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Startup Business Entrepreneurship Launch Concept
Startup Business Entrepreneurship Launch Concept
  • Economic Function: Entrepreneurship is defined as an economic function and entrepreneur is defined by the role in society
    • “Entrepreneurship entails bearing the risk of buying at certain prices and selling at uncertain prices” (18th century)
    • Definition broadened to add “innovation” (early 20th century)
      • Process innovation, market innovation, product innovation, organizational innovation, etc.
      • Entrepreneur central to creating and responding to economic discontinuities

Major Flaw: doesn’t make sense to decide what economic functions are “entrepreneurial”.

  • Psychological Profile: Entrepreneurs have a common sets of individual traits
    • Entrepreneurship is then defined as activities of entrepreneurs
    • Common traits include:
      • Need for achievement
      • Risk‐taking propensity
      • Locus of control

Major flaw: single psychological profile of an entrepreneur doesn’t exist.

* HH Stevenson, “A Perspective on Entrepreneurship,” HBS 9-384-131.