1. Myths, Theories and Frameworks of Entrepreneurship
Objectives
To discuss the main myths about entrepreneurship.
To discuss the main theories of entrepreneurship.
To discuss the main frameworks related to entrepreneurship.

2. Myths about Entrepreneurship
Entrepreneurs are only doers but not thinkers.
Entrepreneurs are born and not made.
Entrepreneurs are always inventors.
Entrepreneurs are anti-academic and socially misfits.
Entrepreneurs must fit into ideal profile
All Entrepreneurs are money minded people.
Entrepreneurs are badly need the luck.
Ignorance is a bliss for entrepreneurs.
Entrepreneurs seeks success but end with high failure rates.
Entrepreneurs are extreme risk takers.
Entrepreneurs are hating partnership.
Entrepreneurs never succeeds in clusters.
Entrepreneurs must be young.
Entrepreneurs are mainly backed by VCs.
Entrepreneurs need always new products.
Entrepreneurs do not have place in big companies.

3. Models for Entrepreneurship
Silicon Valley model - Siliconitis is the most common example of what is now an almost universal search among policymakers, local as well as central, for the secrets of entrepreneurial success. It is also the most instructive. A few attempts to replicate Silicon Valley, most notably in Israel, have succeeded. But most are embarrassing failures.
Anchor-firm model - Alfred Marshall, one of the first economists to write about entrepreneurship, said that successful entrepreneurs are like large trees in a forest, towering over their neighbours and depriving them of light and air. In fact, the big trees usually produce lots of little ones. They spin off subsidiaries, provide experience to employees who then decide to go it alone, and nurture dozens of suppliers.

4. Models for Entrepreneurship
Crisis driven model - People become entrepreneurs when the economy stops supplying jobs. This happened in the San Diego region in the 1990s when the end of the cold war threw hundreds of highly trained military scientists out of work. Local start-ups such as Qualcomm hoovered up the talent and put it to new uses.
local-hero model in which a local entrepreneur sees an opportunity, starts a business and turns it into a giant.

5. Approaches to Entrepreneurship
Macro Entrepreneurial school of thought
Environmental school of thought
Financial/Capital school of thought
Displacement school of thought
Micro Entrepreneurial school of thought
Entrepreneurial traits school of thought (people school)
Venture opportunity school of thought
Strategic formulation school of thought

6. Environmental school of thought
Influence of external factors to initiate business
Man made environment
Natural environment
Family and social factors
Local economic, social and political environment.
Regional economic, social and political environment.
National economic, social and political environment.
International economic, social and political environment.

7. Financial/Capital school of thought
The entire focus of this school is capital seeking process of business start and growth.
Venture capital
Angel capital
Debt/loans
Equity
Family
Friends
Fools
Luck

8. Displacement school of thought
People never start business unless they are prevented or displaced from other activities.
Political displacement – allowing or not allowing people to start business in some areas.
Cultural displacement – some social groups are precluded from some professional fields.
Economic displacement – bad economic times give many opportunities to start business people putting out of the work.

9. Entrepreneurial traits school of thought (people school)
This school analyses common characteristics or traits of entrepreneurs.
Achievement, creativity, determination and technical knowledge.
Family background and educational incubation.
This school says certain traits developed or inherited may be the key to entrepreneurship.

10. Venture opportunity school of thought
This school analyze factors relevant to opportunity aspects of the venture development.
Sources of business ideas
The development of business concept
Implementation of the venture opportunity
Creativity, innovation and market awareness
Right business idea, right time for right market niche.
Corridor principle – Whenever new opportunity emerge ability to capture and materialize them.

11. Strategic formulation school of thought
This says that strategic planning process help to be successful venture creators.
Identification of unique markets
Identification of unique people
Identification of unique products
Identification of unique factors of production

12. Process approach for entrepreneurship
Under this various models and methods attempt to structure entrepreneurship process and its various influencing factors.
Integrative approach (Inputs and out puts of entrepreneurial process)
Assessment approach (Assessment of venture and venture environment in various perspectives)
Multi-dimensional approach (Entrepreneurship is analyzed in multi-dimensional ways and means)

13. Integrative approach Inputs (Environmental opportunities,
Entrepreneurial individuals, An organizational context, Unique business concept, Resources)
Entrepreneurial process (Identify the opportunity, Assess and acquire necessary resources, Implementation)
Entrepreneurial intensity (innovation, risk taking, proactiveness)
Outcomes (New venture, value creation, new products, process and services, New technologies, profits, personnel benefits, employment, asset, revenue…..)

14. Assessment approach
This approach analyses venture creation and its conducive environment under the following headings:
Qualitatively
Quantitatively
Strategically
Ethically
Venture maturity

15. Multi-dimensional approach
More detailed process approach: analyses various qualities of entrepreneurs under the headings of individual, environment, organization and process.
Individual factors (need for achievement, locus of control, risk taking propensity, job satisfaction, previous work experience, family background, age, education…..)
Environment (venture capital availability, presence of experience entrepreneurs, technically skilled labor force, accessibility of suppliers, customers and new markets, government influence, proximity to Universities, infrastructure availability, attitudes of the people in location, living conditions….)
Organization (type of the firm, partners, strategic variables…)
Process (Location, resources accumulation, marketing, responding to outsiders….)

16. The Entrepreneur Process
Motivation to make a difference
Ability to create and innovate
Opportunity spot and exploit
Find the required resources
Uses networks extensively
Determined in the face of adversity
Manage the risks
Overcoming obstacles through
Control business
Putting customer first, creation of overall capital.) See ppt diagram in next slide.

17. The Entrepreneur Process
3. Creativity and innovation 1.
Motivation to make a difference
3 .Spotting and
Exploiting Opportunities
Overcoming
Obstacles
10.Financial Social, aesthetic, capital
8.Controling the business
9.Putting the customer first
GROWING ENTERPRISE
THAT SUCSESS
6.Showing determination in the face of adversity
7.Managing risk 4.
Finding the
Required
Resources 5.
Using networks extensively
Recognition of value
2. Creativity and innovation

18. The entrepreneur, the opportunity spotter and the project champion
The enterprising person who realizes
The opportunity and is minded to
Engage it.
The opportunity- spotter
The projected champion
The entrepreneur
The person who makes things happens.
The inventor
The
Idea
Realizing
Opportunity
Engaging the idea
And opportunity
Exploiting the opportunity to build something
Of value

19. The entrepreneur, the opportunity spotter and the project champion
Idea
The project champion
Oppor-
tunity
Market gap
Successful
business
The entrepreneur

20. Gallup’s Entrepreneur perceiver interview
This identify various behavioral characteristics and personnel attributes of entrepreneur under various themes.
Most of the Entrepreneurial Centers around the world use this as guideline to prepare various tests to check entrepreneurial abilities.
These characteristics are outlined as striving talents, thinking talents and relating talents.

21. Gallup’s Entrepreneur perceiver interview
Some of these characteristics are Dedication: consumed by a goal or purpose Focus: discriminates and target Profits orientation: advantage focus Ego drive: wants to make a recognized difference Urgency: no time to waste and must take action now Courage: determined in the face of adversity Activator: wants to make it happen Opportunity: sees possibilities not problems Creativity: buzzing with ideas Expertise orientation: knows own limits and find experts Team: gets the right people together Individual perception: see and uses strengths of others.

22. Gallup’s Entrepreneur perceiver interview
Using entrepreneurial triangle we can explain this inter-relationship: creating, going for opportunities, building support and doing. See ppt diagram in slide.
Talent, temperament and technique: Gallup questions can arrange according to talent, temperament and technique framework. This gives an another perspective for entrepreneurs. See ppt diagram in next slide.
The ‘well of talent’ is another concept to show how hard to identify people with entrepreneurial skills and develop them as real entrepreneurs. See ppt diagram in next slide.

23. Entrepreneurial Triangle
Going for opportunities
Doing
Courage
Profit
Orientation
Ego Drive
Activator
Urgency
Dedication
Expertise Orientation
Figure…..The Entrepreneurs Triangle
Building Suport
Creating (Ideas)
Opportunity
Creativity
Focus
Team
Individualized
Perception

24. Talent, Temperament and Technique
Competition
Performance Orientation
Dedication
Activator
Opportunity taking
Advantage Orientation
Creativity
Networker
Team
Resourcing
Opportunity spotting
Courage
Focus
Talent Abilities
Urgency
Responsibility
Needs
TEMPERAMENT
Drives
Ego Drive
Mission
TECHNIQUE
The entrepreneur’s
Skill
set
Experience
Techniques to develop
Talents & manage
temperament

25. The Well of Talents Followers Operational managers Entrepreneurs
Inventors
Entrepreneurs
Leaders
Project
champions
Enterprising

26. Questions