Models of Entrepreneurship

The concept of entrepreneurship which is the prime factor for the emergence and development of business ventures has assumed significant importance both in research and action for accelerating economic growth in developed and developing countries. The field of entrepreneurship research has expanded considerably over the past few years. Notwithstanding this expansion, dynamics of entrepreneurship is at rudimentary stage and quite fragmented. The theoretical foundations of entrepreneurship are still at pre-paradigm stage. There is absence of any well-structured and comprehensive framework, despite of existence of various conceptual models. The inter-relation between several entrepreneurial antecedents within the theories of entrepreneurship are not very strong. Consequently, the explanatory and predictive power of existing entrepreneurial theories is limited. The present book of Mathew Manimala on ‘Entrepreneurial Policies and Strategies: The Innovator’s Choice’ is a significant contribution to the existing body of knowledge in the field of entrepreneurship. His arguments in favour of heuristics, policies and strategies as etiological factors for entrepreneurial performance are convincing and lucid. His views on innovative ventures and their impact on economic development are different from traditional entrepreneurship research on attributes, traits, motives, and environmental and other support systems. Manimala initiates the discussion with the tale of two entrepreneurs who followed two types of models, ‘blue print model’ and ‘organic growth model’ respectively. It has been found and argued that the follower of organic growth model was the more successful entrepreneur.

I express my apprehensions on the success of enterprises, which according to the author is mainly based on the organic growth model. But factors like environmental scanning, market survey, awareness of strengths and weaknesses, strategic choice are equally important for entrepreneurial success. But, it is also true that we cannot just imitate or copy an existing or prescribed model. The transplantation of a prescribed model has a special relevance in a depressed economy like the India’s, where demonstration effect is a significant determinant of entrepreneurial inception. Thus, I feel that there is a need to integrate these two models.