Academic Entrepreneurship

A Paradox?Murray Hunter

Have we turned Entrepreneurship into

something its not?

In developing countries entrepreneurship is about development and not academic research

The real clients

The Paradoxes

The Summarised

Entrepreneurial

Process

Idea

Turn into Opportunity

Final Commitment

Start-Up

Growth

Sustainability

Creativity

Innovation

Strategy

Sales

NPD

Resource Gathering

Entrepreneurship training programs teach only business skills and not technical skills.

All businesses require some form of technology

Entrepreneurship Curriculum & Teaching

Without

Relevant Technology Knowledge & Training

Teaching about entrepreneurship

Situational Research

Teaching people to be entrepreneurs

Participatory Action Research

The Yellow Brick Road

Systems Agriculture Agricultural professional stance that emphasizes

farming as a social practice that uses technology

Participatory Action

Research Emphasis on co-learning

through farmer and community participatory

research and empowerment programs

Traditional Academic Based Research

Based on developing technology and principals,

models and possible practices

Farming Systems Research

On-farm technical problem diagnosis and adaptive

research

Shift from theoretical and

technical to community

collaboration and problem specific

research

General Local

Technical

Social

Domain Focus

Dis

cipl

ine

Ori

enta

tion

Hunter (2009)

Need to change the research paradigm

Entrepreneurship Theories

Carlile & Christensen (2005)

Carlile & Christensen (2005)

Invention needs to be at the right time where all technologies exist

Innovations are made of trial and error and must create some benefit to society to “take off” commercially. It took many years for the

airplane to meet this criteria

Opportunities don’t exist

equally around the world

Traditional Economy

Under-developed Economy

Developing Economy

Developed Economy

Post Industrial Economy

Characteristics of Traditional Economies

Subsistence agriculture based on traditional knowledge

Low level of urbanization, majority of population live in a rural and/or coastal existence

Unwillingness to accept new ideas and little innovation, even resistance to new ideas, lack of research and development

Extremely conservative society Very little credit finance capital

available, low level of savings and very immature cash economy anyway, little or no investment

Extremely low level of infrastructure, poor transport routes and communication

Feudal and/or corrupt form of government where resources may be diverted to unproductive projects

Very low level of education Very poor ability to recover

from natural disasters Low national vision

Characteristics of Under-developed Economies

Some simple infrastructure development

The adoption of basic modern farming techniques

Reliance on natural resource factors to create new industries, i.e, fertile land and favourable climate for specific agricultural and/or commodity crops, or abundant labour, etc. (It is these factors that provide first opportunities)

Very high dependence on imports Fragmented markets that are yet

to segment A limited range of industries based

on cost advantages owned by an elite group of society

Usually highly regulated and restricted economy (though not necessarily)

Government tries to attract foreign aid and investment

Ability to allocate resources within economy not efficient at this stage

Very low rates of SME formation and high informal economy

Characteristics of a Developing Economy

An improving rate of saving leading to a higher rate of investment which becomes a driver of the economy

The acquisition of technology through JVs, licensing, education abroad, consultants, etc.

Through employment growth local incomes grow and begin a surge in consumption

There is a shift from rural to urban areas in search of employment and opportunities

Higher emphasis on education Surge in infrastructure projects

that spur on economic growth through improved transport links, etc.

International markets entered and channels developed through OEM and contract production

Increasing wages, productivity, and employment leading to rising living standards

Increasing professionalization of workforce and management needed to compete internationally

Characteristics of Developed Economies

The economy relies almost completely on consumerism for growth and prosperity, often criticized for excess

High level of research & development

High level of industrial innovation

High market segmentation and specialization

Sophisticated logistic supply chains

Very high number of SMEs High level of firm and

individual compliance regulation

Vast majority of population resides in urban areas

Very stable institutional environment

Abandonment of elite and favored groups within the business sector where an egalitarian values prevail society

Very high value placed upon education in society

Characteristics of Post Industrial Economies

A rapid decline in the agriculture and industrial sectors (industries closing down as they lose international competitive advantage) and a rise in the services sector

Corresponding increase in the imports of consumer goods from lower cost producing nations

A decline in some urban areas and a rise in other parts (increase in inner suburban living)

Investment tends to be wealth based focusing on minimal risk projects like shopping malls

Innovative start-ups often come from new arrivals to the country (exception of Japan)

Increasing rates of unemployment and often shortage of manual labour as other types of careers are preferred

Usually a slightly declining population which signifies a declining workforce size, this lowers economic growth rates

Hunter (1993)

Present Employment

Education

Domicile Outlook

Hobbies & Interests

Networks

Personal background

Event/Crisis or

Realization Idea Screening &

Verification

Final Commitment

Commencement of Operations

Entr

ance

into

Gro

wth

and

Exp

ansi

on P

hase

Strategy Development

New products

New channels

New Markets

Product Diversification

Organization Expansion

New Staff

New Systems

Decentralization of Decision

Making

Manufacturing or Service Capability

Expansion (New technology)

Finance Expansion

Changing Role of Founder with

Expansion

Is this viable? Am I committed?

What are the opportunity costs?

Am I motivated enough?

What are the risks? Can I handle them?

Do I have the customers?

Will they support me? Do I have the skills,

experience and expertise required? How long will it take

before I’m in a profitable situation?

Idea Refining

Survey of Resource

Availability

Product & Market Conceptualization

Strategy Conceptualization

Evaluation of Personal Skills, Competencies, Resources & Networks

First Manufacturing/ Services Provision & Selling to Customers

Post launch product & strategy modifications

Predisposed triggering factors (personal or

professional or business idea

Creates Prior Knowledge

Can trigger perceptions, images, & concepts into

ideas

The ability to make

connections

Hunter (2011)Look at entrepreneurship as a phenomenon rather than a theory

The Vision Platform Social demographics, culture,

generational outlook, experiences, Cognition, emotions, the psych & psychotic, & cognitive traps, etc.

Time & Space Stage of economic, social,

legal, & knowledge development,

The Ability to Make Connections

Cognition, creativity, problem solving, creative tools

The Sources of Opportunity

Market Void, Technology Infusion, Structural Changes,

Resource Monopoly, Regulation, Non-Innovative

The Resource Base

Personal Skills & Competencies,

Enterprise Capabilities

The Opportunity

Gap

The Ability to Build Networks

The Competitive Environment Influence of suppliers, customers,

complementary goods & substitutes, barriers to entry, the competitive field & influence of social,

technology, economic, & regulatory factors

Strategy

Hunter (2011)The Opportunity Meta-theory

Networks

Skills, Capabilities

Resources

Making Connection

Vision Platform

Time & Space

Strategy

Competitive Field

Hunter (2011)

The requirements of opportunity

Entrepreneurship is about creativity, not

intelligence

Is teaching the business plan to students the most important

thing? Not many entrepreneurs actually

have a business plan.

New Ideas Unknown Opportunities

Developing Strategies Solving Problems

Surrounding Environment

“Domain” &“Field”

Environmental Factors conducive

to creativity

Environmental Factors that

hinder creativity

Motivational Trigger

Internal Influencing Factors

Focus & Attention Creative Sensitivity

Energy Emotion Curiosity Empathy

Confidence Discipline Interest Passion

Prior Knowledge

Perception

Patterning

Patterned Thinking Processes

Thinking Processes

(Self Organizing System)

Cognitive Thinking Tools & Styles

Creative Product

Applied Thinking Tools,

Manifestations & Elaborations

Domain & Field Acceptance/

Rejection

Memory Heuristics

Belief Imagination

Fantasy Experience

Tacit Knowledge

Hunter (2011)

The Metaphoric Concept of Creative

Intelligence