![]() “Beyond resources controlled” implies resource constraints. Many profit improvement opportunities are not novel–and thus are not entrepreneurial–for example, raising a product’s price or, once a firm has a scalable sales strategy, hiring more reps. Likewise, the list above is not the collectively exhaustive set of opportunities available to organizations. ![]() For example, a new venture might employ a new business model for an innovative product. These opportunity types are not mutually exclusive. The opportunity may entail: 1) pioneering a truly innovative product 2) devising a new business model 3) creating a better or cheaper version of an existing product or 4) targeting an existing product to new sets of customers. “Opportunity” implies an offering that is novel in one or more of four ways. Consequently, entrepreneurs have a sense of urgency that is seldom seen in established companies, where any opportunity is part of a portfolio and resources are more readily available. They need to show tangible progress to attract resources, and the mere passage of time consumes limited cash balances. Entrepreneurs often perceive a short window of opportunity. “Pursuit” implies a singular, relentless focus. According to Stevenson, entrepreneurship is the pursuit of opportunity beyond resources controlled. It was formulated by Professor Howard Stevenson, the godfather of entrepreneurship studies at HBS. I’ll spare you the results, and focus instead on the definition we use at Harvard Business School. The history of the word “entrepreneurship” is fascinating and scholars have indeed parsed its meaning. For some, “corporate entrepreneurship” is a rallying cry for others, an oxymoron. ![]() ![]() For some, it refers to venture capital-backed startups and their kin for others, to any small business. But like the terms “strategy” and “business model,” the word “entrepreneurship” is elastic. As a professor, I suppose I am guilty of mincing words. What is entrepreneurship? You probably think that the answer is obvious, and that only an academic would bother to ask this question. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |