This article reviews literature on the study of the cognition of entrepreneurs, and how this affects their attitudes to risk. The review begins with the heuristics and biases approach. Various decision-making biases related to over-optimism are then considered. Following this perceived self-efficacy, intrinsic motivation and intentions-based models are discussed. Some theories dealing specifically with attitudes to risk are then covered. These include prospect theory, Kahneman and Lovalo's model of risk-taking, and Das and Teng's theory of risk horizons and future orientations. Finally, the option value and information cost approach to the analysis of entrepreneurs' decision-making is discussed. Some relevant references to culture research are also given in the conclusion.
This article reviews the academic literature on corporate venture capital, that is, minority equity investments by established corporations in privately-held entrepreneurial ventures. It starts with a detailed definition of the phenomenon. An historical background of Corporate Venture Capital (CVC) is presented, followed by an extensive review of CVC investment patterns. The article then presents scholarly findings beginning with firms' objectives, through the governance of their CVC programmes and the relationships with the portfolio companies and ending with a review of corporate, venture and CVC programme performance. The article concludes with directions for future research.
Carole Howorth, Mary Rose, and Eleanor Hamilton
This article begins with an examination of definitions of family firms. The debate about what constitutes a family firm is every bit as complex as the definition of an entrepreneur. This article explores the range of definitions but shows that any definition needs to be interpreted in its economic, social, institutional, and cultural context. An explanation for the multiplicity of definitions is provided in in this article, which explores the diversity in scale, scope, organization, and longevity of family firms, and shows differences through time in different societies and between families. The article also demonstrates the strong path dependency of family firm development, with change (or lack of it) underpinned by the foundations of the past. The article further explores research which compares the performance of family firms with non-family firms and this highlights the potential policy implications of family business research.
Many excellent surveys of the literature on business growth and survival have appeared in the last decade. This article focuses on small firm literature on survival and growth, drawing on largely non-size-specific surveys only when the intersection between their subject matter and that of small firm growth and survival is significant. The focus is moreover primarily on testable or tested theories, implying a neglect of theory, however intrinsically interesting, which offers no (immediately) testable or tested implications. It is important to note at the outset that the industrial economics literature in general has a rather disparate definition of the term ‘small firm’ from the small business literature as located in the small business journals.
Marina Della-Giusta and Zella King
This article first looks at the rationale for adopting an ‘enterprise culture project’, with specific reference to the case of Britain from the 1980s to the present. It then considers how efforts to promote an enterprise culture might be evaluated, and examines some of the evidence about the impact of enterprise policies in Britain on entrepreneurial attitudes and behaviour. It then reviews some of the academic literature on ‘enterprise culture’ policy and ideology, with a wider discussion of enterprise projects and their implications.
Giovanni Ferri and Angelo Leogrande
Economic manuals and the policy debate are generally permeated by the assumption that there is an archetypical form of enterprise: the private limited company, often viewed as a public company. Instead, enterprise forms differing from the archetype are viewed as anomalous, possibly the result of unstable constructions waiting to evolve into public companies. However, reality tells us that entrepreneurial pluralism is the norm rather than the exception, and that those non-archetype enterprises do not disappear, and often thrive. Furthermore, progress in the theories of industrial organization, corporate governance, stakeholder inclusion, and the common goods all seem to suggest that entrepreneurial pluralism may be welfare enhancing. Against this background, we draw on the literature with the purpose of shedding light on the potential causes and effects of entrepreneurial pluralism. Specifically, we focus on mutual producer/consumer associations, social enterprises, co-operative enterprises, and family firms.
Geoffrey G. Jones and R. Daniel Wadhwani
Since the 1980s, entrepreneurship has emerged as a topic of growing interest among management scholars and social scientists. The subject has grown in legitimacy, particularly in business schools. This scholarly interest has been spurred by a set of recent developments in the United States. This article begins by providing a brief introduction to the origins and evolution of historical research on entrepreneurship. It then turns to explore a series of different streams of business-history research that deal with issues of entrepreneurship and historical change. The article highlights the ways in which historical context shaped the structure of entrepreneurial activity, and reveals the wide variation in organizational form and entrepreneurial behavior that historians have found. It concludes by discussing the main contributions of business history to the study of entrepreneurship, and proposes a renewed research agenda.
Deirdre Tedmanson and Caroline Essers
This chapter extends on existing critical entrepreneurship contributions to illustrate and analyse how diversity entrepreneurship stemming from diverse contexts can enhance understandings of entrepreneurship as a socially and culturally constructed phenomenon. The chapter first explores the perspectives of Indigenous entrepreneurs in Australia, and second the diverse experience of female Turkish entrepreneurial ‘others’ in both the UK and the Netherlands. Exploring the different roles played by different national contexts in shaping entrepreneurial agency and resistance, rich case study material is used to illustrate how diversity can assist minority entrepreneurs while at the same time also constraining opportunity. The chapter reveals how new takes on entrepreneurship in different locations and settings can reveal not only new forms of entrepreneurial diversity, but also the increasing diversity of how (and what) entrepreneuring can mean.
Douglas Michael Wright and Andrew Burrows
This article takes a broader perspective that encompasses both traditional agency-based explanations of buy-outs as well as recognizing the buy-out phenomenon as a vehicle for entrepreneurial innovation. Although early studies suggested that buy-outs involved both agency cost reduction and entrepreneurial aspects, they did not formally conceptualize these two approaches. The agency theory approach conceptualizes buy-outs as a tool that facilitates cost efficiencies. The entrepreneurial perspective sees buy-outs as a means for implementing new innovations and strategic change that enable fuller exploitation of firm resources that may have been blocked by prior ownership arrangements, such as being part of a large diversified firm or a privately-owned firm with leadership succession problems. The article first elaborates the definitions and sources of buy-outs. Secondly, it reviews theoretical perspectives relating to buy-outs, notably the agency approach and an entrepreneurial perspective which draws on the theory of entrepreneurial cognition. The third main section reviews a model to explain different types of buy-out drawing on these two perspectives. The fourth section reviews studies of the effects of buy-outs, identifying evidence consistent with agency and entrepreneurial views of buy-outs. The final section provides discussion and conclusions.
Entrepreneurship and marketing are intimately related. This article examines their relationship from three perspectives, the market process perspective, the marketing perspective, and the perspective of the entrepreneurial firm. These provide complementary insights into the connections between the two concepts. The article briefly considers definitions of entrepreneurship and marketing. It then discusses the three complementary perspectives in turn. The final section provides a summary and identifies areas for further research.