Entrepreneurship Research

Zoltan J. AcsGeorge Mason UniversityEntrepreneurship in Russia: Main Trends in Entrepreneurial ResearchGraduate School of BusinessSt. Petersburg State University

Mice—gazelles—elephants

The Gazelles

What do we study

Handbook of Entrepreneurship Research– Edward Elgar, 2003– Acs and Audretsch

Handbook of Entrepreneurship

Introduction to entrepreneurshipThe entrepreneurial processOpportunity and the nature of exploitationThe emergence of new venturesFinancing new venturesThe social contextEntrepreneurship, growth and policyFuture of capitalism

Demand & Supply Curves

Demand curve

Supply curve

Quantity of the good (q)

Price of the good (p)

0

p’

p

q’ q

p’

p

q q’

E*

Knowledge as a Source of Entrepreneurial Opportunity

History t Future– Knowledge

• R&D

Window of opportunity.

The Entrepreneurial Process

Risk and UncertaintyInnovation and Technological ChangeMarket Processes and Entrepreneurial Studies.

Innovation and Technological Change

The knowledge spillover theory of entrepreneurshipInnovation comes from industries with large firms but it is the small firms that do the radical innovation.Entrepreneurship is the conduit for knowledge spillovers.

Opportunity and the nature of Exploitation

The Cognitive Psychology of EntrepreneurshipThe Individual-Opportunity Nexus

Entrepreneurship researchers ask:

Wouldn’t it be great if we could look into the mind of the entrepreneur?

If we could know what makes him or her tick?

12Dr. Mellani Day - Neuroscience and Entrepreneurship PDW - AOM 2008

Anaheim

Entrepreneurship researchers ask:

Wouldn’t it be great if we could look into the mind of the entrepreneur?

If we could know what makes him or her tick?

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Is entrepreneurial decision-making:rational versus gut-feeling or

elements of both?

What neural mechanisms are behind

the Entrepreneur’s decision:

Whom to trust? …hire? …pay? …financing? …investments? …product? …market? …strategy? …

environment? …company culture? …legal? …systems? …infrastructure? …negotiations? …

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Individual Opportunity Nexus

Opportunity existed.Bill made a choice to quite a job.Economic freedom.Pe= f (profit *-wages)

The Emergence of New Ventures

Firm organizing processes– Nascent entrepreneurs– Global Entrepreneurship Monitor

• New index

Entrepreneurship, business and the firmEntrepreneurship and strategy

New GEM Index

Global Entrepreneurship Index Sub-indexes

R2 = 0,6788

R2 = 0,4259

R2 = 0,5493

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GDP PPPACTINDEX ASPINDEX ATTINDEX

Polinom. (ASPINDEX) Polinom. (ATTINDEX) Polinom. (ACTINDEX)

Financing New Ventures

Venture Capital and Private EquitySmall Business and Debt Financing

Venture Capital and Private Equity

Why do firms internationalize?A fundamental question in strategy research

agenda is “what determines the success or failure of firms in international competition.”

Large and growing literature detailing the internationalization activities of multinationals,conglomerates, small to medium-size firms, “bornglobals” and financial servicesThe internationalization of venture capital firms has remained a relatively understudied phenomenon

The Social Context

The social psychologyEntrepreneurship as social constructionEntrepreneurship, networks and geographies– Location of firms

• Local• Global

Entrepreneurship, Economic Growth and Public Policy

The impact of entrepreneurship on economic growthThe impact of entrepreneurship on developmentEntrepreneurship and public policy– Helping disadvantage firms– Helping disadvantages people

No such thing as Entrepreneurship PolicyOnly policy for an entrepreneurial economy– Individual– Economy– Region– Country– International

The Future of Capitalism

1932-19821982-20022002-2008– Financial crisis– Global recession– What way forward

Entrepreneurial Capitalism