Changes in Technology Time Span 1700-1900 1900-2000 2000 Economy Agriculture Manufacturing Information Technology Plow Machine Computer Output Food Goods Resource Land Capital Knowledge Unit Family Corporation Networks Energy Muscle Fossil Fuel Minds Education Demands Focus Hands-on Minimal “What?” Procedures Appreciable “How?” Thinking Continuous “Why?”

New Economic Paradigm? Issue Old Economy New Economy Markets Stable Dynamic Competition National Global Organizational Form Hierarchical Networks, Entrepreneurial Mobility of Business Low High Key Factors Capital/Labor Knowledge/Innovation Effect of Innovation Moderate Institutional Relations Self-sufficient Collaborative Government Imposed Requirements Deregulation and Assistance Research Areas Physical Sciences, Engineering Information Systems, Biological Sciences

When we say entrepreneurship, what comes to mind?

A Spectrum of Entrepreneurial Skills and Activity MARKET IMPROVEMENT BRAIN INSIGHT Creativity & Ideation Alertness and Opportunism Execution

Creativity and Ideation Imagination Effective problem solving (Kirkham, et al.) Radical innovation thinking (Schumpeter) Idea evaluation (Cooper) Motivation (Amabile) Persuasion (Csikszentmihalyi) Vision

Alertness and Opportunism Alertness (Kirzner) Opportunity recognition (Alvarez & Barney; Dimov) Proactiveness (Lumpkin & Dess) Tenacity Willingness to adapt / pivot (Ries)

Execution Strategic entrepreneurship (Ireland, et al.) Market validation (Ries; Blank) Effective business modelling (Ostervalder & Pigneur) Resource management (Leibenstein; Barney) Risk assessment and management (Knight)

OK, but can these entrepreneurial skills be learnt / taught?

Absolutely! Some of what we associate with successful entrepreneurship may be innate But education matters Scott Shane (2011) showed that entrepreneurial success rates increase with each successive climb up the education ladder Experience has clearly shown that students can develop entrepreneurial skills by doing and creating something real

Background Why so popular? The skills and attributes associated with successful entrepreneurship are in demand By whom?

By employers! Not just for those thinking about starting a business It’s about employability The skills associated with successful entrepreneurship enhance employability Roberts Review (2002) Employers want ‘commercial awareness’ Schools focused on entrepreneurship education best at developing it

By students! New research from EFMD (European Foundation for Management Development) PG education trending towards entrepreneurship Entrepreneurship is now in the top five most demanded content according to a study of 476 prospective MBA students in 79 countries.

The benefits are clear! Entrepreneurship grads v. General grads: Three times more likely to start a new business Earning annual incomes 27% higher; owning 62% more assets If working for someone else, earning £15,000/year more More satisfied with their jobs Entrepreneurship Education Impact Study Eller College of Business, University of Arizona, June 2000

Defining Entrepreneur – Easier said than done

Entrepreneur entrepreneur 1. the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits. 2. a middleman or commercial intermediary. [from French, entreprendre to undertake - entrepreneurial adj, entrepreneurship n.

de commerce en general” Richard Cantillon (168?-1734) “L’essai sur la nature de commerce en general” First published 1755 Individuals who pursue profits under conditions of uncertainty

Richard Cantillon (168?-1734) Expenditures are known, revenues are uncertain For example, farming expenditure on seed, rent, wages known, harvest and market price unknown Administrator rather than innovator Broad definition - anyone who runs a business

Jean Baptiste Say (1767-1832) Say’s Law - Supply creates its own demand Supply side emphasis Administration and organisation of resources Characteristics of the entrepreneur

J.B. Say on the characteristics of the entrepreneur “Judgement, perseverance and a knowledge of the world as well as of business. He is called upon to estimate with tolerable accuracy, the importance of the specific product, the probable amount of its demand, and the means of its production; at one time , he must employ a great number of hands; at another, buy or order the raw material, collect labourers, find consumers, and give at all times rigid attention to order and economy; in a word, he must possess the art of superintendence and administration…..”

Joseph Schumpeter “Whatever the type, …one is an entrepreneur only when he actually carries out new combinations, and loses that character as soon as he has built up his business” Entrepreneurship and economic development Discrete innovation

Harvey Leibenstein Market gaps Types of entrepreneur

Mark Casson “An entrepreneur is someone who specialises in taking judgmental decisions about the co-ordination of scarce resources”

Binks and Vale “An unrehearsed combination of economic resources instigated by the uncertain prospect of temporary monopoly profit”

What’s your definition?