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Skip to 0 minutes and 11 secondsTo develop the concept of entrepreneurship further, we go into the processes of entrepreneurship. Starting on the end of the process, what is it entrepreneurs want to attain. One thing often assumed is value, value for customers, value for the enterprise, and value for themselves. How to get to that value? That's the entrepreneurial process, which consists of, first, recognizing or creating an opportunity for value creation. Second, converting this opportunity into a workable concept; and third, capitalizing on a concept in a growing organization. Important questions in entrepreneurship research are characterized by attempting to typify the process further. It also involves aspects such as the longstanding discussion regarding rational, plan-based working, which come from Popper, versus so-called "muddling through," which was labeled by Lindblom.

Skip to 1 minute and 12 secondsIt relates to the complexity and uncertainty of entrepreneurial processes and to the availability of resources. For the latter, the term bricolage also crops up in entrepreneurship literature as a way of characterizing the process that entrepreneurs go through. In this case, bricolage primarily refers to creating something from very few resources with the help of improvisation and creative processes. The basic assumption is that starters often have few means at their disposal and, therefore, have to call on their powers of creativity to make effective use of them.

Skip to 1 minute and 48 secondsSaras Sarasvathy developed an approach which depicts two approaches-- causation, which assumes a goal-oriented plan to rational process, and effectuation, which is based on the control perspective, which is more building on existing resources to inductively build a business opportunity. As depicted in the photo, she assumes shows a process which starts from the entrepreneur herself, determining who we are, what we have, and who we know to come to a first answer of what we can do in a new company. And then in interaction with others, the process leads to multiple adjustments of that we can do as an enterprise. Original entrepreneurial ideas may change considerably in this process.

Skip to 2 minutes and 36 secondsSharon Alvarez and Jay Barney make a strong point for opportunities not to be discovered-- as if they are already there. One just has to find them-- but to be created by the entrepreneur and his enterprise. For example, the concept of smartphones was created by entrepreneurs, such as Steve Jobs from Apple. But in the '90s, many, now heavy users, had no idea why they would need a mobile, let alone a smartphone. In the creation perspective the uncertainty is higher, rather than in the discovery setting, the uncertainty is smaller, although the risk may still be high.

Process of entrepreneurship

In this lecture a process model of entrepreneurship is developed.

Starting at the end of the process, what is it entrepreneurs want to attain? Where does it start? Are opportunities discovered or created?

In the next step, we will elaborate on causation and effectuation in more detail.

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Decision Making in a Complex and Uncertain World

University of Groningen

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