Lesson 1, Topic 1
In Progress
Original Definitions of Entrepreneurship?

- Economic Function: Entrepreneurship is defined as an economic function and entrepreneur is defined by the role in society
- “Entrepreneurship entails bearing the risk of buying at certain prices and selling at uncertain prices” (18th century)
- Definition broadened to add “innovation” (early 20th century)
- Process innovation, market innovation, product innovation, organizational innovation, etc.
- Entrepreneur central to creating and responding to economic discontinuities
Major Flaw: doesn’t make sense to decide what economic functions are “entrepreneurial”.
- Psychological Profile: Entrepreneurs have a common sets of individual traits
- Entrepreneurship is then defined as activities of entrepreneurs
- Common traits include:
- Need for achievement
- Risk‐taking propensity
- Locus of control
Major flaw: single psychological profile of an entrepreneur doesn’t exist.
* HH Stevenson, “A Perspective on Entrepreneurship,” HBS 9-384-131.