Abstract
The definitions of entrepreneurship might vary, but it is a fact that a clear conceptual framework which correlates entrepreneurship with the economic outcome does not exist. One possible explanation—this chapter suggests—derives from neoclassical theory, which does not consider entrepreneurship as a separate variable of its models. At the same time, the chapter presents entrepreneurial micro-foundation on growth, in terms of the observation of the cognitive process of entrepreneurs seeking growth and in terms of the process of business development. Finally, an important concept for entrepreneurship—the business opportunity—is examined alongside with its sources and the process of controlling it, on the way to seeking a competitive advantage.
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Notes
- 1.
According to Hofstede, de Hilal, Malvezzi, Tanure, and Vinken (2010), the dimensions that express organizational culture are,
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Process-oriented versus goal-oriented: it is closely associated with the effectiveness of the organization. In process-oriented cultures, as opposed to goal-oriented cultures, people avoid risk and uncertainty situations and spend only a small portion of their potential at work. A key feature is the way the work has to be done, while individuals are disinclined to face change and they love routine.
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Employee-oriented versus job-oriented: it reflects the management philosophy of an organization. In employee-oriented cultures, individuals feel that the organization takes their personal problems into account, takes care of the staff—even if this is to the detriment of job objectives—and that important decisions of the organization are made by teams or committees.
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Local-oriented versus professional-oriented: this dimension shows the contrast between units whose employees largely obtain their identity from the organization (local) with units in which individuals are identified with the type of work (occupation). In local-oriented cultures, by contrast to occupation-oriented ones, individuals feel that the norms of the organization cover their behaviour both at home and at the workplace and that, when it hired them, the company took into account their social and family background along with their professional skills. Furthermore, people in local-oriented cultures are short-term oriented because they believe that the organization will serve its long-term vision over themselves.
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Open versus closed system: this refers to the accessibility of an organization. In the culture of open systems, individuals consider all members of the organization open to new entrants and to those outside the organization and consider that everyone could join the organization. Therefore, new employees are characterized by adaptability. On the contrary, in the culture of closed systems, the organization is closed and secretive.
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Loose versus tight control: this refers to the degree of the organization’s internal structure. In loose control cultures, no one considers the cost, and meeting times are kept only approximately.
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Normative-oriented versus pragmatic-oriented: this refers to the extent to which the organization is customer-oriented or not. Pragmatic cultures are market-oriented. There is a strong emphasis on meeting customer needs, results are more important than sound procedures and a pragmatic, rather than dogmatic, approach to business ethics prevails. In regulatory cultures, people perceive their work in relation to the outside world as the application of inviolable rules.
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Petrakis, P.E., Valsamis, D.G., Kafka, K.I. (2020). Entrepreneurship and Economic Growth. In: Economic Growth and Development Policy . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-43181-5_9
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