Introduction: The Challenges of Defining and Studying Contemporary Entrepreneurship

Abstract

Entrepreneurship is a broad and complex concept, and is an important contributor to the economic prospects of companies, sectors, and entire nations. To a casual observer, entrepreneurship is most closely associated with smalland medium-sized enterprises, yet it plays a vital role, either directly or indirectly, in the sustainability of organizations of all sizes and types, private or public, national or multinational. The entrepreneur and the entrepreneurial process are critical to creating new economic activity—boosting innovation, wealth, growth, and employment. It strengthens competition between developed economies and supports social welfare within developing countries. There has been an uptrend in the scientific study of entrepreneurship (Busenitz et al., 2003), as reflected in an increase in the number of journals dedicated to the topic and in the range of outlets in business, psychology, and economics that include it as an area of interest. This is positive since an enhanced understanding of entrepreneurship has potential economic benefits for society as a whole. Since the topic is so broad, the use of multiple paradigms (cf. Kuhn, 1962) will likely be required to fully understand it, similar towhat has been required in the study of organizations generally (Burrell, 1999; Clarke & Clegg, 2000; Fabian, 2000). Even though the concept was first coined by Cantillon in 1755, basic issues such as “who” is an entrepreneur and “what” constitutes entrepreneurship are still widely debated (Brush et al., 2003; Busenitz et al., 2003). For example, Lee and Peterson (2000) argued that entrepreneurship is generally defined as the creation of new firms, while McDougall and Oviatt, (1997) view it as involving new and innovative activities focused on creating value and growth, and in response to perceived businesses opportunities. Timmons (1994) also focused on creation and the search for opportunities combined with a willingness to follow up even in the face of limited resources. More broadly, Stevenson and Jarillo (1990) surmised that entrepreneurship involves individuals—either individually or in a corporate sense—pursuing opportunities. The business process includes the identification and assessment of opportunities, the decision to exploit them or sell them to another agent, efforts to obtain resources, and the development of the strategy and organization to support a new business project (Eckhardt & Shane, 2003). Innovation is a crucial aspect of entrepreneurship, especially in the service sector and in certain industries (Claver-Cortes, Pereira-Moliner, & Molina-Azorin, 2009; Kuo, 2009; Min, Min, & Joo 2009; Nicolau, 2009; Pyo, 2010; Sellers-Rubio & NicolauGonzalbez, 2009; Teng & Barrows, 2009; Tsang & Yip, 2009; Wegner, Lee, & Weiler, 2010; Yang, 2009). Reflecting the complexity inherent in the concept, a variety of terms appear in the literature that place varying degrees of emphasis on the processes of entrepreneurship (e.g., entrepreneurial function and behaviour) versus the personal characteristics and capabilities of the entrepreneur (e.g., risk taking, entrepreneurial spirit). In contrast to the economic classics of land, labour, and capital, entrepreneurship is a relatively new factor in production. Entrepreneurial function refers to the discovery and exploitation of opportunities and/or the creation of enterprises. Entrepreneurial behaviour involves a combination of innovation (Abreu Grinevich, Kitson, & Savona, 2010; Mas-Verdu, Soriano, & Dobon, 2010; Melia, Perez, & Dobon, 2010; Romero-Martinez, Ortiz-de-Urbina-Criado, & Soriano, 2010; Rubalcaba, Gallego, & Hertog, 2010; Toivonen & Tuominen, 2009), risk taking, and proactiveness (Miller, 1983). As such, it encompasses the classic concepts of Schumpeter’s innovative entrepreneur (1934, 1942), Knight’s (1921) risktaker who can deal with uncertainty, and the personal initiative and imagination that results in new opportunities (Bonet, Peris-Ortiz, & Gil-Pechuan, 2010; Koschatzky & Stahlecker, 2010; Un & Montoro-Sanchez, 2010). Entrepreneurial initiative is the underlying capability to anticipate market imperfections and/or to create new combinations having economic value. It broadly covers the concepts of creation, risk taking, and renewal and innovation inside or outside an organization. Lastly, the entrepreneurial spirit emphasizes exploration, search, and innovation.