THE MACRO VIEW OF ENTREPRENEURSHIP – is a view which presents a broad selection of factors

relating to success or failure in existing entrepreneurial businesses in the external locus of control. It also
includes external processes that are beyond the control of the individual entrepreneur and can be broken
down into three subcategories:

1. The Environmental School of Thought – This school deals with external factors that affect the
lifestyle of a potential entrepreneur. These could be positive or negative forces in the modeling of
entrepreneurial desires. The school focuses on institutions, values and influence of the society that
put together, form a socio-political environmental framework that affects the development of an
entrepreneur. For example strong support from family and friends may influence the desire to
become an entrepreneur. In the case of Richard Branson this would refer to the major influence of
his mother.
2. The Financial/ Capital School of Thought – The foundations of this school are based on the capital-
seeking process. The search for start-up and growth capital is the complete focus because securing
venture capital is vital to an entrepreneur’s development. In this case, the entire entrepreneurial
venture is viewed from a financial management viewpoint and decisions involving finance occur at
every major point.
3. The Displacement School of Thought – This thought process concentrates on the negative side of
the existence of group, where someone can feel out of place or be displaced from the group. It
argues that a group can slow a person’s development, either bringing it to a halt or removing
specific factors vital to the individual for them to advance. As a result the frustrated individual is
motivated to succeed which can be projected into an entrepreneurial pursuit. There are three major
types of displacement that demonstrate this school of thought:
-Political displacement. Government regulations and policies that can limit/ redirect certain
industries or reject free enterprise.
-Cultural displacement. Social groups excluded from professional fields e.g. Ethnic
background, sex, race, religion.
-Economic Displacement. Job loss, capital shrinkage and anything affected by economic
variations of recession and depression.

THE MICRO VIEW OF ENTREPRENEURSHIP – examines the factors that are specific to entrepreneurship
and are part of internal locus of control. The potential entrepreneur has the ability to direct or adjust the
outcome of each major influence.

1. The Entrepreneurial Trait School of Thought – This approach focuses on researches about
successful entrepreneurs and recognizing similar traits and characteristic that if copied could
increase success opportunities for the emulators. They believe that certain attributes are usually
exhibited by entrepreneurs (creativity, determination etc.). They influences of family and education
are also examined. Some researchers argue that educational involvement challenges
entrepreneurial nature and kills creativity. The family development is considered very important in
the creation of entrepreneur; certain traits established and supported early in life will lead
eventually to entrepreneurial success.
2. The Venture Opportunity School of Thought – Opportunity aspect of venture development is the
main focus in this school of thought and the interest areas are the search for idea sources, the
development of concepts, and the importance of venture opportunities. Developing the right idea at
the right time for the right market niche is extremely important for the entrepreneurial success and
creativity and market awareness are viewed as essential.
3. The Strategic Formulation School of Thought – This approach emphasizes the planning process in
successful venture development. The effective venture formations are constructed by unique
 markets, unique people, unique products, or unique resources. Each of these unique aspects has its
own strategy.

Those Schools of Thought are foundations to entrepreneurial theory. And we need those theories to
understand the field of entrepreneurship in its growth and development.

In recent years another aspect to entrepreneurship has been developed: an intrapreneurship. The
definition of an intrapreneur is very similar to the one of entrepreneur with a difference that takes
place within an organization. The main idea is to create the entrepreneurial spirit within corporate
limitations therefore allowing the atmosphere of innovation to flourish.

In conclusion an entrepreneurship is a process of innovation and new venture creation through four
major dimensions- individual, organizational, environmental, processes- that is aided by collaborative
networks in government, education and institutions. (Kuratko & Hodgetts, 2007)

• Entrepreneurship

 A process of innovation and new-venture creation through four major dimensions—

individual, organizational, environmental, and process—that is aided by collaborative
networks in government, education, and institutions.

• Entrepreneur

 A catalyst for economic change who uses purposeful searching, careful planning, and sound
judgment when carrying out the entrepreneurial process.

An Integrated Definition

• Entrepreneurship

 A dynamic process of vision, change, and creation.

• Requires an application of energy and passion towards the creation and

implementation of new ideas and creative solutions.

 Essential ingredients include:

• The willingness to take calculated risks—in terms of time, equity, or career.

• The ability to formulate an effective venture team; the creative skill to marshal
needed resources.

• The fundamental skills of building a solid business plan.

• The vision to recognize opportunity where others see chaos, contradiction, and
confusion.

Macro View: External Locus of Control

• The Environmental School of Thought

 Considers the external factors that affect a potential entrepreneur’s lifestyle.

• The Financial/Capital School of Thought

  Based on the capital-seeking process—the search for seed and growth capital.

• The Displacement School of Thought

 Alienation drives entrepreneurial pursuits

• Political displacement (laws, policies, and regulations)

• Cultural displacement (preclusion of social groups)

• Economic displacement (economic variations)

Micro View: Internal Locus of Control

• The Entrepreneurial Trait School of Thought

 Focuses on identifying traits common to successful entrepreneurs.

• Achievement, creativity, determination, and technical knowledge

• The Venture Opportunity School of Thought

 Focuses on the opportunity aspect of venture development—the search for idea sources, the
development of concepts, and the implementation of venture opportunities.

• Corridor principle: New pathways or opportunities will arise that lead entrepreneurs
in different directions.

Micro View… (cont’d)

• The Strategic Formulation School of Thought

 Emphasizes the planning process in successful venture development.

 Strategic formulation is a leveraging of unique elements:

• Unique Markets—mountain gap strategies

• Unique People—great chef strategies

• Unique Products—better widget strategies

• Unique Resources—water well strategies

Process Approaches to Entrepreneurship

• An Integrative Approach

 Built around the concepts of inputs to the entrepreneurial process and outcomes from the
entrepreneurial process.

 Focuses on the entrepreneurial process itself and identifies five key elements that contribute
to the process.

 Provides a comprehensive picture regarding the nature of entrepreneurship that can be

applied at different levels.