Concepts, processes and practice of entrepreneurship : a primer on innovation and venture creation

This textbook focuses on entrepreneurship with special reference to value, venture, and wealth creation. In doing so, it elaborates on creation of consumer surplus and producer surplus through value creation, creation of ventures through different avenues and methods, and finally, creation of wealth of nations through enhancing supply of entrepreneurs and entrepreneurship talents. To achieve this, the book covers the following topics: entrepreneurship history and theory, entrepreneur types, responsibilities and roles, entrepreneurial process, business modelling, venture creation and growth management, intellectual property rights protection, service and production ventures, international entrepreneurship, political economy of entrepreneurship, neo-entrepreneurship, and comparative entrepreneurship cultures. Along with nearly 150 illustrations including tables, figures and pictures, and extensive real-world examples, readers will also find useful the hypotheses and matrices such as venture classification matrix, entrepreneurial opportunity diagnostic matrix, i-10 hypothesis, risk-return matrix, business model matrix, venture growth management scheme, intervention process, opportunity identification methods, innovation path, 5-C growth model, social entrepreneurship model, and risk-return-matrix that are newly introduced in the book. Milton Rajaratne is the Senior Professor and an eminent scholar in Management in the Sri Lankan University of Peradeniya. He is serving in the fourth decade of his academic career. His academic works include 20 books in Management and Economics in addition to numerous research articles, chapters, and a few hundreds of articles and interviews published in national newspapers on contemporary political economic issues Foreword References Preface Aim of the Book Emphasis Intended Readership Structure of the Book Major Themes Chapters Special Features of the Book Tables and Figures Add-Ons Original Works Attractiveness How to Use the Book Rudimentary Level Postgraduate Level EDP and Professional Levels Learning Points and Review Questions Guide to Use This Book Acknowledgments Contents About the Author Abbreviations List of Figures List of Tables Part I Facets of Entrepreneurship 1 Introduction to Entrepreneurship Key Learning Points Introduction Definitions and the Key Contributors Richard Cantillon Bernard Belidor Adam Smith J.B. Say J. S. Mill Francis A. Walker Carl Menger Max Weber Joseph A. Schumpeter Frank H. Knight Harrison Cole Everett E. Hagen John Galbraith Peter F. Drucker David McClelland Robert Ronstadt Intervention as Entrepreneurship The Economic Impression Chapter Summary Review Questions 2 Entrepreneurship Environment Key Learning Points Introduction Entrepreneurial Ecosystem National Entrepreneurial Capacity Entrepreneurship Environment Firm Environment Operational Environment Market Environment National Environment International Environment Environmental Dynamics Entrepreneurial Opportunity Diagnosis SS-Situation WS-Situation SW-Situation WW-Situation Managerial and Entrepreneurial Skills Venture Classification Matrix The LL Group The LH Group The HL Group HH Group Chapter Summary Review Questions 3 Perspectives of Entrepreneur Key Learning Points Introduction Designations of Entrepreneur Status of Entrepreneur Traits of Entrepreneur Skills of Entrepreneur Entrepreneurial Skills Managerial Skills Role of Entrepreneur Innovation Role Managerial Role Administrative Role Responsibility of Entrepreneur Importance of Entrepreneur Types of Entrepreneurs Entrepreneur in Different Faces Managerial Entrepreneur Technical Entrepreneur Entrepreneurial Manager Corporate Entrepreneur Social Entrepreneur Hybrid Entrepreneur Perceptions on Entrepreneur Entrepreneur Success Factors Entrepreneurial Challenges Chapter Summary Review Questions Part II History and Theory of Entrepeneurship 4 Evolution of Entrepreneurship Key Learning Points Introduction The Early History Sense of Synergy and Teamwork New Guinea in 17,000 BCE Agricultural Era Emergence of Trade and Cities Inter-Territorial Trade The Medieval History Colonization and Trade Entreprendre and Undertaking Pre-industrial Revolution Production Systems Industrial Revolution and Factory System The Modern History World Wars and Aftermath Technology Miracles Modern Social Discourses Mass Production and Mass Marketing Internationalization of Business Impact of COVID-19 Chapter Summary Review Questions 5 Theory of Entrepreneurship Key Learning Points Introduction Major Theories Economic Theory Sociological Theory Psychological Theory Displacement Theory Inducement Theory External Factor Theory Environmental School Finance School Displacement School Entrepreneurial Trait School Venture Opportunity School Strategy Formulation School The Need for a New Theory The Intervention Hypothesis Phases of Intervention Importance of the Intervention Hypothesis Chapter Summary Review Questions Part III Entrepreneurship Process 6 Opportunity Recognition Process Key Learning Points Introduction Explicit and Implicit Opportunities Window and Corridor Principles Sources of Opportunities Economic Factors Industrial Factors Socio-Cultural Factors Demographic Factors Legal Factors Infrastructural Factors Sensing Venture Opportunities Opportunity Recognition Methods Sensitivity Observation and Survey Method Drawback Analysis Method Invention Search Method Mind Mapping Method Brainstorming Method Intuition Method Resource Conversion Method Habit Modification Method Ritual Adoption Method Chapter Summary Review Questions 7 Invention and Innovation Process Key Learning Points Introduction Invention Process Idea Germination Preparation Incubation Illumination Verification Invention and Knowledge Creation Ownership of Creativity Innovation Process Analytical Planning Organizing Resources Implementation Commercial Application Invention, Innovation, and Venture Facets of Innovation Mission of Innovation Means of Innovation Sources of Innovation Steps of Innovation Types of Innovations Forms of Innovations Orientations of Innovation Innovation as a Chain Innovation Path Innovation Power Chapter Summary Review Questions 8 Intellectual Property Rights Registration Key Learning Points Introduction Inventions and Intellectual Properties Types of Intellectual Properties Intellectual Property Protection Intellectual Property Registration Intellectual Property Rights Copyrights Patent Rights Trademarks Design Rights Trade Secrets Image Rights Chapter Summary Review Questions 9 Feasibility Planning Process Key Learning Points Introduction Audience of a Feasibility Plan Planning Premises Business Environment Analysis PESTEL Analysis Five Force Framework SWOT Analysis Product-Market Analysis Portfolio Analysis Stage of the Industry Developing a Feasibility Plan General Considerations Elements of a Feasibility Plan Executive Summary Business Concept Description Product and Service Plan Marketing Plan Operations (Production) Plan Human Resource Plan Financial Plan32 Administration Plan Chapter Summary Review Questions 10 Business Modeling and Venture Creation Process Key Learning Points Introduction Business Strategies Business Modeling What to Produce-Strategies How to Produce Strategies Whom to Sell Strategies How to Sell Strategies Building Business Model Business Model Canvas Business Inception Process Registration of Business Setting Up Administration System Setting Up Business Functions Setting Up Management Functions Chapter Summary Review Questions 11 Growth Management Process Key Learning Points Introduction The Threat of Failure Need for Growth Management Perpetual Growth Cooper’s Growth Model Churchill and Lewis Growth Model Hayakawa’s Growth Principles Credibility Accumulation Capital Accumulation Consideration Accumulation Capability Accumulation Clientele Accumulation The 5-C Growth Model Venture Growth Management Scheme Chapter Summary Review Questions Part IV Entrepreneurship in Practice 12 Production and Service Ventures Key Learning Points Introduction Inventive Approach Extension Approach Duplication Approach Synthesis Approach Imitation Approach Identifying Production Opportunities Sources of Knowledge Production Orientations Choice of Production Inherent Advantages and Disadvantages Choice of Technology Features of High-Tech Products Features of Mid-Tech Products Features of Low-Tech Products Product Development Considerations Product Development Process Service Ventures Characteristics of Services High-Touch Vs. High-Tech Organizing Service Ventures Chapter Summary Review Questions 13 Acquisition and Merger, Franchising and Licensing Key Learning Points Introduction Acquisition and Merger Key Steps Objectives Personal Preference Opportunities PESTEL Considerations Business Evaluation Due Diligence Evaluation Business Valuation Methods of Acquisition Mergers and Methods of Merging Franchising and Licensing Types of Franchises Considerations for Franchise Contract Advantages of a Franchise Disadvantages of a Franchise Choosing the Right Franchise Entering into the Franchise/Licensing Business Chapter Summary Review Questions 14 Neo-entrepreneurship Models Key Learning Points Introduction Corporate Entrepreneurship The Intrapreneur Intrapreneurship Process Intrapreneurship Models Social Entrepreneurship Social Entrepreneurship Types The Purpose of Social Entrepreneurship Social Entrepreneurship Models Social Enterprise and Social Business Grameen Bank of Bangladesh Women Entrepreneurship Motives for Women Entrepreneurship Support for Women Entrepreneurship Organizational Aspect Issues Faced by Women Entrepreneurs Family Entrepreneurship Three Circle Model Family Business Objectives Advantages Disadvantages Limitations to Family Business Hybrid Entrepreneurship Reasons for Emergence of Hybrid Entrepreneurship Prospects for Developing Countries Chapter Summary Review Questions 15 Entrepreneurship Development Programs Key Learning Points Introduction Target Groups Aims and Objectives The Focus Approaches to EDPs Governments and EDPs Government Support General Format of EDPs Main Approaches Target Groups Entrepreneurship Education Participant Motivation Venture Management Business Feasibility Venture Formation Venture Support Hands-on Experience The Post-Training Stage EDP Support Organizations of Sri Lanka Financial Institutions Department of Agriculture Social Welfare Programs NGOs and CSR Projects NEDA and Its Role Industrial Development Board NAITA and Its Role Export Development Board Ministry of Youth and Sports Other Organizations Chapter Summary Review Questions Part V New Topics of Entrepreneurship 16 Comparative Entrepreneurship Key Learning Points Introduction Policy Differences Major Entrepreneurial Cultures Doing Business in China Doing Business in Japan Doing Business in India Doing Business in the Arab World Doing Business in the USA Doing Business in Europe Chapter Summary Review Questions 17 International Entrepreneurship Key Learning Points Introduction Principles of International Entrepreneurship Internalization Principle Ownership Advantage Principle Locational Advantage Principle The Eclectic Paradigm International Entrepreneurship Growth of International Entrepreneurship Economic Liberalization Institutional Infrastructure Market Competition Merger and Acquisition and Franchising and Licensing Advantage Seeking The OLI Factors Challenges for Internationalization Measuring Internationalization Controllable Factors Uncontrollable Factors International Cultures International Political Systems International Economic Systems Country Selection Risk-Return Concern Entry, Exist, and Exit Decisions Chapter Summary Review Questions 18 The Political Economy of Entrepreneurship Key Learning Points Introduction State and the Government Public Policy Policy Objectives Analytical Approaches Sri Lanka as a Case Background Colonial Policy Regime Policy Regime of 1948–1978 Policy Regime Since 1978 A General Overview Chapter Summary Review Questions 19 Entrepreneur Social Responsibility and Ethics Key Learning Points Introduction Social Responsibility of Individuals and Corporates Corporate Ethical Principles Corporate Social Responsibility Views of Andrew Carnegie Views of Keith Davis and William Frederick Views of Milton Friedman Views of Tim Stobiersky Views of Zadek Levels of Corporate Social Responsibility Corporate Ethics Debate on Corporate Social Responsibility Views of Andrew Carnegie Views of Milton Friedman Views of Keith Davis Views of Robert Ackerman Views of Archie Carroll New Trends Corporate Citizen Chapter Summary Review Questions Index