What is entrepreneurship? Super-project.eu Lecture 1

Contents 1 2 3 What is entrepreneurship? Types of entrepreneurship Why entrepreneurship matters 3

Aim for the session By the end of the session, students will: Be able to define entrepreneurship Identify many different forms of entrepreneurship Understand why entrepreneurship matters

What is entrepreneurship?

Can you name some entrepreneurs?

Pictures from top left clockwise – 1. Elon Musk,Tesla (top left) 2 Pictures from top left clockwise – 1. Elon Musk,Tesla (top left) 2. Steve Jobs, Apple (top right) 3. Bill Gates, Microsoft (bottom left) 4. Mark Zuckerberg, Facebook (bottom right)

Popular misconceptions about entrepreneurship Entrepreneurship requires large investment Entrepreneurship is good for people who want better work-life balance It is all about money and quick enrichment Entrepreneurship is for younger people It is a niche activity

What is entrepreneurship? “Entrepreneurship is when you act upon opportunities and ideas and transform them into value for others. The value that is created can be financial, cultural, or social.” Moberg and Stenberg (2012:14) Entrepreneurship has many understandings and they may differ with age, gender and culture. It is commonly equated with self-employment or business creation whereby an individual or a group of individuals establish a new firm. Also, news and official data on entrepreneurship base their stories and claims on the numbers of new enterprises created in the given time period. However, the truth is that not all new businesses are entrepreneurial and not all entrepreneurial endeavours take a form of a new venture. The definition adopted by the European Commission takes a broad view of entrepreneurship;  

What is entrepreneurship? “Entrepreneurship is when you act upon opportunities and ideas and transform them into value for others. The value that is created can be financial, cultural, or social.” Moberg and Stenberg (2012:14) Not only profit-oriented This definition challenges most of the common misconceptions and explains many disagreements existing within current entrepreneurship discourse. The declaration that it is about creating financial, cultural or social value for others has wide reaching consequences. It does not confine entrepreneurship to profit oriented activity.

What is entrepreneurship? “Entrepreneurship is when you act upon opportunities and ideas and transform them into value for others. The value that is created can be financial, cultural, or social.” Moberg and Stenberg (2012:14) Not only profit-oriented Can include social entrepreneurs, artists, politicians It is also inclusive of artists and social entrepreneurs and those who are not self-employed.

Types of Entrepreneurship

Types of Entrepreneurship Opportunity Entrepreneurship Necessity Entrepreneurship pulled into entrepreneurship – choose to exploit an opportunity pushed into entrepreneurship – no other options for employment

Types of Entrepreneurship Commercial Entrepreneurship Social Entrepreneurship profit maximisation as a main objective still contributes to the society by introducing variety, new and valuable goods, services and jobs social value creation as main objective of business aim to meet currently unmet social needs

Types of entrepreneurship New Venture Creation Intrapreneurship pursuing opportunities or creating economic value through starting an independent new business organisation pursuing new opportunities or creating economic value through developing a new venture within an existing organisation

Types of entrepreneurship Private Sector Entrepreneurship Public Sector Entrepreneurship typically what we think of when we think of entrepreneurship innovations that improve efficiency and the quality of public service and generate greater economic prosperity While private sector entrepreneurship takes place in the private sphere with individuals working for themselves or private companies, public sector entrepreneurship takes place in the public sector organisations. It is a pursuit of innovations that improve efficiency and the quality of public service and generate greater economic prosperity. These may include new and improved services, administrative processes, technologies and strategies. Entrepreneurship within the public sector resembles intrapreneurship in large companies as these kinds of organisations have similar environment and conditions including stable hierarchies, entrenched cultures, formalised processes and procedures. However, entrepreneurs within the public sector face additional constitutional, legal and political constraints. Examples of public sector entrepreneurship is introduction of WIFI service on the buses in Finnish city of Tampere in 2001. Tampere is Finland’s high-tech city with many ICT companies based there. The purpose of the internet bus was to reduce the digital divide in Tampere.

Types of entrepreneurship Academic Entrepreneurship Cultural Entrepreneurship an act of commercialising knowledge and research developed within universities pursing opportunities that create something new and valuable in the cultural and creative spheres

Why entrepreneurship matters Entrepreneurial behaviour is at the root of human activity. People’s ideas and creations provide products, services and solutions that organise human activity and make life easier. Contributes to the economy (growth, development, employment) Contributes to the society and culture

Summary common views of entrepreneurship associate it solely with business creation and profit orientation yet it is broader than this “Entrepreneurship is when you act upon opportunities and ideas and transform them into value for others. The value that is created can be financial, cultural, or social.” Entrepreneurship can take many forms – commercial or social, new venture creation or intrapreneurship; entrepreneurship is present in the public sector, academic and cultural spheres.

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