MANAGERS

LEADERS

ENTREPRENEURS

MANAGERS

ENTREPRENEURS

LEADERS

MANAGER

ENTREPRENEUR

LEADER

SOME POSSIBLE QUESTIONS:

IS AN ENTREPRENEUR ALWAYS AN ENTREPRENEUR AND IF NOT, CAN HE OR SHE BE A MANAGER AND/OR LEADER WHEN NOT?

IS LEADERSHIP A QUALITY OF A GOOD MANAGER OR SOMETHING SEPARATE?

IS AN ENTREPRENEUR ALWAYS A LEADER TO SOME EXTENT AND, IF SO, WHAT KIND OF LEADER?

FIRST SOME ”ACCEPTED FACTS”:

MANAGER -------------------------------- ENTREPRENEUR

SIMILARITIES

BOTH NEED TO PLAN, ORGANIZE AND CONTROL THEIR ACTIVITIES

DIFFERENCES

TENDS TO BE SHORT-TERM ORIENTED TOWARDS ACCOUNTING PERIODS

LOW RISKTAKER, TRIES TO AVOID MAKING MISTAKES

EXTERNAL STANDARDS, ORIENTED TOWARDS REWARDS AND PUNISHMENTS IN THE ORGANIZATION

TENDS TO BE LONG-TERM PROBLEM ORIENTED

HIGHER RISKTAKER, TRIES TO LEARN FROM MISTAKES MADE

INTERNAL STANDARDS, REWARDS HIMSELF OR HERSELF

MANAGER --------------------------------- LEADER

SIMILARITIES

* MANAGERS (WHEN HAVING TO DO WITH PEOPLE) SHOULD HAVE LEADERSHIP QUALITIES

DIFFERENCES

DOES NOT HAVE TO INVOLVE OTHER PEOPLE (CAN HAVE A DEPARTMENT OR VENTURE BEING ALONE)

SOURCE OF POWER: A POSITION

DECIDES AND GIVES ORDERS

MUST INVOLVE OTHER PEOPLE (HAVE FOLLOWERS)

SOURCE OF POWER: PERSONAL QUALITIES

IS A ROLE MODEL

ENTREPRENEUR ------------------------ LEADER

SIMILARITIES

* MOST SUCCESSFUL ENTREPRENEURS ARE LEADERS IN THEIR BUSINESS FIELD AND (IF THEY ARE NOT ALONE) OF THEIR EMPLOYEES

DIFFERENCES

IS INVOLVED IN NEW VENTURES

MANY START AND RUN SMALL BUSINESS VENTURES WITHOUT HAVING ANY EMPLOYEES (SOLO VENTURERS)

IS INVOLVED IN OTHER PEOPLE

SOME PROBLEMS WITH THIS KIND OF KNOWLEDGE:

THERE IS NO ABSOLUTE AND DEFINITE SOCIAL KNOWLEDGE. ALL SUCH KNOWLEDGE IS CONTEXTUAL AND RELATED TO A PURPOSE (WHAT KNOWLEDGE IS FOR)

MANAGERS, ENTREPRENEURS AND LEADERS ARE IMPLICITLY MADE INTO SOMETHING POSITIVE:

* THERE ARE MANY NEGATIVE ASPECTS OF ALL THREE

* IT LEADS TO MYTHS, ESPECIALLY OF WHAT IS LESS ”PRECISE”, I.E.,

LEADERS AND ENTREPRENEURS

THE RESULTS ARE VALID ONLY IN THE WESTERN WORLD, IN PARTICULAR IN THE US

SOME MYTHS ASSOCIATED WITH LEADERS:

LEADERSHIP IS A RARE QUALITY

LEADERS ARE CHARISMATIC

LEADERS EXIST ONLY AT THE TOP OF THE ORGANIZATION

LEADERS ARE MAGICIANS AND MANIPULATORS

LEADERSHIP (AS WELL AS ENTREPRENEURSHIP) IS SOMETHING WHICH IS BASED ON CERTAIN QALITIES THAT YOU ARE BORN WITH; IF YOU DO NOT HAVE THOSE QUALITIES, YOU CANNOT LEARN TO BE A LEADER (OR AN ENTREPRENEUR)

SOME MYTHS ASSOCIATED WITH ENTREPRENEURS:

THERE ARE SO MANY WAYS TO BECOME AN ENTREPRENEUR; THE RECIPE FOR SUCCESS CAN THEREFORE NOT BE TAUGHT

THE MOST IMPORTANT FACTOR FOR ENTREPRENEURIAL SUCCESS IS THE IDEA ON WHICH THE VENTURE IS BASED, THE ENTREPRENEUR COMES SECOND

THE MORE MONEY YOU INVEST IN ENTREPRENEURSHIP, THE MORE YOU GET OUT OF IT

THE INHERITAGE FROM ECONOMICS:

THE ENTREPRENEUR IS A:

RISK TAKER (CANTILLON; BEGINNING OF EIGHTEENTH CENTURY)

BUILDER OF A BUSINESS VENTURE; THE FOURTH PRODUCTION FACTOR (SAY; BEGINNING OF NINETEENTH CENTURY)

INNOVATOR (SCHUMPETER; BEGINNING OF TWENTIETH CENTURY)

OPPORTUNIST (KIRZNER; MID TWENTIETH CENTURY)

FOUR AREAS OF ENTREPRENEURSHIP RESEARCH TODAY:

ENTREPRENEURIAL CONSEQUENCES?

ENTREPRENEURIAL THINKING?

ENTREPRENEURIAL ENVIRONMENTS?

ENTREPRENEURIAL PROCESSES?

THE NEW ECONOMIC ERA:

CHANGE

GENUINE UNCERTAINTY

CHANGE AGENTS

NEW FORMS OF CAPITAL

UNCLEAR INDUSTRY BORDERS

INFORMATION SOCIETY; KNOWLEDGE SOCIETY; RISK SOCIETY; NETWORK SOCIETY; ECONOMY OF EXPERIENCES

A SIMPLE STAIRCASE OF DEVELOPMENT:

CAPITAL

TECHNOLOGY

ENTREPRENEURSHIP

INFRA-STRUCTURE

AN ALTERNATIVE ”SET OF FACTS”:

KNOWLEDGE TO UNDERSTAND MANAGEMENT, ENTREPRENEURSHIP AND LEADERSHIP IN THE NEW ECONOMIC ERA

ENTREPRENEURS = CREATORS OF NEW USER VALUE

INNOVATORS

OPPORTUNISTS

BUT NOT SO MUCH

• RISK TAKERS

• BUSINESS VENTURE BUILDERS

THREE ”POSITIONS” IN THE NEW ECONOMIC ERA:

MANAGEMENT IS A PROFESSION. MANAGERS NEED ”TECHNICAL” SKILLS. THEY RELATE TO THEIR EMPLOYERS AND ARE JUDGED BY THEM.

LEADERSHIP IS A ROLE. LEADERS NEED SOCIAL SKILLS. THEY RELATE TO THEIR FOLLOWERS AND ARE JUDGED BY THEM.

ENTREPRENEURSHIP IS AN ATTITUDE IN APPLICATION (A LIFE FORM). ENTREPRENEURS NEED MENTAL SKILLS. THEY RELATE TO THE USERS OF THEIR INNOVATIONS AND ARE JUDGED BY THEM.

THREE PARTS OF THE ENTREPRENEURIAL ATTITUDE:

THE WORLD IS NOT PERFECT!

THERE ARE ALTERNATIVE SOLUTIONS TO THE WORLD’S PROBLEMS!

I (!) WANT TO BE PART OF REALIZING THESE SOLUTIONS (OR AT LEAST THE GOOD ONES)!

1 2

3 4

MODES OF GROWING:

PRODUCT

OLD NEW

OLD

NEW

MA

RK

ET

1-3 = MANAGERIAL GROWTH

4 = ENTREPRENEURIAL GROWTH

THE TERMINOLOGY (AND WAY OF THINKING) IN TWO MODES OF GROWING (IN MATCHED PAIRS):

MANAGERIAL GROWTH ENTREPRENEURIAL GROWTH

PLANNING

UNITY

SYSTEMS

STRUCTURES

BUSINESS CONCEPTS

WE ARE

EFFICIENCY

ECONOMIES OF BIG SCALE

EDUCATION

MANAGEMENT

LEARNING

VARIETY

ACTORS

PROCESSES

VISIONS

WE BECOME

COMMITMENT

ECONOMIES OF SMALL SCALE

CULTURE

LEADERSHIP

THERE ARE TWO KINDS OF MARKETING:

1. TRANSACTIONAL MARKETING

MARKETING MEANS THE PROCESS WHEREBY THE CONCEPTUALIZATION OF IDEAS, GOODS AND SERVICES IS PLANNED AND IMPLEMENTED IN ORDER TO CREATE EXCHANGES ACCOMPLISHING INDIVIDUAL AND ORGANIZATIONAL GOALS.

2. RELATIONSHIP MARKETING

MARKETING MEANS TO IDENTIFY AND ESTABLISH, MAINTAIN AND DEEPEN, AND IF NECESSARY END, RELATIONSHIPS WITH CUSTOMERS (AND OTHER PARTIES) IN ORDER TO ACCOMPLISH ECONOMIC AND OTHER GOALS FOR ALL PARTIES. THIS IS DONE THROUGH MUTUAL EXCHANGE AND THROUGH CARRYING OUT PROMISES MADE.

THERE ARE TWO KINDS OF ORGANIZATIONS:

1. FOCAL ORGANIZATIONS (OFTEN CALLED FORMAL ORGANIZATIONS)

RELATIVELY CLEAR CONSTRUCTIONS WITH RELATIVELY FIRM POSITIONS AND RELATIONSHIPS, OFTEN IN HIERARCHIES, BETWEEN INDIVIDUALS AND DEPARTMENTS WITHIN SPECIFIC FIRMS AND/OR LEGAL UNITS.

2. IMAGINARY (OR VIRTUAL) ORGANIZATIONS (OFTEN CALLED NETWORKS)

LOOSELY JOINED, AND CONSTANTLY FLOWING, RELATIONSHIPS BETWEEN INDIVIDUALS AND ORGANIZATIONS, RELATIONSHIPS, WHICH IN PRINCIPLE EXIST AS POSSIBLE TO REALIZE ONLY FOR THOSE WHO ARE PART OF THEM AND WHO ARE STRONG ENOUGH TO USE THEM.

THERE ARE TWO KINDS OF LEARNING:

1. EXPLOITATIVE LEARNING (TO CREATE RELIABILITY IN EXPERIENCE)

REFINE, ROUTINIZE, RETRIEVE AND APPLY KNOWLEDGE (LEARN MORE OF AND BETTER WHAT YOU KNOW ALREADY). THIS USUALLY LEADS TO IMPROVEMENTS BUT IS OFTEN BLIND TO ESSENTIALLY NEW DIRECTIONS.

2. EXPLORATIVE LEARNING (TO CREATE VARIETY IN EXPERIENCE)

RESEARCH, INVENT, VARY, INNOVATE (LEARN GENUINELY NEW THINGS). THIS OFTEN LEADS TO DISASTER BUT SOMETIMES TO IMPORTANT NEW DIRECTIONS AND DISCOVERIES.

THERE ARE TWO WAYS TO CREATE VALUE:

1. FOLLOWING EXISTING VALUE-ADDING FLOWS (SOMETIMES CALLED VALUE CHAINS)

ADAPT TO EXISTING RELATIONSHIPS BETWEEN PRESENT AND COMING PARTICIPANTS ON THE MARKET ARENAS.

2. BUILDING NEW VALUE CONSTELLATIONS (SOMETIMES CALLED VALUE STARS)

CONSTRUCT (ALTERNATIVELY FINDING ONLY), AT LEAST PARTLY NEW, RELATIONSHIPS BETWEEN PRESENT AND COMING PARTICIPANTS ON THE MARKET ARENAS.

ENTREPRENEURIAL GROWTH

MANAGERIAL GROWTH

LEADERSHIP MANAGEMENT

RELATIONSHIP MARKETING

TRANSACTIONAL MARKETING

IMAGINARYORGANIZATIONS

FOCALORGANIZATIONS

EXPLORATIVE LEARNING

EXPLOITATIVE LEARNING

VALUE STARS VALUE CHAINS

1 2

1

2

12

NOTE: THERE ARE TWO KINDS OF LEADERS IN THIS CONTEXT:

A. TAKE A LEADING ROLE IN CONSTRUCTING AND REALIZING NEW IMAGINARY ORGANIZATIONS AND NEW VALUE CONSTELLATIONS (ONLY IN )

B. LEAD THOSE WHO FOLLOW IN FOCAL ORGANIZATIONS (THETRADITIONAL LEADERSHIP ROLE; MAINLY IN )

1

2

ENTREPRENEURSHIP SMALL BUSINESS MANAGEMENT

time

size

LEADERSHIP MANAGEMENT

EXPLORATIVE LEARNING

EXPLOITATIVE LEARNING

RELATIONSHIP MARKETING

TRANSACTIONAL MARKETING

IMAGINARYORGANIZATIONS

FOCALORGANIZATIONS

VALUE STARS VALUE CHAINS

GROWTH

TIME

ICAROS

THE MINNOW THATNEVER TOOK OFF

SMALL – BUT HAPPY

SUCCESSFUL GROWTH