Entrepreneurship and New Business Development. Lecture 2 - The Entrepreneur Johan Brink. Origin of Entrepreneurship research. Cantillon 1755 Interact with suppliers at known prices in order to produce goods that could later be sold at unknown prices, Risk taker Mill 1848
Lecture 2 - The Entrepreneur
Interact with suppliers at known prices in order to produce goods that could later be sold at unknown prices, Risk taker
Risk is asserted as a key in entrepreneurial activities
Neoclassical Menger, Jevons, Walras –
Price mechanism and allocation
Critique neoclassical omission of the entrepreneur – models of constrained optimization, exogenous factors
Of the 10 years sampled, 480 articles were studied and all portrayed the entrepreneur as an individual. (Nicholson and Anderson,2005)
Masters of time and space
Discuss 2 and 2
Sociological & Economics
Kirzner (1979, 73, 85) entrepreneurial alertness, a distinctive set of perceptual and cognitive processing skills.
If Kirzner is correct, alert individuals have:
Schemata & Heuristics
Source of knowledge
Persons experiencing positive affect…
Entrepreneurial opportunities are those situations in which new goods, services, raw materials, and organizing methods can be introduced and sold at greater than their cost of production (Casson, 1982).
(1) the creation of new information, as occurs with the invention of new technologies;
(2) the exploitation of market inefficiencies that result from information asymmetry, as occurs across time and geography; and
(3) the reaction to shifts in the relative costs and benefits of alternative uses for resources, as occurs with political, regulatory, or demographic changes.
What came first?
Decision to start a business:
(Handbook of entrepreneurial dynamics Gartner et al 2004)