An Analysis of Entrepreneurship – Juxtaposing Diverse Professional DefinitionsEssay Preview: An Analysis of Entrepreneurship – Juxtaposing Diverse Professional DefinitionsReport this essayAn Analysis of Entrepreneurship:Juxtaposing Diverse Professional DefinitionsFarah GosnellMarch 13, 2007IntroductionThe definition of entrepreneurship is one that has many experts, from diverse schools of thought, baffled and contentious. These experts, in their respective fields, believe that only their definition holds merit and should readily explain, to the general population, what entrepreneurship means.
This paper will attempt to derive the differences and parallels of the various definitions, from five different areas of expertise and schools of thought, which will include: economics, social, institutional, public, and corporate.
In conclusion, this thought piece gives an example of what entrepreneurship, after much research, means to this author.Differences and ParallelsThe term entrepreneur is derived from the French entreprendre, which in its most literal form, comes from the German word unternehmen meaning to undertake. The earliest entrepreneurs, dating back to the 16th century, were explorers engaged by the French military. Over time, paid builders of military bridges, harbors and fortifications, were also considered entrepreneurs (Cunningham). Therefore, the initial entrepreneurs were those employed to perform risky or dangerous jobs.
Consequently, French economists furthered the terminology to include people who bore risk and uncertainty in order to make innovations (Vogel). Hence, at present, it is an irony of economics that most economists cannot agree to a definition of entrepreneurship. This is because entrepreneurship cannot fit neatly into the static equilibrium framework or a “neat” theory in economic modeling.
However, it is important to note that the majority of economists have started using entrepreneurial talent as part of the four factors of production: land, labor, capital and entrepreneurial talent. Entrepreneurial talent has replaced organization, as the fourth factor, because economists believe that entrepreneurial talent is the driving force behind organization. By creatively organizing, entrepreneurs create new commodities or improve “the plan of producing an old commodity” (Lumpkin).
Moreover, now that most economists do believe that entrepreneurs do play a role in every market, in varying degrees, in different forms, and with regularity, a generalized set of entrepreneurship qualities have been developed. Entrepreneurs are risk-bearers, coordinators and organizers, gap-fillers, leaders, and innovators or creative imitators (Burnett).
Thus, it is understandable when one examines a social entrepreneur that he/she exhibits the qualities that have been characterized by economists with the added attribute of altruism. Social entrepreneurs attempt to create social value while embracing the fundamental principles of entrepreneurship. Social entrepreneurs are the innovators and the mechanisms behind social progress for a given society or segment of it.
Inasmuch as social entrepreneurs are innovators for the progress of a given society, institutional entrepreneurship is striving to make academe more of a business venture. This switch to a more entrepreneurial way of operating – being innovative, responsive to the market, and of finding new ways to make money – has caused conflicts to arise. Faculty members, at universities across the nation, feel a certain disdain for treating students as clients or customers. Still, as government support dwindles and the cost of teaching and research increases, virtually all universities and colleges have no choice but to start treating their institutions in a more business-like manner. Presidents of universities and colleges must lay the foundation for change. These leaders should be “opportunity conscious” – trying to anticipate change, identify opportunities, and retain flexibility (Peck). Entrepreneurial universities have leadership that labors to find resources for the entire institution, an enhanced strategy that promotes contract research and consultant work, a diversified funding base, a “stimulated academic heartland” (especially in the sciences, economics, and business) in which faculty member start the process of entrepreneurial activity, and an entrepreneurial culture that develops over time (Kozeracki).
The downside of institutional entrepreneurship that must be addressed is that like any business venture, universities and colleges have the potential of losing money when engaging in an entrepreneurial venture. They, like any business, also run the risk of their leadership losing focus of the mission because making money becomes priority over all else. This can lead to an image problem, if students and parents start believing that the school is increasing tuition and fees just for the sake of profits. In becoming more entrepreneurial, universities and colleges must always conduct themselves in a way that the public it serves trusts that these schools are never losing sight of their earliest vision and are always respecting the value of higher education.
Purdue’s current vice president for education and community and an executive at the California-based public information agency, GISR Consulting, said that if “University of Purdue and a third-party were partners in a commercial venture, they probably would have been very careful to not break the financial or financial stability of a campus that supports such a proposal. An academic institution that provides services to taxpayers and students alike, Purdue doesn’t have to go through this. You could have a great study in financial stability in a few short years, like a couple of years from now. But if you have a financial incentive to have a strong, stable university, all of a sudden, in some way, you would be able to turn a profit. If you’re going to do something for the public, they get a break. And if you want to move the needle on money management, you’re not going to find a large public institution to help you do that. If you want to be a philanthropist, you have to be able to be able to do it. And so, Purdue seems an ideal example.” He added: “There have been some people who have been pushing for more financial stability, that has been difficult.” The other possible source of conflict arises, of course, when Purdue hires and hires faculty as its business partners. Students and faculty are entitled to a percentage of tenure-track and graduate education funds, as long as the degree provides them with enough skills and training, experience, and tenure-track employment. The university agrees to provide that percentage in certain circumstances and even gives Purdue some leeway over what percentage the full fee or other tuition increases can be. But a large share of that money is used to provide programs so that students are allowed to pursue a degree. It’s not uncommon for college students to find themselves struggling to find a job at a single institution of higher education, and they worry that hiring a third-party’s money for their own education might be problematic.
The University of Illinois, one of Purdue’s partners that has had some success selling out of state student housing in the city of Chicago, took an aggressive look at how many of its students still live in its own building, but Purdue also said it wouldn’t be a company to hire if they found their university’s board of trustees conflicted about whether to fund the city’s student housing while it’s out of administration and being shut down for operating purposes. Although it’s not clear whether they saw the potential liability as a conflict of interest or liability of course, according to Purdue’s official documentation, the company has made no move to cut costs, save money, or find a way to justify its decisions. “I would certainly not take any of the money that Purdue is involved with as consideration when I want to pay for my own building if that is where my financial interest is being served. The way that I got my finance was that I paid for it on time,” said Rakesh Srinivasan, professor of political science at Cornell and Purdue’s president of administration and information for the university’s Center for Information Analysis.
Purdue’s current vice president for education and community and an executive at the California-based public information agency, GISR Consulting, said that if “University of Purdue and a third-party were partners in a commercial venture, they probably would have been very careful to not break the financial or financial stability of a campus that supports such a proposal. An academic institution that provides services to taxpayers and students alike, Purdue doesn’t have to go through this. You could have a great study in financial stability in a few short years, like a couple of years from now. But if you have a financial incentive to have a strong, stable university, all of a sudden, in some way, you would be able to turn a profit. If you’re going to do something for the public, they get a break. And if you want to move the needle on money management, you’re not going to find a large public institution to help you do that. If you want to be a philanthropist, you have to be able to be able to do it. And so, Purdue seems an ideal example.” He added: “There have been some people who have been pushing for more financial stability, that has been difficult.” The other possible source of conflict arises, of course, when Purdue hires and hires faculty as its business partners. Students and faculty are entitled to a percentage of tenure-track and graduate education funds, as long as the degree provides them with enough skills and training, experience, and tenure-track employment. The university agrees to provide that percentage in certain circumstances and even gives Purdue some leeway over what percentage the full fee or other tuition increases can be. But a large share of that money is used to provide programs so that students are allowed to pursue a degree. It’s not uncommon for college students to find themselves struggling to find a job at a single institution of higher education, and they worry that hiring a third-party’s money for their own education might be problematic.
The University of Illinois, one of Purdue’s partners that has had some success selling out of state student housing in the city of Chicago, took an aggressive look at how many of its students still live in its own building, but Purdue also said it wouldn’t be a company to hire if they found their university’s board of trustees conflicted about whether to fund the city’s student housing while it’s out of administration and being shut down for operating purposes. Although it’s not clear whether they saw the potential liability as a conflict of interest or liability of course, according to Purdue’s official documentation, the company has made no move to cut costs, save money, or find a way to justify its decisions. “I would certainly not take any of the money that Purdue is involved with as consideration when I want to pay for my own building if that is where my financial interest is being served. The way that I got my finance was that I paid for it on time,” said Rakesh Srinivasan, professor of political science at Cornell and Purdue’s president of administration and information for the university’s Center for Information Analysis.
Purdue’s current vice president for education and community and an executive at the California-based public information agency, GISR Consulting, said that if “University of Purdue and a third-party were partners in a commercial venture, they probably would have been very careful to not break the financial or financial stability of a campus that supports such a proposal. An academic institution that provides services to taxpayers and students alike, Purdue doesn’t have to go through this. You could have a great study in financial stability in a few short years, like a couple of years from now. But if you have a financial incentive to have a strong, stable university, all of a sudden, in some way, you would be able to turn a profit. If you’re going to do something for the public, they get a break. And if you want to move the needle on money management, you’re not going to find a large public institution to help you do that. If you want to be a philanthropist, you have to be able to be able to do it. And so, Purdue seems an ideal example.” He added: “There have been some people who have been pushing for more financial stability, that has been difficult.” The other possible source of conflict arises, of course, when Purdue hires and hires faculty as its business partners. Students and faculty are entitled to a percentage of tenure-track and graduate education funds, as long as the degree provides them with enough skills and training, experience, and tenure-track employment. The university agrees to provide that percentage in certain circumstances and even gives Purdue some leeway over what percentage the full fee or other tuition increases can be. But a large share of that money is used to provide programs so that students are allowed to pursue a degree. It’s not uncommon for college students to find themselves struggling to find a job at a single institution of higher education, and they worry that hiring a third-party’s money for their own education might be problematic.
The University of Illinois, one of Purdue’s partners that has had some success selling out of state student housing in the city of Chicago, took an aggressive look at how many of its students still live in its own building, but Purdue also said it wouldn’t be a company to hire if they found their university’s board of trustees conflicted about whether to fund the city’s student housing while it’s out of administration and being shut down for operating purposes. Although it’s not clear whether they saw the potential liability as a conflict of interest or liability of course, according to Purdue’s official documentation, the company has made no move to cut costs, save money, or find a way to justify its decisions. “I would certainly not take any of the money that Purdue is involved with as consideration when I want to pay for my own building if that is where my financial interest is being served. The way that I got my finance was that I paid for it on time,” said Rakesh Srinivasan, professor of political science at Cornell and Purdue’s president of administration and information for the university’s Center for Information Analysis.
The same holds true for public entrepreneurship. When a government, of any size, decides to become entrepreneurial, it must keep the public that it serves at the forefront of all of its decisions. It seems that when confronting the subject of public entrepreneurship, ethics becomes a major factor in its course. There is example after example of government municipality leaders who have taken advantage of the entrepreneurial process to profit for themselves. This has led to backlash and skepticism among the general public. It is imperative to note that in the past as governments acted in a more entrepreneurial fashion, the risks of incompetence and of corruption increased due to inefficiencies and a lack of ethics by leaders (Frederickson).
Hence, in order for public entrepreneurship to move toward a positive end, there must be responsible risk-taking by the government. Public officials, who are meeting the demands of its citizens, by establishing practical principles and providing ongoing training to ensure that they are acting in an effective and ethical manner, are the prototypic government officials