Entrepreneurship in a European Perspective

Marc Grünhagen, Kim Oliver Tokarski, Christine K. Volkmann

Description

A continental European perspective

With comprehension tests and recommended literature

Includes supplementary material: sn.pub/extras

Request lecturer material: sn.pub/lecturer-material

This textbook focuses on the management challenges of founding a new venture and managing its rapid growth as the firm evolves. It covers crucial management areas in the entrepreneurship context such as entrepreneurial finance, marketing, and human resource management. Also, more hands-on management topics like writing a business plan and choosing a legal form for a venture are covered. A key chapter of the book is dedicated to leadership challenges in managing rapidly growing young firms located in new industries and technology areas. The book is written from a Continental European perspective to cater for its European target audience in entrepreneurship courses to be held in English.
Basic Principles of Entrepreneurship
The Entrepreneurial Process, Recognition of Entrepreneurial Opportunities, Innovation
The Business Plan and Formation of the Enterprise
Marketing
Organization and Personnel
Start-up and Growth Financing
Growth and Growth Management

Sujets

• Gestion et management
• Entrepreneurship
• Strategic management
• Organization
• Economics
• Business
• B
• Leadership
• Entrepreneur
• Management
• Marketing

Informations

• Publié par: Gabler Verlag
• Date de parution: 05 novembre 2010
• Nombre de lectures: 0
• EAN13: 9783834987525
• Langue: English
• Poids de l'ouvrage: 3 Mo

Extrait

Christine K. Volkmann / Kim Oliver Tokarski / Marc Grünhagen

Entrepreneurship in a European Perspective

Christine K. Volkmann Kim Oliver Tokarski Marc Grünhagen Entrepreneurship in a European Perspective Concepts for the Creation and Growth of New Ventures

Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.

st 1 Edition 2010

All rights reserved © Gabler Verlag | Springer Fachmedien Wiesbaden GmbH 2010

Editorial Office:Ulrike Lörcher | Katharina Harsdorf

Gabler Verlag is a brand of Springer Fachmedien. Springer Fachmedien is part of Springer Science+Business Media. www.gabler.de

No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or other- wise, without the prior written permission of the copyright holder.

Registered and/or industrial names, trade names, trade descriptions etc. cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked.

Cover design: KünkelLopka Medienentwicklung, Heidelberg Printing and binding: MercedesDruck, Berlin Printed on acid-free paper Printed in Germany

ISBN 978-3-8349-2067-6

Foreword

Foreword

One of the most frequently debated questions in management relates to what the rea- sons for success and failure of new companies, corporate initiatives and projects are. Obviously, to increase the rate of young enterprises’ success while reducing the num- ber of their failures would be a win-win situation for everyone. It is therefore vital to possess a “road map” or set of good advice on this never-easy undertaking. This book responds to such a need by presenting, in an accessible way, an overall view of the fundamental, critical areas of management of both the start-up and the continuity of new enterprises.

Primarily, this book is addressed to students and teachers of the growing academic field of entrepreneurship studies. However, in my opinion, it also has an appeal to students and academics in any scholarly field, for in our times we can well speak about an organic interdependence between “entrepreneurship” and “higher education and research”. A number of reasons exist for this double-helix arrangement. On the one hand, it can be pointed out that the role and conditions of present-day higher education call for much more open and innovative ways with which to approach core tasks such as teaching, the organization of studies and the undertaking of research, not to mention the whole area of funding. On the other hand, societal expectations con- cerning higher education have greatly increased as societies are in high demand for:

well-educated and culturally versatile and globally competent graduates who can  be what I would call “able to work as self-directed professionals”;

 research findings that can inspire technological innovations;  well-studied analyses of our complex, global realities, as well as contributing to the finding of solutions for dealing with environmental challenges and societal changes.

In addition, we should also mention that modern universities are expected to be pre- sent in the local, regional, national and even international arenas as effective actors operating within the increasingly interdependent, interactive and vibrant setting in which our societies function.

I also think that this volume is to be recommended to leaders and managers of higher education institutions, in that a number of issues and solutions presented in the book can well apply to the management of universities and other higher education institu- tions. In particular, it is especially relevant for those universities that choose to follow the advice of thinkers on higher education, such as Burton Clark, and thus consider the need for a contemporary institutional model for higher education to reflect the notion of an “entrepreneurial university”. Such a model of the university stipulates a strengthened steering core, an expanded developmental periphery, a diversified fund- ing base, a stimulated academic heartland, and an integrated entrepreneurial culture,

V

Foreword

evidently, with due attention to needs for adaptation and refinement to national and local contexts and practices.

There are many definitions of “entrepreneurship” but one which I find particularly appropriate for higher education and research is one given by Giovanni Agnelli, late president of Fiat: “Entrepreneurship is the spirit of departing from being imitative, a willingness to take risks, a positive attitude to change and innovation. It is a job which is founded on a delicate mix of realism and passion and between the rationales and the driving force which comes from the vision of innovation”. Every policymaker and top- manager who has been involved in the implementation of a major reform knows that it is easier to change structures than institutional cultures and individual behaviours. Thus, an “entrepreneurial thinking” in line with Agnelli’s definition is gaining atten- tion and understanding among varied members of academia.

A catalyst for this welcome development is work carried out by able teams, like that one led by Professor Christine Volkmann, who are committed to advocating and pro- moting entrepreneurial studies and an entrepreneurial culture within higher educa- tion institutions, both in Europe and in other regions.

Therefore, I am very pleased that UNESCO-CEPES, in a spirit of collaboration with Professor Volkmann and her team, have produced this very useful and timely publica- tion.

Dr. Jan Sadlak

Director UNESCO-CEPES

VI

Authors’ Preface

Authors’ Preface

The present work has been written in co-operation with UNESCO-CEPES, which has provided a multi-national platform for a much-needed European entrepreneurship textbook, the purpose of which is to give a systematic, overall view of the fundamental areas of managing the start-up of young enterprises and their growth. Since there are also entrepreneurial challenges to be met as a new enterprise develops and grows, the discussion regarding the growth of enterprises is particularly close to our hearts, al- though we are aware that not all young enterprises want or are able to grow to the same degree. Because of this extended focus on the entrepreneurial growth of existing enterprises we have also included a number of examples of entrepreneurial activity in what are now large, multi-national corporations such asGoogle Inc.orApple Inc.How- ever, firms like this may still follow an entrepreneurial mindset, e.g., in the form of intrapreneurship, that is entrepreneurial behaviour within established firms. More- over, these examples show that we have not exclusively relied on European enter- prises; instead, where examples have been used for illustration, we have preferred to employ enterprise cases with which readers will be the most familiar.

The book is aimed at students and teachers in the field of entrepreneurship studies at universities and other institutions of higher education, with one core target group comprising of students of bachelor’s and master’s courses in all fields of study, while another target group includes founders and managers of growth enterprises. It is thus designed to assist in their studies both those who have already been trained in busi- ness management as well as newcomers to this field. It is important to us that entre- preneurial education should rank highly in the lives of people. As regards the teaching of entrepreneurship, we follow a Chinese proverb which says:

“If you plan for a year, sow rice, if you plan for a decade, plant trees, if you plan for a lifetime, teach people.”

We thank Stephanie Diergardt, Kathrin Lambrich, Tatsiana Varabei and Anna Wei- gandt for their helpful assistance in proof-reading the book and Miriam Thielemann and Eric Gilder for their indispensable help in English-language editing. We would also like to express our gratitude to Christiane Stüttgen and Sean Patrick Saßmannshausen who have provided their teaching material and expertise to better develop the added chapters for this English edition. Our thanks also go to UNESCO and UNESCO-CEPES as well as to the publisher, who continuously supported the creation of the book with patience and co-operation.

We wish all our readers success when working through this text and hope that our discussion of the theoretical concept of entrepreneurship and individual practical examples provided of young, growing enterprises will make their reading pleasurable and contribute to their fuller understanding of its meaning and application.

Such a work, however, never seems to be completed and we are thus involved in a continuous process of making future editions of this textbook better.

VII

Authors’ Preface

We therefore wholeheartedly welcome suggestions for improvement, from students and lecturers as well as from entrepreneurs and business managers. In particular, we invite readers from Eastern and Western Europe to join us in a rich, full discussion about the evolution of entrepreneurship across the continent.

Wuppertal and Bern, March 2010

Christine K. Volkmann

VIII

Kim Oliver Tokarski

Marc Grünhagen

About the Authors

Prof. Dr.Christine K. Volkmann,University of Wuppertal, Germany

About the Authors

Christine K. Volkmann is head of the Chair of Entrepreneurship and Economic Devel- opment at the Schumpeter School of Business and Economics at Wuppertal University as well as the Institute for Entrepreneurship and Innovations Research. Her research and teaching activities focus on Responsible Entrepreneurship, Entrepreneurial Lead- ership, High Growth Entrepreneurship as well as Economic and Market Development.

Mail: Web:

[e-mail] volkmann.wiwi.uni-wuppertal.de

Prof. Dr.Kim Oliver Tokarski,Bern University of Applied Sciences, Switzerland

Kim Oliver Tokarski is a Professor of Business Management and Entrepreneurship at the Bern University of Applied Sciences. His research and teaching activities range from Organizational Development, Business Ethics, Corporate Social Responsibility, Responsible Entrepreneurship to High Growth Entrepreneurship and Business Man- agement. Mail:[e-mail] Web: www.wirtschaft.bfh.ch/tokarski

Dr.Marc Grünhagen , University of Wuppertal, Germany

Marc Grünhagen is a Senior Lecturer and Researcher in Entrepreneurship and Innova- tion at the Chair of Entrepreneurship and Economic Development at the University of Wuppertal, Germany. His teaching portfolio includes entrepreneurial management and public enterprise policy. Dr. Grünhagen’s research interests are in university en- trepreneurship, entrepreneurial intentions, new venture legitimacy, and entrepreneu- rial finance.

Mail: Web:

[e-mail] volkmann.wiwi.uni-wuppertal.de

IX

Table of Contents

Table of Contents

F OREWORD ............................................................................................................................. V A UTHORS ’P REFACE ............................................................................................................ VII A BOUT THE A UTHORS ........................................................................................................... IX T ABLE OF C ONTENTS ............................................................................................................. XI I LLUSTRATION I NDEX ........................................................................................................XVII

T ABLE I NDEX ........................................................................................................................XXI 1B ASIC P RINCIPLES OF E NTREPRENEURSHIP .......................................................................1 1.1.................................2Start-up and Growth in the Context of Entrepreneurship 1.1.1History of the Concepts of Entrepreneurship and Entrepreneur ...............2 1.1.2Entrepreneurship, Start-up and Growth......................................................14 1.1.3University Entrepreneurship.........................................................................16 1.1.4Intrapreneurship: Entrepreneurship in Established Corporations...........20 1.1.5Characteristics of a Young Enterprise ..........................................................23 1.1.6Forms of New Enterprise Formation............................................................36 1.1.6.1............................36Innovative and Imitative New Enterprise Formation 1.1.6.2Original or Derivative New Business Formation and Mixed Forms....37 1.2Ethics, Enterprise Culture and Entrepreneurship .............................................42 1.2.1Business Ethics ................................................................................................43 1.2.2Ethics as a Challenge for a Young Enterprise .............................................47 1.2.3Ethical Orientation for Young Enterprises ..................................................53 1.2.4Social Entrepreneurship.................................................................................57 1.2.5Enterprise Culture and Entrepreneurship ...................................................61 1.3Comprehension Test and Recommended Literature ........................................65

2P ROCESSES ,E NTREPRENEURIAL O PPORTUNITY ,I NNOVATION ......................................67 2.1The Entrepreneurial Process .................................................................................67 2.1.1Aspects of the Entrepreneurial Process........................................................67 2.1.2Individual Decision Process of the Founder ...............................................71 2.2From Entrepreneurial Opportunity to Business Idea .......................................78 2.2.1Entrepreneurial Opportunity ........................................................................78 2.2.2Business Idea ...................................................................................................90

XI