Not the Person but the Approach or Technique...
...i.e., the Science of Innovation!
And so, what is “entrepreneurship”? According to WikiDiff: As nouns, the difference between entrepreneurship and entrepreneurialism is that entrepreneurship is the art or science of innovation and risk-taking for profit in business while entrepreneurialism is the spirit or state of acting in an entrepreneurial manner....as in the spirit or state of being entrepreneurial. But what does all that mean? Well, I trust that we can take a good stab at figuring this out and that you will come along for the journey and give me your input.
The most cohesive and relevant definition I found was formulated in 1981 by Professor Howard Stevenson of Harvard Business School*.
The Professor offered that:
“Entrepreneurship is the pursuit of opportunity beyond resources controlled!”
Although I came across his interpretation relatively recently, I found it particularly meaningful. This is because it is an approach to business I followed throughout my entire business career, which started in 1973. Yes, that was a long time ago, but what I find interesting is that today, in 2023, many of the issues are the same.
As you will see further down this page, it was a need, not a choice, that advanced the inaugural steps taken with this approach. It was simply a natural progression until eventually understood and accepted as part of 'the plan'. Initially, it was all requirement-driven and not picked up due to any particular ingenuity, although some creative cleverness did exist. Credit, therefore, goes to the approach itself and a process that successfully addressed many challenges.
When comparing Professor Stevenson's to the more popular definitions, such as: “the activity of setting up a business to take on financial risks in the hope of profit”, or the more recent meanings: “transforming the world by solving big problems”, one can see that he had sought to dig a little deeper into what ‘entrepreneurship’ indeed meant.
To this day, scholars disagree. Some advocate that there must be an ‘element of risk’; others maintain that the phenomenon refers to a specific set of ‘character traits’. While still, others believe that an entrepreneur is "anyone who starts a business", be it launching an online presence or merely opening a retail shop.
To recall what Professor Stevenson said when interviewed for a magazine article years later brings this 'risk aspect' into better perspective:
“Back in 1983, people tended to define ‘entrepreneurship’ almost as a personality disorder, a kind of risk addiction.”
He went on to say: “But that didn’t fit the entrepreneurs I knew. I never met an entrepreneur who got up in the morning saying; ‘Where’s the most risk in today’s economy, and how can I get some?'”
I found Professor Stevenson’s interpretation intriguing because it confirmed a deeper understanding of what entrepreneurship represents. His definition offers a ‘how to’ explanation, one I have been fortunate, as stated, to have employed from the outset. The example following demonstrates this.* It wasn’t that I did not, or do not, accept that entrepreneurship was risky. I just found it to be more a matter of ‘dealing with’ or, in fact, focusing on: ‘mitigating risk’, thereby becoming the process, creatively challenging any exposure.
A 2013 article by Thomas R. Eisenmann (Howard H. Stevenson Professor of Business Administration at Harvard Business School), published in Harvard Business Review, delivers a little more insight into Stevenson’s original work, pointing to the implications. According to Eisenmann, the “pursuit of opportunity” acknowledges the importance of the two elements brought to bear: pursuit and opportunity.
The point of my including these observations here is: that I agree! Pursuing signifies urgency, of ‘getting the deal done’ or ‘time is money’. Using the word “opportunity” indicates some novelty involved, as opposed to other situations where it is not, citing the example of raising prices when market conditions permit, which is not entrepreneurial. Next is the premise: ‘beyond resources controlled’. This presupposes that there is always a limit to what resources (physical, financial or human) are available – implying that the practice of entrepreneurship will address and overcome such shortfalls as they occur.
To evidence my concurrence with Professor Stephenson and his definition, I offer a short recap of my very first business venture and how that came about:
*It was 1973 | and I needed employment. Jobs were scarce, especially when I revealed my work history, mainly that of a ‘farm/ranch-hand/horse wrangler’ – skills not critical to an urban setting.
Separate from this job search, I came across a "building maintenance" opportunity. It was to “re-coat” (yes, paint) a two-story commercial structure. Even a cowhand can paint. To make sure, I recruited a ‘real painter’ to help. If I could just prove I had the wherewithal to complete the project, the contract would be mine.
Armed with that possibility, I visited a nearby Cloverdale Paint Store with a proposition. The manager was receptive. It appeared she was taking a liking to this young fella, so I delivered my pitch: “If the Store would just ‘front me’ (grub stake) what was needed (the paint, brushes, spray guns et al.) I would be able to secure this project. Moreover, the result would be a ‘show & tell testament' for more work and greater paint sales!”
With my proposal accepted, an enterprise and an “enterprise development” career were born.
Small to midsize enterprises (SMEs)* typically lack needed resources. Equally, many are limited in their ability to source or organize what is needed once in hand. ‘Entrepreneurship’, in my view, is the method that finds a way. It is an alternative to the traditional approach: ‘only administering assets ...already under one’s control’.**
The Entrepreneurialist Blog is going to explore this 'alternative' fully! Armed with examples − having many to choose from given the years past − it will address how and why an entrepreneurial management approach offers many advantages.
*Industry Canada defines: SMEs as Small (1 to 99 employees) to Midsize (100 to 499 employees) Enterprise
**Howard Stevenson: Sarnoff-Rock Baker Foundation Professor Emeritus, former Senior Associate Dean, Director of Publishing, and Chair of the Harvard Business Publishing Company board)
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