Lecture #4 - Entrepreneurship Typed Filled in notes for lecture 4 - unit 1 Entrepreneurship - The prof gives lecture notes with blanks which needs to be filled during the lecture, I have provided a filled in lecture note, plus extra comments if any
SchoolUniversity of Waterloo
DepartmentRecreation and Leisure Studies
September 22, 2010
Entrepreneurs are . . .
"People who, often habitually, create and innovate to build something of recognized value
around perceived opportunities" (Bolton and Thompson, 2000).
Entrepreneurship is . . .
"The process of adding something new [creativity] and something different [innovation] for
the purpose of creating wealth for the individual and adding value to society” (Kao, 1993).
An Entrepreneur is . . .
“An individual who searches for change, responds to it, and exploits it as an opportunity”
Opportunity is at the heart of entrepreneurial activities
Divided into two schools of thought:
- A traits-oriented approach
- Assumes special types of individual create entrepreneurship
- Entrepreneurship is attributed to differences in psychological, social, cultural & ethnic
characteristics of individual
- Supply-siders ask if entrepreneurs have psychological traits & backgrounds that differentiate
them from other populations
- Such research has examined individuals' need for achievement, locus of control, risk-taking
propensity, problem-solving style and innovativeness, leadership style, values, and
Supply-side at Issue
Supply-side perspectives by themselves are too simple:
- The make economic activity too much a function of individuals
- They underplay the role of external structural influences
Defined as an
"opportunity structure, an 'objective' structure of economic opportunity and a structure of
differential advantage in the capacity of the system's participants to perceive and act upon
what do entrepreneurs actually do ?
What decisions do they make within social settings that are changing over time?
Demand-side at Issue ( both sides have an influence on an individual )
Lacks a theory of agency
Luecke & Katz (2003) defined “innovation” as . . .
“. . . the introduction of a new thing or method . . . Innovation is the embodiment, combination, or
synthesis of knowledge in original, relevant, valued new products, processes, or services."
Innovation & Creativity ( important for exam )
Innovation typically involves creativity, but is not identical to it
- Creativity implies “ coming up with ideas ”
- Innovation implies “ bringing ideas to life ” ( in order to make money they exploit it )
Innovation in the Commercial Sector
An innovation is not an innovation until someone successfully implements & makes money on an
For this reason, in the commercial sector, innovation is often equated with value creation
Note: Entrepreneurs find the opportunities, doesn’t have to be creative , but actually they bring
ideas to life
Value = commercial value