Entrepreneurial activity involves activities

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Entrepreneurial activity involves "activities necessary to create or carry on an enterprise where not all markets are well established or clearly defined and/or in which relevant parts of the production function are not completely known” (Harvey Leibenstein 1968, 1979 ) DETERMINES AN END POINT - …the creation of new organizations (Gartner, 1988) - Entrepreneurial activity is a context dependent social process through which individuals and teams create wealth by bringing together unique packages of resources to exploit marketplace opportunities (Hitt et al., 2001, p.51) - “Entrepreneurial activity is the pursuit of opportunity beyond the tangible resources currently controlled” (Stevenson in Eisenmann, 2013) Key themes of definitions - opportunity identification & exploitation - new market entry - change & creations of a ‘newness’ - risk & uncertainty - creativity & innovation - human behaviour Operational Effectiveness - Necessary but not sufficient - Porter sees operational effectiveness and strategy working in very different ways - Operational effectiveness means performing similar activities better than rivals perform them (shifting toward the productivity frontier) - Strategic positioning – performing different activities from rivals’, or performing similar activities in different ways. Zero-sum games and competition - Porter (1998) argues that the supplanting of strategy has resulted in zero-sum competition, static or declining prices, and pressures on costs (Before CSV) - Elements of strategy… o defining a company’s position (tailoring a set of activities) o making trade-offs (sustaining the strategic position) o forging fit among activities (driving competitive advantage & strategic position) Entrepreneurial Process - Opportunities have a natural ‘life cycle’
- Businesses are continually ‘fighting’ to innovate and re-invent themselves (social media interaction) - The ogre of ‘creative destruction’ hangs over all stakeholders (creation, sustenance, destruction) (people don’t change like change, people make up organisation) OECD Definitions Entrepreneurs Are those persons (business owners) who seek to generate value through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets. Entrepreneurial Activity Is enterprising human action in pursuit of the generation of value through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets. Entrepreneurship Is the phenomenon associated with entrepreneurial activity. - OECD Definitions are good as they differentiate entrepreneurial activity from ‘ordinary’ business activity (emphasis on new) - Moreover, indicate corporations and other business can be entrepreneurial despite people in control being considered entrepreneurs.

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