Entrepreneurship School of Thought
Entrepreneurship is a field of study and practice that has become increasingly popular in recent years. This can be traced back to the economic boom of the 1990s, when entrepreneurs began to recognize the potential for growth through innovation and risk-taking. The subsequent academic attention and popularization of the field have led to various definitions and styles of understanding the concept of entrepreneurship. In this article, we will be focusing on the ‘school of thought’ surrounding the entrepreneurial mindset, and the commonalities between different scholars and practitioners interpretations of what it means to be an entrepreneur.
The concept of entrepreneurship has been evolving for centuries, and scholars and practitioners alike have developed theories and strategies to account for the success of innovators, risk-takers, and other entrepreneurial figures. One of the most comprehensive and widely accepted models of entrepreneurship is the Entrepreneurial Process Model, developed by David Owens. Owens identifies six distinct ‘stages’ of entrepreneurial action that take place throughout the entire business cycle. These stages are identification, development, implementation, performance, growth and renewal, which each require specific skills and knowledge to complete successfully.
The first stage of the Entrepreneurial Process Model is the identification stage. This is where potential entrepreneurs determine whether their venture is viable, as well as establishing the concept of the business. Many consider this stage as a critical starting point for an entrepreneur, and studies show that people who spend more time creating a business plan are more likely to succeed. As such, identification requires an in-depth understanding of the industry, customer needs, market structure, competition and regulations. In addition, during this stage entrepreneurs must also assess the potential risks associated with their venture, and how they can be minimized.
The second stage of the Entrepreneurial Process Model is the development stage. Here, entrepreneurs refine and detail their concept, create a business plan and develop strategies, plans and systems for their venture. They also create strategies for marketing, product development, production and delivery, and for securing customers, investors, and other resources. During this stage, entrepreneurs begin to assemble their team and build the infrastructure necessary for their venture to succeed.
The third stage of the Entrepreneurial Process Model is the implementation stage. This is where entrepreneurs launch their venture, execute their strategies and work to secure customers and other resources. This stage is also known as the launch stage, and requires effective leadership, management and communication skills, as well as an awareness of the changing market environment and customer needs.
The fourth stage of the Entrepreneurial Process Model is the performance stage. This stage is where the entrepreneurs track and measure the progress of their venture. They analyze the results, discuss and adjust their strategies and seek feedback from customers, employees and other stakeholders. Performance measures could include customer satisfaction, market share and financial performance.
The fifth stage of the Entrepreneurial Process Model is the growth stage. During this stage, entrepreneurs focus on expanding their venture. This could involve launching a new product, entering new markets, acquiring other businesses and implementing new technologies. Growth is essential for any company to remain competitive in the market, and entrepreneurs need to stay on top of industry trends and customer demands to ensure their venture continues to grow and succeed.
Finally, the sixth stage of the Entrepreneurial Process Model is the renewal stage. Here, entrepreneurs reassess their business, and make changes and adjustments to stay competitive. This could involve changing products, rethinking strategies, or experimenting with new ideas and technologies. Renewal is key for any venture to remain competitive, and entrepreneurs need to be flexible and open-minded in order to keep up with a changing business environment.
The Entrepreneurial Process Model is just one of the many schools of entrepreneurship. There are many more, including the Schumpeterian school, which is based on the early ideas of economist Joseph Schumpeter, and the lean startup school, which highlights the importance of data-driven decision-making. Each school has its own approach, but the core ideas are the same – entrepreneurs must identify, develop, implement, track and renew their venture in order to achieve success.
