Essence of Entrepreneurship
Entrepreneurship is a complex and multidimensional phenomenon. Despite extensive research having been conducted since the early 18th century, controversy and debate persist among researchers in relation to fundamental issues, such as the definition of an
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Evolution of Views on the Nature and Role of Entrepreneurship
Entrepreneurship is a complex and multidimensional phenomenon. Despite extensive research having been conducted since the early 18th century, controversy and debate persist among researchers in relation to fundamental issues, such as the definition of an entrepreneur and the role of entrepreneurship in the economic and social development.1 The way researchers, opinion leaders and the general public think about entrepreneurs and entrepreneurship has been greatly influenced by the scholarly work of Joseph Schumpeter (Schumpeter 1934). Intellectual ferment caused by this work over the last few decades has led to a major shift in the academic and public discourse. A graphic illustration of this evolution is contained in Fig. 2.1. 1 The state of the art in entrepreneurship science is best exemplified by the following quotation from a study by leading entrepreneurship scholars: “The term ‘entrepreneurship’ apparently means different things to different people including scholars and thought leaders. Because entrepreneurship is multifaceted, it is studied from many different perspectives, yet, that has fostered a multitude of definitions” (Audretsch et al. 2015, p. 703).
© The Author(s) 2017 J. Cieślik, Entrepreneurship in Emerging Economies, DOI 10.1007/978-3-319-41721-9_2
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Entrepreneurship in Emerging Economies
I. Schumpeter’s Vision
II. Dominance of large corporations
III. Renaissance of entrepreneurship
Radical innovations in small firms Creative destruction
IV. Larger dimension of entrepreneurship
Academic
Arts and culture
Large corporations High-growth firms and born globals
Social
In public sector Small business
Small business
Years
1930
1940
1970
1990
2000
Fig. 2.1 Evolution of views on the essence of entrepreneurship and its role in socioeconomic development in the 20th and 21st centuries Source: Own study
Schumpeter regarded entrepreneurs as the driving force of economic development. The main function of the entrepreneur consists of implementing innovations. By introducing innovative products and processes, organizational methods and marketing techniques, the entrepreneur becomes a “creative destructor”, tearing down the existing balance of power in the market. Thus, in the Schumpeterian theory, the entrepreneur is a central figure in the economy. In public discourse, the entrepreneur is the modern hero engaged in a solitary battle against adversity and attacks launched by the competition. The entrepreneur manages to overcome such hardship through remarkable commitment, coupled with individual persistence in the pursuit of the goals that they have set for themselves (Fig. 2.1, phase I). This outlook on entrepreneurs has been challenged by the author of the theory himself. In his work published in 1942, Capital, Socialism and Democracy (Schumpeter 1942), Schumpeter highlights the fact that ground-breaking innovations are implemented in the laboratories of large corporations, primarily due to the fact that they necessita
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