Entrepreneurship

Citation

Addis, M. (2003), "Entrepreneurship", Journal of Small Business and Enterprise Development, Vol. 10 No. 2, pp. 215-216. https://doi.org/10.1108/jsbed.2003.10.2.215.4

In this excellent textbook, David Kirby presents a comprehensive analysis of entrepreneurship and related issues. It provides highly informative and well‐written coverage of all the major topics in the field. The book should be of great interest to a wide spectrum of readers, including educators, trainers, students, budding entrepreneurs, directors of new and growing ventures, corporate executives and policy makers. It has a number of features that renders it suitable as an introductory entrepreneurship textbook. There are real life case studies (prominently featuring the Internet) that provide context for conceptual discussion, practical exercises, questions which encourage readers to link the topics under consideration to their own experiences, learning activities for each of the four major styles, and a good selection of references. Useful online support for the book is also included. There is discussion of the conceptual issues raised by entrepreneurship and concentration upon the processes involved in entrepreneurial development. The treatment of this is divided into three sections, namely developing entrepreneurship in society and the economy, in people and in organisations. The conceptual and contextual treatments of entrepreneurship are very well balanced. The application of entrepreneurial theory to practice is a central theme, with theoretical discussion and practical advice effectively complementing each other.

The first four chapters concentrate upon the cultural and institutional complexities surrounding entrepreneurship. In the first chapter, Kirby examines the definition of entrepreneurship and observes that there is no overall agreement about this. The concept of the entrepreneur is reviewed in the light of classical and neo‐classical economic thought. It is emphasized that entrepreneurship is not solely restricted to new or small businesses and the idea of social entrepreneurship is succinctly introduced. The core entrepreneurial themes are identified by the author as involving issues related to innovation, perception and uncertainty. The next chapter investigates the role of entrepreneurship in society and the economy. A key idea is that entrepreneurship is viewed as the fourth primary economic factor. Entrepreneurial activity creates new ventures and a number of factors determine their growth rates. It is also associated with job generation (thus being a mechanism for reducing unemployment), innovation and change. The third chapter examines issues related to influences on entrepreneurship development. Entrepreneurs usually operate within a wide range of social, cultural, political and economic contexts. Topics ranging from religion and family, to employment levels and industry structure, to corporate culture and prestige, are systematically and expertly conceptualised and reviewed. The next chapter is dedicated to support for entrepreneurship development, as the UK, along with other developed and developing countries, has begun to recognise its overall importance to the wider economy. There is valuable discussion of various measures intended to promote the growth of an enterprise culture in the UK and an evaluation of their impact and effectiveness. The measures treated include using the education system to raise consciousness of entrepreneurship, assistance to ease entry into the market, funding initiatives, and advice to facilitate growth. Private support for entrepreneurship and for the non‐profit sector entrepreneur is also investigated.

In the fifth to eighth chapters the focus is upon the human resource dimensions of entrepreneurship. The subject of chapter five is the nature, characteristics and behaviour of the entrepreneur. The author considers the psychological literature about entrepreneurship and the relatively recent shift in the field towards cognitive models of attitude and achievement. The concern is with investigating situations that give rise to entrepreneurial activity. The discussion of the cognitive research is used to support recommendations for encouraging entrepreneurial behaviour. The following chapter is a valuable introduction to the connections between entrepreneurship, creativity and innovation. Barriers to innovation and various measures to stimulate it, such as new funding methods, science parks and incubators, are also analysed. Mechanisms to raise corporate innovation capacity are examined in detail. The idea of entrepreneurs and their employees as finders of creative solutions to problems is usefully addressed. In chapter seven, Kirby develops his perspectives on the motivation and leadership facets of entrepreneurship. The central theme is that of entreprenuers being highly motivated and able to inspire others to create a successful organisation. Methods of motivating others are reviewed and developed. It is argued that entrepreneurs are transformational leaders and recommendations for developing this type of leadership are put forward. The next chapter examines issues about team building and conflict resolution in the development of entrepreneurship. The qualities of entrepreneurial managers are analysed and the requirement for them to have influencing skills is highlighted. The topics of effective team composition and conflict management are investigated. The entrepreneur should acknowledge the connection between conflict and creativity, and promote methods of conflict resolution that aid creativity.

In chapters 9‐12, the author surveys the organisational complexities of entrepreneurship. The focus of the ninth chapter is the entrepreneurial new venture. The difference between new ventures that are entrepreneurial and those that are not is characterised in terms of a number of key features (such as innovation) of the former. The distinction between these kinds of ventures is also evident in their strategic management, structural flexibility, reward systems, and culture. The next chapter focuses upon new venture planning and creation. There is discussion of the idea that the business plan determines the feasibility of the new venture and of the two main forms of financing (equity and debt). Possible entry strategies are evaluated. The eleventh chapter examines issues related to retaining entrepreneurship as the venture grows. The coverage centres on the transformations that occur within a business as it grows. Kirby reviews the reasons why the vast majority of new ventures do not grow. The sorts of difficulties that arise with business growth and the measures which management can take to overcome these are reviewed in detail. The concluding chapter raises the issue of intrapreneurship, that is entrepreneurship within a large organisation. The issue of how intrapreneurship may be used to rejuvenate established organisations which have ceased to be entrepreneurial is considered. The discussion of the obstacles to and recommendations (with effective use being made of the theory of intrapreneurship development) for the growth of an intrapreneurial culture is both very interesting and valuable.

The book, which is a welcome contribution to the entrepreneurship literature, is highly recommended to those readers who have an interest in entrepreneurship, including policy makers, academics, researchers, students and anyone who wants to become familiar with the issues relating to this important aspect of economic activity.