## Blaze K. Munoz
Department of Entrepreneurship, Oklahoma State University
EEE – 2083 – Entrepreneurship & Society
Professor Trost
January 30, 2023
For many years now, scholars have been trying to figure out what makes an entrepreneur an entrepreneur. Throughout this paper, I will be discussing the characteristics, values, mindsets, goals, and the process of entrepreneurship. With the help of Saras D. Sarasvathy article “What makes entrepreneurs entrepreneurial?”, Robert F. Herbert and Albert N. Links article “In Search of the Meaning of Entrepreneurship” and William B. Gartner’s paper, “Who is an Entrepreneur? Is the Wrong Question”, I hope by the end of this paper, you will have a better understanding of what an entrepreneur means.
Throughout Saras D. article “What makes entrepreneurs entrepreneurial?”, Saras main points are the difference between casual thinking and effectual thinking. Why one is better for entrepreneurship and the pros and cons of each. The authors describes casual thinking as “beginning with a pre-determined goal and given set of means, and seeks to identify the optimal – fastest, cheapest, most efficient, etc. – alternative to achieve the given goal” ; however, effectual thinking “does not begin with a specific goal. Instead, it begins with a given set of means and allows goals to emerge contingently over time…” (Sarasvathy, 2001, p. 2). This is why I believe entrepreneurship is one of the greatest concepts on Earth. There are literally no limitations when it comes to entrepreneurship. Unlike other positions, you create you own opportunities. This is the main reason why I want to become an entrepreneur myself. Instead of following the boring procedure of choosing the right audience, picking the perfect portfolio, or choosing the lowest financial risk, effectual thinking says there is no right from wrong, left is right and up is down (Sarasvathy, 2001). This is why the richest people in the world, Elon Musk, Jeff Bezos, Bill Gates, created their own companies and helped make entrepreneurship what it is today. They took risks, they did not minimize their audience, and they did not always go down the “reasonable” path. Now I am not saying casual reasoning is not beneficial, it is, but for the earlier stages, effectual reasoning is the way to go. Effectual reasoning usually starts off with three categories, who they are, what they know, and Whom they know. Figuring out who you are, your traits, tastes, abilities, motives etc. helps build a foundation for your vision. Secondly, finding out what you know, your education, training, experience, etc. helps you plan out your desired actions. Lastly, whom you know, social peers, family, professional networks etc. help demonstrate who to push you desired actions towards. Once you have these steps figured out, the opportunities are endless.
In Robert F. Herbert and Albert N. Link’s article “In Search of the Meaning of Entrepreneurship”, the authors talk about the history of entrepreneurship, interesting facts, and the overview of economics. There was a study done that illustrated that more than 50% of new employment throughout the United States came from entrepreneurship since 1982 (Herbert & Link, 1988). During this time, President Ronald Regan referred to this time period as the “Age of Entrepreneur”. This is an interesting fact, because it illustrates that individuals are becoming more risk-taking, adventurous, and determined to bring their thoughts to actions. People are willing to create their own opportunities, rather than work underneath someone. These types of individuals, entrepreneurs, are “recognized as an independent factor of production on a more-or-less equal footing with land, labor, and capital. The distinction between manager and entrepreneur is now firmly drawn” (Herbert & Link, 1988, p. 40). In addition, the authors have given entrepreneurs twelve distinct themes when it comes to the economic literature. The authors categorize entrepreneurs into two groups, involving the twelve themes. Static and dynamic. In static, the entrepreneur is a passive element who repeats their past procedures falling under 4/12 themes: the entrepreneur is the person who supplies financial capital, is a manager or super-intendent, is the owner of an enterprise, and/or an employer of factors of production. On the other hand, the dynamic role includes 8/12 themes: the entrepreneur is the person who assumes the risk associated with uncertainty, is an innovator, decision maker, industrial leader, is an organizer and coordinator of economic recourses, contractor, arbitrageur, and is an allocator of resources among alternative uses. Know you see why one is called static and other called dynamic. One thing that I disagree on is when the authors state “The exact relationship between entrepreneurship and economic development is also a matter of ongoing debate” (Herbert & Link, 1988, p. 40). I find it difficult to agree that we still do not know the relationship between the two. In my opinion they go hand in hand. Part of being an entrepreneur is reading the economy and seeing what is flourishing and what needs improvement. If the economy is crashing and real-estate is high, then one would think not to go into that industry. If gasoline cars are slowly becoming more irrelevant, then one should put their entrepreneur thoughts towards electric vehicles. If the economy is leaning towards eco-friendly, why create a product that gives off harmful pollution. Those are my opinions on why there is no debate about the relationship between entrepreneurship and economic development.
Throughout William B. Gartner’s article, “Who is an Entrepreneur? Is the Wrong Question”, the authors tries to tie in multiple studies to try and define what/who an entrepreneur is. Which in my opinion is pointless. Trying to define the word “entrepreneur” is like trying to define the word “genius”. Genius has different meanings depending on who you ask. One may say Albert Einstein, Thomas Jefferson, George Washington, Jeff Bezos, etc., which are all considered geniuses in their own realm, you cannot say one is not a genius because he does not fit into the “genius” definition. Same thing with entrepreneurship. Elon Musk is considered to be an entrepreneur, so is Oprah Winfrey, so is your 14 year old neighbor who started their own mowing business. After reading Mr. Gartner’s article, I do not believe it is the traits that make an entrepreneur, but rather their behavioral approach. Traits such as hardworking, gender, age, race, creativity, open-mindedness, etc. does not limit who can be an entrepreneur. Sure, traits may help one become a more successful entrepreneur, but it is rather their behavior that makes them an entrepreneur. I agree that an entrepreneur is someone who puts forth labor, capital, one who finds in their value of the product as a result of their own employment which is a result of their values, interests, towards their desired task (Gartner, 1988). Showing not traits but their behavior. In the simplest form, an entrepreneur “is part of the complex process of new venture creation” (Gartner, 1988, p.21). It is an individual who creates ventures and has strict behavioral morals. It is not a 25-year-old male, or 40-year-old women, but rather one who has a mission and does not let the world distract them from their vision.
Gartner, William B. “‘Who Is an Entrepreneur?’ Is the Wrong Question.” Entrepreneurship Theory and Practice, vol. 13, no. 4, 1989, pp. 47–68., https://doi.org/10.1177/104225878901300406.
Herbert, Robert F, and Albert N Link. In Search of the Meaning of Entrepreneurship, 1989.
Sarasvathy, Saras D. “What Makes Entrepreneurs Entrepreneurial?” SSRN Electronic Journal, 2006, https://doi.org/10.2139/ssrn.909038.