In our everyday discourse, the term entrepreneurial tends to generally refer to new businesses which are started by individuals or groups of individuals. However, in the academic literature, the word becomes a concept with a more strictly defined set of characteristics. In accordance, the term entrpreneurial perspective names a particular way of approaching the business world, one in which traditional business categories such as management, strategy, and opportunity seeking are transformed by a purely entrepreneurial way of looking at business.
Whereas in the academic literature on the subject there exist differing accounts of entrepreneurship, there do appear to be some core features constitutive of the entrepreneurial orientation to business. Fayolle (2007), for example, define entrepreneurial perspective as one that is above all defined by traits such as proactiveness and innovation, alongside an inclination towards risk taking. (p. 129) Lumpkin and Dess (Roos, 2014, p. 353) expand this definition to five clearly defined characteristics, adding autonomy and competitive aggressiveness to the aformentioned trio of elements. Clearly, the shared opinion on innovation, proactiveness and risk taking provides a basic starting point for the concept of entrepreneurial orientation. Further, autonomy naturally follows from these three descriptors, to the extent that clearly to produce an entrepreneurial perspective one has to have the freedom to do. Furthermore, competitive aggressiveness is also a logical addition to the characteristics. On the one hand, the business world is by nature competitive in a capitalist economy. On the other hand, competition can be directly related to traits such as risk taking and innovation. Without some competitive scenario there is no need to take risks, while the desire to innovate can also be viewed in terms of attempting to create something new in a segment of the market in which competitors still practice old habits.
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The uniqueness of entrepreneurial orientation can also be defined in terms of its relation to traditional business practice in terms of management, strategy and opportunity seeking. With regards to management, the entrepreneurial perspective accordingly will not be content with a status quo scenario. The drive for innovation and the emphasis on risk taking makes a status quo stance untenable. The same logic also applies to strategy. Strategy will always seek to be innovative, to change. Opportunity seeking will thus be aggressively pursued, to the extent that the search for new opportunities is consistent with the imperative to change, evolve and compete which is at the basis of the entrepreneurial concept.
Entrepreneurial habits can be seen in all forms of business organizations, from more established companies to new start up businesses. For example, a company such as Google clearly has a dominant and secured position in the market, through products such as its search engine. Nonetheless, Google clearly demonstrates an entrepreneurial spirit, launching an almost uncountable number of endeavors simultaneously. In a less traditional start up business, entrepreneurship is at the very basis of such a venture. This is because such a start up will be based on innovation. It will seek out opportunities that do not even seem to appear for more traditional businesses. As a start up, furthermore, risk taking is part of the essential equation of such a business, as a journey into the unknown.
In this regard, it can be stated that the entrepreneurial vision is essential to what current business practitioners most value in business management and strategy. Cliches such as “think outside the box” are clear examples of how dominant the entrepreneurial vision has become. The most prized business leaders, such as Steve Jobs who has been elevated to the status of a god on earth by Western capitalism, is praised for precisely these entrepreneurial qualities. In other words, in contemporary capitalism, the entrepreneurial orientation has basically become synonymous with the definition of effective business practice as such.
- Fayolle, A. (2007). Handbook of research in entrepreneurship education: A general perspective. Northampton, MA: Edward Elgar.
- Roos, G. (2014). Global perspectives on achieving success in high and low cost operating environments. Hershey, PA: IGI Global.
