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1.1: Chapter 1 – Introduction to Entrepreneurship

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Lee A. Swanson
University of Saskatchewan

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Whilst there is no universally accepted definition of entrepreneurship, it is fair to say that it is multi-dimensional. It involves analyzing people and their actions together with the ways in which they interact with their environments, be these social, economic, or political, and the institutional, policy, and legal frameworks that help define and legitimize human activities. – Blackburn (2011, p. xiii)

Entrepreneurship involves such a range of activities and levels of analysis that no single definition is definitive. – Lichtenstein (2011, p. 472)

It is complex, chaotic, and lacks any notion of linearity. As educators, we have the responsibility to develop our students’ discovery, reasoning, and implementation skills so they may excel in highly uncertain environments. – Neck and Greene (2011, p. 55)

Learning Objectives

Examine the challenges associated with defining the concepts of entrepreneur and entrepreneurship
Discuss how the evolution of entrepreneurship thought has influenced how we view the concept of entrepreneurship today
Discuss how the list of basic questions in entrepreneurship research can be expanded to include research inquiries that are important in today’s world
Discuss how the concepts of entrepreneurial uniqueness, entrepreneurial personality traits, and entrepreneurial cognitions can help society improve its support for entrepreneurship
Apply the general venturing script to the study of entrepreneurship

This chapter provides you with an overview of entrepreneurship and of the language of entrepreneurship. The challenges associated with defining entrepreneur and entrepreneurship are explored, as is an overview of how entrepreneurship can be studied.

The objective is to enable you to apply current concepts in entrepreneurship to the evaluation of entrepreneurs, their ventures, and the venturing environment. You will develop skills, including the capability to add value in the new venture sector of the economy. You will acquire and practice evaluation skills useful in consulting, advising, and making new venture decisions.

Entrepreneurs and Entrepreneurship

Considerations influencing definitions of entrepreneur and entrepreneurship.

It is necessary to be able to determine exactly who entrepreneurs are before we can, among other things, study them, count them, provide special loans for them, and calculate how and how much they contribute to our economy.

Does someone need to start a business from scratch to be called an entrepreneur?
Can we call someone an entrepreneur if they bought an ongoing business from someone else or took over the operations of a family business from their parents?
If someone starts a small business and never needs to hire employees, can they be called an entrepreneur?
If someone buys a business but hires professional managers to run it so they don’t have to be involved in the operations, are they an entrepreneur?
Is someone an entrepreneur if they buy into a franchise so they can follow a well-established formula for running the operation?
Is someone an entrepreneur because of what they do or because of how they think?
Can someone be an entrepreneur without owning their own business?
Can a person be an entrepreneur because of the nature of the work that they do within a large corporation?

It is also necessary to fully understand what we mean by entrepreneurship before we can study the concept.

Gartner (1990) identified 90 attributes that showed up in definitions of entrepreneurs and entrepreneurship provided by entrepreneurs and other experts in the field. The following are a few of these attributes:

Innovation – Does a person need to be innovative to be considered an entrepreneur? Can an activity be considered to be entrepreneurial if it is not innovative?
Activities – What activities does a person need to do to be considered an entrepreneur?
Creation of a new business – Does someone need to start a new business to be considered to be an entrepreneur, or can someone who buys a business, buys into a franchise, or takes over an existing family business be considered an entrepreneur?
Starts an innovative venture within an established organization – Can someone who works within an existing organization that they don’t own be considered an entrepreneur if they start an innovative venture for their organization?
Creation of a not-for-profit business – Can a venture be considered to be entrepreneurial if it is a not-for-profit, or should only for-profit businesses be considered entrepreneurial?

After identifying the 90 attributes, Gartner (1990) went back to the entrepreneurs and other experts for help in clustering the attributes into themes that would help summarize what people concerned with entrepreneurship thought about the concept. He ended up with the following eight entrepreneurship themes:

1. The Entrepreneur – The entrepreneur theme is the idea that entrepreneurship involves individuals with unique personality characteristics and abilities (e.g., risk-taking, locus of control, autonomy, perseverance, commitment, vision, creativity). Almost 50% of the respondents rated these characteristics as not important to a definition of entrepreneurship (Gartner, 1990, p. 21, 24).

“The question that needs to be addressed is: Does entrepreneurship involve entrepreneurs (individuals with unique characteristics)?” (Gartner, 1990, p. 25).

2. Innovation – The innovation theme is characterized as doing something new as an idea, product, service, market, or technology in a new or established organization. The innovation theme suggests that innovation is not limited to new ventures, but recognized as something which older and/or larger organizations may undertake as well (Gartner, 1990, p. 25). Some of the experts Gartner questioned believed that it was important to include innovation in definitions of entrepreneurship and others did not think it was as important.

“Does entrepreneurship involve innovation?” (Gartner, 1990, p. 25).

3. Organization Creation – The organization creation theme describes the behaviors involved in creating organizations. This theme described acquiring and integrating resource attributes (e.g., Brings resources to bear, integrates opportunities with resources, mobilizes resources, gathers resources) and attributes that described creating organizations (new venture development and the creation of a business that adds value). (Gartner, 1990, p. 25)

“Does entrepreneurship involve resource acquisition and integration (new venture creation activities)?” (Gartner, 1990, p. 25)

4. Creating Value – This theme articulated the idea that entrepreneurship creates value. The attributes in this factor indicated that value creation might be represented by transforming a business, creating a new business growing a business, creating wealth, or destroying the status quo.

“Does entrepreneurship involve creating value?” (Gartner, 1990, p. 25).

5. Profit or Nonprofit

“Does entrepreneurship involve profit-making organizations only” (Gartner, 1990, p. 25)?
Should a focus on growth be a characteristic of entrepreneurship?

7. Uniqueness – This theme suggested that entrepreneurship must involve uniqueness. Uniqueness was characterized by attributes such as a special way of thinking, a vision of accomplishment, ability to see situations in terms of unmet needs, and creates a unique combination.

“Does entrepreneurship involve uniqueness?” (Gartner, 1990, p. 26).

8. The Owner-Manager – Some of the respondents questioned by Gartner (1990) did not believe that small mom-and-pop types of businesses should be considered to be entrepreneurial. Some respondents felt that an important element of a definition of entrepreneurship was that a venture be owner-managed.

To be entrepreneurial, does a venture need to be owner-managed?

Examples of Definitions of Entrepreneur

An entrepreneur can be described as “one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them” (Zimmerer & Scarborough, 2008, p. 5).

An entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise” (Entrepreneur, n.d.).

Examples of Definitions of Entrepreneurship

Entrepreneurship can be defined as a field of business that

seeks to understand how opportunities to create something new (e.g., new products or services, new markets, new production processes or raw materials, new ways of organizing existing technologies) arise and are discovered or created by specific persons, who then use various means to exploit or develop them, thus producing a wide range of effects (Baron, Shane, & Reuber, 2008, p. 4)

A concise definition of entrepreneurship “is that it is the process of pursuing opportunities without limitation by resources currently in hand” (Brooks, 2009, p. 3) and “the process of doing something new and something different for the purpose of creating wealth for the individual and adding value to society” (Kao, 1993, p. 70)

The Evolution of Entrepreneurship Thought

This section includes an overview of how entrepreneurship has evolved to the present day.

The following timeline shows some of the most influential entrepreneurship scholars and the schools of thought (French, English, American, German, and Austrian) their perspectives helped influence and from which their ideas evolved. Schools of thought are essentially groups of people who might or might not have personally known each other, but who shared common beliefs or philosophies.

Figure 1 – Historical and Evolutionary Entrepreneurship Thought (Illustration by Lee A. Swanson)

The Earliest Entrepreneurship

The function, if not the name, of the entrepreneur is probably as old as the institutions of barter and exchange. But only after economic markets became an intrusive element of society did the concept take on pivotal importance. Many economists have recognized the pivotal role of the entrepreneur in a market economy. Yet despite his central importance in economic activity, the entrepreneur has been a shadowy and elusive figure in the history of economic theory (Hebert & Link, 2009, p. 1).

Historically those who acted similarly to the ways we associate with modern day entrepreneurs – namely those who strategically assume risks to seek economic (or other) gains – were military leaders, royalty, or merchants. Military leaders planned their campaigns and battles while assuming significant risks, but by doing so they also stood to gain economic benefits if their strategies were successful. Merchants, like Marco Polo who sailed out of Venice in the late 1200s to search for a trade route to the Orient, also assumed substantial risks in the hope of becoming wealthy (Hebert & Link, 2009).

The entrepreneur, who was also called adventurer , projector , and undertaker during the eighteenth century, was not always viewed in a positive light (Hebert & Link, 2009).

Development of Entrepreneurship as a Concept

Risk and uncertainty.

Richard Cantillon (1680-1734) was born in France and belonged to the French School of thought although he was an Irish economist. He appears to be the person who introduced the term entrepreneur to the world. “According to Cantillon, the entrepreneur is a specialist in taking on risk, ‘insuring’ workers by buying their output for resale before consumers have indicated how much they are willing to pay for it” (Casson & Godley, 2005p. 26). The workers’ incomes are mostly stable, but the entrepreneur risks a loss if market prices fluctuate.

Cantillon distinguished entrepreneurs from two other classes of economic agents; landowners, who were financially independent, and hirelings (employees) who did not partake in the decision-making in exchange for relatively stable incomes through employment contracts. He was the first writer to provide a relatively refined meaning for the term entrepreneurship . Cantillon described entrepreneurs as individuals who generated profits through exchanges. In the face of uncertainty, particularly over future prices, they exercise business judgment. They purchase resources at one price and sell their product at a price that is uncertain, with the difference representing their profit (Chell, 2008; Hebert & Link, 2009).

Farmers were the most prominent entrepreneurs during Cantillon’s lifetime, and they interacted with “arbitrageurs” – or middlemen between farmers and the end consumers – who also faced uncertain incomes, and who were also, therefore, entrepreneurs. These intermediaries facilitated the movement of products from the farms to the cities where more than half of the farm output was consumed. Cantillon observed that consumers were willing to pay a higher price per unit to be able to purchase products in the smaller quantities they wanted, which created the opportunities for the intermediaries to make profits. Profits were the rewards for assuming the risks arising from uncertain conditions. The markets in which profits were earned were characterized by incomplete information (Chell, 2008; Hebert & Link, 2009).

Adolph Reidel (1809-1872), form the German School of thought, picked up on Cantillon’s notion of uncertainty and extended it to theorize that entrepreneurs take on uncertainty so others, namely income earners, do not have to be subject to the same uncertainty. Entrepreneurs provide a service to risk-averse income earners by assuming risk on their behalf. In exchange, entrepreneurs are rewarded when they can foresee the impacts of the uncertainty and sell their products at a price that exceeds their input costs (including the fixed costs of the wages they commit to paying) (Hebert & Link, 2009).

Frank Knight (1885-1972) founded the Chicago School of Economics and belonged to the American School of thought. He refined Cantillon’s perspective on entrepreneurs and risk by distinguishing insurable risk as something that is separate from uncertainty, which is not insurable. Some risks can be insurable because they have occurred enough times in the past that the expected loss from such risks can be calculated. Uncertainty, on the other hand, is not subject to probability calculations. According to Knight, entrepreneurs can’t share the risk of loss by insuring themselves against uncertain events, so they bear these kinds of risks themselves, and profit is the reward that entrepreneurs get from assuming uninsurable risks (Casson & Godley, 2005).

Distinction Between Entrepreneur and Manager

Jean-Baptiste Say (1767-1832), also from the French School, advanced Cantillon’s work, but added that entrepreneurship was essentially a form of management. Say “put the entrepreneur at the core of the entire process of production and distribution” (Hebert & Link, 2009, p. 17). Say’s work resulted in something similar to a general theory of entrepreneurship with three distinct functions; “scientific knowledge of the product; entrepreneurial industry – the application of knowledge to useful purpose; and productive industry – the manufacture of the item by manual labour” (Chell, 2008, p. 20).

Frank Knight made several contributions to entrepreneurship theory, but another of note is how he distinguished an entrepreneur from a manager. He suggested that a manager crosses the line to become an entrepreneur “when the exercise of his/her judgment is liable to error and s/he assumes the responsibility for its correctness” (Chell, 2008, p. 33). Knight said that entrepreneurs calculate the risks associated with uncertain business situations and make informed judgments and decisions with the expectation that – if they assessed the situation and made the correct decisions – they would be rewarded by earning a profit. Those who elect to avoid taking these risks choose the relative security of being employees (Chell, 2008).

Alfred Marshall (1842-1924), from the English School of thought, was one of the founders of neoclassical economics. His research involved distinguishing between the terms capitalist, entrepreneur, and manager. Marshall saw capitalists as individuals who “committed themselves to the capacity and honesty of others, when he by himself had incurred the risks for having contributed with the capital” (Zaratiegui & Rabade, 2005, p. 775). An entrepreneur took control of money provided by capitalists in an effort to leverage it to create more money; but would lose less if something went wrong then would the capitalists. An entrepreneur, however, risked his own reputation and the other gains he could have made by pursuing a different opportunity.

Let us suppose that two men are carrying on smaller businesses, the one working with his own, the other chiefly with borrowed capital. There is one set of risks which is common to both; which may be described as the trade risks of the particular business … But there is another set of risks, the burden of which has to be borne by the man working with borrowed capital, and not by the other; and we may call them personal risks (Marshall, 1961, p. 590; Zaratiegui & Rabade, 2005, p. 776).

Marshall recognized that the reward capitalists received for contributing capital was interest income and the reward entrepreneurs earned was profits. Managers received a salary and, according to Marshall, fulfilled a different function than either capitalists or entrepreneurs – although in some cases, particularly in smaller firms, one person might be both an entrepreneur and a manager. Managers “were more inclined to avoid challenges, innovations and what Schumpeter called the ‘perennial torment of creative destruction’ in favour of a more tranquil life” (Zaratiegui & Rabade, 2005, p. 781). The main risks they faced from firm failure were to their reputations or to their employment status. Managers had little incentive to strive to maximize profits (Zaratiegui & Rabade, 2005).

Amasa Walker (1799-1875) and his son Francis Walker (1840-1897) were from the American School of thought, and they helped shape an American perspective of entrepreneurship following the Civil War of 1861-1865. These scholars claimed that entrepreneurs created wealth, and thus played a different role than capitalists. They believed that entrepreneurs had the power of foresight and leadership qualities that enabled them to organize resources and inject energy into activities that create wealth (Chell, 2008).

Entrepreneurship versus Entrepreneur

Adam Smith (1723-1790), from the English School of thought, published An Inquiry into the Nature and Causes of the Wealth of Nations in 1776. In a departure from the previous thought into entrepreneurship and economics, Smith did not dwell on a particular class of individual. He was concerned with studying how all people fit into the economic system. Smith contended that the economy was driven by self-interest in the marketplace (Chell, 2008).

Also from the English School, David Ricardo (1772-1823) was influenced by Smith, Say, and others. His work focused on how the capitalist system worked. He explained how manufacturers must invest their capital in response to the demand for the products they produce. If demand decreases, manufacturers should borrow less and reduce their workforces. When demand is high, they should do the reverse (Chell, 2008).

Carl Menger (1840-1921), from the Austrian School of thought, ranked goods according to their causal connections to human satisfaction. Lower order goods include items like bread that directly satisfy a human want or need like hunger. Higher order goods are those more removed from satisfying a human need. A second order good is the flour that was used to make the bread. The grain used to make the flour is an even higher order good. Entrepreneurs coordinate these factors of production to turn higher order goods into lower order goods that more directly satisfy human wants and needs (Hebert & Link, 2009).

Menger (1950 [1871], p. 160) established that entrepreneurial activity includes: (a) obtaining information about the economic situation, (b) economic calculation – all the various computations that must be made if a production process is to be efficient, (c) the act of will by which goods of higher order are assigned to a particular production process, and (d) supervising the execution of the production plan so that it may be carried through as economically as possible (Hebert & Link, 2009, p. 43).

Entrepreneurship and Innovation

Jeremy Bentham (1748-1832), from the English School of thought, considered entrepreneurs to be innovators. They “depart from routine, discover new markets, find new sources of supply, improve existing products and lower the costs of production” (Chell, 2008).

Joseph Schumpeter’s (1883-1950) parents were Austrian, he studied at the University of Vienna, conducted research at the University of Graz, served as Austria’s Minister of Finance, and was the president of a bank in the country. Because of the rise of Hitler in Europe, he went to the United States and conducted research at Harvard until he retired in 1949. Because of this, he is sometimes associated with the American School of thought on entrepreneurship (Chell, 2008).

Whereas Menger saw entrepreneurship as occurring because of economic progress, Schumpeter took the opposite stance. Schumpeter saw economic activity as leading to economic development (Hebert & Link, 2009). Entrepreneurs play a central role in Schumpeter’s theory of economic development, and economic development can occur when the factors of production are assembled in new combinations .

Schumpeter (1934) viewed innovation as arising from new combinations of materials and forces. He provided the following five cases of new combinations.

The introduction of a new good – that is one with which consumers are not yet familiar – or of a new quality of good.
The introduction of a new method of production, that is one not yet tested by experience in the branch of manufacture concerned, which need by no means be founded upon a discovery scientifically new, and can also exist in a new way of handling a commodity commercially.
The opening of a new market, that is a market into which the particular branch of manufacture of the country in question has not previously entered, whether or not this market has existed before.
The conquest of a new source of supply of raw materials or half-manufactured goods, again irrespective of whether this source already exists or whether it has first to be created.
The carrying out of the new organisation of any industry, like the creation of a monopoly position … or the breaking up of a monopoly position (Schumpeter, 1934, p. 66).

Another concept popularized by Schumpeter – in addition to the notion of new combinations – was creative destruction . This was meant to indicate that the existing ways of doing things need to be dismantled – to be destroyed – to enable a transformation through innovation to a new way of doing things. Entrepreneurs use innovation to disrupt how things are done and to establish a better way of doing those things.

Basic Questions in Entrepreneurship Research

According to Baron (2004a), there are three basic questions of interest in the field of entrepreneurship:

Why do some persons but not others choose to become entrepreneurs?
Why do some persons but not others recognize opportunities for new products or services that can be profitably exploited?
Why are some entrepreneurs so much more successful than others (Baron, 2004a, p. 221)?

To understand where these foundational research questions came from and what their relevance is today, it is useful to study what entrepreneurship research has uncovered so far.

Entrepreneurial Uniqueness

Efforts to teach entrepreneurship have included descriptions of entrepreneurial uniqueness based on personality, behavioural, and cognitive traits (Chell, 2008; Duening, 2010).

Need for achievement
Internal locus of control (a belief by an individual that they are in control of their own destiny)
Risk-taking propensity
Behavioural traits
Cognitive skills of successful entrepreneurs

Past studies of personality characteristics and behavioural traits have not been overly successful at identifying entrepreneurial uniqueness.

As it turned out, years of painstaking research along this line has not borne significant fruit. It appears that there are simply not any personality characteristics that are either essential to, or defining of, entrepreneurs that differ systematically from non-entrepreneurs…. Again, investigators proposed a number of behavioural candidates as emblematic of entrepreneurs. Unfortunately, this line of research also resulted in a series of dead ends as examples of successful entrepreneurial behaviours had equal counterparts among samples of non-entrepreneurs. As with the personality characteristic school of thought before it, the behavioural trait school of thought became increasingly difficult to support (Duening, 2010, p. 4-5).

This shed doubt on the value of trying to change personality characteristics or implant new entrepreneurial behaviours through educational programs in an effort to promote entrepreneurship.

New research, however, has resurrected the idea that there might be some value in revisiting personality traits as a topic of study. Additionally, Duening (2010) and has suggested that an important approach to teaching and learning about entrepreneurship is to focus on the “cognitive skills that successful entrepreneurs seem uniquely to possess and deploy” (p. 2). In the next sections we consider the new research on entrepreneurial personality traits and on entrepreneurial cognitions.

Entrepreneurial Personality Traits

While acknowledging that research had yet to validate the value of considering personality and behaviour traits as ways to distinguish entrepreneurs from non-entrepreneurs or unsuccessful ones, Chell (2008) suggested that researchers turn their attention to new sets of traits including: “the proactive personality, entrepreneurial self-efficacy, perseverance and intuitive decision-making style. Other traits that require further work include social competence and the need for independence” (p. 140).

In more recent years scholars have considered how the Big Five personality traits – extraversion, agreeableness, conscientiousness, neuroticism (sometimes presented as emotional stability ), and openness to experience (sometimes referred to as intellect) – might be used to better understand entrepreneurs. It appears that the Big Five traits might be of some use in predicting entrepreneurial success. Research is ongoing in this area, but in one example, Caliendo, Fossen, and Kritikos (2014) studied whether personality constructs might “influence entrepreneurial decisions at different points in time” (p. 807), and found that “high values in three factors of the Big Five approach—openness to experience, extraversion, and emotional stability (the latter only when we do not control for further personality characteristics)—increase the probability of entry into self-employment” (p. 807). They also found “that some specific personality characteristics, namely risk tolerance, locus of control, and trust, have strong partial effects on the entry decision” (p. 807). They also found that people who scored higher on agreeableness were more likely to exit their businesses, possibly meaning that people with lower agreeableness scores might prevail longer as entrepreneurs. When it came to specific personality traits, their conclusions indicated that those with an external locus of control were more likely to stop being self-employed after they had run their businesses for a while. There are several implications for research like this, including the potential to better understand why some entrepreneurs behave as they do based upon their personality types and the chance to improve entrepreneurship education and support services.

Entrepreneurial Cognitions

It is only fairly recently that entrepreneurship scholars have focused on cognitive skills as a primary factor that differentiates successful entrepreneurs from non-entrepreneurs and less successful entrepreneurs. This approach deals with how entrepreneurs think differently than non-entrepreneurs (Duening, 2010; Mitchell et al., 2007).

Entrepreneurial cognitions are the knowledge structures that people use to make assessments, judgments or decisions involving opportunity evaluation and venture creation and growth. In other words, research in entrepreneurial cognition is about understanding how entrepreneurs use simplifying mental models to piece together previously unconnected information that helps them to identify and invent new products or services, and to assemble the necessary resources to start and grow businesses (Mitchell, Busenitz, et al., 2002, p. 97).

Mitchell, Smith, et al. (2002) provided the example of how the decision to create a new venture (dependent variable) was influenced by three sets of cognitions (independent variables). They described these cognitions as follows:

Arrangements cognitions are the mental maps about the contacts, relationships, resources, and assets necessary to engage in entrepreneurial activity; willingness cognitions are the mental maps that support commitment to venturing and receptivity to the idea of starting a venture; ability cognitions consist of the knowledge structures or scripts (Glaser, 1984) that individuals have to support the capabilities, skills, norms, and attitudes required to create a venture (Mitchell et al., 2000). These variables draw on the idea that cognitions are structured in the minds of individuals (Read, 1987), and that these knowledge structures act as “scripts” that are the antecedents of decision making (Leddo & Abelson, 1986, p. 121; Mitchell, Smith, et al., 2002, p. 10)

Cognitive Perspective to Understanding Entrepreneurship

According to Baron (2004a), by taking a cognitive perspective, we might better understand entrepreneurs and the role they play in the entrepreneurial process.

The cognitive perspective emphasizes the fact that everything we think, say, or do is influenced by mental processes—the cognitive mechanisms through which we acquire store, transform, and use information. It is suggested here that this perspective can be highly useful to the field of entrepreneurship. Specifically, it can assist the field in answering three basic questions it has long addressed: (1) Why do some persons but not others choose to become entrepreneurs? (2) Why do some persons but not others recognize opportunities for new products or services that can be profitably exploited? And (3) Why are some entrepreneurs so much more successful than others (Baron, 2004a, p. 221-222)?

Baron (2004a), illustrated how cognitive differences between people might explain why some people end up pursuing entrepreneurial pursuits and others do not. For example, prospect theory (Kahneman & Tversky, 1977) and other decision-making or behavioural theories might be useful in this regard. Research into cognitive biases might also help explain why some people become entrepreneurs.

Baron (2004a) also revealed ways in which cognitive concepts like signal detection theory, regulation theory, and entrepreneurial might help explain why some people are better at entrepreneurial opportunity recognition. He also illustrated how some cognitive models and theories – like risk perception, counterfactual thinking, processing style, and susceptibility to cognitive errors – might help explain why some entrepreneurs are more successful than others.

Cognitive Perspective and the Three Questions

Prospect Theory
Cognitive Biases
Signal Detection Theory
Regulation Theory
Entrepreneurial Alertness
Risk Perception
Counterfactual Thinking
Processing Style
Susceptibility to Cognitive Errors

Entrepreneurial Scripts

“Cognition has emerged as an important theoretical perspective for understanding and explaining human behavior and action” (Dutta & Thornhill, 2008, p. 309).
Cognitions are all processes by which sensory input is transformed, reduced, elaborated, stored, recovered, and used (Neisser, 1976).
Cognitions lead to the acquisition of knowledge, and involve human information processing.
Is a mental model, or information processing short-cut that can give information form and meaning, and enable subsequent interpretation and action.
The subsequent interpretation and actions can result in expert performance … they can also result in thinking errors.
the processes that transfer expertise, and
the actual expertise itself.
Scripts are generally framed as a linear sequence of steps, usually with feedback loops, that can explain how to achieve a particular task – perhaps like developing a business plan.
Sometimes scripts can be embedded within other scripts. For example, within a general venturing script that outlines the sequences of activities that can lead to a successful business launch, there will probably be sub-scripts describing how entrepreneurs can search for ideas, screen those ideas until one is selected, plan how to launch a sustainable business based upon that idea and including securing the needed financial resources, setting up the business, starting it, effectively managing its ongoing operations, and managing the venture such that that entrepreneur can extract the value that they desire from the enterprise at the times and in the ways they want it.
The most effective scripts include an indication of the norms that outline performance standards and indicate how to determine when any step in the sequence has been properly completed.

General Venturing Script

Generally, entrepreneurship is considered to consist of the following elements, or subscripts (Brooks, 2009; Mitchell, 2000).

Idea Screening
Planning and Financing
Ongoing Operations

Searching (also called idea formulation or opportunity recognition)

This script begins when a person decides they might be a potential entrepreneur (or when an existing entrepreneur decides they need more ideas in their idea pool ).
This script ends when there are a sufficient number of ideas in the idea pool.
overcome mental blockages to creativity which might hinder this person’s ability to identify viable ideas;
implement steps to identify a sufficient number of ideas (most likely 5 or more) which the person is interested in investigating to determine whether they might be viable given general criteria such as this person’s personal interests and capabilities;

Idea Screening (also called concept development)

This script begins when the person with the idea pool is no longer focusing on adding new ideas to it; but is instead taking steps to choose the best idea for them given a full range of specific criteria .
This script ends when one idea is chosen from among those in the idea pool.
Evaluate the political, economic, social, technological, environmental, and legal climates
Evaluate the degree of competitiveness in the industry, the threat of substitutes emerging, the threat of new entrants to the industry, the degree of bargaining power of buyers, and the degree of bargaining power of suppliers.
Do a market profile analysis to assess the attractiveness of the position within the industry that the potential venture will occupy.
Formulate and evaluate potential strategies to leverage organizational strengths, overcome/minimize weaknesses, take advantage of opportunities, and overcome/minimize threats;
Complete financial projections and analyze them to evaluate financial attractiveness;
Assess the founder fit with the ideas;
Evaluate the core competencies of the organization relative to the idea;
Assess advice solicited from trusted advisers

Planning and Financing (also called resource determination and acquisition)

This script begins when the idea screening script ends and when the person begins making the plans to implement the single idea chosen from the idea pool, which is done in concert with securing financing to implement the venture idea.
This script ends when sufficient business planning has been done and when adequate financing has been arranged.
The scripting process involves a logical flow of steps to develop a business plan and secure adequate financing to start the business.

Set-Up (also called launch)

This script begins when the planning and financing script ends and when the person begins implementing the plans needed to start the business.
This script ends when the business is ready to start-up.
The scripting process involves a logical flow of steps, including purchasing and installing equipment, securing the venture location and finishing all the needed renovations, recruiting and hiring any staff needed for start-up, and the many other steps needed to prepare for start-up.
Start-Up (also called launch)
This script begins when the set-up script ends and when the business opens and begins making sales.
This script ends when the business has moved beyond the point where the entrepreneur must continually fight for the business’s survival and persistence. It ends when the entrepreneur can instead shift emphasis toward business growth or maintaining the venture’s stability.
The scripting process involves a logical flow of steps needed to establish a new venture.

Ongoing Operations (also called venture growth)

This script begins when the start-up script ends and when the business has established persistence and is implementing growth (or maintenance) strategies.
This script ends when the entrepreneur chooses to harvest the value they generated with the venture.
The scripting process involves a logical flow of steps needed to grow (or maintain) a venture.

Studying Entrepreneurship

The following quotations from two preeminent entrepreneurship and entrepreneurship education researchers indicate the growing interest in studies in this field.

Entrepreneurship has emerged over the last two decades as arguably the most potent economic force the world has ever experienced. With that expansion has come a similar increase in the field of entrepreneurship education. The recent growth and development in the curricula and programs devoted to entrepreneurship and new-venture creation have been remarkable. The number of colleges and universities that offer courses related to entrepreneurship has grown from a handful in the 1970s to over 1,600 in 2005 (Kuratko, 2005, p. 577).

Interest in entrepreneurship has heightened in recent years, especially in business schools. Much of this interest is driven by student demand for courses in entrepreneurship, either because of genuine interest in the subject, or because students see entrepreneurship education as a useful hedge given uncertain corporate careers (Venkataraman, 1997, p. 119).

Approaches to Studying Entrepreneurship

Entrepreneurship is a discipline, which means an individual can learn about it, and about how to be an effective entrepreneur. It is a myth that people are born entrepreneurs and that others cannot learn to become entrepreneurs (Drucker, 1985). Kuratko (2005) asserted that the belief previously held by some that entrepreneurship cannot be taught has been debunked, and the focus has shifted to what topics should be taught and how they should be covered.

Solomon (2007) summarized some of the research on what should be covered in entrepreneurship courses, and how it should be taught. While the initial focus was on actions like developing business plans and being exposed to real entrepreneurs, more recently this approach has been supplemented by an emphasis on technical, industry, and personal experience. “It requires critical thinking and ethical assessment and is based on the premise that successful entrepreneurial activities are a function of human, venture and environmental conditions” (p. 172). Another approach “calls for courses to be structured around a series of strategic development challenges including opportunity identification and feasibility analysis; new venture planning, financing and operating; new market development and expansion strategies; and institutionalizing innovation” (p. 172). This involves having students interact with entrepreneurs by interviewing them, having them act as mentors, and learning about their experiences and approaches through class discussions.

Sources of Information for Studying Entrepreneurship

According to Kuratko (2005), “three major sources of information supply the data related to the entrepreneurial process or perspective” (p. 579).

Academic journals like Entrepreneurship Theory and Practice , Journal of Business Venturing , and Journal of Small Business Management
Proceedings of conferences like Proceedings of the Academy of Management and Proceedings of the Administrative Sciences Association of Canada
Textbooks on entrepreneurship
Books about entrepreneurship
Biographies or autobiographies of entrepreneurs
News periodicals like Canadian Business and Profit
Trade periodicals like Entrepreneur and Family Business
Government publications available through sources like the Enterprise Saskatchewan and Canada-Saskatchewan Business Service Centre (CSBSC) websites and through various government resource centers
Data might be collected from entrepreneurs and about entrepreneurs through surveys, interviews, or other methods applied by researchers.
Speeches and presentations by practicing entrepreneurs

Entrepreneurship and Innovation Toolkit

(9 reviews)

Lee Swanson, University of Saskatchewan

Publisher: OPENPRESS.USASK.CA

Language: English

Formats Available

Conditions of use.

Learn more about reviews.

Reviewed by Ken Santiago, Business Adjunct Faculty, City Colleges of Chicago on 6/9/23

Comprehensiveness rating: 4 see less

Entrepreneurs and those that start or run small businesses are often in the practice, curious and innovation stage. Many walk by faith and experience the pain of failure or disappointments around their work or investments. Swanson does a good job in showcasing various ways and models that may be new to many, particularly those starting off. He creates an opportunity to review examples and theories, much based on research that lends to a deeper view of reality. He poses questions to the reader that are cognitive in nature but allows one to move from reasoning to knowing relatively quickly.

Content Accuracy rating: 4

The tool kit comes with a good amount of research and strategies to support its claims. There doesn’t seem to be a whole lot of assumptions, but rather documented experiences and examples with tested results. Well known industry experts are cited and considered to evaluate and sustain business models and initiatives relative to good business decisions.

Relevance/Longevity rating: 4

At first, I was unsure of how relevant this kit would be since it’s over five years old. Technology, processes, industries in general have evolved and, in some cases, have been reengineered or become obsolete at this point. Having said that, we find good consistency around strong foundational structure training that has been proven to last. For example, the financial chapter does a good job of exposing the unfamiliar and unforeseen challenges of not getting your money right. Although I would move it up in order of chapters from six to two or three just to get the reader thinking about this topic early on.

Clarity rating: 5

The approach to studying entrepreneurship does carry a great deal of discipline, however, it also opens the door to possibilities not yet conceived. The author used descriptive and visualization to explain the day to day and the unknows. It seems to work in this case. I think a bit more on the visual side could enhance the understanding. The language was universal enough to apply to mainstream.

Consistency rating: 4

The text is reasonably consistent with the message. Overview, general information, and examples, then question and strategy to share its points. It makes it easier for the reader to move along from one topic to the other.

Modularity rating: 3

I like that the text could easily be divided into smaller sections. It allows for some flexibility to assignments and teaching upward or downward depending on the class level.

Organization/Structure/Flow rating: 4

This bootcamp style of illustration puts individuals at the beginning stages with exposure to the heavy lifting. It asks you tough questions up front. Do you have what it takes to do this. Have you thought about this and that, have you enough tenacity to persevere? The flow overall was good.

Interface rating: 4

There were not as many graphs and charts overall, but just enough to supplement the message. A few more might add some value.

Grammatical Errors rating: 5

I did not come across any errors.

Cultural Relevance rating: 4

Perhaps a few more examples might make it more relevant to those from different backgrounds, minorities or for those in spaces who would not otherwise come across the same offerings or opportunities necessarily. Language barriers certainly exist, so identifying a way to make it more appealing, for example to a younger audience, might serve the school well.

I like this option for students. It’s right to the points, lots of good examples, data, research, and questions for the students. With new technology in our grasp, it could probably consider an update to some degree.

Reviewed by Joe Messer, Professor of Entrepreneurship, Manchester University on 3/31/23

The book covered a lot of the theory of entrepreneurship. However I felt it was missing actual practice. read more

Comprehensiveness rating: 3 see less

The book covered a lot of the theory of entrepreneurship. However I felt it was missing actual practice.

The subjects that were covered were covered accurately

Relevance/Longevity rating: 3

The book covered a lot of the theory of entrepreneurship. However I felt it was missing actual practice. Therefore I felt it was not as relevant as it should be.

Clarity rating: 2

Jargon was appropriate.

Consistency rating: 3

The book was consistent all the way through

Modularity rating: 4

You could teach different sections of the book while skipping some chapters.

Organization was OK

Interface rating: 1

Interface was poor. I kept trying to find items that they were referencing. I was looking for tools, or activities, or videos.

Grammatical Errors rating: 4

Grammer was fine.

Cultural Relevance rating: 3

When I saw the title at "tool kit" it made me excited to review the book. However I struggled to find "TOOLS" that were useful to put into practice.

Reviewed by Sharmila Karamchandani, Assistant Visiting Professor of Graphic Design at the Corcoran School of Art and Design, The George Washington University on 1/31/22

Topics are well chosen and follow a good sequence. The textbook needs more examples and case studies for students to understand how people tackle different components of the business plan differently. Chapter 5 was my favorite as it covers a lot of ground and also enjoyed the history behind the different concepts of entrepreneurship in Chapter 1. More can be added on the marketing plan to cover online/offline marketing, setting goals, business mission, measuring success, access to capital, understanding demographics and customer personas, etc. as well as how and where to register a business with appropriate links to organizations that help you in this area. Book needs an index and a glossary for sure to make sub-topics more accessible.

Content Accuracy rating: 5

The contents of the books are accurate in terms of all the definitions, references, websites and citations. It is error-free and unbiased.

The content of the book has great foundational principles of entrepreneurship which are timeless. The book however needs some new age updates regarding some of the available resources and new technological developments in the way business is done today. To make it more appealing to the target readers a use of more visual aids would be beneficial and may attract and appeal the younger group. A lot has changed since this book was published. An update is certainly required as the scene of entrepreneurship has changed a lot in the last 5 years. Also, If this book is also intended to be used by the US market then an set of additional resources should be included regarding some examples, websites and resources that are more appropriate for the US market.

Clarity rating: 4

In terms of language and comprehension and concepts the book has clarity. The figures/charts however are not very clear. They need to look more crisp and have better resolution. Some of them appear pixelated. Also, Chapter 01 asks a lot of questions...Some of them need to be answered as well or else this will always have to be a supplemental guide that will require a teacher to clarify concepts, not a self standing textbook a student can pick up and get an understanding of the subject matter on their own. If the questions are answered it will validate the concepts students have learned in the textbook.

The language, tone and messaging are consistent. Some places there are inconsistencies especially in the type styling especially the bullets points are not consistent. There are some that are capitalized in some places and some are not. Some paragraphs follow a justified type and some are left aligned...so more consistency required there as well. Over all type hierarchy needs to be better for a better flow and readability.

Modularity rating: 5

The modules are broken down in good chunks and all the chapters and content flow well.

Overall organization of content is good. Updates are needed however as a lot has changed in last 5 years. The book will be better accessed if it had a glossary and Index to even see what sub topics will be covered. Right now it just has the titles and you don't know unless you read them in the chapter to see what sub topics will be covered. An Index with mentions of page numbers will also make references those specific sub topics easier to access.

Interface rating: 3

Being a graphic designer and an entrepreneur coach who teaches at the undergrad level, I feel the interface can be made more reader friendly. The typography is a bit dense and tight. Word spacing needs to be opened up a bit. Better resolution and lot more graphics needed to make it appealing to the target audience. The content is very thorough and useful to any student of entrepreneurship. With right typography, type hierarchy and good graphics it can become a great textbook. Also, some pages where the topic just has one line that topic can be pushed to the next page. Overall content needs to be better organized. Currently it is not very easy on the eyes.

Did not encounter any grammatical errors.

The textbook is more geared towards the Canadian population. As the fundamental concepts of entrepreneurship are more universal...this book can be adapted in various cultues...an addition of resources could be added to make it more appealing for the US crowd or any other country as well. I would like to see mention of additional resources for the immigrant, refugee and women population as many immigrants end up becoming entrepreneurs in Canada and USA and they need a bit more resources as to where they can register for business, how to access databases, local chamber of commerce, small business administrations and other such resources that can be very valuable for them to get started. That knowledge is needed in a toolkit to get started with any business.

Although a lot is covered in this textbook. It needs a teacher to help verify all the concepts as there are lot of open ended questions but they are not answered. It asks a lot of good questions which is awesome as there is so much that goes into entrepreneurship. As I mentioned earlier, Chapter 5 is my most favorite of all. This textbook would be great as supplemental workbook in addition to showing more current and relevant examples and case studies. Overall I truly enjoyed it. It very thorough and can become even better with a few updated additions.

Reviewed by Bernard Zannini, Adjunct Faculty, Business Department, Northern Essex Community College on 4/4/21

The topics are on target and presented in the correct sequence; examples in the book could be improved with more current topics. In the first chapter there should be examples of current entrepreneurs that the students can relate to (You Tube, Tik Tok, etc.) As much as I like knowing the history of entrepreneurship, the students are more interested in current topics. I like the Business Model Canvas in chapter 04 and this would be a great tool for the students to work on. In Chapter 05 it talks about Vision; you have to include Mission in that chapter as well; and, then tie it to Goals & Objectives. I would also include SWOT Analysis in this chapter. This chapter is where the students would start developing their business plan so this information is important. Chapter 09 should include creativity along with Innovation; they are different and students should know the difference. I did not see enough emphasis on the Marketing aspect of developing the business in the textbook. Today most companies are spending $.50 on the dollar for their marketing efforts; the book needs to talk about this and provide students with an understanding of how important marketing is to a small business; and, what they can do to address it in their business plan.

The book's content is accurate in its statements; the definition of the theories and concepts are accurate and are well represented in the information that is provided. Again, current examples should be added that the students can relate to; this will encourage them to read more. I did not see any inaccurate statements or errors in the text.

As I have stated previously, the content as it relates to theories and concepts is good; but, to make it more relevant you have to include current topics that the students can relate to. The majority of our students are visual learners and this textbook is all text. The students will only read so much and then they will lose interest if there isn't something that they can relate to; using current young entrepreneurs that they know or know of, will keep them interested in reading further. The majority of the references are prior to 2010; current topics from today's headlines would be of more interest to our students; and, it would keep them interested in wanting to read more of the book.

I found the writing to be at a level that students should be able to read and understand. A lot of freshmen today do not read at a freshman level and sometimes the text has to be brought down to their level. This textbook is written well and there wasn't too much text that they wouldn't be able to understand.

Overall, I did not find any issues with consistency. The book flows well and the writing also flows well from topic to topic and chapter to chapter. The framework for each chapter is consistent and should not pose a problem for the students to read and understand.

The book is broken into modules that fits well with the topics under discussion. From the first chapter to the last, the topics flow very nicely and build from introduction (micro) to the environment (macro) in an orderly fashion.

As I have stated previously, the topics are organized in order that allows the student to build upon their understanding of the topic with each chapter. My only concern is that there could be additional topics added with several sections to help the student better understand the topic; and, build a more comprehensive business plan.

From an interface standpoint, I would add more images and/or visual content for the student. As I have stated previously, the majority of our students are visual learners (magazine style books); without the visual content they become bored and do not read the entire content within the chapters/book.

I did not encounter any grammatical errors in the content that I read / reviewed.

Cultural Relevance rating: 5

I was not aware or, nor did I see any cultural inaccuracies or references in the text that I read or reviewed.

I liked the book but it does not meet the criteria for the student base that we are teaching. Our students are visual learners and this textbook is all text. Also, there are very few current topics that our students could relate to in the textbook. Lastly, for me to use this book I would have to add sections and/or topics (Goals & Objectives, Products & Services, USP, Marketing, etc.) to it to complete the work that students need to do to complete their business plans. I would also have to provide current articles and or references each week for the students so that they would stay connected to the chapters and want to read more.

Reviewed by Montressa Washington, Assistant Professor, Shenandoah University on 7/31/20

The text covers the most important areas and ideas about Entrepreneurship and Innovation. Chapter 3: Evaluating Entrepreneurial Opportunities and Chapter 4: Business Models are especially on topic and provide useful examples that can be included in an Innovation Toolkit. The author includes relevant citations throughout the eTextbook and includes a Reference section. The glossary is limited and there is no index.

The content is accurate, error-free and unbiased.

Relevance/Longevity rating: 5

The content is up-to-date, but not in a way that will quickly make the text obsolete within a short period of time. The text is written and/or arranged in such a way that necessary updates will be relatively easy and straightforward to implement. The content is easy to understand and has a logical flow that makes sense to a novice or experienced entrepreneur.

The text is written in lucid, accessible prose, and provides adequate context for any jargon/technical terminology used. The eTextbook could be use for both undergraduate and graduate courses. For graduate courses it would be best to pair it with other resources.

The text is internally consistent in terms of terminology and framework. The content is current and relevant to entrepreneurship and innovation.

The text is easily and readily divisible into smaller reading sections that can be assigned at different points within the course. I was able to mix and match the chapters as appropriate for the course. The chapter lengths were not too short or too long.

The topics in the text are presented in a logical, clear fashion. After the reading this eTextbook a student would have a very good understanding of entrepreneurship, innovation and a few tools that can be used to support support a business start-up. More content could be provided about innovation as well as innovation tools.

The text is free of significant interface issues, including navigation problems, distortion of images/charts, and any other display features that may distract or confuse the reader. Where appropriate it would have been helpful to have website/urls included with certain graphics and citations.

The text contains no grammatical errors.

The text was no culturally insensitive or offensive in any way. For the most part the examples are inclusive as it relates to races, ethnicities, and backgrounds. There may be a few cultural references that would need further explanation to an international audience.

I used this eTextbook for an international online course in New Venture Creation. The course was a one-week intensive course which was fast paced and included daily synchronous sessions. The content was appropriate for this course structure, the content was well received by the students and organized in a manner that made it easy for me to develop chapter quizzes as appropriate. I plan t use this eTextbook again next semester.

Reviewed by Roberta Allison, Associate Professor, Massachusetts Bay Community College on 6/28/20

This textbook is for students and aspiring entrepreneurs who desire to understand the theories behind the art of entrepreneurship and who are searching for the tools that will elevate them to entrepreneurs. Pertinent questions are posed by the author that will assist budding entrepreneurs. The ten chapters offer the fundamentals covered in an entrepreneurship textbook/course. The glossary is limited to only a few terms with no page references.

The text is very well referenced offering six and half pages of references. There are references as recent as 2015.

Though published in 2017, there are current topics in entrepreneurship that could be addressed such as the rise of female entrepreneurship, green entrepreneurship, digital nomadism, the gig economy, and niche markets.

More terms could have been added to the glossary for reference.

The textbook is focused on theories of entrepreneurship which give definition to the subject. The "toolbox" comes in the form of relevant questions aspiring entrepreneurs would need to contemplate before creating a product or service.

The books is devoid of many pictures/charts/graphs, etc. It is readable through the use of bullets and bold topic headings. Each chapter begins with a few quotes relating to the chapter content. The learning objectives are clearly defined.

The textbook is logically organized. The first few chapters define entrepreneurship and reference theories on the subject. Each chapter begins with an overview before delving into the chapter topic. The middle chapters provide more of the tools to use to build a business plan. The remaining chapters address types of entrepreneurship and the entrepreneurial environment.

There are very minimal charts/graphs presented in this book.

I did not detect any grammatical errors.

Few personal examples of entrepreneurs and their success stories are presented which would give a cultural reference to the book.

For a complimentary textbook the basics of entrepreneurship are presented in a logical, easy to read fashion. However, this book lacks the bells and whistles found in the books published by the large publishing companies. Profiles of entrepreneurs or entrepreneurial firms would enhance the content. Case studies would allow readers to apply the principles behind the theories. End of the chapter questions would reinforce chapter content.

Reviewed by Neil Kane, Academic Specialist/Entrepreneur, Michigan State University on 11/20/19

The book is comprehensive in that it does a good job of cataloging the different facets of entrepreneurship. It is well referenced and useful as a compendium of resources on the topic. On the other hand, it is mostly suitable as a resource for people who study entrepreneurship--as opposed to people who practice entrepreneurship. There are no exercises nor any guidance offered to students about how to implement or practice any aspect of what is discussed although the book offers many references to other sources that do.

The book is heavily referenced and relies on much work over the past decades in the field.

The book is relevant, and will stay that way, as a compendium of techniques and processes related to entrepreneurship and innovation. It includes information about the dominant teaching method today--lean startup. If and when a new teaching method or innovative pedagogy appears, then it will need to be refreshed.

Clarity rating: 3

As a practitioner I found it laden with terminology, mostly pulled from the literature, that will be relevant to people who study entrepreneurship but would not be that useful to practitioners.

Consistency rating: 5

The book was highly consistent.

The chapters are highly modular and can easily be lifted out and used as references specifically for the topics they cover.

Organization/Structure/Flow rating: 5

The book is well organized and the organizational scheme is used consistently throughout.

Interface rating: 5

No problems were observed.

This book is a compendium of the history of and science of entrepreneurship. It is a reference that may have value to other educators, but it would not be appropriate as a textbook for a class whose goal is to teach students the practice of entrepreneurship or how to develop an entrepreneurial mindset.

Reviewed by Phillip Gonsher, Assistant Teaching Professor, University of Missouri Kansas City on 8/2/18

I thought the text covered many areas of entrepreneurship that are important, however seems as though a deeper explanation on many topics could have enhanced a lecture or classroom discussion. I recognize that even though entrepreneurship is a very broad topic and there have been many texts devoted to the creation, launch and building of a business that was not the goal of this text.I took the text to the literal explanation that there would be exercises or activities to explain or reinforce the concepts of entrepreneurship. The text did a good job of actually explaining the history and gestation of the modern day entrepreneurship concepts with very strong specific examples of entrepreneur quotes and stories. I would rate the overall comprehensiveness as a 3 for the reason that I would have enjoyed more depth in the actual examples offered. This book is designed in my mind as valuable tool for the instructor to use as a lecture guide.

I thought the accuracy of content and the cited research was good for a text that focused on theory of entrepreneurship. I reviewed some of the citations and know of some of the authors that were referenced and believe the author select professors who are leaders in their field and certainly will enhance the credibility. I think the author validates the importance of entrepreneurship in today's higher education curriculum.

The text content is timeless, meaning that the building blocks and foundation of the content will be relevant for a long time to come. I believe it will be easy to add and update new findings in entrepreneurial research and pedagogue as more research and examples can be used as references. Many of the examples used to support theory are ideas and examples I currently use in the classroom with other text. That being said for the concept of OER materials I thought this text covered the topic with a good foundation and the knowledge a student derives from this text will provide a good starting point in the concept and ideas of entrepreneurship

I think there are some opportunities to write clearer content either for the Canadian market or the US market, but one text does not fit well in both markets.I found the text to read in format not content like a published paper. I think it needs to be more reader friendly. Perhaps a listicle format chunking the content into smaller sections would be more appealing to a university student. I don’t think students today will read all the content in the current format. Even though headers are used effectively I think using different color headers, or font size could add to the appeal and engage the reader with more relevant examples. The use of single spacing also seems like a deterrent to read in sections and add to the readers comprehension.

I liked the titles of each chapter, however I would recommend moving chapter 9 Innovation and Entrepreneurship close to if not following chapter two Design thinking. I might even suggest Chapter 9 Innovation and Entrepreneurship precede chapter 2 Design Thinking. I also thought some of the chapters were very light on explanation for terms and concepts. An example of this comment is reflected in Chapter 2 Opportunity recognition and Design Thinking. There is only a paragraph or two that tries to explain Design Thinking. Even though Design Thinking is a very lengthy concept with many steps if I was a student I would be asking for more relevancy of the concept and perhaps even some examples. I also note throughout the text that there are papers cited by Baron and Karatko who I find very reliable and credible resources in the area of entrepreneurship. I might use this text in my foundation of entrepreneurship class and would more than likely move Business Models chapter 4 more toward the end of the 10 chapters. I could then use as a capstone project building on the previous topics.

There are ten chapters presented and the content fits neatly into the titles. The traditional 15 week semester would be better served with perhaps 14-15 chapters and the depth of content being much more granular. I do like the use of “tools” and might suggest that more be added . Approach the content with the goal to engage and draw in the students through asking them to use experiential activities to demonstrate the theory and content. I might also suggest adding graphics with more either color or shape to better explain the tools. I thought there could be better explanations of some of the tools. Consider this could be used as an entry level text and the student may have little knowledge of terms in the early part of the semester. Terms, concepts and theory needs a laddering process in order to scaffold and build a students schema in the principles of entrepreneurship

Organization/Structure/Flow rating: 3

This topic has been covered in my previous remarks that would be reviewed as the consideration of restructuring the chapters might provide a better experience for the students.

I thought the text could use more color, definition or utilization of graphics to get the tools, charts and graphs to stand out. Suggested previously that the use of headers with larger font, or additional colors could enhance the readers experience.

Grammatical Errors rating: 3

I thought the grammar was a little confusing switching from terms and thoughts a US reader might be familiar with and then seeing some English/ Canadian spelling. I could not find any inconstancy in use of concepts that both audiences might understand

I could not find any bias or reference to culture on the topic of entrepreneurship in the text.

I enjoyed reading the text and look forward to consideration of this resource for my classes.

Reviewed by Dr. Julie Thomson, Lecturer in Innovation, Operations Management, Glasgow Caledonian University on 2/1/18

As a lecturer in Innovation Management, I was keen to read this text. A toolkit can be a helpful reference guide to dip in and out off and this text did not disappoint in this way. It covers a wide range of topics in the area of innovation and entrepreneurship. Many topics were however mentioned but then not covered in much depth. For example, I was interested in the area of Design Thinking, which was listed in the heading of chapter 2 along with Opportunity Recognition but then featured as only three short paragraphs at the end of the chapter. It is difficult to cover all areas of innovation but I would have expected more of the stages of the innovation process to be captured, for example selecting the innovation and implementing as well as sourcing and capturing value. More also on collaborative models of innovation e.g. open innovation/innovation networks could also be covered.

It is great to read quotes at the start of each chapter that sets the scene. Often provided by a popularised author who has written many important texts on the subject and it really captures your attention to that topic area. However, in many cases the source of the quote was missing. The figure headings also sometimes contained website addresses as the source. It was also not always possible to find the sources from the details provided in the reference list. I would also say that a number of notable key authors in the field were missing. For example the originator of theory on Core Competencies. However, I cannot fault the accuracy of the actual content, the author navigates through many areas of innovation content within this area and very competently summarises some of the key theories and areas of innovative practice.

There content does look up to date, bringing in recent examples throughout such as the airbnb business model. The opening chapter providing a history of entrepreneurship, discussing key definitions and the evolution of the filed is excellent therefore will not date and will continue to be a useful resource. However, the business world is fast changing and new approaches to how we innovate will continue to appear as we react to this change and so the author will need to continue to keep this text updated as he has done so with the last few versions. The way the text is written will make it relatively easy to update bringing in new current examples to inspire students.

The topic areas sometimes felt like they were delivered in note form, with long lists and bullets but in a way as it is presented as a toolkit then this should be anticipated and on the other hand it enables students to dip in and out of it and look for more depth on each topic later. So it gives an overview and can easily be flicked through. Setting expectations of the book by providing more on ‘the content of the book’ when listing this text could help here, as very little is revealed in the book description.

I would say the text is consistent in terms of the terminology used. The style incorporates a number of questions being raised to the reader throughout, they are not always answered but it gives the reader a chance to think about the topic and question aspects of innovation. I also see this as a benefit for students considering a research question to explore, perhaps for an undergraduate or postgraduate dissertation.

The modularity of this text is great. Students or academics can refer to particular chapters or sections of the book. However, more signposting of the sections would be good as commented in the next section.

Organization/Structure/Flow rating: 2

The order of the chapters with the exception of the first chapter seems a little random, for example chapter 9 Innovation and Entrepreneurship does not come until chapter 9. Navigating the different sections could be helped with the different subsections having numbered headings and present in the contents page. There are lots of headings and subheadings but you do not know about the content until you get through the chapter. For example, if you are interested in social entrepreneurship, you do not realise there is a section on it until you get to chapter 10 on The Entrepreneurial Environment. A glossary would also be useful. An opening preface by the author explaining the layout of the book, would also be helpful in a future revision.

There is a lack of consistency in the way that the figures are displayed e.g. black border around or not, less professional quality of photograph (sheen from light on it). Figures don’t always indicate source or have a label e.g. p45. P44 is blank. Some sections have a feeling of being unfinished e.g. p57/58.

It is an informative text with lists and short paragraphs covering different topics and so flow in paragraphs content is not always linked but for the aforementioned reason.

Mix between American and British English used. There is a lack of critical discussion in this text but this is the style of the writing. Sometimes capitals are used at the start of each bullet point and sometimes not.

The text does not focus on a particular context i.e. it is not grounded in a particular international setting. Making references to particular races is not provided here. There is a section on social innovation which addresses the needs of individuals from areas of multiple deprivation, for example though community development organisations, it is good to see this inclusion here.

I really enjoyed reading this book and could see many applications for it, in terms of informing lecture material and also as previously mentioned, for students to refer to, to gain ideas for their research topics. A worthwhile book to read and gain insight into the field, very concisely presented for easy reading.

Entrepreneurship and Innovation Toolkit Acknowledgements Introduction

Chapter 1 – Introduction to Entrepreneurship
Chapter 2 – Opportunity Recognition and Design Thinking
Chapter 3 – Evaluating Entrepreneurial Opportunities
Chapter 4 – Business Models
Chapter 5 – Business Planning
Chapter 6 – Financing Entrepreneurship
Chapter 7 – Business Set-Up, Start-Up, and Growth
Chapter 8 – Strategic Entrepreneurship
Chapter 9 – Innovation and Entrepreneurship
Chapter 10 – The Entrepreneurial Environment

References The Language of Entrepreneurship

Ancillary Material

About the book.

This book is designed for upper year undergraduate students and graduate students studying fundamental entrepreneurship concepts.

About the Contributors

Dr. Lee Swanson is an Associate Professor of Management and Marketing at the Edwards School of Business at the University of Saskatchewan. His research focuses on entrepreneurship, social entrepreneurship, Aboriginal entrepreneurship, community capacity-building through entrepreneurship, and institutional-stakeholder engagement. Dr. Swanson’s current research is funded through a Social Sciences Humanities Research Council grant and focuses on social and economic capacity building in Northern Saskatchewan and Northern Scandinavia. He is also actively studying Aboriginal community partnerships with resource based companies, entrepreneurship centres at universities, community-based entrepreneurship, and entrepreneurial attitudes and intentions. He teaches upper-year and MBA entrepreneurship classes and conducts seminars on business planning and business development.

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11.4 The Business Plan

Learning objectives.

By the end of this section, you will be able to:

Describe the different purposes of a business plan
Describe and develop the components of a brief business plan
Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
Would you have started the Laughing Man Foundation?
What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

What steps should the new restaurant take to create a new business plan?
Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
54 Foodstart. http://foodstart.com
55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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Unit 2: Entrepreneurial Characteristics

Unit 2 Introduction

Not everyone wants to be an entrepreneur, and not everyone who is an entrepreneur is successful in their ventures… Why is this? This is a question that has confounded both academics theorists and entrepreneurs alike for decades, and luckily for us, there’s been lots of research done to try and understand what this defining factor is and we are going to delve into it over the next few modules. In this unit, we’re going to look at what are the factors that make successful entrepreneurs unique from their less successful counterparts. What’s really interesting is that it might not be what you think it is, and it’s actually somewhat in our control… More on this later.

By the end of this unit, you will complete the following:

Learning Outcomes

Reflect on entrepreneurial skills and abilities
Analyze what leads to entrepreneurial success
Debate the role of creativity and innovation in entrepreneurship

Introduction to Entrepreneurship Copyright © 2021 by Katherine Carpenter is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Introduction to Entrepreneurship
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