The Macro and Micro View of Entrepreneurship - School of Thoughts

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)

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