Addressing the Unicorn in the Room: Toward a New Normal of Responsible Entrepreneurship

Abstract

While entrepreneurial disruption has proven a source of previously unimaginable abundance by way of reforming legacy institutions, it is also frequently characterized by the displacement of existing professions, industries, and livelihoods. Prior research has often assumed that such reform and displacement are inevitable and inseparable aspects of entrepreneurial disruption. In this study, however, we argue that the institutional foundations which have led to the current configuration of the field of startup activity and the global emphasis on “unicorn startups” might be reoriented toward a “new normal” focused on responsible venture creation, wherein the reformative aspects of disruption are prioritized while displacement is controlled. We conclude by discussing paradoxes that must be managed as societies move toward an embrace of responsible entrepreneurship, while proposing several governance reforms needed to address such paradoxes. The resulting conceptual model advances a new theory of responsible entrepreneurship that challenges existing assumptions of entrepreneurial disruption while establishing the possibility of a “new normal.” Moreover, these insights contribute to existing scholarship on responsible and social innovation and bridge research on paradox and institutional change.