Entrepreneurship and regional development


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Entrepreneurship and regional development

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Entrepreneurship and regional development

  2. 2. Focus in this speech <ul><li>Community entrepreneurship research has gained interest in the entrepreneurship research field </li></ul><ul><li>Community entrepreneurship a very challenging task or research field </li></ul><ul><ul><li>Broad range of motivational factors </li></ul></ul><ul><ul><li>Difficult to draw the borders of the organization </li></ul></ul><ul><ul><li>Larger set of stakeholders </li></ul></ul><ul><ul><li>Action and performance measures at different levels </li></ul></ul><ul><ul><li>Government institutions more often play a more vital role </li></ul></ul><ul><li>More need for cross-disciplinary research and emphasis on more in-depth research knowledge within PhD- education </li></ul>
  3. 3. The Northern-Norway research group <ul><li>Results from a joint research project between Nordland Research Institute, the University of Tromso and the Bodo Graduate School of Business (2006-2009) </li></ul><ul><li>Community ventures in four regions in Norway </li></ul><ul><li>In-depth studies </li></ul><ul><ul><li>Story-telling </li></ul></ul><ul><ul><li>Participant observation techniques </li></ul></ul><ul><li>Comparative, quantitative study from Norway and Scotland (Global Entrepreneurship Monitor) </li></ul><ul><li>Emphasis on community entrepreneurship as a tool in regional development </li></ul><ul><li>Both small village projects and large regional ventures </li></ul>
  4. 4. Entrepreneurship research <ul><li>Within entrepreneurship research a new venture has been very much synonym with a business venture </li></ul><ul><li>Entrepreneurship present within a broad set of arenas other than business </li></ul><ul><li>We are in need of a theoretical platform incorporating all categories of entrepreneurship research in the society </li></ul><ul><li>Entrepreneurship research should emphasize a broader range of new ventures and actions in society </li></ul><ul><li>If we see entrepreneurship as a societal phenomenon we may take a broader view and see entrepreneurship as the creation of new forms, practices, and concepts at different levels of society </li></ul>
  5. 5. What is community entrepreneurship (CE)? <ul><li>CE is the process of developing ventures in terms of new activities, services or institutions established for the common good of the inhabitants in a specific community (Borch et al. 2008). </li></ul><ul><li>A community is an aggregation of people living within a natural geographical area generally accompanied by collective culture, ethnicity or by other shared relational characteristics (Peredo and Chrisman, 2006). </li></ul>
  6. 6. Closely related concepts <ul><li>Social entrepreneurship </li></ul><ul><ul><li>“ innovative, social value creating activity that can occur within or across the non-profit, business, or government sectors (Austin, Stevenson and Wei-Skillern, 2006) </li></ul></ul><ul><ul><li>in particular focusing on social care for poor people </li></ul></ul><ul><li>Public entrepreneurship </li></ul><ul><ul><li>the process of creating value for citizens by bringing together unique combinations of public and/or private resources to exploit social opportunities, in return for material, purposive or solidarity benefits (Morris & Jones, 1999) </li></ul></ul><ul><ul><li>in particular focusing on ventures by government officials and politicians </li></ul></ul>
  7. 7. Other disciplines and studies of entrepreneurship in its social context <ul><li>The political science literature has focused on the terms “political” and “policy” entrepreneurs. </li></ul><ul><li>Within the public administration literature the focus changes from politicians to public sector managers, officials, and civil servants who act as entrepreneurs. </li></ul><ul><li>The two disciplines emphasize the importance of the social and political climate for this type of entrepreneurship </li></ul><ul><li>Anthropological research emphasizes social processes towards new practices </li></ul>
  8. 8. The characteristics of community entrepreneurship? <ul><li>Community entrepreneurship a broad concept </li></ul><ul><li>The main purpose of CE is to identify and meet social, community, and public needs </li></ul><ul><li>Non-profit or profit venture as a tool for reaching broader objectives at community level (Hayton, 1995) </li></ul><ul><li>Objectives are far-reaching beyond the project or organization towards social, economic, environmental, and cultural goals (Peredo and Chrisman, 2006). </li></ul><ul><li>We find common good, social needs, peoples’ welfare as main part of the objective </li></ul><ul><li>The geographical arena may differ from a small community to a to a larger region </li></ul>
  9. 9. What is the characteristics of community entrepreneurship (cont.)? <ul><li>The activities within the community venture may cut across the intersections between the voluntary, business, and governmental sector (Austin et al, 2006). </li></ul><ul><li>Access to resources very much depend on the community entrepreneur’s capabilities in multi-arena action </li></ul><ul><li>The actors work together inside social structures creating support for the community venture (Johannisson, 1990; Lotz, 1989) </li></ul><ul><li>Community ventures are closely embedded in the social networks where they manage to make changes in the action patterns and reorganize the network (Borch et al, 2008) </li></ul>
  10. 10. What is the CE research challenges? <ul><li>The characteristics of community entrepreneur -beyond personal gain </li></ul><ul><li>The entrepreneurial support team - the voluntary management </li></ul><ul><li>The different stakeholders - at different levels </li></ul><ul><li>The entrepreneurial process more about social change </li></ul><ul><li>The social context and the government more important </li></ul><ul><li>The indicators of performance at different levels </li></ul>
  11. 11. 1. The characteristics of the entrepreneur <ul><li>the community business entrepreneur is as the centre of the social network who perceives opportunities and activates the network to achieve objectives. </li></ul><ul><li>Strong voluntary effort as to time and money towards the community </li></ul><ul><li>Creation of enthusiasm and feeling of involvement </li></ul><ul><li>Living on the social inventive edge –continuous cultural creativity </li></ul><ul><li>human and network capital -cultural skills and experiences </li></ul>
  12. 12. 2. The entrepreneurial team <ul><li>The venture team may play a more important role in the community venture </li></ul><ul><li>The community acts entrepreneurially to create and operate a new enterprise in its existing social structure in pursue of a common goal (Peredo and Chrisman, 2006). </li></ul><ul><li>Important to focus on how the network of individuals and the organization is working to obtain resources to the venture </li></ul><ul><li>There is a broad set of roles within a community venture team (Borch et al, 2009) </li></ul><ul><ul><li>“ translators” between groups and cultures </li></ul></ul><ul><ul><li>The group coordinator taking care of running operations </li></ul></ul><ul><ul><li>Motivators in the grey zone between the venture and the society </li></ul></ul><ul><ul><li>cultural bridge builders towards other arenas </li></ul></ul><ul><ul><li>Field workers </li></ul></ul>
  13. 13. 3. The different stakeholders <ul><li>A community entrepreneur deals with a complex and diverse range of issues and stakeholders (Selsky and Smith, 1994). </li></ul><ul><li>While the traditional entrepreneur is limited to for-profit organizations, the community entrepreneur engages both for-profit and not-for-profit stakeholders that create a greater complexity in managing those relationships (Johnstone, 2004) </li></ul><ul><li>Dependency on sponsors create a broader set of stakeholders </li></ul>
  14. 14. 4. The social context and government <ul><li>A community venture in particular is embedded in the social context. Social capital is described as resources embedded in social networks of relationships (Nahapiet and Ghoshal, 1998) </li></ul><ul><li>The social capital of the community is connected to networks social relations and norms and values in the society </li></ul><ul><li>Due to large positive external effects the government may play an important role </li></ul><ul><li>The government organizational structure and risk taking norms of the government very important (Borch et al, 2009) </li></ul><ul><li>The mayor and chief administrative officials may represent a dynamic force in developing community ventures </li></ul><ul><li>Public money and moral support give increased legitimacy </li></ul>
  15. 15. 5. The process <ul><li>The CE process differs significantly from the business venture </li></ul><ul><li>One perspective is to see the entrepreneurial process as social creativity and cultural reproduction </li></ul><ul><li>The existing mental frames of action, or embodied routines that reflect the society’s norms and values (habitus) may inhibit creative action </li></ul><ul><li>community entrepreneur interacts with, and changes, the social context through the process of creative practice </li></ul><ul><li>Through challenging existing conventions and fronting a creative practice the dominant thought and experience of the entrepreneur is internalized and adapted by potential supporters </li></ul><ul><li>Special challenges: </li></ul><ul><ul><li>Increased dependency and complexity may demand more formalized systems in addition to the ”social contracts” </li></ul></ul><ul><ul><li>Challenge of loosing up and uncoupling strong ties </li></ul></ul><ul><ul><li>Evaluation and correction as foundation for new mobilization </li></ul></ul>
  16. 16. 6. Performance at several levels <ul><li>Personal satisfaction from volunteers </li></ul><ul><li>Reach objectives and economic survival at venture level </li></ul><ul><li>Positive effects for the community </li></ul><ul><li>Increased political legitimacy </li></ul><ul><li>Spill over to other activities </li></ul>
  17. 17. Implications for entrepreneurship PhD-education <ul><li>More knowledge of the methodological challenges of multi-level research </li></ul><ul><li>Stimulate cross-disciplinary reading and understanding (sociology, anthropology, political science) </li></ul><ul><li>More emphasis on in depth participant observation research and grounded theory techniques towards more precise concept building and measures </li></ul>
  18. 18. Conclusion <ul><li>Community entrepreneurship different from business entrepreneurship </li></ul><ul><li>There is a need for a broader theoretical perspective within community entrepreneurship research </li></ul><ul><li>Should give entrepreneurship research students a more in-depth understanding of social processes and community issues </li></ul><ul><li>Methodological challenges are present that means more advance research tools have to be implemented </li></ul>
  19. 19. Thank you for your attention!