Entrepreneurship as a Social and Economic Process

Flashcards of key vocabulary and concepts from the lecture notes on Entrepreneurship as a Social and Economic Process.

Entrepreneurship and Innovation (OECD)

The key tools for dealing with many of the world's social and economic challenges, policies to strengthen entrepreneurship and increase the innovation capabilities of SMEs

Entrepreneurs roles in an economy (OECD 2010a)

1. Disruptor. 2. Opportunity identification. 3. Risk taker. 4. Resource shifter. 5. Breakthrough innovator.

Entrepreneurial Activity Measurement

Measured by: the number of start-up efforts, the incorporation of firms, changes in net tax returns filed, and the amount of self-employment.

Factor-driven economies

Developing economies focused on agriculture with rural populations and subsistence farming.

Efficiency-driven economies

Economies with high levels of industrialization relying on manufacturing within scale-intensive industries.

Innovation-driven economies

Economies with a post-industrial industry base focused on services and knowledge-intensive businesses with high R&D investment.

Total early-stage Entrepreneurial Activity (TEA)

The proportion of people aged between 18 and 64 years who are engaged in a new business as an owner-manager or in activities to establish such a venture as nascent entrepreneurs.

Necessity entrepreneurs

Individuals who enter self-employment due to a lack of other options, often because they have lost a waged job.

Opportunity entrepreneur

A person who pursues a specific idea or opportunity out of choice, identifying potential benefits.

High-growth firms (OECD definition)

Enterprises with average growth greater than 20 percent per annum over a three-year period, with more employees than at the beginning.

Gazelles

Firms that have high rates of growth and are less than five years old.

Shift from a 'managed' to an 'entrepreneurial economy'

A transition from large corporations dominating innovation to small firms playing a greater role in innovation and economic growth.

Rise of the 'knowledge economy'

A shift from valuing tangible assets to valuing intangibles, where knowledge and intellectual property drive wealth creation.

Social entrepreneur

Someone who seeks to alleviate economic and social imbalance within society through innovative and enterprising mechanisms.

Entrepreneur (Richard Cantillon)

Individuals who bear the risk of buying at certain prices and selling at uncertain prices.

Entrepreneurial firms

Pursue opportunity regardless of resources currently controlled. Base pursuit of opportunities dependent on attitude of team members.

Small business venture

Any business that is independently owned and operated, not dominant in its field, and does not engage in any new marketing or innovative practices.

Entrepreneurial venture

A business that engages in at least one of Schumpeter's four categories of behavior with principal goals of profitability and growth and which is characterized by innovative strategic practices.

Entrepreneur (Schumpeter)

A process by which the economy moves forward through the act of creative disruption or innovation.

Product innovation

The introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses.

Process innovation

The implementation of a new or significantly improved product or delivery method.

Marketing innovation

The implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.

Organisational innovation

The implementation of a new organizational method in a firm's business practices, workplace organization or external relations.

Incremental innovation

Involving minor changes or enhancements to existing technologies, often in response to competition or customer feedback.

Synthetic innovation

The ability to combine existing ideas or technologies in creative ways to produce new products or processes.

Discontinuous innovation

Involves radical new ideas that provide breakthrough technologies and advance industries to new levels.

OECD agenda for entrepreneurship learning

Build up entrepreneurship education in universities and higher education institutions, Strengthen vocational education and training programs for small business owner-managers and their employees. , Embed teaching of an entrepreneurship mindset in school curricula and provide teacher training and support materials, Reinforce training in SMEs via in-company projects, Increase the use of informal learning sources, Strengthen local skills ecosystems through the engagement of employers, unions and individuals.