sometimes these supply-side stakeholders have little interest in the service or product delivered provided that it generates an adequate financial return for them. CBEs and not-for-profit organizations primarily answer to demand-side stakeholders who might use the products or services these organizations deliver or who will benefit from their provision. This can mean that CBEs play an important role in building community capacity when their demand-side stakeholders turn to them when “for-profit organizations fail to provide products and services that stakeholders trust; and where they provide insufficient quantity or quality, and government provision fails to compensate for this market failure” (Abzug & Webb, 1999, p. 421).

One major difference between for-profit and CBEs and not-for-profit organizations is in the distribution of the accounting profit. Unlike for-profits, CBEs and non-profits generally do not distribute profits to equity holders and they enjoy some competitive advantages, including tax exemptions and the ability to receive private donations (Sloan, 2000). Transparency in reporting financial returns is especially important in community-held entities. These entities must report to a vast group of stakeholders who evaluate the organization’s success based on social return as well as financial efficiency (De Alwis, 2012).

CBEs can also represent an extension of the private sector that plays an important role in supporting them (Abzug & Webb, 1999). In the case of the Lloydminster Bobcats, the private sector supported the team by providing volunteers, advertising dollars, financial resources, and management and board expertise because it believed the team made the community more attractive. The team provided a form of entertainment that could help attract private sector employees to the community and retain them after they arrived.

Family Businesses

Chua, Chrisman, and Steier (2003) reported that “family-owned firms account for a large percentage of the economic activities in the United States and Canada. Estimates run from 40 to 60 percent of the U.S. gross national product (Neubauer & Lank, 1998), in addition to employment for up to six million Canadians (Deloitte & Touche, 1999). Their influence is likely even larger elsewhere” (p. 331). Besides the significant component of Canadian and other economies that are made up of family-owned businesses, these entities might be distinct from other forms of entrepreneurship in several ways. While more research is required to better understand the distinctions, family businesses might be characterized by the unique influences family members have on how their firms operate and by the distinctive challenges they face that make them behave and perform differently than other categories of businesses (Chua et al., 2003).

One of the unique and most important challenges faced by family businesses is managing succession so that leadership can be transferred to future generations to preserve family ownership while maintaining family harmony. This is particularly important as the survival rate of family businesses decline as new generations take over (Davis & Harveston, 1998).

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The influence of ecosystems on the entrepreneurship process: a comparison across developed and developing economies

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• Maribel Guerrero   ORCID: orcid.org/0000-0001-7387-1999 1 , 2 ,
• Francisco Liñán   ORCID: orcid.org/0000-0001-6212-1375 3 , 4 &
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Over the past 30 years, the academic literature has legitimised the significant impact of environmental conditions on entrepreneurial activity. In the past 5 years, in particular, the academic debate has focused on the elements that configure entrepreneurship ecosystems and their influence on the creation of high-growth ventures. Previous studies have also recognised the heterogeneity of environmental conditions (including policies, support programs, funding, culture, professional infrastructure, university support, labour market, R&D, and market dynamics) across regions/countries. Yet, an in-depth discussion is required to address how environmental conditions vary per entrepreneurial stage of enterprises within certain regions/countries, as well as how these conditions determine the technological factor of the entrepreneurial process. By reviewing the literature from 2000 to 2017, this paper analyses the environmental conditions that have influenced the transitions towards becoming potential entrepreneurs, nascent/new entrepreneurs, and established/consolidated entrepreneurs in both developed and developing economies. Our findings show why diversity in entrepreneurship and context is significant. Favourable conditions include professional support, incubators/accelerators, networking with multiple agents, and R&D investments. Less favourable conditions include a lack of funding sources, labour market conditions, and social norms. Our paper contributes by proposing a research agenda and implications for stakeholders.

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1 Introduction

In the past three decades, the literature has outlined the critical impact of environmental conditions on entrepreneurship and economic growth (Urbano et al. 2019 ). In the past 5 years especially, academic and public actors have focused on the configuration of thriving entrepreneurial ecosystems (Autio et al. 2014 ; Acs et al. 2017 ). It explains why the Silicon Valley entrepreneurial ecosystem has captured the attention of the international public policy community who wish to emulate it (Audretsch 2019 ). However, scholars worldwide argue that this model of entrepreneurship has several limitations when addressing the most compelling contemporary global problems.

By analysing the existing literature, it is possible to identify the conditions that act as drivers or barriers for entrepreneurship around the world. Although relevant insights can be gained, it is not yet clear which environmental conditions (policies, support programs, funding, culture, professional infrastructure, university support, labour market, infrastructure, networks, R&D, and market dynamics) exert an influence during the exploration, exploitation, and consolidation of entrepreneurial initiatives (technological vs. non-technological) per type of economy (developed vs. developing economies) (Guerrero and Urbano 2019b ). In this vein, Welter et al. ( 2017 : p. 318) highlight that there is no single type of entrepreneurship, no ideal context, and no ideal type of entrepreneur. Therefore, differences matter; and where, when, and why those differences matter most need to be ascertained. It opens up the discussion on the diversity of contexts and types of entrepreneurship that should be understood by analysing their nature, richness, and dynamics (Welter 2011 ; Karlsson et al. 2019 ).

Inspired by this academic gap, in this paper, we review the previous literature in order to identify which environmental conditions have been affecting entrepreneurial processes per type of economy. Specifically, we analyse 67 manuscripts, published from 2000 to 2017, that focus mainly on the barriers, facilitators, and triggers found in the developmental stages of diverse entrepreneurial types per socioeconomic context. Our analysis highlights the elements of entrepreneurial ecosystems associated with each developmental stage of diverse initiatives in developed and developing countries. Our results contribute to the academic discussion about the definitions/measures of entrepreneurship (Iversen et al. 2007 ; Henrekson and Sanandaji 2019 ), entrepreneurial process (Busenitz et al. 2014 ), entrepreneurial ecosystems (Acs et al. 2017 ; Audretsch 2019 ), diversity of entrepreneurship (Welter et al. 2017 ; Karlsson et al. 2019 ), and economic development (Urbano et al. 2019 ). A research agenda is proposed for the analysis of those gaps identified across the entrepreneurial processes and types of economy. Moreover, several contributions for stakeholders emerge from our results.

Following this introduction, the paper is structured as follows: Section 2 describes the theoretical foundations linking the entrepreneurial process with the environmental conditions. Section 3 presents the methodological design regarding data collection and analysis. Section 4 shows the insights obtained from the influence of the context on the entrepreneurial process across socioeconomic stages. Section 5 discusses the findings in light of previous studies and sets a research agenda. This section also provides several implications that have emerged from this study. Section 6 concludes by providing insights regarding the contributions to the academic debate in the field of entrepreneurship.

2 Diversity in the entrepreneurial process and context

According to Gartner ( 1990 ) and Morris et al. ( 1994 ), entrepreneurship encompasses the creation of enterprises, wealth, innovation, change, employment, value, and growth. Distinguishing between Schumpeterian entrepreneurship and other business activities may, therefore, facilitate the differentiation between low-impact and high-impact entrepreneurship in terms of outcomes, such as employment, sales, innovation, and the wealth of the founders (Henrekson and Sanandaji 2019 ). By understanding the diversity inherent in entrepreneurship (Iversen et al. 2007 ; Welter 2011 ; Dencker et al. 2019 ) and capturing the notion of Schumpeterian entrepreneurship (Henrekson and Sanandaji 2019 ; Karlsson et al. 2019 ), this research categorises entrepreneurship into either (a) non-Schumpeterian entrepreneurship or (b) Schumpeterian entrepreneurship. The first category (non-Schumpeterian entrepreneurship) is characterised by self-employment (individuals who do not generate employment and with outcomes that merely allow them to survive) and traditional entrepreneurs (individuals who generate lower impacts/outcomes). Footnote 1 The second category (Schumpeterian entrepreneurship) comprises academic/graduate entrepreneurs (individuals who generate entrepreneurial innovations within a university or after graduation) and innovative entrepreneurs (individuals who generate a technological-based venture that is looking for high-level impacts and outcomes).

Each type of entrepreneur experiences diverse stages both in their life cycle and in multiple contexts. Thus, the term “entrepreneurial process” describes a variety of stages, ranging from the exploration of a potential entrepreneurial initiative to the consolidation of a venture (Reynolds and White 1997 ). Several models have identified a series of phases that result in the creation/growth of a new venture (DeTienne 2010 ). Stevenson and Jarillo ( 1990 ) focus on the process by which individuals, either on their own or inside organisations, pursue opportunities without regard to the resources they currently control. Bygrave and Hofer ( 1991 ) describe all the functions, activities, and actions associated with the perception of opportunities and the creation of organisations to pursue them. Reynolds and White ( 1997 ) consider that the entrepreneurial process consists of four distinct phases: conception (the entire adult population); gestation (nascent entrepreneurs); infancy (fledgling new firms); and adolescence (established new firms). Korunka et al. ( 2003 ) and Davidsson ( 2006 ) refer to the entrepreneurial process as one that begins with the nascent entrepreneur and ends with the creation of the new venture. Entrepreneurship is a very complex process (Gartner et al. 2004 ). By taking the process view, entrepreneurship presents dynamic behaviours experienced under certain environmental conditions from whence opportunities and business ideas emerge (Jack and Anderson 2002 ). For instance, the main difficulty when studying context is that it varies across different socioeconomic conditions that interact and affect entrepreneurial behaviour (Jones and Coviello 2005 ). The environment influences not only the start-up rates at a population level but also the cultural, economic, and market factors that converge to enhance or inhibit entrepreneurship (Busenitz et al. 2003 ).

During the conception and gestation phases of the entrepreneurial process, the entrepreneur may begin to consider the idea of new venture creation, identify opportunities, and make decisions regarding time and resources (Reynolds and White 1997 ). In these phases, environmental factors are generally assumed to influence the emergence of new opportunities at the interface of individuals and teams (Hindle 2010 ; Busenitz et al. 2014 ; Liñán and Fayolle 2015 ; George et al. 2016 ). Busenitz et al. ( 2014 ) recognise that macroenvironmental conditions (new technologies, regulatory adjustments, climate shifts, and disasters) could influence the need for new opportunities to emerge in flux/stable periods. Similarly, George et al. ( 2016 ) show how environmental conditions create and moderate the relationships between individual behaviour and opportunity recognition. During the infancy phase , the new venture remains vulnerable and requires a significant amount of attention from the entrepreneur due to the liability of newness, smallness, and limited resources (i.e. specific knowledge, networks, customer relationships, and financing) (DeTienne 2010 ). Thus, the context plays an essential role in allowing access to those limited resources (Mueller 2006 ; Knox and Egbe 2018 ; Mergemeier et al. 2018 ; Wallmeroth et al. 2018 ). New entrepreneurs must scan the context to acquire and assimilate critical information for survival in a strongly competitive environment. If the venture survives, legitimacy increases, and the venture enters the adolescence phase (Cardon et al. 2005 ), where the natural orientation is towards growth in sales, employees, and market share or resource acquisition (Reynolds and White 1997 ). Over time, the venture may reach the maturity phase , wherein the founders may either continue to explore new opportunities or consider an exit strategy by seeking potential buyers in their environment (DeTienne 2010 ). This paper aims to address and answer the question: How does context affect each phase of the entrepreneurial process in terms of the type of entrepreneur and country?

3 Methodology

Since our purpose is to analyse the influence of context across the entrepreneurial process, we have conducted a systematic search of the literature based on these elements (Gundolf and Filser 2013 ; Kraus et al. 2014 ; Xi et al. 2013 ). Every caution has been taken to ensure that this search is systematic, transparent, and replicable (Armitage and Keeble-Allen 2008 ; Lourenço and Jones 2006 ; Pittaway and Cope 2007 ; Tranfield et al. 2003 ). Only journal articles have been included, since these are considered validated knowledge (Podsakoff et al. 2005 ). In contrast, materials such as books, chapters, and conference papers have been excluded due to the variability in the peer-review process and their more restricted availability (Jones et al. 2011 ).

3.2 Data collection

Following the standard practice in previous research (Cornelius et al. 2006 ; Liñán and Fayolle 2015 ; Nabi et al. 2017 ), the data collection process consisted of four steps. First, using the Scopus database because of its more extensive journal coverage, we searched for articles published from 2000 to 2017 (both inclusive) in social sciences (including business, economics, and psychology). The screening criteria used the inherent diversity in the keywords: creation (or start-up, launch, or entry), entrepreneur (potential, nascent, or new venture), process (or action or longitudinal), and determining contextual factors (or barriers, facilitators, or triggers). As a result, we identified 742 publications. Second, by adopting the above screening criteria, other highly used databases were examined, such as Web of Science, ABI-Inform/ProQuest, and Science Direct. In this process, we identified another 508 publications. Third, by adopting recommendations from Nabi et al. ( 2017 ), we reviewed the papers published in the top-five entrepreneurship journals Footnote 2 to ensure that the core publications in the field were included. Thus, we identified a further 37 publications by analysing the specific role of environmental or contextual conditions on entrepreneurship but by excluding intrapreneurship and entrepreneurship education. Fourth, we eliminated duplicate papers, resulting in 986 publications in the initial pool of documents that focused on barriers, facilitators, or triggers found in the entrepreneurial process.

Concerning the criteria of selection, we decided to first focus on papers that empirically Footnote 3 covered the entrepreneurial process in diverse contexts (Fig.  1 ). Abstracts were reviewed and categorised by two independent investigators; and in the case of any doubt, a third investigator made the final selection decision. Based on this criterion, we selected 324 publications as empirical studies of the entrepreneurial process. Second, a new round of reviews was developed to confirm the role of environmental/institutional/contextual variables as barriers or drivers across the entrepreneurial process. At this stage, we distributed the 324 publications so that each paper was read in its entirety by one investigator to classify it according to its importance in this study. When doubts arose, a second investigator read the whole paper and made the selection decision. Finally, we selected 67 empirical papers that explored the role of context in the entrepreneurial process.

• Entrepreneurial process

3.3 Data analysis

During the data analysis, three criteria were applied in order to classify the 67 manuscripts selected. The first criterion used to distinguish papers focused on the developmental stages of the entrepreneurial process: potential entrepreneur, nascent/new entrepreneur, and established/consolidated entrepreneur (Reynolds and White 1997 ; DeTienne 2010 ). Several papers addressed more than one stage in the process. Therefore, these papers were considered in various stages. The second criterion related to the inherent diversity in entrepreneurship (i.e. self-employed, traditional entrepreneur, owner demographic entrepreneurs, academic entrepreneur, graduate entrepreneur, and innovative entrepreneur) (Welter 2011 ). It also helped to distinguish the Schumpeterian orientation per type of entrepreneurial activity (i.e. technology/innovative vs. non-technology/innovative) (Dencker et al. 2019 ). The third criterion related to diversity in context. Based on research settings, the manuscripts were grouped into categories of a developed country, a developing country, or as covering multiple countries (as a whole group or explicitly compared contexts) (United Nations 2017 ). In this step, the positive/negative influences of environmental conditions were identified per entrepreneurship stage, type of entrepreneurship, and type of country. These environmental conditions were subsequently categorised following the elements of entrepreneurial ecosystems, such as policies, support programs, funding, culture, professional infrastructure, university support, labour market, R&D, and market dynamics. The findings thereof are analysed in the next section.

4.1 Diversity in definitions and measures of entrepreneurship

Table 1 shows the operational definitions used by researchers to understand the entrepreneurship phenomenon in the past 15 years.

4.1.1 Operationalisation of potential entrepreneurship

For conceptualising potential entrepreneurs, we identified four definitions. A first group of studies defined potential adult entrepreneurs who intend to pursue an entrepreneurial career (Rotefoss and Kolvereid 2005 ), individuals who are ready to take advantage of opportunities (Shakhovskaya and Akimova 2013 ), or individuals who have their own reasons for becoming self-employed (Gohmann 2012 ). A second group of studies operationalised potential owner demographic entrepreneurship who either expect to set up ventures in deprived regions in the UK (Williams and Huggins 2013 ) or, as rural women, are exploring venture creation in Bangladesh (Mair and Marti 2007 ). A third group of studies defined potential graduate entrepreneurs who are students setting up a business (Lebusa 2014 ; Popescu et al. 2016 ), who have proficiency in setting up a business (Meintjes et al. 2015 ), or who are simply considering the possibility of setting up a business (Degeorge and Fayolle 2011 ). A latter group of manuscripts measured potential academic entrepreneurs who are individuals launching a spin-off based on a recognised opportunity within the university context (Hannibal et al. 2016 ).

Methodologically, diverse primary sources of information (single/multiple case studies, designed surveys) and secondary sources of information (Eurobarometer, Global Entrepreneurship Monitor, Panel Studies of Entrepreneurial Dynamics, country policy datasets) were employed to analyse the phenomenon of potential entrepreneurship.

4.1.2 Operationalisation of nascent/new entrepreneurship

For theorizing nascent/new entrepreneurs, we found four definitions. The first definition was employed to study owner demographic entrepreneurship in terms of the new ventures created: (a) by women business owners (Mair and Marti 2007 ; Guzmán and Rodríguez 2008 ); (b) in rural/deprived areas (Atherton and Hannon 2006 ; Williams and Huggins 2013 ); (c) according to the rate of business owned by the skilled black community (Bates 2015 ); or (d) in terms of the new start-up rate of ventures in the social service sector (Gawel and Toikko 2014 ).

The second definition was adopted to operationalise traditional nascent/new ventures using as follows: (a) the number of youngest start-ups with fewer than 100 employees (Lutz et al. 2010 ) and the period required to start up a business (Misra et al. 2014 ); (b) the percentage of the adult population of a country who is involved in the development/creation of entrepreneurial initiatives motivated by necessity or opportunity (Pinillos and Reyes 2011 ; Shakhovskaya and Akimova 2013 ); (c) the business demography (entry/exit rates) in diverse industries (Meek et al. 2010 ; García-Posada and Mora-Sanguinetti 2015 ); (d) business owners during the starting phase (Bitzenis and Nito 2005 ; Edoho 2015 ; McEwan 2015 ); and (e) those that were intending to start a new venture, had previously carried out at least one start-up activity, expected to own part of the venture, and did not have an existing operational business (Davidsson and Henrekson 2002 ; Davidsson and Gordon 2016 ; Rotefoss and Kolvereid 2005 ; Edelman and Yli-Renko 2010 ; Gartner and Liao 2012 ; Hopp 2015 ; Frid et al. 2016 )

The third definition measured the phenomenon of academic entrepreneurship through the number of the following: (a) university spin-off ventures during their initial phase of the entrepreneurial process (Rasmussen and Borch 2010 ; Hannibal et al. 2016 ); (b) academic scientists involved in the commercialisation of technology via university spin-offs (Pilegaard et al. 2010 ; González-Pernía et al. 2013 ; Beraza-Garmendia and Rodríguez-Castellanos 2015 ; Rodríguez-Gulías et al. 2016 ); and (c) technology-based ventures incubated in a university incubator (Patton 2014 ).

The latter definitions have quantitatively theorised the phenomenon of innovative entrepreneurship by contrasting the percentage of self-employed against knowledge-based innovative firms (Acs et al. 2009 ; Szabo and Herman 2014 ) or by contrasting the self-employment rate against patents and grants per country (El-Harbi and Anderson 2010 ), and have qualitatively analysed the new technological organisations incubated within incubators (Abetti 2004 ; Karlsson et al. 2005 ), existing companies (Zahra and Nambisan 2012 ), or during the product-market fit phase (Wallin et al. 2016 ).

Regarding the methodology, diverse primary sources of information (single/multiple case stud(ies), longitudinal case studies, designed surveys with follow-up interviews) and secondary sources of information (Global Entrepreneurship Monitor, Panel Studies of Entrepreneurial Dynamics, the U.S. Bureau Census, World Bank, national judicial datasets, OECD datasets, Global Competitiveness Index) with sophisticated statistical models (multi-level regression analysis, panel data analysis, negative binomial regressions, multivariate analysis) were employed to analyse the phenomenon of nascent/new entrepreneurship.

4.1.3 Operationalisation of established entrepreneurship

For comprehending established entrepreneurs, we found four definitions. The first definition was related to the phenomenon of non-innovative established ventures defined as follows: (a) the number of small- and medium-sized entrepreneurs (Bateman 2000 ; Jabani Mambula 2004 ; Kang and Heshmati 2008 ; Puffer et al. 2010 ; Canton et al. 2013 ; Zhang 2015 ; Edoho 2015 ; Hassink et al. 2016 ; Gupta 2016 ; Elston et al. 2016 ); (b) the percentage of business-owner firms that are more than 42 months old (Aidis et al. 2008 ; Shakhovskaya and Akimova 2013 ); (c) the established exporter firms from emerging economies (LiPuma et al. 2013 ); (d) the entry and exit rates for corporate ventures (García-Posada and Mora-Sanguinetti 2015 ); and (e) self-employment as a measure of metropolitan entrepreneurship in the USA (Coomes et al. 2013 ).

A second group measured owner demographic entrepreneurship in terms of (a) gender (Mair and Marti 2007 ; Guzmán and Rodríguez 2008 ; Coad and Pawan Tamvada 2012 ; Kairiza et al. 2017 ); (b) the first/second generation of immigrants (Rusinovic 2008 ; Falavigna et al. 2017 ); (c) ethnic communities (Wang and Altinay 2010 ); and (d) people living in a deprived area (Williams and Huggins 2013 ).

A third group operationalised innovative established ventures using the comparison between the following: (a) independent and established firms with at least 20 employees enrolled in technological sectors (Davidsson and Henrekson 2002 ); (b) small/young firms and old/significant firms involved in the I.T. sector (Johansson 2004 ); and (c) well-established technological/innovative firms involved in different sectors (Cooper and Park 2008 ; Zahra and Nambisan 2012 ) or within their scaling phase (Wallin et al. 2016 ).

Methodologically, diverse primary sources of information (single/multiple case stud(ies), longitudinal case studies, designed surveys with follow-up interviews) and secondary sources of information (Global Entrepreneurship Monitor, U.S. Bureau Census, European Commission, Chambers of Commerce, World Bank datasets, Central Banks, registers of exporters) with sophisticated statistical models (hierarchical regression, panel data analysis, negative binomial regressions) were employed to analyse the phenomenon of established entrepreneurship.

4.2 Environmental drivers/barriers faced by potential entrepreneurs

Table 2 shows the environmental conditions that act as barriers or drivers for individuals (potential entrepreneurs) who are considering the idea of creating a venture based on the identified opportunities and on the time and resources available.

4.2.1 Developed economies

Our findings show a set of conditions with a favourable effect on potential entrepreneurs in the context of developed economies.

Regarding potential entrepreneurs without an innovative orientation, government intervention through policies and support programs has created favourable conditions. In Finland, the emphasis of governmental programs on the identification of entrepreneurial opportunities instead of entrepreneurial exploration reinforced the adult population’s perception of entrepreneurship as a professional career (Heinonen and Hytti 2016 ). The labour market and market dynamism have also created favourable conditions for self-employment. In Norway, the labour market conditions caused by the increment in unemployment rates together with market dynamism created by industrial specialisation triggered the population’s proclivity to be self-employed (Rotefoss and Kolvereid 2005 ). The findings also show that certain public programs in the UK tend to cause a negative perception of their effectiveness by their beneficiaries, and consequently potential entrepreneurs prefer not to seek assistance (Williams and Huggins 2013 ).

Potential (academic) entrepreneurs with an innovative orientation have been reinforced by professional support. French graduate engineers have participated in multiple networking events with diverse agents of the ecosystem to support their entrepreneurial intentions and behaviour (Degeorge and Fayolle 2011 ). The role of higher education has transformed the attitudes towards entrepreneurship of the university community (i.e. academics, students, and graduates). In Ireland and Denmark, universities have implemented resources and capabilities to configure a favourable environment for academics to commercialise their research outcomes via patents, licences, and spin-offs (Hannibal et al. 2016 ). As a result, the academic entrepreneurship phenomenon has considerably increased during the past decade.

4.2.2 Developing economies

Our findings show conditions with a positive/negative effect on those potential entrepreneurs without an innovative orientation in developing economies. The positive effect was observed within a group of professionals who supported the development of collaborative platforms to facilitate social entrepreneurship initiatives (Mair and Marti 2007 ). A set of conditions was also found with a negative effect on potential entrepreneurs without an innovative orientation in developing economies. Inefficient government intervention via ineffective policies with emphasis on legal and tax regulations generated a hostile environment for potential entrepreneurs in Russia (Shakhovskaya and Akimova 2013 ). In Bangladesh, the existence of market barriers does not support the entry of owner demographic groups (rural women) (Mair and Marti 2007 ). Other barriers include non-favourable perceptions/reputation of entrepreneurs in society (Shakhovskaya and Akimova 2013 ), and the prevalence of sociocultural norms that reduce the participation of owner demographic groups in economic-based activities (Mair and Marti 2007 ).

Concerning potential entrepreneurs with an innovative orientation in developing economies, in South Africa, an initiative implemented by a professional group who was training secondary-school students to acquire problem-recognition/problem-solving skills obtained positive outcomes (Meintjes et al. 2015 ). Inefficient entrepreneurial education programs in higher education organisations for the promotion of job creators have also limited the development of entrepreneurial initiatives by graduate students in South Africa (Lebusa 2014 ) and Romania (Popescu et al. 2016 ).

4.2.3 Multi-country studies

Multi-country studies also show a set of favourable environmental conditions for the potentially self-employed. Market conditions, such as a higher score on economic freedom indices and a higher level of corruption, lead people to a higher preference for self-employment in the USA and Europe (Gohmann 2012 ).

4.3 Environmental drivers/barriers faced by nascent/new entrepreneurs

Table 3 shows the environmental conditions that act as either barriers or drivers for individuals (nascent/new entrepreneurs) who have created a venture with their available resources and are seeking access to new resources and capabilities to operate in the market.

4.3.1 Developed economies

Regarding the drivers faced by nascent owner demographic entrepreneurs, a positive influence from legislative changes for decontrolling certain market limitations was found in Finland (Gawel and Toikko 2014 ). Furthermore, in the USA, the implementation of preferential procurement has legitimised and increased the presence of black-owned businesses in sectors where these minorities were previously unable to operate (Bates 2015 ). Moreover, the government implementation of acceleration/incubation programs exerts a positive effect on fostering the gestation of rural entrepreneurial initiatives in deprived regions of the UK (Atherton and Hannon 2006 ; Schiopu et al. 2015 ). Regarding the barriers faced by nascent owner demographic entrepreneurs, British policies for fostering owner demographic entrepreneurship in deprived regions have been ineffective due to their failure to consider the nascent entrepreneurs’ mind-sets, behaviour, and skills (Williams and Huggins 2013 ). Other non-favourable conditions include the limited access to public funds, which has restricted the entry of owner demographic groups of entrepreneurs into specific markets in the USA (Bates 2015 ), and the discriminatory environment, which has limited the participation of black communities in entrepreneurship in the USA (Bates 2015 ).

Concerning the drivers of nascent entrepreneurship without an innovative orientation, universities have also delivered entrepreneurship-training programs oriented towards reinforcing skills of nascent entrepreneurs (McEwan 2015 ). The effectiveness of support assistant in the development of business plans has positively influenced to increase formal financial support in Sweden (Honig and Karlsson 2004 ) and the USA (Yusuf 2010 ; Hopp 2015 ). The inefficiency of the Spanish judicial system has represented a barrier for a nascent entrepreneur through setting higher fixed costs that must be paid to diverse agents (García-Posada and Mora-Sanguinetti 2015 ). Similarly, a lack of regulation and a lack of funding from public/private sources in the Netherlands (Lutz et al. 2010 ) or the industrial specialisation in Norway (Rotefoss and Kolvereid 2005 ) have limited the emergence of nascent entrepreneurship. It can also be observed that specific social norms or wealth inequalities have reduced the effectiveness of policies oriented towards the promotion of nascent entrepreneurship in the USA (Meek et al. 2010 ; Frid et al. 2016 ). Indeed, the temporary/permanent entry or adaptation of nascent entrepreneurship is influenced by the response of markets to environmental uncertainty in the USA (Edelman and Yli-Renko 2010 ; Gartner and Liao 2012 ) or macroeconomic crises in Australia (Davidsson and Gordon 2016 ).

Regarding the drivers/barriers faced by nascent academic entrepreneurship, professional support has reinforced academic entrepreneurs with business contacts, mentors, and facilitators during the conception of their entrepreneurial and innovative initiatives (Pilegaard et al. 2010 ). In Norway and Denmark, universities have implemented resources and capabilities to configure a favourable environment for academics to commercialise their research outcomes via patents, licences, and spin-offs (Rasmussen and Borch 2010 ; Hannibal et al. 2016 ). In Denmark, the specialisation in research activities also represented a driver for academic entrepreneurship over several years (Pilegaard et al. 2010 ). In Norway, Spain, and the UK, university capabilities have positively influenced the commercialisation of knowledge via the creation of spin-offs, licences, and patents by academics and researchers (Rasmussen and Borch 2010 ; Beraza-Garmendia and Rodriguez-Castellanos 2015 ; Rodríguez-Gulías et al. 2016 ). The legitimisation of academic entrepreneurship by addressing societal challenges and needs has positively influenced the gestation of new entrepreneurial initiatives by academics and university students in Denmark (Pilegaard et al. 2010 ).

Focusing on the drivers/barriers faced by nascent innovative entrepreneurs, the government implementation of acceleration/incubation programs exerts a positive effect on fostering the gestation of entrepreneurial innovations in Finland (Abetti 2004 ) and the UK (Patton 2014 ). Furthermore, the existence of professional infrastructures has generated a positive effect on nascent entrepreneurship: in particular, the significant role of professional support during the development of collaboration engagements, as well as the support received from advisors and mentors during the gestation of entrepreneurial ideas in the UK context (Patton 2014 ). Market conditions have also acted as driver and barrier for nascent entrepreneurs in developed economies. The innovative entrepreneurs’ involvement within the entrepreneurship ecosystem has produced significant effects by reducing the entry barriers for nascent entrepreneurs (Zahra and Nambisan 2012 ) and also by scaling business models (Wallin et al. 2016 ). Culture also plays a crucial role in nascent entrepreneurship regarding the perception of growth and ambitions by entrepreneurs in Finland (Wallin et al. 2016 ).

4.3.2 Developing economies

Our findings in developing economies show only a set of environmental conditions that are limiting nascent entrepreneurs without an innovative orientation. The policies that have negatively affected the gestation of new entrepreneurs include as follows: (a) the uncertainty produced by the multiple changes in business taxation procedures (Bitzenis and Nito 2005 ); (b) the misalignment and inconsistencies between policies and programs (Edoho 2015 ); and (c) the lack of precise regulation regarding liquidations and a weak legislative basis for venturing investments (Shakhovskaya and Akimova 2013 ).

Similarly, the lack of diverse public/private sources of funding for entrepreneurs (Bitzenis and Nito 2005 ) and the exorbitant interest rates when accessing private funds (Edoho 2015 ) have represented significant barriers to nascent entrepreneurship. The absence of institutions that support the dynamism of rural markets represents the third set of barriers for owner demographic entrepreneurs in countries such as Bangladesh (Mair and Marti 2007 ). Finally, sociocultural elements such as corruption and a non-favourable reputation of entrepreneurship have not only limited the gestation of new ventures but also influenced the failure of new ventures in post-Soviet economies, such as Russia (Shakhovskaya and Akimova 2013 ).

4.3.3 Multi-country studies

The findings from multi-country studies show that the effectiveness of governmental support programs (e.g. business incubation) across the globe has facilitated the hazardous gestation of new owner demographic ventures in the area known as the third sector (tourism) (Schiopu et al. 2015 ). Along the same lines, Guzmán and Rodríguez ( 2008 ) find that social discrimination has also limited access to the bank funding of owner demographic groups (women entrepreneurs). Regarding nascent ventures without an innovative orientation, government intervention (e.g. taxation policies and regulations for controlling interest rates) has facilitated venture creation in both developed and developing economies (Misra et al. 2014 ). Misra et al. ( 2014 ) also found that the bureaucracy in the registration procedures has limited new venture creation in developing economies. Complementary, favourable market conditions are useful for the detection of trade opportunities in both developed and developing countries (Misra et al. 2014 ). Moreover, national culture has supported the gestation of nascent entrepreneurs in countries with a collectivist orientation and has limited this gestation in countries with an individualistic orientation (Pinillos and Reyes 2011 ).

Concerning academic entrepreneurship, the role of higher education organisations has been shown in multi-country studies in the context of developed economies (e.g. UK, Spain, Denmark, and Ireland). In particular, university policies are suitable for the regulation of the creation of spin-off support programs (Beraza-Garmendia and Rodríguez-Castellanos 2015 ), and university infrastructure (incubators or technology transfer offices) can help during the identification of opportunities and spin-off creation (Hannibal et al. 2016 ).

Regarding innovative nascent ventures, El-Harbi and Anderson ( 2010 ) found that certain market conditions, such as business freedom and perception of corruption, increase innovative entrepreneurship but decrease self-employment across the OECD economies. By contrasting the professional support offered by incubators, Karlsson et al. ( 2005 ) find that a negative effect on business creation is due to the pressure to access venture capital in certain economies (Israel). Furthermore, lower investments in R&D, together with lower risk capital provided by public and private agents, have limited the gestation of innovative and productive initiatives in transition economies (Szabo and Herman 2014 ).

4.4 Environmental drivers/barriers faced by established/consolidated entrepreneurs

Table 4 shows the environmental conditions that act as barriers or drivers for individuals (established/consolidated entrepreneurs) who have created and/or managed a venture that has operated in the market for several years.

4.4.1 Developed economies

The findings show insights into the environmental conditions that have influenced the consolidation of diverse types of ventures in developed economies.

Regarding consolidated owner demographic entrepreneurship, the implementation of regulations for immigration and the excellent functioning of the Italian judicial system have contributed towards the consolidation of ventures created by immigrants (Falavigna et al. 2017 ). Furthermore, the configuration of business/family networks has created favourable conditions for the consolidation process of ethnic and immigrant entrepreneurship (Rusinovic 2008 ; Wang and Altinay 2010 ). Despite these favourable conditions, it can also be observed how the inefficiency in the follow-up of intervention programs in deprived rural regions in the UK has restricted venture growth (Williams and Huggins 2013 ). As for well-established ventures without an innovative orientation, the regulations and efficiency of the Spanish judicial system have nurtured the transition of incubated ventures towards a consolidated stage in terms of size and growth (García-Posada and Mora-Sanguinetti 2015 ). The higher income-tax rates and the minimum wage have negatively influenced the consolidation of ventures created by the self-employed (Coomes et al. 2013 ).

Regarding well-established innovative ventures, the implementation of public incubation/acceleration programs in Finland (Wallin et al. 2016 ) and incentives for wealth accumulation in Sweden (Davidsson and Henrekson 2002 ) have supported the consolidation of ventures with technological and high-growth orientation. The available public/private financial support was focused on business growth (Davidsson and Henrekson 2002 ). Similarly, the credit guarantee based on achieving better performance (Kang and Heshmati 2008 ) has significantly influenced the consolidation of innovative ventures. Nevertheless, a large and highly centralised public sector, with a high level of taxes, discourages Swedish entrepreneurs in certain sectors, such as services (Johansson 2004 ). Indeed, the increment of income tax together with high labour costs has negatively affected high-growth ventures in Sweden (Davidsson and Henrekson 2002 ).

4.4.2 Developing economies

Regarding well-established owner demographic entrepreneurship, the most favourable conditions in the consolidation of rural and social ventures created by Bangladeshi women have been their networking and participation in collaboration platforms (Mair and Marti 2007 ). The obstacles in the consolidation of ventures include a lack of legitimisation and the low reputation of entrepreneurs (Coad and Pawan Tamvada 2012 ). For well-established entrepreneurship without an innovative orientation, the most favourable conditions have been the informal sources of funding—such as personal savings, family, and friends—in the consolidation of micro ventures in China (Elston et al. 2016 ) and the credit guarantee that supported the consolidation in Korea (Kang and Heshmati 2008 ). Competitive intensity has positively influenced the consolidation of small- and medium-sized ventures in India (Gupta 2016 ).

On the other hand, the obstacles in the consolidation of ventures are related to (a) a lack of financial sources (Jabani Mambula 2004 ); (b) a lack of appropriate policies/taxation that supports the consolidation of ventures (Edoho 2015 ); (c) inadequate and misaligned support programs implemented by governments (Edoho 2015 ); (d) entry barriers to the market (Shakhovskaya and Akimova 2013 ); and (e) the low-trust environment that limits enterprise growth (Zhang 2015 ).

4.4.3 Multi-country studies

Multi-country studies also show conditions that have influenced the consolidation of diverse types of ventures. Concerning established owner demographic entrepreneurship, the limited access to credit by owner demographic groups and asymmetry of information have conditioned the growth of owner demographic entrepreneurship (Guzmán and Rodríguez 2008 ). This type of entrepreneurship is also associated with cultural elements such as discrimination and opportunistic behaviour in society.

For well-established ventures without an innovative orientation, we identified the role of suitable government intervention through tax/exporter regulations that have contributed towards local development by supporting the consolidation of export-oriented ventures (LiPuma et al. 2013 ). In this vein, Puffer et al. ( 2010 ) highlighted a lack of the proper regulation of property rights and of the judicial system that reduce the consolidation of innovative entrepreneurship. The least effective programs were those that imitate business support centres that are financially unsustainable in transition economies (Bateman 2000 ). Moreover, the asymmetry of financial information limited the growth of ventures in the European Union (Canton et al. 2013 ). Aidis et al. ( 2008 ) found that informal business networks have contributed to the consolidation of ventures without a strong innovative orientation in transitional economies.

Concerning well-established innovative ventures, the most effective program has been the establishment of business incubators to support innovative entrepreneurs in developed economies (Cooper and Park 2008 ).

5 Discussion and future directions

5.1 discussion.

Our findings aggregate insights in the research published on diversity in entrepreneurship (types of entrepreneurship per stage) and context (environmental conditions per developed/developing economies) over the past two decades (Table 5 ).

First, regarding the type of entrepreneurship , the results confirm the existence of diversity in the definitions and measurement of entrepreneurship. According to Iversen et al. ( 2007 ), entrepreneurship is considered a multifaceted concept with diverse conceptual definitions (Schumpeter, Knight, Kirzner, Schultz) and empirical measures (self-employment rates, business ownership rates, entry/exit rates, total entrepreneurial activity) that have been illustrated in a cross-country comparison. Our research extends previous studies by analysing the diversity in entrepreneurship as a process and the diversity of conditions in fostering/impeding the development of entrepreneurial and innovative activities. According to Schumpeter’s ideas ( 1934 ), the entrepreneur is an agent of change who carries out innovations/technologies that push the economy towards a new equilibrium.

In this regard, the most favourable conditions of the ecosystem for Schumpeterian entrepreneurship (academic, graduate, and innovative) include public subsidy/incentive programs, support of professional mentors, incubators/accelerators, the universities’ orientation towards entrepreneurship (educational programs, transforming attitudes of the university community, connecting research with social demands), collaboration with multiple public/private agents (networking), and public/private R&D investment. Similarly, less favourable conditions include the lack of private/public funding sources, labour market conditions, and social norms. If we analyse entrepreneurs without an innovative orientation, within the period of analysis, the research published shows mixed patterns but mostly presents adverse effects of environmental conditions on entrepreneurial stages of non-Schumpeterian entrepreneurship (self-employment, owner demographic groups, and traditional entrepreneurship). Notably, environmental conditions—such as regulations/programs, support infrastructures, networks, and market dynamics—illustrate a dual effect (positive and negative). The remaining elements of the ecosystem (finance, culture, R&D, higher education) exhibit negative effects. A plausible explanation should be the nature of this type of entrepreneur, who is mainly motivated by the need to survive instead of by the identification of business opportunities (Dencker et al. 2019 ).

Second, regarding the type of entrepreneurial stage , the results show diversity in the entrepreneurial process. The majority of published research focuses on the study of the conditions that have influenced the gestation of nascent/new ventures in diverse contexts (academic entrepreneurship, innovative entrepreneurship, traditional entrepreneurship, owner demographic entrepreneurship). A limited number of studies have studied the transition of a new venture towards a consolidated/established venture in both innovative and non-innovative types of entrepreneurship. One plausible explanation indicates the lack of available longitudinal information that would otherwise enable a better understanding of the evolutionary process of ventures. Footnote 4 Similarly, a few studies have analysed the survival/consolidation of university spin-offs or technology-based entrepreneurship with several limitations (Miner et al. 2012 ). The diversity in entrepreneurship opens a window of scenarios for the exploration of potential entrepreneurs. Within the past two decades, potential entrepreneurship has mainly been studied within the university context (graduate students or academic entrepreneurship) or as an individual career decision (employed vs. self-employed vs. entrepreneurship). However, labour market conditions have been critical conditions in both cases.

Third, regarding the type of economy , the results confirmed diversity in the context. The research settings of studies published on Schumpeterian entrepreneurship involve developed economies (the USA, the UK, Spain, Denmark, Ireland, France, Sweden) and a few transition economies. Therefore, given their nature, there is a concentration of innovative entrepreneurship studies on developed economies. The research settings of studies published on non-innovative entrepreneurship include developed economies (the USA, the UK, Finland, Netherlands, Norway) and developing economies (Romania, India, Albania, Russia, Bangladesh, South Africa, Nigeria). Therefore, both trends highlight the need to clarify the diversity in entrepreneurship and the diversity in contextual conditions in terms of region, country, or multiple countries. Furthermore, it is crucial to understand the evolutionary stages of ecosystems in both developed and developing countries. Our findings reveal several uncertain patterns regarding the following: (a) the dual positive/negative effects of government intervention through policies and programs; (b) the configuration of formal/informal relationships within the financial system; and (c) the social legitimisation of diversity in entrepreneurship that conditions the transition from one stage to another.

5.2 Research agenda

Reviews play a critical role in the accumulation of knowledge in entrepreneurship by providing unique contributions towards theory testing, theory development, the identification of research gaps, and suggestions for future research (Rauch 2019 ). In this regard, Fig.  2 shows the contribution of this study to the field and proposes a research agenda regarding diversity in entrepreneurship, entrepreneurial process, and context based on the identified strengths/weaknesses.

Entrepreneurial process influenced by contextual conditions.

First, the current conceptualisation and measurement of entrepreneurship should be reviewed (Dencker et al. 2019 ; Henrekson and Sanandaji 2019 ). Indeed, future research demands the re-conceptualisation of entrepreneurship given the social reconfiguration (diversified workforce, such as multiple-age generations; the mobilisation of people, such as during migration and refugee placement; and democratisation and political movements), new economic models (digital economy, green economy), and technological transformation (big data, digital platforms, artefacts).

Second, future research demands a dynamic analysis that includes the role of time, space, and context across the entrepreneurial process. The lack of studies on environmental conditions and potential entrepreneurship opens a window for the development of research in this stage (e.g. narratives, ethnographies, experiments). In the same vein, research avenues may be pointed out in the transition of nascent/new ventures towards established/consolidated ventures (e.g. longitudinal studies; cross-country studies with emphasis on transition economies). This also implies the opportunity for theory development that adopts mixed theoretical approaches (e.g. institutional theory, spillover theory, evolutionary approaches). Indeed, those largely ignored stages in the traditional entrepreneurial process (i.e. intrapreneurship and exit/failure events) should also be included in future analysis (Guerrero and Peña-Legazkue 2019 ; Guerrero and Espinoza-Benavides 2020 ).

Third, the diversity in contexts should be explored by considering the direct, indirect, mediation, and moderation role of the elements of the ecosystem. Researchers should also consider the time/space relation in the analysis of entrepreneurial ecosystems (i.e. the evolution of the ecosystem). Therefore, the interactive influence of both formal (regulations, programs) and informal (culture, perceptions, social norms) environmental conditions should be thoroughly explored in the transition from one entrepreneurial stage to another, as well as in terms of the type of economy (Eesley et al. 2018 ). Time plays a crucial role in the (re) configuration of entrepreneurial ecosystems in challenging or stimulating environments. Another research venue may be pointed out in how economic crises and natural disasters can bring deep and sudden changes in entrepreneurship. Moreover, our analysis likewise shows the lack of studies that explore the configuration and the effect of environmental conditions in the digital context (Nambisan et al. 2019 ).

Fourth, our findings are non-conclusive regarding government intervention via policies and programs for fostering technology throughout the entrepreneurial process. Therefore, it is necessary to seek the evaluation of the impacts of public technological policies that foster entrepreneurship across the globe (Guerrero and Urbano 2019b ). Our results also legitimise the decisive role of higher education entrepreneurial ecosystems, professional supports, and infrastructures in technology entrepreneurship. A detailed exploration is necessary into the public, private, and mixed sources of funds across the entrepreneurial process. On the finance side, there is a need to understand the real effects of taxes and labour market costs on the dynamic transition from one entrepreneurial stage to the next (Van Stel et al. 2019 ). In addition, the role of culture in each type of entrepreneurship is crucial for the understanding of the role of behaviour, values, and social norms across countries (Audretsch et al. 2019 ).

Fifth, the lack of studies on developing economies highlights the need for an in-depth analysis into contemporary phenomena, such as high-growth technological entrepreneurship (De Fuentes et al. 2020 ), technological return migrants (Crowley-Henry et al. 2018 ; Hofmann 2018 ), and graduate technological entrepreneurship (Wright et al. 2017 ; Guerrero and Urbano 2019a ). Despite our insights (Fig. 2 ), it is important to continue exploring how context affects (a) the prevalence of individuals and ventures in the initial or pre-profit stage; (b) new firms with profits for a couple of years; and (c) established new ventures with profits for a couple of years. This implies the analysis of the contextual conditions that influence the success/failure in the transition, the performance of the ventures, and the assessment of the orientation of the growth.

Sixth, future research should also include reports produced by multinational organisations (World Bank, Economic Forum, Global Entrepreneurship Monitor, Panel Study of Entrepreneurial Dynamics, European Commission, Inter-American Development Bank, OECD, among others) and research institutions (Kauffman Foundations, NESTA, Babson College, Global Entrepreneurship Institute, Max Planck Institute, among others) without ignoring the stakeholder approach (Barney and Harrison 2020 ). In this vein, it is crucial to analyse the influence of diversity in contextual conditions per entrepreneurial stage (see Appendix Table 6 ), as well as the specific drivers/barriers in the transition from one stage to the next one.

5.3 Implications for entrepreneurs and policymakers

Several implications also emerge from our aggregated findings (Fig. 2 ). For entrepreneurs in developed economies , our findings reveal that informal networks and ethical relationships with diverse agents from the entrepreneurial ecosystem reduce the entry barriers to the market and facilitate the transition towards the next entrepreneurial stage. Therefore, active participation in the ecosystem by each type of entrepreneur constitutes good practice for sustained evolution and for the entrepreneurs to become agents of change in society.

For entrepreneurs in developing economies , the findings suggest that informal collaborative and funding platforms promoted by entrepreneurs may present an excellent alternative to the reduction of the effects of institutional voids associated with R&D and funding sources. Consequently, these initiatives reinforce the entrepreneurial ecosystem but also produce a favourable effect on the performance of ventures and the implementation of innovative business models.

For policymakers , the findings underline the crucial role of funding across the entrepreneurial process. Successful public-private formulae implemented in developed economies could prove to be good practices in developing economies: in particular, regarding financial market regulations, bankruptcy regulations, and regulations of the venture or business angels’ networks. Moreover, in developing economies, policymakers should design strategies for the configuration and reinforcement of their entrepreneurial ecosystems based on their business structure, without imitating existing models (Audretsch 2019 ).

From an education perspective , the promotion of entrepreneurial competences and an entrepreneurial mind-set at the different levels of the education system (Nabi et al. 2018 ) are undoubtedly relevant for both innovative and non-innovative entrepreneurship. A further implication is associated with diversity in entrepreneurship and the efficient use of public resources, which encourage the various stages of the entrepreneurial process. In this case, an alternative is given by the co-creation process and commitment among the agents involved in the innovation and entrepreneurial ecosystems.

6 Conclusions

This paper analysed the environmental conditions that have influenced the entrepreneurial processes in both developed and developing economies. By reviewing the literature from 2000 to 2017, we conclude that the most favourable ecosystem conditions across the entrepreneurial process have been professional support, incubators/accelerators, networking with multiple agents, and R&D investments. As well, the less favourable ecosystem conditions across the entrepreneurial process have been the lack of funding sources, labour market conditions, and social norms.

Our paper contributes towards academic debates in the field: (a) the debate regarding the entrepreneurial process (Busenitz et al. 2014 ) and operational definitions of entrepreneurship (Iversen et al. 2007 ; Henrekson and Sanandaji 2019 ); (b) the discussion about which elements of entrepreneurial ecosystems are of significance per type of entrepreneurship (Acs et al. 2017 ; Audretsch 2019 ); (c) the analysis of the relationship between the diversity of entrepreneurship and context (Welter 2011 ; Welter et al. 2017 ; Karlsson et al. 2019 ); and (d) the relationship between entrepreneurship, environmental conditions, and economic development (Urbano et al. 2019 ). We hope that our study also inspires researchers to extend the analysis of the reasons why diversity is so crucial for entrepreneurship and societal development.

In this category, given the relevance of socio-demographic characteristics, we included a subcategory of self-employment and traditional entrepreneurship to distinguish owner demographic entrepreneurship (i.e. male and female, rural and urban, youth and senior, migrants and natives, social and profits, and others).

According to the Journal Citation Report (JCR) the most renowned journals in the entrepreneurship field are Journal of Business Venturing , Entrepreneurship Theory and Practice , International Small Business Journal , Journal of Small Business Management , Small Business Economics , and Entrepreneurship and Regional Development . This corroborates our decision to include in our dataset the relevant papers published in these academic journals.

We selected empirical papers as a mechanism of internal validity that the effect of environmental conditions was corroborated by doing a robust and tested empirical analysis. We only included one literature review (Miner et al. 2012 ) of empirical papers on the role of the university environment in the first stage of the entrepreneurial process to help us to understanding previous patterns. We did not include in this analysis reports produced by multi-national organisations to reduce the complexity of our analysis. However, this limitation opens a future research line for exploring the link between diversity in entrepreneurship and in contexts under the stakeholder/policymaker perspective.

An alternative way to study the transition of nascent towards new entrepreneurship could be tried by using the Panel Studies of Entrepreneurial Dynamics. For further details, visit http://www.psed.isr.umich.edu/psed/home

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The authors received financial support from the Spanish Ministry of Economy & Competitiveness (Ref.: ECO2016-75655-P).

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Maribel Guerrero

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Francisco Liñán & F. Rafael Cáceres-Carrasco

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Guerrero, M., Liñán, F. & Cáceres-Carrasco, F.R. The influence of ecosystems on the entrepreneurship process: a comparison across developed and developing economies. Small Bus Econ 57 , 1733–1759 (2021). https://doi.org/10.1007/s11187-020-00392-2

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1.1 Entrepreneurship Today

Learning objectives.

By the end of this section, you will be able to:

• Define entrepreneur and entrepreneurship
• Describe types of entrepreneurial careers and lifestyles
• Understand entrepreneurs as problem solvers
• Explain current factors driving the growth of entrepreneurship
• Compare differences in entrepreneurial opportunities around the globe

As we delve into the study of entrepreneurship, let’s define what we mean by the word entrepreneur . An entrepreneur is someone who identifies and acts on an idea or problem that no one else has identified or acted on. This combination of recognizing an opportunity to bring something new to the world and acting on that opportunity is what distinguishes an entrepreneur from a small business owner. A small business owner is someone who owns or starts a business that already has an existing model, such as a restaurant, whereas an entrepreneur is someone who creates something new. This new creation can be a new process or product, a business that identifies a new or unique target market, or a combination of ideas that creates a new approach or method, for example.

In a broader sense, what people consider an entrepreneur can vary. Some scholars strictly differentiate between entrepreneurs and small business owners. 5 Others acknowledge that a small business owner may also be an entrepreneur—they are not mutually exclusive. Someone may start a venture that is not a completely new idea, but that introduces a product or service to a new region or market. Where does a franchise fall in this discussion? Again, there is not complete agreement, with some claiming that a franchisee and entrepreneur cannot be the same, and others arguing that a franchise is, indeed, an entrepreneurial venture. According to an article in Forbes , “In the for-profit world, an entrepreneur is someone who creates and runs a new business where one did not exist before. And, no, the McDonald’s franchisee didn’t create McDonald’s. But he certainly created a McDonald’s where there never was one before. Franchisees are entrepreneurs.” 6 The point is that small business owners and franchisees can be considered entrepreneurs. For the purposes of this course, you will learn the key principles of entrepreneurship alongside the concepts, strategies, and tools needed to succeed as a small business owner or franchisee.

Entrepreneurs have many different talents and focus on a variety of different areas, taking advantage of many opportunities for entrepreneurial ventures. An entrepreneurial venture is the creation of any business, organization, project, or operation of interest that includes a level of risk in acting on an opportunity that has not previously been established. For some entrepreneurs, this could be a for-profit venture; for other entrepreneurs, this could be a venture focused on social needs and take the form of a nonprofit endeavor. Entrepreneurs might take a variety of approaches to their entrepreneurial venture, such as those shown in Table 1.1 .

In this course, you will explore these myriad avenues toward entrepreneurship.

Are You Ready?

How do you define success.

What is your personal definition of success? How would you define success for your venture idea? Take time to consider these questions carefully.

• Write your answers to both questions as formal descriptions of your definition of success.
• After completing your definitions, meet with your family members or your personal support group (the important people whose support you need to achieve the defined success statement) to discuss your personal definition of success.
• After hearing their input, you might want to revise your personal success statements.

Follow through with this activity by talking to your startup team or other supporting people about your venture’s success definition. This activity may help guide you in decision-making throughout your life journey and the journey of starting your venture. It will also be helpful when you and your startup team create a vision statement for your venture.

The Entrepreneurial Lifestyle and Career

People often have thought of entrepreneurs as corporate rebels, nonconformists, or activists. Being an entrepreneur has become synonymous with being an innovator, a change agent, or a risk taker. Regardless of job titles or descriptive characteristics, entrepreneurship has a universal appeal for how people think and engage with the world.

Choosing the path of entrepreneurship requires a willingness to take on calculated risks. The difference between risk and calculated risk is due diligence , or conducting the necessary research and investigation to make informed decisions that minimize risk. Not everyone is comfortable letting go of a steady paycheck, especially when we know that there is no long-term guarantee that the paycheck will continue into the future. In one approach to minimizing personal financial risk, some startup entrepreneurs continue with their current employment while working on the side to develop their idea into a venture that eventually will generate an income. Until the venture requires near full-time work and generates income, maintaining an outside income works well for many entrepreneurial teams.

Consider the eyeglass startup Warby Parker ( Figure 1.2 ). Dave Gilboa and Neil Blumenthal , lead entrepreneurs for Warby Parker, were still working their normal jobs when they approached an angel investor with their idea. The angel investor asked a few questions and wasn’t impressed. This investor believed that Gilboa and Blumenthal should demonstrate their solid commitment to the venture by quitting their day jobs to dedicate more time and energy to Warby Parker. Instead of following that advice, Gilboa and Blumenthal kept their day jobs while they continued to work toward building their venture, and Warby Parker eventually became highly successful. There are many paths to becoming an entrepreneur, and many paths to creating a successful venture (see Entrepreneurial Journey and Pathways ). It is important to identify the path that works best in your life—and for the venture—and that supports your goals and your unique situation and visions.

Within the entrepreneurial world, the idea of a lifestyle venture has evolved to mean a business in which the founders’ primary focus is the lifestyle they will attain through becoming entrepreneurs, rather than a primary interest in financial rewards through the selling of the business. Within the entrepreneurial world, harvesting is the typical exit strategy. The harvest is the point at which the investors and entrepreneurial team receive their return on creating and building the venture.

For a lifestyle venture, the entrepreneur is more likely to be a solo entrepreneur, someone who moves forward in starting a new venture without the support of a team or group of likeminded individuals who recognize the value or potential of an entrepreneurial idea that could potentially result in significant returns. A lifestyle venture is also more likely to be funded through family and friends, and more traditional methods such as a bank loan or a small business loan. This lifestyle includes greater freedom to decide areas of responsibilities, hours of contribution to the venture, and other decisions that support the desired lifestyle. An example of a startup lifestyle venture is The Wander Girls , a company that identified the unique concerns of women traveling alone. 7 The Wander Girls organizes trips and events for groups of women traveling in India. A team member organizes the trip, travels with the female tourists, and handles daily interactions and transactions.

Another example of a lifestyle venture is based on how an entrepreneur aligns values, interests, and passions to create a balance between enjoying life and earning enough money to support those passions. Roxanne Quimby had a passion for living off the grid, creating her own life in the woods of Maine, and not being restricted by the rules and regulations required when working as an employee. After becoming a parent, Quimby faced the challenges presented by her lifestyle choices and started making candles to earn enough money to support her family. Eventually, Quimby’s lifestyle candle-making business expanded into the highly successful Burt’s Bees Corporation , moving her lifestyle business into a career as the CEO of Burt’s Bees ( Figure 1.3 ). After selling Burt’s Bees to Clorox Co. , Quimby continued her passion for the north woods of Maine by donating land and money to create a wildlife sanctuary and preserve that land from development.

Quimby’s latest endeavors include creating a pasta company, My Pasta Art , focused on increasing employment opportunities for people in northern Maine, 8 and building the tourist industry to encourage people to enjoy the region’s beautiful habitat and scenery. Although she is highly successful from a financial perspective, money was never the motivation for her ventures. As you can see, there are many paths to finding your career in entrepreneurship, and multiple trigger points at which you might make the decision to become an entrepreneur.

What Can You Do?

How can you put your strengths to work.

Create a list of ten strengths that you currently possess. If you need help creating your list, ask your friends or family what they believe you are good at doing. Think about what achievements you have accomplished, what compliments you have received, and what people say about you. The answers to these questions will help you identify your strengths.

• Create a list of ideas that build off your strengths or are related to your strengths.
• Then analyze this list to create another list of possible businesses that you could start that relate to your strengths.

The Entrepreneur as a Problem Solver

What are some challenges you face in your life? Have you ever actively thought about how you could solve those problems? Or have you actively identified exactly what the problem is from an analytical perspective? We often have a tendency to jump quickly from noticing a problem to selecting a solution, with little understanding of whether we have even correctly identified the problem. Identifying the problem—and testing the potential, novelty, and feasibility of your solution—is an important part of resolving the problem. Often, when we start to explore the problem, we find that it has multiple causes. Among them are:

• The need for something to be better, faster, or easier
• The effects of changes in world on your industry, product, or service
• Market trends based on geography, demographics, or the psychology of the customers

You will learn more about identifying opportunities in Identifying Entrepreneurial Opportunity and Problem Solving and Need Recognition Techniques .

One characteristic of a savvy entrepreneur is recognizing the ability to identify a problem from an opportunity-identification perspective. We might identify feeling hungry as a problem, but an entrepreneur would identify the problem using an opportunity-identifying perspective by determining how the problem could be translated into an opportunity to create a new venture—perhaps combining the problem of feeling hungry between meals into a street kiosk or a vending machine with food choices or creating a new snack that is nutritious, satisfying, and portable. People need to eat, and they get hungry, but during a busy day with no open time or convenient food, people end up hungry. Rephrasing the problem, or need, from an opportunity viewpoint opens the search for a sustainable solution beyond the simple awareness of feeling hungry. We might solve this problem by opening a snack bar with offerings that contain essential vitamins and proteins, and is easy to transport with a long shelf life. Understanding the problem from the perspective of how to solve it for one person into how to solve it for multiple people rephrases the problem into an opportunity-identification perspective.

You might also have an interest in solving food-related problems on a larger scale. People trapped in a war-torn region may not be able to leave the safety of their shelters to find food, grow food, or barter for food, or they may not have the money to buy food. How could you reach your target market within a war-torn area? Red Cross emergency response vehicles traveled 2.5 million miles to deliver food, relief supplies, and support to communities affected by disasters during 2017. 9 That’s the equivalent of driving around the globe 103 times. Could your idea of creating a snack bar fit into a partnership with the Red Cross?

Although this might seem like a simple problem with a simple solution, persevering from the recognition of a problem to finding a realistic solution, then moving that solution forward into a successful venture, requires an entrepreneurial mindset. Every day, people become entrepreneurs as they identify and solve problems, or face new challenges or frustrations, and resolve them in creating products or services to address these issues.

Recognizing Problems

In your daily life, what problems do you encounter? What would make your life easier? How would you finish this sentence: “If only ________ existed, my life would be better or easier”? To spur your creativity, you might research global problems to find an area that interests you, that sparks your passion for living a fulfilling life. When identifying a problem, consider process-related problems as well as service-related problems.

For more ideas like Chloe Huang ’s, visit the UNESCO Global Action Programme on Education for Sustainable Development (https://en.unesco.org/gap) and review other submissions that may activate your own creativity in thinking about how you want to contribute your skills and knowledge to improve our world.

• What problem have you identified?
• What can you do to resolve that problem?

Factors Driving the Growth of Entrepreneurship

Do you know anyone who has lost their job? Or who has been rejected or mistreated at work? Or had their income reduced, or benefits removed? Research shows that 47 percent of all US employment is at risk through artificial intelligence and other technologies, although there will also be new opportunities for jobs that currently don’t exist. 10 These types of experiences and outlooks have provided the impetus for many people to start their own businesses. When we work for someone else, we are at the mercy of their decisions and actions, but we get paid and don’t carry the full risk of their decisions. When we work for ourselves, we get to make the decisions (not that making decisions is easy). But when we have our own business, we have greater control—in exchange, we also carry the risk for all decisions we make. This control over decision-making is one reason that some people find the world of entrepreneurship attractive.

Another contributing factor to the desire to become an entrepreneur is the excitement and fun of creating something new. Many entrepreneurs are excited at the idea of moving the concept through to the materialization of the idea.

A third factor that supports the growth in entrepreneurship is the combination of retirement and longer life expectancies. Many people enjoy working. For them, retirement consists of too much open time and not enough activities or the type of engagement with the outside world that fulfilled their needs during their working lives. Retirement also presents unique financial considerations, depending on an individual’s lifetime savings and planning. The combination of having available time and a desire for continued earnings encourages some older adults to explore their own entrepreneurial opportunities.

A fourth factor driving the growth of entrepreneurship is the expanding awareness and support of entrepreneurship as a viable career choice. In much of the twentieth century, families encouraged their children to find a stable career with a large corporation. During this era, there was a certain expectation of reciprocal loyalty between the employer and the employee based on some traditional employee-employer roles in that century. The general, informal agreement was that if employees came to work every day and fulfilled their responsibilities, they would have long-term employment with that corporation. But as competition increased and new business practices evolved, this unspoken guarantee no longer held true. The model of certainty of employment gradually disappeared. As people acquired a new perspective on their careers and income, they increasingly realized that we are all responsible for our own paths. Most studies suggest that people change their careers between three and seven times. 11 Note that this is not how often people change jobs, but how often they change their careers, moving from one industry to another, or moving from one type of work to a different type of work. The older model of stability through working hard for someone else has vanished. This awareness and acceptance have encouraged recent generations to consider creating their own futures through entrepreneurial ventures.

Just as individuals have become aware of the benefits of entrepreneurship, communities and organizations have also become aware of how entrepreneurial ventures add economic development and enhancements worth supporting, bolstering opportunities for those who decide on this path.

Entrepreneurship around the Globe

In the United States, entrepreneurial opportunities abound, relatively speaking. Between 1990 and 2014, the number of campus-based entrepreneurship education programs increased from 180 to over 2,000. 12 Comparing globally, the United States has the greatest number of entrepreneurial ventures, with Switzerland, Canada, Sweden, Denmark, and Australia following in order, according to Global Entrepreneurship Index , a global consulting firm ( Figure 1.4 ).

Why is the United States leading with the greatest number of entrepreneurial ventures? What does it take to become an entrepreneur? In addition to having an entrepreneurial mindset (see The Entrepreneurial Mindset ), entrepreneurs also need education and funding to support their new ventures.

You will learn more about funding in Entrepreneurial Finance and Accounting , but as an introduction, you should know there are three primary sources of outside funding: family and friends, angel investors, and venture capitalists. Some family members and friends are willing and able to invest money in helping the entrepreneurial team. An angel investor is someone who has available funds and an interest in supporting a new venture. They are often entrepreneurs who have successfully launched and harvested their own ventures, and who have an interest in helping other entrepreneurs in their startups, staying active in the entrepreneurial world, and a desire to receive a return on their investment in the venture. Angel investors often provide funding early in the life of a venture. As the venture grows, it typically requires more funding, at which time venture capitalists may invest in the venture. A venture capitalist (VC) is a group of people (or organizations) who pool resources to invest in entrepreneurial ventures, contributing larger sums of funds than are available through angel investors. In each funding round, investors receive an equity stake in the venture with expectations that at some point in the future, the venture will be sold, or harvested, at which time the investors will receive a return on their investment. Because they tend to be in larger groups, VCs typically have access to larger amounts of money and resources than individual angel investors. (You will also learn about other types of financing, such as bank loans and bootstrapping, in Entrepreneurial Finance and Accounting .)

In the United States, VCs contributed $72.3 billion in 2015 for 3,916 deals, or funding rounds. In China that same year, $49.2 billion were invested in 1,611 ventures. 13 European VC investment totaled $14.4 billion and 1,598 deals. Tracking these numbers over time shows steady increases in VC funding as entrepreneurial ventures have become more common ( Figure 1.5 ).

Other factors that can affect entrepreneurial opportunity include employment rates, government policies, and trade issues. For example, in the Middle Eastern kingdom of Saudi Arabia, a newer driver of entrepreneurship includes a high unemployment rate with a large percentage of the population in its prime earning years. In the past, employment was less of a concern because of dependency on state support from oil revenue. The population received monthly allotments to cover expenses from state-owned oil production. More recently, the population has become restless, with a desire to become productive and have greater control over their own resources. And the rulers recognize that oil production income is volatile and unsustainable. Today, with more future-oriented leaders, countries in the Middle East desire to encourage their citizens to consider starting their own businesses. 14 The example of entrepreneurship in the United States has spread around the globe, with other countries taking an interest in developing support systems to encourage their populations to become entrepreneurs.

As noted, the United States is a world leader in entrepreneurial innovation. Perhaps because the United States is, in large part, a nation of immigrants, with people arriving from all over the world, Americans have few prescribed traditions that encourage conformity. America’s longstanding traditions and reputation for individualism, ingenuity, and self-reliance have reinforced this mindset. However, the governments of other nations have discouraged their citizens from independent or innovative thinking. Some cultures emphasize political, cultural, and economic unity, and place a strong value on not being noticed, blending in, and following prescribed habits and traditions. Countries like Japan, France, Russia, China, and others continue to reflect these norms. Other countries have complex bureaucracies that prevent quick responses and place barriers to entrepreneurial activities. Parts of worldwide economic structures (banking, investments, and technology) are not accessible or even explicitly exclude some nations and the poor. Systems like this discourage people from coming forward with entrepreneurial ideas because the culture and bureaucracy prevent people from finding access to information necessary for the successful advancement of an idea. In contrast, other countries are noticing the benefits of encouraging their populations to become more open-minded and creative through new ventures.

Link to Learning

Transparency International is an organization that tracks corruption, which can be an inhibitor to entrepreneurship. The Transparency International website provides information to rank 180 countries in identifying the abuse of entrusted power for private gain. 15

Key characteristics that encourage entrepreneurship include support for freedom to create and innovate. What conditions encourage creativity and innovation? Acceptance of failure is a key characteristic for success as an entrepreneur. Many of the great inventions in the United States resulted after dozens of failures, as when Thomas Edison eventually developed a working light bulb. Edison identified a problem: Once the sun set, working hours were restricted, as were daily activities such as reading a book or washing dishes. Edison, along with many other inventors, recognized the need for an artificial light source. Consider how complex this idea was and how many failures must have occurred before creating a product that emitted light.

Another condition that encourages entrepreneurial behavior is the ability and opportunity to connect with other people to discuss ideas, problems, challenges, and solutions. This connection with other people, in an open environment that supports the exchange of ideas, is essential for encouraging creativity and innovation.

With the advent of the Internet, people around the planet are becoming increasingly aware of geopolitical and environmental situations across the globe. As more people observe these changes and situations, more people exchange ideas. These discussions can generate new opportunities for people to discover methods for solving problems. Any one of us could be living in one country but identifying a problem in another country. Given our interests and backgrounds, we could actively choose to develop a solution for that problem. What we need, as a general approach, is an efficient and transparent way to form companies and enable constructive competition, along with continued free and fair trade.

These are just some of the areas that many nations and organizations consider as they seek to encourage a transition away from group-prescribed thinking toward uniquely individual entrepreneurial ideas. Each of us encounters life from a different perspective. Although we all might recognize the restrictions presented by the sun setting every night, only a few people might question why we couldn’t change that situation by creating our own light. Similarly, someone in another country may observe our country (or vice versa) and ask why that country has a particular problem. Meanwhile, people living with that problem may have become so accustomed to it that they might not recognize the opportunity to seek solutions.

Increasing opportunities in entrepreneurial education are also driving growth. More colleges and universities are teaching entrepreneurial studies and opening entrepreneurial centers that encourage students from every discipline to become entrepreneurs. 16 , 17 As the employment and entrepreneurial landscape continue to evolve, some institutions have started offering courses to prepare students for work in the gig economy. 18 In fact, some of the best new entrepreneurial ideas come from groups of students in different majors who collaborate to create new, innovative business ideas that meet specific needs and challenges in today’s world. In some cases, students from different universities around the globe are connecting to come up with business ideas to solve global problems, such as the lack of clean drinking water and the need for medical vaccination programs. Technology and global travel have made such partnerships more common and very productive.

The world of entrepreneurship opens doors for each of us to look beyond our own self-created barriers and explore opportunities around the world. Consider the creation of Starbucks , borne from the realization of how pleasant it can be to sit at a European café and drink excellent coffee. Awareness of an idea that is commonplace in one country, but new to a different country, presents the possibility of introducing that idea to another nation. In the Starbucks example, was there a problem that needed to be solved? Not necessarily, but the founder, Howard Schultz , had a desire to bring a specific quality-of-life element from one country to another, a business idea with an entrepreneurial aspect. One of the entrepreneurial aspects of creating Starbucks was the idea of mass expansion of coffee shops. Prior to Starbucks, the idea of creating a high-quality coffee drink hadn’t been developed. Even more significant was the idea of expanding the business across the United States and then around the world.

Given the growth of coffee shops throughout the United States, we might not think that this idea is innovative, but before Starbucks, coffee typically was served at a diner, and it was served out of habit, rather than as the main attraction. With Starbucks, people changed their ideas about coffee and their coffee-drinking habits. Although businesses like Dunkin’ Donuts served coffee, their focus was on selling donuts, not coffee. As Starbucks grew through repositioning coffee as their main product, other companies like Dunkin’ Donuts and McDonalds realized the missed opportunity in not reinventing the coffee market with multiple choices of high-quality coffee. In fact, Dunkin’ Donuts has changed its name to just “ Dunkin ,” removing the emphasis on doughnuts. 19

Social and Environmental Issues and Opportunities

A social entrepreneur has an interest in solving a social, environmental, or economic problem. A social entrepreneur identifies a problem with a social or community focus, a concern for quality of life, or concern for our entire planet’s health (you will learn more about social entrepreneurship in The Ethical and Social Responsibilities of Entrepreneurs ). One such person is Angad Daryani , a young serial inventor. Daryani left school in the ninth grade to join the Media Lab at the Massachusetts Institute of Technology (MIT), where he worked on an industrial-scale air filter to clean pollutants and carcinogens out of our planet’s air. Daryani’s home country of India is the world’s third largest emitter of carbon dioxide, according to Global Carbon Atlas, behind China and the United States ( Figure 1.6 ). 20

Social Entrepreneurship

Consider a social issue that you might feel compelled to take on as a passion project. Some social issues include childhood hunger, access to clean water, access to education, or opioid abuse. Watch Johann Hari’s Ted Talk on addiction to learn more.

• Do you have any ideas for creating an entrepreneurial venture around the idea of building quality relationships and communities?
• How would you balance a passion project with an entrepreneurial purpose?

Not only is Daryani interested in solutions for air pollution, but his product will also provide financial gains and add to his personal credibility as a serial entrepreneur , or someone who starts and harvests multiple entrepreneurial ventures. Darvani describes himself as an inventor and social entrepreneur, combining his interest in improving lives through a variety of entrepreneurial ventures including products like Sharkits (a do-it-yourself-kit company that teaches children how to build technology), the SharkBot 3D Printer (an attractive, low-cost, and reliable 3D printer), and several other projects that combine technology and human needs. As each of these products advances to commercialization, the products and technology are becoming more applicable for other uses as well. For more examples of projects that Darvani is working on, take a look at his website (http://www.angadmakes.com), which includes videos and articles, and highlights the international recognition he has received for his innovative work.

Entrepreneur In Action

Angad daryani.

Research Angad Daryani and his technology to remove air pollution (https://www.cnn.com/2018/03/28/health/angad-daryani-tomorrows-hero/index.html).

• What other products could this technology or methodology be used for, besides the originally intended application of improving air quality?
• What critical decisions would you anticipate that Angad will face in creating and commercializing his product?
• How would you define success for Angad or this air-cleaning company?
• 5 Hamid Bouchikhi. “A Constructivist Framework for Understanding Entrepreneurship Performance.” Organization Studies . July 1, 1993. doi.org/10.1177/017084069301400405; William D. Bygrave and Charles W. Hofer. “Theorizing about Entrepreneurship.” Entrepreneurship Theory and Practice 16, no. 2 (1991): 13–22.; Michael A. Hitt, R. Duane Ireland, S. Michael Camp, and Donald L. Sexton. Strategic Entrepreneurship: Creating a New Mindset . (Hoboken, NJ: Wiley-Blackwell, 2002).; Jeffry A. Timmons. New Venture Creation: Entrepreneurship for the 21st Century . (Irwin Press, Burr Ridge, IL: Irwin Press, 1994).
• 6 Paul B. Brown. “Franchisees Are Entrepreneurs (Let the Debate Begin).” Forbes . September 19, 2012. https://www.forbes.com/sites/actiontrumpseverything/2012/09/19/franchisees-are-entrepreneurs-let-the-debate-begin/#55c9fb8f2bf3
• 7 The Wander Girls. n.d. http://thewandergirls.com/
• 8 Mary Pols. “Making Pasta’s the New Focus for Roxanne Quimby.” Portland Press Herald . August 13, 2017.
• 9 American Red Cross. “2017 in Review: Red Cross Delivers More Food, Relief Items, and Shelter Stays Than Last 4 Years Combined.” December 18, 2017. https://www.redcross.org/local/georgia/about-us/news-and-events/news/2017-in-Review-Red-Cross-Delivers-More-Food-Relief-Items-and-Shelter-Stays-than-Last-4-Years-Combined.html
• 10 Carl Benedikt Frey and Michael A. Osborne. “The Future of Employment: How Susceptible Are Jobs to Computerization?” Technological Forecasting and Social Change 114 (2013): 254–280. https://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf
• 11 Dawn Rosenberg McKay. “How Often Do People Change Careers?” The Balance . September 20, 2019. https://www.thebalancecareers.com/how-often-do-people-change-careers-3969407
• 12 Infographic.ly Team. “Infograpic: The Growth of Entrepreneurship around the Globe.” Entrepreneur Middle East . January 26, 2017. https://www.entrepreneur.com/article/288286
• 13 Infographic.ly Team. “Infographic: The Growth of Entrepreneurship around the Globe.” Entrepreneur Middle East . January 26, 2017. https://www.entrepreneur.com/article/288286
• 14 Infographic.ly Team. “Infographic: The Growth of Entrepreneurship around the Globe.” Entrepreneur Middle East . January 26, 2017. https://www.entrepreneur.com/article/288286
• 15 Transparency International. n.d. www.transparency.org
• 16 National Survey of Entrepreneurship Education. n.d. www.nationalsurvey.org
• 17 “The Princeton Review & Entrepreneur Name the Top Undergraduate & Graduate Schools for Entrepreneurship Studies for 2020.” Cision PR Network. November 12, 2019. https://www.prnewswire.com/news-releases/the-princeton-review--entrepreneur-name-the-top-undergraduate--graduate-schools-for-entrepreneurship-studies-for-2020-300955876.html
• 18 Diane Mulcahy. “Universities Should Be Preparing Students for the Gig Economy.” Harvard Business Review . October 3, 2019. https://hbr.org/2019/10/universities-should-be-preparing-students-for-the-gig-economy
• 19 Kate Taylor. “Dunkin’ Donuts Is Officially Dropping the ‘Donuts’ from Its Name Despite Earlier Backlash.” Business Insider . September 25, 2018. https://www.businessinsider.com/dunkin-donuts-changes-name-no-donuts-2018-9
• 20 “Fossil Fuel Emissions.” Global Carbon Atlas. 2017. http://www.globalcarbonatlas.org/en/CO2-emissions

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Essay on Entrepreneurship: Top 9 Essays | Business Management

Here is a compilation of essays on ‘Entrepreneurship’ for class 11 and 12. Find paragraphs, long and short essays on ‘Entrepreneurship’ especially written for school and college students.

Essay on Entrepreneurship

Essay Contents:

• Essay on the Benefits of Entrepreneurship

Essay # 1. Introduction to Entrepreneurship:

Entrepreneurship is the name given to the factor of production which performs the functions of Enterprise. In economics, Land, Labour, Capital, Organisation and Enterprise are the five factors which are thought to be the basis of all the production activities.

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Entrepreneurship in a broader sense can be considered as a process of action undertaken by an entrepreneur (Person) to establish his enterprise. It is a creative and innovative response to the environment.

Entrepreneurship can be described as a creative and innovative response to the environment. Such responses may take place in any field of social endeavour may be business, agriculture, social work and education etc.

For the entrepreneur it is important to have knowledge about the economic and political environment, more particularly about the economic policies of the government and the financial as well as commercial institutions.

Thus a simple definition of entrepreneurship is doing new things or doing things which are already being done in a new way.

According to Dr. J.E. Stepenek, “Entrepreneurship” is the capacity to take risk; ability to organise and desire to diversify and make innovations in the enterprise.

According to Higgins, Entrepreneurship is meant for the function of seeing investment and production opportunity, organising in enterprise to undertake a new production process, raising capital, hiring labour, arranging the supply of raw materials, finding site, introducing new techniques and commodities, discovering new sources of raw materials and selecting top managers for day to day operation of the enterprise.

It may be concluded that entrepreneurship is a composite skill, the resultant of many qualities and traits. These include, imagination ready to take risk, ability to bring together and utilize other factors of production such as capital, land and labour along with intangible factors such as capability to mobilise scientific and technological developments.

Entrepreneurship thus involves taking risk and making essential investments under conditions of uncertainty. At the same time it is connected with innovation, planning and taking decisions so as to increase productivity in industry, business and agriculture etc. It thus plays a key role in the process of economic development.

Essay # 2. Definition of Entrepreneurship:

Entrepreneurship is a pro­cess of action an entrepreneur undertakes to establish his enter­prise. Entrepreneurship is a re­sultant mix of many qualities and traits of an entrepreneur.

Entrepreneurship can be de­fined as a process undertaken by entrepreneur to augment his business interests. It is an exer­cise involving innovation and creativity that will go towards establishing his/her enterprise.

Entrepreneurship is the inclination of mind to take calculated risks with confidence to achieve a predetermined business or industrial objectives.

Essay # 3. Growth and Success of Entrepreneurship :

Entrepreneurship has opened avenues of great scope in the Indian economy. Our national economy is most suited to the growth of small business enterprise. Small business units offer a more convenient means of nurturing and developing entrepreneurship by providing the means of entry into business for new entrepreneurship talents. Small-scale industries are labour-in­tensive and can play an important role in solving the problem of unemployment.

Success of Entrepreneurship :

Following aspects are necessary for the successful entrepreneurship:

1. Regular inflow of information related to buyers, consumers, distributors, dealers, retailers, transporters etc., about raw material, quality aspects, government organisations, employees and competitors.

2. Satisfying the needs of customers.

3. Generation of adequate cash flow.

4. Regular objective assessment of the enterprise.

5. Improving productivity.

6. Maintenance of quality.

7. Use of technology of the time.

8. Be innovative.

9. Keep employees motivated.

10. Scrap or waste material be utilised properly.

11. Time management.

Essay # 4. Entrepreneurial v/s Managerial Styles :

An entrepreneur is a person who is motivated to satisfy a high need for achievement in innovative and creative activities. This creative behaviour and innovative spirit forms a process of an endless chain and is termed as entrepreneurship. An entrepreneur is also required to manage his business. He has to perform both entrepreneurial and managerial func­tions. After the start of the business he becomes more as manager.

Manager is one who specialises in the work of planning, organising, leading and controlling the efforts of others. He does it through systematic use of his classified knowledge and principles. He should have an insight of job requirement, which he should continuously update.

An entrepreneur must adopt the style of professional management. He must organise mana­gerial functions by setting long term objectives, formulating strategic policies, developing man­agement information system, monitoring and evaluation systems. He is required to possess management knowledge related to technical, economical, financial, human and administrative aspects.

There is a vast difference between owner-manager and professional-manager. The owner- manager is identified with individuality, flair, strong motivation to achieve success and pros­per, while the professional-manager is concerned with the planning, organising, motivating and controlling. Owner-manager builds the organisation, assumes all business risks, and also loses his reputation and prestige in the event of failure of business, whereas professional-manager is not exposed to such risks.

Thus entrepreneurship is a process of combining resources to produce new goods or services and reappears to initiate another change. Entrepreneurs are also required to play other roles, especially those of capitalist and manager. Managerial function of an entrepreneur is a continu­ous process of combining the factors related to production.

Essay # 5. Entrepreneurial Development :

For the economic development, entrepreneurial development is necessary. For the purpose of entrepreneurial development, rapid growth of small scale sector is necessary. Entrepreneur­ial development programmes are designed to help a person in strengthening his entrepreneur­ial motive and in acquiring skills and capabilities necessary for playing his role effectively.

Main objective of the entrepreneurial development programme is to motivate and assist pro­spective and potential entrepreneurs to set up small scale units of their own and thus become self-employed and contribute significantly to production and employment in the country.

Entrepreneurial development programme must be designed properly and should incorpo­rate the following:

(i) Developing, achievement, motivation and sharpening entrepreneurial traits and behaviour.

(ii) Project planning and development, and guidance on industrial opportunities, incen­tives and facilities, rules and regulations.

(iii) Developing managerial and operational capabilities.

Keeping the target group and target area in view various strategies and approaches are adopted. The process of entrepreneurial development is designed very carefully and starts from identifying the potential and right candidates, linking suitable project with each one, and then training and developing the managerial and entrepreneurial capabilities, counseling and motivating them, and then providing the required follow-up support to help them in establishing their venture.

Objectives :

Objectives of entrepreneurial development programme are to help to:

(i) Develop and strengthen their entrepreneurial quality.

(ii) Analyse environment related to small business and small industry.

(iii) Select product and its project.

(iv) Formulate projects.

(v) Understand the procedure for setting up of small enterprise.

(vi) Support needed for launching the enterprise.

(vii) Acquire basic management skills.

(viii) Appreciate the social responsibilities.

(ix) Let him set the objectives of his business.

(x) Prepare him to accept risks.

(xi) Take strategic decisions.

(xii) Develop communicating skills.

Training for Entrepreneur :

Proper training is essential for the success of any industry in production techniques, man­agement, marketing and other aspects.

Small Industries Service Institutes and their Extension Centres are organising trainings:

(i) To improve technical skills of workers,

(ii) For acquainting the entrepreneurs with advanced production and management techniques.

The courses for workers are organised in the following areas:

(a) Shop practice courses such as machine shop practice, tool room practice, foundry, blacksmithy, electrical shop practice etc.

(b) Trade oriented courses, such as tool making, fitter, sheet metal, pattern making, carpentry etc.

(c) Process oriented courses, such as welding, heat treatment, electroplating, leather works etc.

(d) Product oriented courses, sport goods, foot wear, paint, varnish making etc.

Training programmes for entrepreneurs are of two types namely:

(i) For graduate and di­ploma holder engineers, physics and chemistry graduates and

(ii) For rural artisans, educated unemployed, ex-servicemen, weaker sections of the society, women entrepreneurs etc. with special courses for each of the categories of persons.

For providing training and upgradation of technology and managerial skills, specialised institutions have been set up.

For conducting entrepreneurship development programmes, the lead was given by Small Industries Development Organisation through its small industries service centres. Entrepreneurship Development Institute of India (EDII) was established in 1983 at Ahmedabad as a resource organisation at the national level for the purpose of creating the institutional infra­structure for entrepreneurship development.

National Institute for Entrepreneurship and Small Business Development (NIES BHD) was established by the central Government at New Delhi, with the objective of coordinating activities related to entrepreneurship and small business development.

In addition, institutions established by the Government are:

(i) Rural Entrepreneurship Development Institute (RED) at Ranchi.

(ii) Rural Management and Management Centres (RMEDC) at Maharashtra.

Other organisational actively conducting entrepreneurship development programmes are:

(i) State Bank of India

(iii) Centre for Entrepreneurship Development at Ahmedabad and Hubli.

(iv) State financial corporations.

(v) Industrial consultancy organisations in various states.

(vi) Small Industries Extension Training Institute, Hyderabad.

(vii) Institute of Entrepreneurship Development (IEDs) in Uttar Pradesh, Bihar and Orissa.

(viii) Management Development Institute (MDI) at Gurgaon (Haryana) near Delhi.

Some of the other institutions for entrepreneurial development are:

1. Central Institute of Tool Design, Hyderabad.

2. Central Tool Room and Training Centre, Calcutta.

3. NI SIET, Guwahati.

4. Institute for Design of Electrical Measuring Instruments, Bombay.

5. Electronic Service and Training Centre, Ramnagar.

6. Process-cum-Product Development Centre for Glass and Ceramic Industry, Ranchi.

7. Process and Product Development Centre, Agra.

8. Process and Product Development Centre, Meerut.

9. Central Institute of Hand Tools, Jalandhar.

10. Hand Tool Design Development and Training Centre, Nagpur.

11. New Indo-Danish Tool Rooms, Jamshedpur and Bhubaneswar.

12. Ino-German Tool Rooms-Indore, Ahmedabad and Aurangabad.

13. National Institute for Entrepreneurship & Small Business Development, New Delhi.

14. National Institute of Design, Ahmedabad.

15. Centre for the Improvement of Glass Industry, Firozabad.

16. National Council for Cement and Building Materials, Delhi, Ballabgarh, Hyderabad, Patna and Madras.

17. Indian Plywood Industries Research Institute, Bangalore.

18. Central Pulp and Paper Research Institute, Saharanpur.

19. National Federation of Industrial Cooperatives Limited, New Delhi.

20. Central Machine Tool Institute, Bangalore.

Essay # 6. Beliefs Regarding Entrepreneurship:

According to literature there are many myths about entrepreneurship:

But myths and realities about its are different as follows:

1. Myth about entrepreneurs is that they are born not made but “reality” is that entrepreneur characteristics and traits may be acquired through properly structured learning.

2. Myth regarding entrepreneurs is that all required is money but generally it is observed that excessive and surplus money reduces the risk taking opportunities, scarce for care resources and grasp for opportunities.

3. Myth regarding entrepreneurship is that it is profile of traits and characteristics but practically it is a combination of situational issues.

4. Myth about entrepreneurs is doer not thinkers whereas the reality is that frequent thinking in planning, creativity, innovation and risk taking is required.

5. As per myth “Business schools have no place in entrepreneurship” but in actual practice most of the successful entrepreneurs have come from engineering courses and business schools.

Essay # 7. Financing of Enterprise :

Finance is the main input of any enterprise. The entrepreneur needs capital to start with, and he also needs financial assistance at every stage of the project. Project finance is required for both short term and long term.

(a) Short-term Finance:

These usually refer to the funds required for a period of less than one year. These are usually required to meet variable, seasonal or temporary working capital requirements. Main sources for short term finance are borrowing from banks, trade credit, installment credit and customer advances.

(b) Medium-term Finance:

Period of one year to five years are regarded as a medium- term. These are generally required for permanent working capital, small expansions, replace­ments, modifications etc. These can be raised by issue of shares and debentures, borrowing from banks and other financial institutions, ploughing back of profits.

(c) Long-term Finance:

Periods more than 5 years are regarded as long-terms. These are required for procuring fixed assets, for substantial expansion, modernisation etc. Important sources of long-term finance are issue of shares and debentures, loans from financial institu­tions and ploughing back of profits.

Sources of Finance :

The sources from which the entrepreneurs can meet their financial needs for their projects are grouped as:

(a) Internal source, and

(b) External source.

In addition, the entrepreneur raises his finance by availing of available subsidies, state aid to industries etc. A judicious mix of funds from these sources should be given priority.

(a) Internal Sources of Finance:

(i) Personal and family savings.

(ii) Loans from L.I.C. and Provident Fund Account.

(iii) Loans against assets like land and property.

(iv) Loans against shares and debentures.

(v) Loans from relatives and friends.

(b) External Sources:

Substantial amount is required by an enterprise to buy machinery and equipment and to purchase land and buildings.

These finances are generally arranged from following sources:

(i) Borrowing from Banks.

(ii) Term-lending from institutions like IDBI; IFCI, Industrial Development Corpora­tions etc.

(iii) From Government and Semi-Government agencies.

(iv) Other sources.

Institutional Finance :

Institutional finance is available for large, medium, small and tiny industries by commer­cial banks. Commercial banks include the State Bank of India group, nationalised banks, pri­vate sector banks and development corporations which have been especially established to pro­vide industrial finance.

In addition, the Reserve Bank of India gives credit guarantees and the ECGC gives export guarantees to the small-scale sector. Industrial Development Bank of India (IDBI), by its refinance operations, plays a significant role in the promotion of the small scale- sector. The National Small Industries Corporation (NSIC) offers financial assistance in the form of its hire-purchase schemes.

Besides, new institutions like mutual funds, lease companies, financial service institutions, investment companies, merchant banks etc. provide financial assistance and financial services to industries.

Essay # 8. Factors Essential for Successful Entrepreneurship:

The following aspects/factors are essential for successful entrepreneurship:

1. Regular inflow of information concerning consumers or buyers, distributors and dealers/retailers, transporters, etc., about raw materials, quality aspects, competitors, government organization and employees.

2. Aspects regarding satisfaction of consumer requirements.

5. Aspects concerning productivity improvement.

6. Quality maintenance.

7. Utilization of upto date technology.

8. To be innovative in view of competition.

10. Proper utilization of scrap or waste material.

11. Proper time management.

Essay # 9. Benefits of Entrepreneurship :

Entrepreneurship has following three benefits for society:

1. Economic Growth:

These provide economic upliftment of society and generate labour employment.

2. Productivity Improvement:

It helped in improving the productivity, which means the ability to produce more goods and services with less labour and other inputs.

3. New technologies, products and services:

It helps in promoting innovative tech­nologies, products and services.

Related Articles:

• Essay on Entrepreneurship | Management
• Essay on Entrepreneur: Top 8 Essays | Business Management
• Entrepreneurship: Compilation of Essays on Entrepreneurship
• 3 Special Challenges of Entrepreneurship | Business

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Essay on Entrepreneurship in the Global Environment

Basing on Stokes, Wilson and Mador (2010), and Deakings and Freel (2009), Entrepreneurship as the process of organizing the production of goods and services to meet the constantly renewed demand and receive profit, as well as a function of managing this process factually represents the force of creative destruction that acts in the market and in production creating at the same time new products and business models. In this regard we find the most appropriate American economist Joseph Schumpeter’s definition of an entrepreneur as a person who is trying to turn a new idea or invention into a successful innovation (Zimmerer and Scarborough, 2005). Indeed, a good barometer of the entrepreneurial skills of a manager is one’s reaction to the new strategic possibilities, the way one perceives innovations of other companies, one’s actions to improve the organization’s performance. Managers endowed with the talent of entrepreneurship are usually the pioneers who quickly perceive all the innovations, take a certain share of risk, and initiate radically new strategies. Further in this paper, we will discuss the entrepreneurial skills of the two prominent representatives of this class – Baron Marcel Bich, the founder of the brands Bic and Cricket, the pioneer of the market of disposable items of daily use, and Akio Morita, the founder of the Sony Corporation, one of the leaders of innovation in the electronics market.

Marcel Bich profile

Relying on Landrum’s (1993) research, Marcel Bich’s (1914-1994) career in manufacturing pens began in 1939 as he took the position of an executive sales manager at Stephens, the largest French company in this segment and the main competitor to Waterman in France, but was interrupted by the war. After its end in 1945, Bich had to fight for his well-being, and at the time together with his friend Edouard Buffard they spent their last $1000 to buy the rundown premises in Clichy, where they started producing ink reservoirs for ballpoint pens. Despite huge demand, ballpoint pen was an expensive and unreliable novelty, and that experience made Baron Marcel Bich think about creating cheap disposable pens. Therefore, the next four years he spent developing the first Bic pen improving its functionality and calculating the value of the product that would not make its owner feel sorry to throw it away (Landrum, 1993).

In 1950, Marcel Bich for the first time proposed the sample to six companies for whom he produced ink reservoirs. One of these companies was a major and respected US firm Waterman, which Bich later acquired. He gave these firms the opportunity to be the first to introduce his idea, paying his company only the royalty but they refused to take risks saying that he did not understand the specificities of the complex global distribution system. Bich had to choose one of three options: to forget about his idea; to produce the product on his own and sell it through small distributors; or start his own company to produce pens and arrange his own distribution system. As a true entrepreneur, Marcel Bich decided to create his own business, and since then the way people write in the world changed forever.

Having set the price for a disposable ballpoint pen at 29 cents, while the prices for pens of the rival firms ranged between $9 and $12.95, the company achieved astonishing sales in the first 3 years distributing 200,000-250,000 pens per day. By the mid-1960’s Bich was producing more than a billion pens a year, and managed to reduce safely their price to 10 cents. Acquisition of Biro-Swan, Bellograf and Waterman Pen helped the company to reach the British, Australian, New Zealand, Canadian, and American markets where Bich introduced his extensive distribution network. For example, in the United States, he created 300,000 retail outlets, representing 93% of all retail sales in the US, and thus captured 60% of the market in the United States (Landrum, 1993).

Later, Marcel Bich extended his success in pens to lighters and shavers, leaving behind in this segment such large competitors as Gillette, and now is trying to introduce a one-off perfumes. Today, Societe Bic sells over three billion ballpoint pens a year (one million per day in the United States alone) and dominates the market for pens and lighters in most countries of the world (BIC Official Website, 2014).

Akio Morita profile

The man of the same era, Akio Morita (1921-1999), a brilliant representative of a completely different industry and culture of doing business, who nevertheless also stands at the origin of a large innovation. Studying electronics from an early age, Morita wanted to establish a company that would prove it belonged to firms that create innovative products. In 1947, Ibuka, Maeda and Akio Morita became partners and founded the Tokyo Telecommunications Engineering Corporation (SONY since 1958) with a capital of $500 (Morita, 1986). Their first product was a device for cooking rice. They produced one hundred pieces but did not sell a single one. A similar case was their first Japanese tape recorder (Collins and Porras, 2004). The company was close to bankruptcy, and the reason was that they knew how to design and manufacture products, but had no idea how to sell it. And here is when Akio Morita’s entrepreneurial skills revealed themselves.

Having taken over the department of foreign trade and marketing at Sony, Morita personally did not invent a single product. His contribution was the innovative market strategy and discovering the potential market opportunities. Thus, Morita was an advocate for Sony’s pocket-sized radio (the first to be fully transistorized), the first transistor television in the world, the first home video recorder, and surely, the world’s first portable music player Walkman introduced in 1979 (Collins and Porras, 2004). With 75 different versions and more than 20 million users, the Walkman became one of the most famous products of the company, despite the fact that when the company’s engineers conducted the first research, they concluded that people would not buy this device because it lacked recording function and just played music (Morita, 1986; Collins and Porras, 2004). Intuition told Akio Morita that his product would be in demand. Moreover, his successful marketing of the Walkman managed to introduce the idea of “Japaneseness” into the global culture, which since then became synonymous with product miniaturization and application of latest technologies (Collins and Porras, 2004).

Since 1960, Sony has been the first to implement new ideas in virtually every segment of the consumer electronics market. This commitment to innovation made Sony the most innovative company for three decades from the 50’s to the 70’s (Collins and Porras, 2004). Following the vision of Akio Morita, the company was also aggressively expanding into the new markets. As a result, Sony annual income increased from $2.5 million in 1955 to $128.36 billion in 2014. In 2012, Sony was ranked 87 th on the Fortune Global 500 List, and the variety of marketing efforts it engages make it one of the world’s largest and most pervasive corporations of all time (Sony Official Website, 2014).

Rationalization of choice

Both Akio Morita and Marcel Bich are clearly the examples of outstanding entrepreneurial skills and are worthy of recognition. Being farsighted innovators in their industries, they made their companies leaders in the market segment.

Thus, Marcel Bich is more than anyone responsible for the emergence of disposable culture. His purposeful ingenuity changed the spending habits of society and the way people use writing instruments, lighters and safety razors worldwide. His creative destruction of static markets was a brilliant innovation. Similar to BIC, Sony traditionally has been remarkable for establishing its own in-house standards for innovation in recording and storage rather than taking on those of other producers and standards agencies. Sony (alone and with partners) has brought in several of the most used recording formats such as floppy disk, Compact Disc, and Blu-ray Disc.

Precisely identifying the current needs of society, Akio Morita and Marcel Bich ignored the establishment in their quest for new and better ways. Different in their specificity, these two leaders were similar in their mentality: intuition relied on striving to achieve goals at any cost, and destruction of old patterns were part of the way to success. The deeper analysis and comparison of their management approaches are presented below.

Essay on Entrepreneurship in the Global Environment part 2

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Home — Essay Samples — Life — My Aspirations — My Ambition to Be an Entrepreneur

My Ambition to Be an Entrepreneur

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Impact of institutional support and green knowledge transfer on university students' absorptive capacity and green entrepreneurial behavior: The moderating role of environmental responsibility

• Yang, Yejun

Aim/objective Given an escalated interest in fostering environmental protection, scholars have associated green entrepreneurial behavior as a stimulating factor and the cornerstone of green entrepreneurial performance. Nevertheless, the underlying mechanism that nurtures university students' green entrepreneurial behavior is yet to be explored in the extant literature. Our study proposes the antecedent effects of institutional support and green knowledge transfer to enhance university students' green entrepreneurial behavior. Moreover, we also expand the boundary conditions of these relationships and suggest the mediating effect of university students' absorptive capacity and the moderating effect of environmental responsibility. Methodology The study samples university graduates in Chinese universities (N = 434) by adopting a lagged research design spanning over three months. We assessed the proposed model through the multivariate analytical technique. Findings The findings indicate that institutional support and green knowledge transfer significantly elevate university students' green entrepreneurial behavior. Further, these relationships are intervened considerably through absorptive capacity's mediating effect and environmental responsibility's moderating effect. Implications By investigating the crucial roles of institutional support and green knowledge transfer in culminating university students' green entrepreneurial behavior, our study extends the boundary conditions of these relationships and investigates the hitherto unexplored moderated mediation model.

• Get involved

UNDP launches mentoring programme to support women and youth entrepreneurship

June 6, 2024.

06 June 2024, Bishkek - The United Nations Development Programme (UNDP) in Kyrgyzstan, in collaboration with the JIA Business Association, is launching a mentoring programme for women entrepreneurs and youth. The mentoring programme is part of the UNDP project “Aid for Trade in Central Asia”, funded by the government of Finland, and aimed at supporting the development of value chains (VAC) of natural honey, adventure tourism, dried fruits, and dried berries, felt and leather products. 

Mentoring initiatives play an important role in economic empowerment of women entrepreneurs and promote socio-economic well-being. Currently, women are represented in a wide range of economic activities, ranging from trade, services, textiles to IT and nanotechnology.

“The mentoring programme is one of the important areas of the Programme of the Kyrgyz Republic on the Development of Women’s Entrepreneurship. The Cabinet of Ministers of the Kyrgyz Republic supports initiatives aimed at developing entrepreneurship among women, in particular helping to build the capacity of micro and small enterprises. It is great that this mentoring programme is also aimed at strengthening value chains in key sectors prioritized for the development of Kyrgyzstan,” noted Ainura Usenbekova, Deputy Minister of Economy and Commerce of the Kyrgyz Republic.

The mentoring initiative will focus on developing and implementing a mentoring programme for women entrepreneurs and will include capacity-building activities to develop business, enter export markets, as well as individual mentoring to build networks, share experiences and find solutions to practical problems. In addition, mentees will have access to grant support for the introduction of green and innovative technologies in production, which will also be provided by UNDP.

“The development of women's entrepreneurship is one of the most effective ways to overcome poverty and promote sustainable socio-economic development of communities. UNDP strives to support inclusive economies by building the capacity of entrepreneurs, complementing its initiatives with small grants programmes. At the same time, priority attention is paid to the sustainability and growth of micro and small businesses benefitting women,” emphasized Alexandra Solovieva, UNDP Resident Representative in Kyrgyzstan.

In general, it is expected that the mentoring programme will contribute to an increase in sales and income, creation of new jobs, export access for value chain participants, as well as the development of new products. 

For media inquiries contact Ainagul Abdrakhmanova, UNDP Communications Officer, at  [email protected]  

About the project: The project “Aid for Trade in Central Asia” is funded by the Government of Finland and has been implemented in Kyrgyzstan since 2009. At the current stage, project’s Phase-V (2023 – 2025) is being implemented and aimed at promoting inclusive and sustainable growth through the development of “green” value chains and increasing the competitiveness of production. The project helps increase sales, create new jobs by using the country's natural potential and preserving the environment and focuses on strengthening four value chains: dried fruits, natural honey, adventure tourism, and craftsmanship.

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Environment | Artists, entrepreneurs transform cicadas from…

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Environment

Environment | artists, entrepreneurs transform cicadas from ick to in demand while building community.

A cicada stands on a leaf, May 28, 2024, at Thatcher Woods in River Forest. (Brian Cassella/Chicago Tribune)

Cicada exoskeletons remain on a tree, May 28, 2024, at Thatcher Woods in River Forest. (Brian Cassella/Chicago Tribune)

Adult 17-year cicadas cling to plants, May 28, 2024, at Thatcher Woods in River Forest. (Brian Cassella/Chicago Tribune)

A 17-year cicada sits atop a fence in front of Frank Lloyd Wright’s Nathan G. Moore house, May 28, 2024, on Forest Avenue in Oak Park. (Brian Cassella/Chicago Tribune)

A cicada climbs a tree, May 28, 2024, near Frank Lloyd Wright’s Home and Studio on Forest Avenue in Oak Park. (Brian Cassella/Chicago Tribune)

Cicadas climb a tree near shedded exoskeletons on May 28, 2024, near Frank Lloyd Wright’s Home and Studio on Forest Avenue in Oak Park. (Brian Cassella/Chicago Tribune)

Cicadas congregate on a tree on May 28, 2024, near Frank Lloyd Wright’s Home and Studio on Forest Avenue in Oak Park. (Brian Cassella/Chicago Tribune)

A 17-year cicada walks on the sidewalk on May 28, 2024, near Frank Lloyd Wright’s Home and Studio on Forest Avenue in Oak Park. (Brian Cassella/Chicago Tribune)

A cicada climbs in the grass, May 28, 2024, near Frank Lloyd Wright’s Home and Studio on Forest Avenue in Oak Park. (Brian Cassella/Chicago Tribune)

Cicadas emerge from a pile of shedded exoskeletons at the base of a tree, May 28, 2024, near Frank Lloyd Wright’s Home and Studio on Forest Avenue in Oak Park. (Brian Cassella/Chicago Tribune)

Cicadas cling along a tree, May 28, 2024, near Frank Lloyd Wright’s Home and Studio on Forest Avenue in Oak Park. (Brian Cassella/Chicago Tribune)

A Brood XIII cicada excretes a fluid as it flies off three-year-old Fennec Van Schaik's hand in the 10700 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. Fennec's family drove from Stratford, Ontario to experience the emergence of cicadas in Chicago and central Illinois. (John J. Kim/Chicago Tribune)

A recently molted Brood XIII cicada rests on a tree trunk in Chicago's Beverly neighborhood, May 18, 2024. (John J. Kim/Chicago Tribune)

Fennec Van Schaik, 3, left, his sister, Emma, 8, and their mother, Yvonne Rae, look for Brood XIII cicadas in the 10700 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. Their family drove from Stratford, Ontario to experience the emergence of cicadas in Chicago and central Illinois. (John J. Kim/Chicago Tribune)

Karolyn Kuehner mows her lawn past prairiefire crabapple trees with protective netting to prevent cicadas from resting on the young trees outside her home in the 10800 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. Brood XIII cicadas are populating trees, plants and lawns throughout the neighborhood. (John J. Kim/Chicago Tribune)

Brood XIII cicadas rest on plants in the 10700 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. The cicadas are populating trees, plants and lawns throughout the neighborhood. (John J. Kim/Chicago Tribune)

A recently molted Brood XIII cicada rests on a tree trunk in the 10800 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. (John J. Kim/Chicago Tribune)

A Brood XIII cicada hangs onto a blade of grass in Chicago's Beverly neighborhood, May 18, 2024. (John J. Kim/Chicago Tribune)

Yvonne Rae gently grabs a Brood XIII cicada off her daughter Emma's T-shirt in the 10700 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. (John J. Kim/Chicago Tribune)

A Brood XIII cicada clings to three-year-old Fennec Van Schaik's thumb in the 10700 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. (John J. Kim/Chicago Tribune)

Luke Van Schaik closely inspects Brood XIII cicadas on a tree in the 10700 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. (John J. Kim/Chicago Tribune)

A Brood XIII cicada clings to three-year-old Fennec Van Schaik in the 10700 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. Fennec's family drove from Stratford, Ontario to experience the emergence of cicadas in Chicago and central Illinois. (John J. Kim/Chicago Tribune)

A recently molted Brood XIII cicada rests on Yvonne Rae's finger in the 10700 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. (John J. Kim/Chicago Tribune)

Yvonne Rae inspects a Brood XIII cicada nymph and another, recently molted cicada on the palm of her hand in the 10700 block of South Longwood Drive in the Beverly neighborhood, May 18, 2024, in Chicago. (John J. Kim/Chicago Tribune)

They’re crawling up from the ground and will soon be singing from the treetops all over Illinois as the life cycles of two broods coincide for the first time in more than two centuries . But they’re also on stickers, wall art and graphic novels, on witty Tees and Taylor Swift shirts , on sculptures and even dinner plates .

Going from bug to fad, cicadas have been embraced by artists and entrepreneurs showcasing products that celebrate this rare, shared event.

“It’s more than just an item,” said Nina Salem, founder of The Insect Asylum , an Avondale-based museum of zoology leading a citywide effort for amateur and expert artists to buy or sponsor over 1,000 giant plaster cicada sculptures to be decorated and placed around Chicago. “It’s an experience, and it’s an opportunity to join a community.”

Some entrepreneurs, including Salem, are longtime insect enthusiasts who love cicadas in their rough, natural beauty and want to share that love. Others, trying to overcome their own aversions, are making less realistic, more appealing merchandise.

“I took the Chicago flag and desecrated it with cute little happy cicadas,” said Trayce Zimmermann, a Chicago PR specialist who started the website Cicadapalooza . “And I added the music twist (referring to the site’s takeoff on Lollapalooza) because a trillion of them are coming out to sing. There you have ‘cicada chic’ — something that is fun to wear for people who don’t like the ick factor.”

Local artists and entrepreneurs say they hope to encourage the public to embrace the insects as part of community building.

“In terms of fostering collective identity and the desire for people to make art and buy things related to it, there are parallels with any unusual events,” said Ginger Pennington, a Northwestern University professor specializing in consumer psychology and human motivation. “I mean, there’s the eclipse , there’s COVID, of course, or when the Chicago Cubs won the World Series in 2016. We’ve seen merch just explode, partly because we all feel like we’re part of the special, unusual thing that happened and it binds us all together.”

Invoking curiosity

In the gift shop at the Bess Bower Dunn Museum of Lake County, a stand is brimming with cicada-inspired items: books, wall art, postcards, keychains, pins, stickers, even gold dangly earrings and necklaces with stone pendants shaped like the insect. Walking into the new exhibit — “Celebrating Cicadas” open through Aug. 4 — visitors are greeted by an inquisitive cicada nymph with bulging red eyes.

The insect is on a mural illustrated by Samantha Gallagher from Gurnee, who has combined her passions and studies in art and entomology into a career of drawing scientific illustrations of insects. It is one of 11 illustrations she was commissioned to draw for the exhibit.

“The biggest compliment I can get with my art, especially with my subject matter being insects, is when somebody says like, ‘Well, I don’t usually like bugs, but I like yours, yours look friendly, or yours are beautiful,'” she said. “That’s exactly what I’m trying to do: Instead of invoking feelings of fear, or disgust, which is really common. … I try to invoke more curiosity, and maybe even compassion.”

Some of Gallagher’s art prints are being sold in the museum gift shop, but she’s also selling other items online , including tote bags and phone cases.

“Some people want that souvenir, they want to feel like they’re part of something bigger, especially something temporary and fleeting like that,” Gallagher said. “If you’re here, you can participate in it. And maybe you will, whether you want to or not. So, when in Rome, right?”

The large-scale collaborative sculpture project led by The Insect Asylum locally was originally conceived in Baltimore for a 17-year periodical cicada emergence there in 2021. Salem said she wanted to bring this “Cicada Parade-a” home to celebrate this year’s double emergence.

“This has been a really beautiful moment in history, so we’re really happy to celebrate it,” Salem said. “The whole spirit of this project was to help gain some perspective for the cicada emergence. Because we know so many were having anxiety about it, we wanted to bring something beautiful to it, that encourages education.”

Love them or hate them, one thing is evident: Cicadas bring out strong emotions, according to Pennington. But relating to them through art and merchandise can help humans channel and cope with these emotions, whether they’re positive or negative.

“Some people like the really detailed, scientific illustrations. Those people see the art and the wonder in it,” she said. “For some people, it’s fear and disgust, so some of the information and the art and the merch kind of helps them overcome that. After seeing a stuffed animal, the cicada T-shirts — that’s kind of a coping mechanism. You can see it in this abstract way, and the cuteness of it instead of the gross, realistic aspects of it that people find scary.”

Good publicity

Others who are less enthused by the noisy visitors are trying to embrace cicadas on their terms. When Zimmermann first learned of this year’s cicada emergence, she said she scrolled online through pages and pages of “uninspired” and “gross-looking” cicada products. She couldn’t fathom using or wearing any of it.

She decided to make “cute” designs to put on T-shirts for friends and family. But she didn’t expect the popularity her side hustle has since amassed.

“Everyone loves it. And I’m not a T-shirt salesperson,” she said. “I’m a publicist, but I gave it a little PR magic, and now I’m up to my eyeballs.”

Zimmermann said she thinks the excitement of an event this widespread has shifted the majority of the public’s perception in the last few weeks; personally, she feels she can coexist with the insects now, though at a safe distance.

“Their reputation has improved, but they’re still icky!” she laughed. “I don’t want them in my hair.”

According to Pennington, that’s part of the power of social influence. “You’re seeing other people engaging with (cicadas), making merchandise and making art about them. And it does alter our perceptions and our behavior,” she said. “So we’re more likely to conform to that normative influence and we’re more likely to engage if we see other people engaging.”

Zimmermann said she has felt this shared engagement.

“It’s our emergence, and it’s a way to commemorate it,” she said. “And you’ll have this T-shirt in 10 years and say, you know, ‘I was there.'”

A sense of belonging

At The Insect Asylum — which has long had a cicada logo — there is a shelf with cicada creations from local artists and small businesses. From Ampersand Curiosities , there are ethically sourced cicadas that have been crystallized with blue, red, silver or purple shimmering minerals, selling for $95.

Other items include band T-shirts and posters for the “Summer ’24 Scream Emergence Tour” across Midwest and Southeast cities. Salem, the museum’s owner, said they’re running low on cicada merchandise because they’ve sold so much over the last few weeks.

Volunteers and friends have helped Salem cast over 1,200 cicada plaster sculptures to be decorated and distributed around the Chicago area for the art project. Even as they ramp up the public installations, the museum’s basement was still piled up with blank-slate statues ready to be embellished last week. Salem said the project’s reach has exceeded their expectations for 600 sculptures.

Pennington explained that shared events help break down barriers that typically divide people, especially in the contentious social environment of this day and age.

“We’re so often focused on differences and now, all of a sudden, we’re all going through a similar thing together,” she said.

Like the eclipse, such an event also helps put those differences, and one’s reality, into perspective.

“These long, 17-year-old cycles … make you realize all this time has gone by,” she said. “For all this chaos that’s been happening in the political world, and (cicadas have) just been down there, just hanging out. So it kind of lets you zoom out to this bigger perspective of, all this time has gone by and there’s this same cycle of nature that just keeps on plugging along, exactly the same every 13, every 17 years. It’s a little bit humbling.”

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Entrepreneurship by Young People Essay

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Young people’s entrepreneurship alludes to the ambitions and endeavors made by people under 35 to create and operate their businesses. These entrepreneurs frequently have fresh viewpoints and insights and may add vitality and creativity to the marketplace. Socially responsible business is one type of entrepreneurship I find personally interesting because of its transformative aspect locally and internationally. TOMS Shoes demonstrates an innovative company model, such as socially responsible entrepreneurship, in order to tackle social concerns and contribute to more equitable and sustainable world.

The technique of employing company strategies and actions to positively influence the community and the environment while still attaining financial success is referred to as socially responsible entrepreneurship. This can include employing environmentally friendly materials, establishing fair labor standards, or creating products and services that address social issues (Zainea et al., 2020). This form of entrepreneurship appeals to me because it corresponds to my beliefs and principles about the importance of business in society. Businesses have to add to the prosperity of their communities and the global community, and socially responsible entrepreneurship is one method.

TOMS Shoes, which uses a “one for one” model in which a pair of shoes is donated to a kid in need for every pair sold, is an example of a socially responsible enterprise. TOMS has used this concept not only to support children in need but also to establish a successful and profitable business with a good impact on society (Zainea et al., 2020). Socially responsible business is vital because it can help address some of our world’s most pressing issues, such as poverty, unfairness, and ecological harm. Socially responsible businesspeople can assist in creating a more equitable and sustainable society by utilizing business as a force for good.

In conclusion, as a remarkable example of socially conscious entrepreneurship, TOMS Shoes has improved the lives of children in need while growing a successful and lucrative company. The success of TOMS Shoes demonstrates that socially conscious companies may be successful, long-lasting, and able to impact society. By combining economic and social objectives, businesspeople can utilize this concept of socially responsible entrepreneurship to address a range of community’s issues and achieve a more just and sustainable world.

Zainea, L. N., Toma, S.-G., Grădinaru, C., & Catană, Ș. (2020). Social Entrepreneurship, a key driver to improve the quality of life: The case of TOMS company . Business Ethics and Leadership, 4 (3), 65–72. Web.

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• The Toms Firm’s Sustainability Profile Analysis
• Transforming Lives and Making a Difference
• Capability: Business Model Innovation in Mergers
• Characteristics of Writing a Business Plan
• Entrepreneurial Activity: The Key Aspects
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• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2024, January 30). Entrepreneurship by Young People. https://ivypanda.com/essays/entrepreneurship-by-young-people/

"Entrepreneurship by Young People." IvyPanda , 30 Jan. 2024, ivypanda.com/essays/entrepreneurship-by-young-people/.

IvyPanda . (2024) 'Entrepreneurship by Young People'. 30 January.

IvyPanda . 2024. "Entrepreneurship by Young People." January 30, 2024. https://ivypanda.com/essays/entrepreneurship-by-young-people/.

1. IvyPanda . "Entrepreneurship by Young People." January 30, 2024. https://ivypanda.com/essays/entrepreneurship-by-young-people/.

Bibliography

IvyPanda . "Entrepreneurship by Young People." January 30, 2024. https://ivypanda.com/essays/entrepreneurship-by-young-people/.