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Date Submitted: 10/13/2011 07:41 AM
Entrepreneurial strategies (practicing the theory)
What is entrepreneurial strategy? Does entrepreneurial strategy exist? Is it designed or just happens?
There are a multitude of definitions for entrepreneurial strategy. First of all because there isn’t a single accepted definition for entrepreneurship and second because there isn’t just one generally accepted definition for strategy. According to a study done by Gartner (1990) there are two main viewpoints on entrepreneurship. The first is the viewpoint in which the focus is on the characteristics of entrepreneurship, in which the entrepreneur, innovation, uniqueness and growth were the main focus. They argued that a situation was entrepreneurial when they could answer the following questions with “yes”: is there an entrepreneur? Is there growth? Is there innovation? Is there uniqueness? The second viewpoint focuses more on the creation of value and gains. Strategy is mostly defined as a long term plan to achieve a certain goal. Now if we combine these definitions we could say that entrepreneurial strategy is a long term plan created by an entrepreneur to achieve growth by using some kind of innovation. And secondly a long term plan to achieve value or gains by using some kind of innovation. Whether we use the first or the second viewpoint, we can most definitely say that entrepreneurial strategy exists. An entrepreneur is well able to create a plan in which he tries to add value or gains, by being innovative or unique and deal with the competition. So does entrepreneurial strategy exist? Yes. Is it of any use to an entrepreneur? Most probably no. The problem is in the definition of strategy as a long term plan. In the article written by Bhide (1994) he gives three general guidelines on successful entrepreneurship:
- Screen opportunities quickly to weed out unpromising ventures.
- Analyze ideas parsimoniously. Focus on a few important issues.
- Integrate action and analysis. Don’t...