Entrepreneurship: An International Introduction

334 Pages·2011·1.99 MB·English

by  Dafna Kariv

Entrepreneurship
‘Dafna Kariv’s book is an indispensable resource for students and practitioners alike, to learn about
entrepreneurship. It provides an excellent foundation for better understanding this crucial subject
matter. Kariv manages to integrate theory with practice via fascinating case studies from all over
the world. The book is well written and inspires a lively discussion on a variety of themes in the
field of entrepreneurship.’
Sibylle Heibrunn, Ruppin Academic Center,Israel.
Entrepreneurship means different things to different people, but the entrepreneurial personality is a
crucial success factor to any new business. These traits are also increasingly in great demand at
established multinational corporations.
This groundbreaking textbook differs from its competitors by placing an emphasis both on the core
processes and practices of entrepreneurship, as well as demonstrating the impact of complex local
environments in shaping the processes of entrepreneurship. Topics include:
n Main processes of entrepreneurial venture creation, innovation and growth.
n Operational steps characterizing processes of entrepreneurship.
n Establishing and realizing entrepreneurial ventures.
n Core processes and practices of entrepreneurship.
With case studies and interviews with entrepreneurs from across the globe, Entrepreneurship’s
international approach makes it stand out from other titles, providing students and practitioners alike
with a unique perspective on the subject.
Dafna Kariv is a senior lecturer, researcher and the director of the TempusBiz Project and ‘Young
Entrepreneurs’ at the College of Management, Academic Studies, Rishon LeZion, Israel, and is a member
of the Chair of Entrepreneurship at HEC, Montréal, Canada. Her research interests include
entrepreneurship, gender and cross-national research. She has published in highly ranked journals, and
apaper was chosen for the Outstanding Paper Award for Excellence 2009.

Entrepreneurship
An international introduction
Dafna Kariv
First published 2011
by Routledge
2Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
270 Madison Ave, New York, NY 10016
Routledge is an imprint of the Taylor & Francis Group, an informa business
This edition published in the Taylor & Francis e-Library, 2011.
To purchase your own copy of this or any of Taylor & Francis or Routledge’s
collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.
©2011 Dafna Kariv
The right of Dafna Kariv to be identified as the author of this work has been asserted
by her in accordance with sections 77 and 78 of the Copyright, Designs and Patents
Act 1988
All rights reserved. No part of this book may be reprinted or reproduced or utilized in any
form or by any electronic, mechanical, or other means, now known or hereafter invented,
including photocopying and recording, or in any information storage and retrieval system,
without permission in writing from the publishers.
British Library Cataloguing in Publication Data
Acatalogue record for this book is available from the British Library
Library of Congress Cataloguing in Publication Data
Kariv, Dafna.
Entrepreneurship: an international introduction / Dafna Kariv.
p.cm.
Includes bibliographical references and index.
1. Entrepreneurship. I. Title.
HB615.K367 2011
658.4¢21—dc22 2010031383
ISBN 0-203-83193-4 Master e-book ISBN
ISBN: 978–0–415–56119–8 (hbk)
ISBN: 978–0–415–56120–4 (pbk)
ISBN: 978–0–203–83193–9 (ebk)
This book is dedicated to my father,Dan Barel.His memory and his inspiration will
always be special to me,touching upon all aspects of my life.

Contents
List of case studies xii
List of illustrations xiii
List of tables xv
Forewordby Professor Louis Jacques Filion xvi
Acknowledgments xviii
INTRODUCTION 1
Who should read this book? 1
Entrepreneurship in a global context 2
Basic theoretical models in entrepreneurship at a glance: a research evolutionary
perspective 3
National culture and entrepreneurship 4
Entrepreneurs versus small-business owners 6
Entrepreneurship today 7
The book’s approach 8
PARTI THE RESOURCE-BASED PERSPECTIVE IN THE ENTREPRENEURIAL
COURSE 15
1 THE ENVIRONMENT AND ENTREPRENEURSHIP 17
The market analysis 18
Uses of market segmentation 19
The environment 19
Clientele 23
Summary 24
2 THE ENTREPRENEURIAL CULTURE 29
What is entrepreneurial culture? 29
Processes that structure the entrepreneurial culture 32
Summary 33
vii
CONTENTS
3 ‘ENTREPRENING’ 37
What does it take to be an entrepreneur? 37
Is there a background that prompts entrepreneurship? 38
Main characteristics of today’s entrepreneurship and entrepreneurs 40
Summary 45
PARTII THE PROCESS-ORIENTED PERSPECTIVE IN ENTREPRENEURSHIP 51
4 CREATIVITY IN ENTREPRENEURSHIP 53
Defining creativity 54
Creativity in the entrepreneurial realm 54
Creativity and environment 56
Types of creative ideas 57
The ‘idea’ 58
Creativity in the context of entrepreneurial projects 59
Amodel of creativity 62
Gaps and asynchronicities 64
Creativity in the context of the business plan 65
Differentiation of the business 66
Summary 66
5 INNOVATION 72
The design of innovationin the entrepreneurial context 72
Innovators and entrepreneurs 74
The dynamic capabilities perspective and innovation 75
How to stimulate innovation 76
Innovation and business success 76
Unexpected business results 78
The effects of market demand 79
Opportunity exploitation in the context of innovation 79
Differentiating creativity and innovation in the entrepreneurial context 80
Summary 81
6 OPPORTUNITY EXPLOITATION 90
Opportunity identification 90
Opportunity exploitation 92
Opportunity creation 94
Opportunity evaluation 95
Practical ways of identifying or exploiting opportunities 96
University incubators: promoting entrepreneurship in higher education 97
Summary 99
viii
CONTENTS
7 THE STARTUP STAGE 105
Phase 1—Decision-making 106
Phase 2—Realizing the vision 107
Phase 3—Equipment know-how 108
Phase 4—Buying 109
Phase 5—Initiating the venture 109
Phase 6—Selling 111
Phase 7—Managing the business 111
Summary 113
8 MENTORSHIP, COACHING AND COUNSELING 118
Mentorship 119
Coaching 122
Counseling 124
Summary 126
9 PLANNING AND MANAGING AN ENTREPRENEURIAL VENTURE 133
Business planning and business performance 134
Mission statement 134
Value statement 135
Writing a mission statement 136
Redefining the firm’s goals 136
Main themes in business planning 136
Business plans for established firms 138
Break-even analysis 140
Setting prices 140
What should entrepreneurs look for? 141
Two types of business plan 142
Elements of a business plan 143
Reflections on the planning process: a new perspective on business plans 143
Finalizing the planning process: the strategic plan 146
Planning by IPA: an alternative approach 147
Summary 148
10 MANAGEMENT SKILLS IN THE ENTREPRENEURIAL REALM 154
Managerial skills in entrepreneurship 154
Managerial skills relevant for different stages of business development 156
Entrepreneurial management 156
Management and the resource-based view 159
Leadership in the entrepreneurial realm 159
The new venture team 164
Aglimpse into entrepreneurial teams 166
Summary 170
ix