The most essential part of this definition is how it defines incremental wealth

The most essential part of this definition is how it

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The most essential part of this definition is how it defines incremental wealth of value creation as a result or goal of the process. This result is also parallel to need for achievement. While Ronstadt’s definition above includes such other trait theoretic characteristics of entre-preneurship as risk taking propensity and responsibility, a more complete view of these could be achieved by including the need for achievement as defined by Murray (1938) in the defini-tion. Thus, I will suggest the following multidimensional definition of entrepreneurship with specific emphasis on the entrepreneur as the main actor in the process: Entrepreneurship is a dynamic process created and managed by an individual (the entrepreneur), which strives to exploit economic innovation to create new value in the market. An entrepre-neuris a person, who has entrepreneurial mindwith a strong need for achievementde-fined as in Murray (1938).
8The most interesting points of this definition are the purpose of value creation and the exploitation of economic innovation. The definitions of entrepreneurial process given below by Bygrave (1989) and by Bygrave & Hofer (1991) include some of the important character-istics, but lack perhaps the most important ones, namely the goal and purpose. Why does the entrepreneurial process take place? What is the purpose of entrepreneurial process or activi-ty? I maintain that the goal of entrepreneurial activity is to create value. Creating value and exploiting innovation process-likely also implies the growth of a venture. Thus it should be emphasized that without any further attributes this definition does not suit for stable or de-clining companies. It could be argued that Bygrave (1989, 9) supports the simple definition that “entrepre-neurship is creating of organizations” by describing entrepreneurship as a dynamicrather than a static system, hence a process of becoming rather than a state of being, which includes nonlinearand unstable discontinuities. But he argues also that this process is a holistic one that cannot be analyzed partially by studying different pieces of the entity.1 Thus when considering holistic process of entrepreneurship, we should be aware of that discontinuities do not happen all the time and able to identify discontinuous quantum jumps and their causes to understand entrepre-neurship. Even if entrepreneurship were a science of turbulence and change, such would not necessarily mean continuous discontinuity. But compared with conceptual frameworks of institu-tional economics and transaction cost approaches, chaos and catastrophe theories emphasize characteristics of entrepreneurship. As Bagby (1988, 5) notes: “Entrepreneurs capitalize on change, or even create it.”Instability, turbulence and change would suggest entrepreneurship to be ratherbecomingthan existing. The importance of both aspects should be pointed out in ana-lyzing the entrepreneurial process.

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