2. Definition of Entrepreneurship by outcome

1. Outcomes on Different Levels

   1. Focus on how much outcomes affect venture and society (However, it is not necessary that each and every individual venture that drives the market process is successful in itself.)

   2. Venture-level axis - “Venture” should not be interpreted as new firm or company, but as a new-to-the-market activity.

   3. Societal-level axis – This implies levels of utility to customers in the society.

   4. Entrepreneurship as a societal phenomenon leads to improved use of resources in the economic system as a whole while driving the market process.

2. Successful ventures as Entrepreneurship (Fig. 2, Q1)

   1. We find ventures successful in themselves with making profits. (Positive Venture-level axis – Successful market activity)

   2. Also, the ventures produce net utility to customers in the society. (Positive Societal-level axis - Societal influencing)

3. Failed ventures are not Entrepreneurship (Fig. 2, Q3)

   1. Launching efforts that do not take off financially

   2. The eventual net effect does not become positive on the societal level because the ventures do not inspire or attract followers or incumbent firms.

4. Catalyst ventures as Entrepreneurship (Fig. 2, Q4)

   1. Although not completing the entrepreneurial process, the unsuccessful ventures/ market activities inspire more profitable successors by speeding up alertness of people in the society and still contribute to entrepreneurship as a societal phenomenon.

   2. They drive the market process because they bring forth such behaviour on the part of other actors.

   3. Example - Hi5 as a catalyst venture is not a successful social network. However, it stimulated development of other social networks like Facebook, Twitter, and Google+. And Facebook, Twitter, and Google+ are successful with incomes from advertisements and utility to users in the society.

5. Re-distributive ventures are not Entre. (Fig. 2, Q2)

   1. These are ventures that yield a surplus on the micro-level while at the same time the societal outcome is negative. (Enrich themselves at the expense of collective wealth.)

      1. Example 1 – illegal businesses like selling Heroin and contraband goods (due to breaking the law in order to achieve goals)

      2. Example 2 - The extraction of rents based on a monopoly

6. Degrees of Entrepreneurship? (3 Criteria to consider the degrees)

   1. Degree of (direct and indirect) impact on the economic system

      1. Focus = Competitive behaviours driving market process as societal phenomenon

      2. Disadvantage = The impact can only be assessed after the fact happened (Not in real time) because of difficulty in obtaining correct estimates of the total impact of direct and indirect effects on a complex economic system.

      3. Variation (or an indicator) of this criterion is “how much net wealth is created”.

      4. Recommendation = The degree of impact on the economic system is the criterion that matches the definition of entrepreneurship. However, it is hardly practical.

   2. Degree of novelty to the market

      1. Focus = What is more creative

      2. Advantage = Can be reasonably assessed in real time.

      3. Disadvantage = There is no guarantee that a high degree of novelty influences market effect.

      4. The degree of novelty is at best a rough proxy for degree of entrepreneurship. (Market effect as a part of entrepreneurship definition)

      5. Recommendation = Easier to be measured than the 1^st one

   3. Degree of novelty to the actor

      1. Focus = History of actor (may not be market)

      2. History of actor = The action was radically different from what that actor has done before (but not necessarily very novel or valuable as the market sees it).

      3. Disadvantage = Likeliness of undesirable consequences because of relating the degree of entrepreneurship to the history of the actor rather than to the market. (Entrepreneurship focuses more on market process.)

      4. Recommendation = Easier to be measured than the 1^st one

7. Conclusions on Entrepreneurship as a Societal Phenomenon

   1. Entrepreneurship as a societal phenomenon consists of the competitive behaviours that drive the market process in economic system.

   2. Sometimes, we may find other definitions in contexts where less precision is required.

      1. Entrepreneurship is the creation of new economic activity.

      2. When a supplier introduces something on a market so that buyers get a new alternative to choose from (potentially increasing the value they get for their money).

   3. Central features of entrepreneurship in Gartner’s empirical analysis

      1. The creation of a new business

      2. New venture (market activity) development

      3. The creation of a new business that adds value.

(Note that items 1 and 2 mention new “business” or “venture” – not “firm” or “organization” – and that item 3 says “adds value” which may or may not mean micro-level success)

4. Drawing to study Entrepreneurship as a scholarly domain - Sometimes, the definition of entrepreneurship as a societal phenomenon is restrictive, and this may cause some controversy (Reason why we should study in scholarly domain). And examples of controversy are the following.

   1. Successful outcome – Sometimes, the outcome is indirectly in the form of lasting market impact.

   2. Organisational change exclusion - The study of how organizational change affects entrepreneurial action remains a valid and important question for entrepreneurship research.

   3. Market Situation & Economic activities – In fact, contexts of market are not necessarily related to commerce and industry. They can relate other fields like politics, arts, and sports.

   4. Factors – Not only are supplier, competitor, and customer important factors in market process, but resource (more efficient or effective use of resources) is also another important factor.