Evolution of the Term Entrepreneurship

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The strategic formulation school of thought is the last in a micro view of entrepreneurship and it emphasizes on careful planning for the success of a venture. Entrepreneurial strategy is the building block for distinction and having a competitive advantage. The main components of an entrepreneurial strategy are market/industry analysis, the designing and development of a product, customer development, and management of operations and technology. Unlike established firms entrepreneurs are faced with numerous challenges that limit their chances of being successful (Hallen and Eisenhardt, 2012, p. 35). The main challenges are a lack of resources, a lack of well-developed market for their products and services and therefore the context in which they operate in is ambiguous. This has been the main reason for the development of the entrepreneurial strategy concept.

Researchers have identified three main entrepreneurial strategies to deal with the challenges entrepreneurs face. In order to convince organizations into partnering with them or to give them money for their ventures, entrepreneurs can apply the strategy of resource acquisition. They can also recombine elements from their environment and be able to operate within constraints. In dealing with the challenge of a lack of well-defined markets entrepreneurs can apply market creation strategies and also create new economic infrastructure that help consumers appreciate the need for new markets. In dealing with ambiguity, entrepreneurs can adapt or learn in order to identify the attractive opportunities that they can successfully exploit.

The concept of entrepreneurial strategy is a new development in entrepreneurship studies. It has received a lot of attention from scholars like Short, McKelvie, Ketchen and Chandler (2009, p. 48) it has been used to identify strategies through which entrepreneurs can identify markets but researches have not shown how entrepreneurs can stand out in the markets that they create. More research needs to be done on entrepreneurial strategies that help entrepreneurs to not only successfully take the first step into entrepreneurship but also remain successful in the market (Davidsson, 2008, p. 62).

In sum the field of entrepreneurship has greatly evolved in modern times to involve various theories and concepts. The different views have been discussed as well as the concept of entrepreneurial strategy. An overview of entrepreneurial strategy reveals that it is important for creation of markets, overcoming resource constraints and recognizing opportunities. The concept however needs further research to help entrepreneurs remain successful in markets they create.

References

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Hallen, B. and Eisenhardt, K. (2012). Catalyzing Strategies and Efficient Tie Formation: How Entrepreneurial Firms Obtain Investment Ties. Academy of Management Journal, 55(1), pp.35-70.

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Shane, S. (2003). A general theory of entrepreneurship. Cheltenham, UK: E. Elgar.

Short, J., McKelvie, A., Ketchen, D. and Chandler, G. (2009). Firm and industry effects on firm performance: A generalization and extension for new ventures. Strat.Entrepreneurship J., 3(1), pp.47-65.