Entrepreneurship

Question 1

Entrepreneurship Economic Theory 1

Answer 1

Kirzner (Alert to opportunity)
-An entrepreneur is anyone alert to profitable opportunities
-Has additional knowledge which enables the recognition and exploitation of an opportunity
-No barriers to perception, what matters is noticing an opportunity
-A competitive threat can emerge from anywhere and outsiders may be quicker to recognize opportunities
-A successful economy will need a great many entrepreneurs

Question 2

Entrepreneurship Economic Theory 2

Answer 2

Schumpeter (Innovator)
-The entrepreneur is a special person who brings change
- Concerned with the development of new technologies/processes (not adjustments like Kirzner)
- Produces creative destruction, making the old framework inappropriate
- The entrepreneur will find it difficult to establish a new small firm (disadvantaged R&D)
- Entrepreneurship is temporary

Question 3

Entrepreneurship Economic theory 3

Answer 3

Knight (Risk taker)
- Entrepreneurs are calculated risk-takers
- Risk exists when we have uncertain outcomes, but those outcomes can be predicted with a certain degree of probability
- Opportunity arises out of uncertainty surrounding change
- Entrepreneurs have confidence to make judgements about the uncertain future and is rewarded with profit.

Question 4

Entrepreneurial intention increases with entrepreneurial learning

Answer 4

Saridakis et al, 2016

Question 5

Experimental Learning

Answer 5

Kolb (1984)
Concrete experience
Reflective observations
Abstract conceptualization
Active Experimentation

Question 6

LFS, 2016

Answer 6

-Men more than twice as likely to be self-employed, although gap is closing.
-Women are more likely to be part-time self-employed
-Men are more likely to be full-time self-employed

Question 7

2 types of entrepreneurship

Answer 7

Opportunity Based Entrepreneurship (Terjesen and Amoros, 2010)
-Pull Motive, desire, income, challenge,
independence, recognition and status.

Necessity Based Entrepreneurship (Amorós and Cristi, 2010)
-Entrepreneurs have no alternative and are pushed into entrepreneurship. Prevalent in developing economies.
-Offers escape from poverty and enhances socio-economic development.

Question 8

Ethiopia & China Case study

Answer 8

Kimhi (2009) Entrepreneurship increased income growth and distribution (Ethiopia)
Si et al (2014) City of Yiwu, the poor could make businesses with their superior knowledge of the market and form businesses with multi-nationals. Reduced Poverty.

Question 9

Saridakis et al, 2014