The Origin and Evolution of New Businesses
Oxford University Press, 2000 - Business & Economics - 412 pages
What is this mysterious activity we call entrepreneurship? Does success require special traits and skills or just luck? Can large companies follow their example? What role does venture capital play?
In a field dominated by anecdote and folklore, this landmark study integrates more than ten years of intensive research and modern theories of business and economics. The result is a comprehensive framework for understanding entrepreneurship that provides new and penetrating insights. Examining hundreds of successful ventures, the author finds that the typical business has humble, improvised origins. Well-planned start-ups, backed by substantial venture capital, are exceptional. Entrepreneurs like Bill Gates and Sam Walton initially pursue small, uncertain opportunities, without much capital, market research, or breakthrough technologies. Coping with ambiguity and surprises, face-to-face selling, and making do with second-tier employees is more important than foresight, deal-making, or recruiting top-notch teams.
Transforming improvised start-ups into noteworthy enterprises requires a radical shift, from "opportunistic adaptation" in niche markets to the pursuit of ambitious strategies. This requires traits such as ambition and risk-taking that are initially unimportant. Mature corporations have to pursue entrepreneurial activity in a much more disciplined way. Companies like Intel and Merck focus their resources on large-scale initiatives that scrappy entrepreneurs cannot undertake. Their success requires carefully chosen bets, meticulous planning, and the smooth coordination of many employees rather than the talents of a driven few.
This clearly and concisely written book is essential for anyone who wants to start a business, for the entrepreneur or executive who wants to grow a company, and for the scholar who wants to understand this crucial economic activity.
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The origin and evolution of new businessesUser Review - Not Available - Book Verdict
The entrepreneurial function has long been overlooked both by economists and business theorists, though courses in entrepreneurship are increasingly popular in business schools. Bhid (Harvard Business ... Read full review
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adaptation ambiguity aversion analysis assets Audretsch Bill Gates bootstrapped build Business School capacity cash flow chapter clients Compaq competitors coordination corporate initiatives costs customers David Packard decision-makers develop economic efforts employees enterprise entrepre entrepreneurs established evaluate face Federal Express firm's fledgling businesses formulation founders of promising funds goals growth implementation individual entrepreneurs industry innovation instance investment investors large companies large corporations launch limited long-lived firms long-term Ludwig Marvin Bower McKinsey McKinsey & Co Michael Dell Microsoft million models ness operating opportunistic opportunities organization organizational Packard percent personal computers planning policies preneurs problems profit projects promising businesses promising start-ups rely require resource providers revenues risks role Sam Walton Schumpeter selling Sigafoos significant Similarly Smith started strategy success suggests Sun Microsystems technologies theory tion uncertainty undertake VC-backed start-ups ventures Vinod Khosla Wal-Mart Walton
Page x - The perfectly bureaucratized giant industrial unit not only ousts the small- or medium-sized firm and "expropriates" its owners, but in the end it also ousts the entrepreneur and expropriates the bourgeoisie as a class which in the process stands to lose not only its income but also what is infinitely more important, its function.
Page ix - Seventy years ago the corporation was still confined to those industries— railroading, steamboating, steel-making, petroleum recovery and refining, some mining— where, it seemed, production had to be on a large scale. Now it also sells groceries, mills grain, publishes newspapers and provides public entertainment, all activities that were once the province of the individual proprietor or the insignificant firm.