WHATAREWE TALKINGABOUT WHENWE TALKABOUT ENTREPRENEURSHIP? WILLIAMB.GARTNER GeorgetownUniversity EXECUTIVE SUMMARY Thepurposeofthisresearchwastoexploretheunderlyingmeanings researchersandpractitionershaveaboutentrepreneurshipandtooutline somethemesthatcharacterizethemajorissuesandconcernsthatconstitute thedebateaboutentrepreneurshipasa fieldofstudy. Theprocessusedtoidentifythethemesthatcharacterizeentrepre- neurshiptooktheformofapolicyDelphi.ThisDelphiwasconstructed asaseriesofthreequestionnairestoelicitdehnitionsofentrepreneurshipthatwerethenanalyzed andevaluated.IntheJirstphase,aone-pagequestionnaireaskingforadefinitionofentrepreneurship wassenttoleadingacademicresearchersinentrepreneurship,tobusinessleaders,andto politicians. Thefirstquestionnaireaskedindividuals:Whatisyourdefinitionofentrepreneurship?Wereceived 44responses(36fromacademics,8 frombusinessleaders,andnonefrompoliticians)fromthe280 individualswhomweinvitedtoparticipate(a16%responserate). Inphase2,alloftheentrepreneurshipdefinitionsfromthehrstquestionnaireweretypedand sentbackwithasecondquestionnairetothe44respondents.Thesecondquestionnairewasgenerated throughacontentanalysisoftheentrepreneurshipdefinitions.Ninetyattributeswereidenti$edfrom theentrepreneurshipdefinitions.Thesecondquestionnaireaskedparticipants:Howimportantiseach attributeto yourdefinitionofentrepreneurship?Participantsrankedtheattributesfromveryimportant tounimportant.Ofthe44participantsinphase2,41respondedtothesecondquestionnaire(93% responserate).Theresponsesfromthesecondquestionnairewerethenevaluatedand factoranalyzed. The factoranalysissoughttoclusterthe90attributesintoasmallersetoffactors(themes).Theeight- factorsolutionwasselected.Thedebateaboutwhatconstitutesthenatureofentrepreneurshipcanbe characterizedbytheseeightthemes. AddresscorrespondencetoDr.WilliamB.Gartner,OldNorthBuilding,SchoolofBusinessAdministration, GeorgetownUniversity,Washington,D.C.20057. Aversionofthispaperwaspresentedatthe1987NationalAcademyofManagementmeetings.Theauthor gratefullyacknowledgesallparticipantswhooffereddefinitionsandrespondedtotwolengthysurveys. JournalofBusinessVenturing5,15-28 01990ElsevierSciencePublishingCo..Inc.,655AvenueoftheAmericas,NewYork.NY10010 08X3-9026&W/$3.50 15 16W.B.GARTNER TheEntrepreneur.Theentrepreneurthemeistheideathatentrepreneurshipinvolvesindividuals withuniquepersonalitycharacteristicsandabilities. Innovation.Theinnovationthemeischaracterizedasdoingsomethingnewasanidea,product, service,market.ortechnologyinaneworestablishedorganization. OrganizationCreation.Theorganizationcreationthemedescribedthebehaviorsinvolvedin creatingorganizations. CreatingValue.Thisthemearticulatedtheideathatentrepreneurshipcreatesvalue. ProfitorNonprofit.Theprofitlnonprojitthemeisconcernedwithwhetherentrepreneurship involvesprojit-makingorganizationsonly. Growth.Atissuein thisthemeis theimportanceof growthas a characteristicof entrepreneurship. Uniqueness.Thisthemesuggestedthatentrepreneurshipmustinvolveuniqueness. TheOwner-Manager.Thisthemesuggestedthatentrepreneurshipinvolvesindividualswhoare ownersandmanagersoftheirbusinesses. ThethirdphaseoftheDelphiaskedthe41participantstoevaluateandcommentontheeight factorsgeneratedinthesecondphase.Ofthe41participantsinphase3,34respondedtothethird questionnaire(83%responserate).Sincenooneagreed-upondefinitionofentrepreneurshipappeared toemergefromtheDelphiprocess,theresearcherundertookaclusteranalysisoftheresponsesto the thirdquestionnairetouncoverwhetheranysimilaritiesin viewpointsexistedamongthe participants, Thedatawasclusteranalyzedusingbothhierarchical(completelinkageandsinglelinkage)andK- meansclusteringtechniques.Resultsfromtheseanalysesrevealedtwodistinctclusters.Themajority (79%)oftheparticipantswereclusteredingroupI.Thefocusofthisgroupseemstobeonthe characteristicsofentrepreneurship.GroupIlookedatwhathappenedinthesituation.Thisgroup indicatedthatasituationwasentrepreneurialiftheycouldansweryestothesequestions:Isthere anentrepreneurinvolved?Isthereinnovation?Istheregrowth?Isthereuniqueness?Theothergroup, group2,focusedontheoutcomesofentrepreneurship.Group2sawasituationasentrepreneurial onlyifvaluewascreatedorifsomeonegained. R ecentreviewsofentrepreneurshipresearchhaveindicatedthelackofanagreed- upondefinitionofentrepreneurshipand,morebasic,aconcernoverwhatentre- preneurshipconstitutesasafieldofstudy(Brockhaus1987;BrockhausandHorwitz1985; Carsrudetal.1985;LowandMacMillan1988;Ronstadtetal.1986;SextonandSmilor 1985;Wortman1985).Behindthisconcernistheworrythatentrepreneurshiphasbecome alabelofconveniencewithlittleinherentmeaning.Labelingaresearchstudyasanentre- preneurshipstudydoesnotseemtoidentifywhatwillbestudiedandwhy.Forexample, theEntrepreneurshipDivisionsCallforPapersforthe1989NationalAcademyofMan- agementmeetingillustratesthefieldofentrepreneurshipwiththesewords:thecreationand managementofnewbusinesses,smallbusinessesandfamilybusinesses,andthecharacter- isticsandspecialproblemsofentrepreneurs.Ifweassumethatallofthesetopicsare entrepreneurialinnature,thenwhatarethecommonalitiesthatlinkfamilybusinesses,small businessmanagement,andnewventures?Isentrepreneurshipjustabuzzword,ordoesit haveparticularcharacteristicsthatcanbeidentifiedandstudied? Thepurposeofthisresearchwastoexploretheunderlyingmeaningsresearchersand practitionershaveaboutentrepreneurshipandtooutlinesomethemesthatcharacterizethe majorissuesandconcernsthatconstitutethedebateaboutentrepreneurshipasafieldof study. Thepaperisdividedintothreesections.First,theDelphiprocessisoutlinedandthe resultsfromtheDelphiarepresented.Second,theDelphiprocessandresultsareexplained andevaluated.Third,argumentsareofferedontheimportanceofcontinuingthediscussion ENTREPRENEURSHIPDEFINITIONS17 onwhatconstitutesthefieldofentrepreneurship.Thispapercanonlyhighlightsomeofthe informationgeneratedfromtheentireDelphiprocess.Foracompletedescriptionofthe resultspleaserequesttheworkingpaperAnEntrepreneurialDelphifromtheauthor. METHODANDRESULTS Theprocessusedtoidentifythethemesthatcharacterizeentrepreneurshiptooktheformof a policyDelphi(Turoff1975).ThisDelphiwasconstructedasaseriesofthreequestionnaires toelicitdefinitionsofentrepreneurshipthatwerethenanalyzedandevaluated.Animportant aspectofthisDelphiwasthateachparticipantreceivedfeedbackonwhatotherparticipants wrotebeforerespondingtothenextround.Also,participantscouldshifttheirviewsas additionalinformationbecameavailable. Inthefirstphase,aone-pagequestionnaireaskingforadefinitionofentrepreneurship wassenttoleadingacademicresearchersinentrepreneurship,tobusinessleaders,andto politicians.The9 1academicswereidentifiedthroughBabsonEntrepreneurshipResearch Conferencepublications,AcademyofManagementproceedings,andindividualsknownto theauthor.The83businessleadersidentifiedwerefromthemid-Atlanticregion(one-half werethefoundersofcompaniesinawiderangeofindustrieswithsalesofover$1million, andtheotherhalfwerenewventuredevelopmentexperts-lawyers,CPAs,andventure capitalists).The109politiciansweremembersoftheU.S.HouseandSenatewhosaton committeesaddressingissuesrelevanttonewbusinesscreation.Thislistwasbynomeans exhaustive.Thegoalwastoidentifyabroadspectrumofentrepreneurshipresearchers, practitioners,andpolicymakerssothatmanydifferentviewsoftheentrepreneurshipfield werelikelytoemerge. Thefirstquestionnaireaskedindividuals:Whatisyourdefinitionofentrepreneurship? Afollow-upquestionnaire(withthesamequestion)wasmailedtoindividualswhodidnot respondtothefirstquestionnaire.Wereceived44responses(36fromacademics,8from businessleaders,andnonefrompoliticians)fromthe280individualswhomweinvitedto participate(a16%responserate).Theresponserateforacademics,businessleaders,and politicianswas40%,lo%,and0%,respectively.Insubsequentphonecallstoselected businessleadersandpoliticianssomereasonscametolightforthepoorresponserate. Businessleadersfeltthatdefiningentrepreneurshipwasnotverypracticalandrelevantto them.Asonebusinessleaderremarked,WhywouldIwanttoknowwhatanentrepreneur is?Iamone.Thepoliticianswantedinformationonwhattheyshouldbedoingtoimprove policyonentrepreneurship,regardlessofhowentrepreneurshipisdefined. Inphase2,alloftheentrepreneurshipdefinitionsfromthefirstquestionnairewere typedandsentbackwithasecondquestionnairetothe44respondents.Someexamplesof theentrepreneurshipdefinitionsfromthefirstquestionnairearelistedinTable1.Thesecond questionnairewasgeneratedthroughacontentanalysisoftheentrepreneurshipdefinitions. Thedefinitionswerebrokendownintoseparateattributes.Forexamplethisentrepreneurship definition: Imostoftendefineentrepreneurshipasconcernedwiththoseactivitiesassociatedwith becominganowner-managerofaneworsmallfirm.Thisincludesthestartingofany firm,regardlessofwhetherit isinnovative.It alsoincludesthepurchasingofanestablished neworsmallfirm.Entrepreneurshipcanalsobedefinedtoincludethestartingofnew andtypicallyinnovativeventureswithinestablishedorganizations.Thisincludesthe startingofinnovativeventureswithinestablishedcorporations,aswellasinnonprofitor governmentalorganizations. 18W.B.GARTNER wassegmentedintothefollowingattributes: Activitiesassociatedwithbecomingan Creationofanewbusiness Innovative owner-managerofafirm Purchasinganexistingbusiness Startsaninnovativeventurewithinanestablishedorganization Creationofanot-for-profitbusiness Creationofagovernmentorganization TABLE1ExamplesofEntrepreneurshipDefinitions Wethinkofentrepreneurshipasthestartingofnewventures.Weavoidanyimplicationofsmallorlarge.We viewanewventurequitebroadly.Anewventuremightbethebuyingofanoldbusiness:Itisanewventure forthebuyer.Weprefertostressthecreationofneweconomicenterprises-thecreationofwealth. Entrepreneurssharefinancialrisk,managementrisk,and,perhapsmoreimportantly,puttheirwholecareer onthelineintheirpursuitofanen,independententerprise.Essentially,theybecomeinextricablyintertwined withthenewenterprise.Intheearlydaysofthenewenterprise,theoverallenterpriseisnotviablewithout theentrepreneur.Theenterpriseshouldbeafor-profirbusiness.Itshouldbeanewventurealthoughnot necessarilyastart-up.Forexample,aleveragedbuy-outofadivisionofalargebusinessisinmostcasesa newventure(eventhoughnonewproductsorservicesarecreated),andtheleadentrepreneurmeetsthe conditionsofmydefinitionoftheentrepreneurialactor. Imostoftendefineentrepreneurshipasconcernedwiththoseactivitiesassociatedwithbecominganowner- managerofaneworsmallfirm.Thisincludesthestartingofanyfirm,regardlessofwhetheritisinnovative. Italsoincludesthepurchasingofanestablishedneworsmallfirm.Entrepreneurshipcanalsobedefined toincludethestartingofnewandtypicallyinnovativeventureswithestablishedorganizations.Thisincludes thestartingofinnovativeventureswithinestablishedcorporations,aswellasinnonprofitorgovernmental organizations. Thedefinitionofentrepreneurshipisadifficultonetoachieveconsensuson.Websterdefinesitasaprofit- makingundertaking.Mydefinitionisasfollows:Anentrepreneurisapersonwhorefinesacreativeideaand adaptsittoamarketopportunity,gathersresourcestoprovidepotentiallyforself-employmentand/orprofit. Ifeelthatthisdefinitionaddressestheoriginalcreativethoughtprocess.Secondly,I disputetheideathat ithastobeasuccessfulventureinorderforonetobeclassifiedasanentrepreneur.LastlyI feelstrongly thatthereisnoprofitmotivationandatmostperhapsthegoalofself-employment..Idonotnecessarily feelcomfortablewithequatinginnovationwithentrepreneurshipsinceitdoesnotalwaysinvolvethesame, orasmany,skills.Thekeywordformeisinitiationandimplementation.Ifeelthatatrueentrepreneur isalwaystheinitiatorandtheimplementor.He/sheisthepersonwhoputsittogetherandcarriesitoff. Entrepreneurship:Thecreationofanewventure.Thenewventurestrategypossessesoneorbothofthe followingcharacteristics: l Anorientationtowardsignificantandrapidgrowth 0Innovativeinproduct.service,technology,ormarket Anentrepreneurisaleaderwhostartsuphis/herownprofitornonprofitenterprise.His/hermostimportant (mostseverelytested)personalitytraitiscommitment,whichismanifestedasperseveranceorpersistence. Theentrepreneurisarisktaker-moderate,he/shesays.Buthe/shemayviewriskinanentirelydifferent light(accordingtodifferentcriteria)fromthemanagerwhotakemoderaterisks. Ipreferthetraditionaldefinitionofanowner-managedbusiness.Itseemstomethatownershipmakesa differenceinthemotivationandinterestsofthemanager.Thepersonalitytraitapproachtoentrepre- neurshipisahopelessdirectionforidentificationofsuccesfulentrepreneurs.Althoughwemayeventuallybe abletoidentifytraitsappropriatetoentrepreneurship,wewillnotbeabletopredictsuccessbaseduponthese ENTREPRENEURSHIPDEFINITIONS19 TABLE1(Continued) 8. 9. 10. Il. 12. traits.Thereasonisthathumanbeingsarecapableofchangeinpersonality,andtheydothiswhentheyare subjectedtotrauma.Thereisnotraumagreaterthanthreattoincomesurvival,sowecanexpectmuch personalitychangetooccurintheprocessofentrepreneurship.Infact,itmaybethatthispersonalitychange isexactlythephenomenonthatunderliestheassumptionthatowner-managersaremoreeffectivethanhired managers.Existentialistphilosophyisprobablyabettertoolforunderstandingentrepreneursthanpsychology. Entrepreneursaretypicallyrisktakerswhohaveavisionthattheirneedforachievement,power,andcontrol overtheirlifeandenterprisecanbebestaccomplishedinanewenvironmentundertheirdirectionandcontrol. Astubborndetermination,belief,andperseverancethattheycanandwillachievetheirgoalsandobjectives inthefaceofadversityseemstobearequirementforthesuccessfulentrepreneur;theymustalsohavethe abilitytochallengethecommonwisdomoflogicalintelligentadvisors,friends,andassociateswhoindicate thattheywillbeunabletoachievetheirgoalsandobjectives. Theactofinnovationforcommercialbenefitwithinanautonomousorganizationalentity,beitastart-up,or aninternalventuresubsidiary. Entrepreneurshipisthesumofthequalitiesandactivitiesofapersonwhoestablishes,andassumestherisk for,aneworinnovativebusinessventure.Entrepreneurshavespecialskillsandtalents,whichincludeman- agementskillsandgivethemasixthsenseforbusiness.Thosepersonalitytraitsandcharacteristicslisted above,plusimagination,creativity,andlong-termvisioncanprobablybeenhancedwithexperience,butI dontbelievetheycanbetaughtorlearned. Innovativeactivityincombiningresourcestoexploitanewtechnology,invention,sourceofsupply,outlet, orconsumerdemand.Theexerciseofleadershiptodirectandinspirepurposefulactivity.Theacceptanceof personalresponsibilityforresultsandtheriskoflossorgainofpersonalcupifal.Theassumptionofcontrol overanenterpriseasawhole. Entrepreneurshipistheprocessofdesigningandmanagingdynamicgrowthstrategiesforanorganization. Inthisway,90attributeswereidentifiedfromtheentrepreneurshipdefinitions.Thesecond questionnaireaskedparticipants:Howimportantiseachattributetoyourdefinitionofen- trepreneurship?Participantsrankedtheattributesfromveryimportanttounimportant.Of the44participantsinphase2,41respondedtothesecondquestionnaire(93%response rate).AsummaryoftheattributerankingsispresentedinTable2. Theresponsesfromthesecondquestionnairewerethenevaluatedandfactoranalyzed. Thefactoranalysissoughttoclusterthe90attributesintoasmallersetoffactors(themes). Theeight-factorsolutionwasselected.AdescriptionoftheeightfactorsisprovidedinTable 3. ThethirdphaseoftheDelphiaskedthe41participantstoevaluateandcommenton theeightfactorsgeneratedinthesecondphase.Ofthe4 1 participantsinphase3,34responded tothethirdquestionnaire(83%responserate).Table4presentsasummaryoftheratings, rankings,andcorrelationsamongtheseeightthemes. Sincenooneagreed-upondefinitionofentrepreneurshipappearedtoemergefromthe Delphiprocess,theresearcherundertookaclusteranalysisoftheresponsestothethird questionnairetouncoverwhetheranysimilaritiesinviewpointsexistedamongthepartici- pants.Thedatawasclusteranalyzedusingbothhierarchical(completelinkageandsingle linkage)andK-meansclusteringtechniques(Anderberg1973;SneathandSokal1973). Resultsfromtheseanalysesrevealedtwodistinctclusters(seeTable5).Theseclusters representwhatappeartobetwomajorviewpointsonhowentrepreneurshipmightbedefined. 20W.B.GARTNER TABLE2HighestandLowestEntrepreneurshipDefinitionAttributeRankings Howimportantiseachattribute toyourdejkitionofentrepreneurship? 3.48Thecreationofanewbusiness 3.34Newventuredevelopment 3.24Thecreationofanewbusinessthataddsvalue 3.09Integratesopportunitieswithresourcestocreateproductorservice 3.09Bringsresourcestobearonaperceivedopportunity 3.07Refinesacreativeideaandadaptsittoamarketopportunity 3.07Innovative 1.91 1.97 I .95 1.92 1.90 1.87 1.82 1.68 1.63 1.58 1.56 Understandsthegovernmentregulationsinfluencingthebusiness Purchasinganexistingbusiness Aspecialtalentthatfewhave Creationofagovernmentorganization Destroysthestatusquo Thecreationofalife-stylebusiness Thecreationofamom-and-popbusiness Mustbefor-profitbusiness Aleveragedbuy-out Extroverted Egocentricbehavior 4:VeryimportantAmostrelevantpoint.First-orderpriority.Hasdirectbearingonmajorissues 3:ImportantRelevanttotheissue.Second-orderpriority.Significantimpactbutnotuntilotheritems aretreated. 2:SlightlyimportantInsignificantlyrelevant.Third-orderpriority.Haslittleimpact. 1:UnimportantNorelevance.Nopriority.Nomeasurableeffect.Shouldbedroppedasanitemto consider. DISCUSSION PhaseOne ThegenerationofentrepreneurshipdefinitionsinthefirstphaseoftheDelphiprocessresulted ina widerangeofviewpointsonwhatconstitutesthefieldofentrepreneurship.Thedefinitions inTable1wereselectedtoshowadiversityinviewpoints.Somedefinitionsappeartobe verysimple(e.g.,l),whileotherdefinitionsaremorecomplex;thatis,theyidentifymany differentconstructsinonedefinition(e.g.,5).Somedefinitionsseemtobesimilar(e.g.,3 and7),whileotherdefinitionsseemtobeatoppositeendsofthespectrum(e.g.,7and8). Noobviousagreementastothemeaningofentrepreneurshipwasapparentfromreadingthe definitions. Wehadnoexpectationsthatparticipantswouldchangetheirideasaboutentrepre- neurshipwhenratingthe90attributesinthesecondround.Inmanyrespects,thepurpose ofapolicyDelphiwastohelpsurfacediversityofviewpointsonasubject,ratherthanwork towardcreatingagreement.Ourbeliefwasthatparticipantswouldseetheresultsofthefirst round(thelistingofall44definitions)andcometogreaterappreciationofthediversityof viewpoints.Yet,theparticipantsprobablywouldnotchangetheirviews. PhaseTwo TheanalysesinthesecondphaseoftheDelphiwereundertakentodeterminespecifically whatsimilaritiesanddifferencesinentrepreneurshipdefinitionsexistedamongthepartici- ENTREPRENEURSHIPDEFINITIONS21 pants.Byhavingeachparticipantratethesameattributes,aquantitativeprofileforeach participantcouldbeconstructed.Thesequantitativeprofilescouldthenbecomparedand contrasted.Thefirstanalysissoughttodiscoverwhichattributesreceivedthehighestand lowestratingsbyalloftheparticipants(Table2).Themostimportantattributesdescribing entrepreneurshipinvolvedorganizationcreation,innovation,andtheacquisitionandinte- grationofresources.Theleastimportantattributesdescribingentrepreneurshipwereno- growthbusinesses,nonprofitbusinesses,andpersonalitycharacteristicsoftheentrepreneur. Theseresultsaredifferentfromthosefoundinasurveyof63researchersattheBabson EntrepreneurshipResearchConferencein1986(Ronstadtetal.1986).TheBabsonsurvey askedresearcherstorankthetopthreeareasaccordingtohighestinterest.Inbothweighted andunweightedrankings,entrepreneurialcharacteristicsandtraitsreceivedthehighestnum- berofvotes.Butwhenresearcherswereaskedfortheirtwoareasofleastinterest,entre- preneurialcharacteristicsandtraitswasrankedthird.TheBabsonresultspresentavery mixedmessageontheimportanceofentrepreneurialtraits.TheBabsonsurveysuggested thatsomemembersseethetopic(entrepreneurialtraits)asrelativelyunproductivefroma researchstandpointandnotveryusefultopractitioners(p.xiv).IntheDelphiratingsthe definitionofentrepreneurshipseemstobeabehavioralone(e.g.,newventuredevelopment, integratesopportunitieswithresourcestocreateproductorservice,bringsresourcestobear onaperceivedopportunity)andnotbasedonpersonalitytraits(e.g.,egocentricbehavior, extroverted,aspecialtalentthatfewhave).Thenextanalysisexploredthisissueingreater detail. Thesecondanalysissoughttoclusterthe90attributesintoasmallersetoffactors (themes).Manyoftheattributesweresimilartoeachother(e.g.,innovative,innovative product,innovativemarket,meetsmarketdemandinanewway),andthefactoranalysis soughttocombinethem.Aneight-factorsolutionwaschosen,whichaccountedfor67.3% ofthevarianceintheresponses.Theprimarygoalofthefactoranalysiswastouncovera simple,parsimonioussetofthemesthatarticulatedmostofthebasicideasaddressedinthe 90attributes.Statisticalconcernswereofsecondaryimportance.Theeightfactors,thetotal varianceaccountedforbyeachfactor,theeigenvalues,thefrequenciesforeachattribute, andthecorrelationsforthehighest-loadingattributesforeachfactorarepresentedinTable 3.Eachfactor(theme)isaviewofentrepreneurshipaboutwhichparticipantsheldstrong beliefs-proandcon.WhenWC thinkaboutentrepreneurship,ourideascenteraroundthese eightprincipalideasorthemes.Theseeightthemes,therefore,representeightissueswhich theparticipantsstronglydebated. TheEntrepreneur Theentrepreneurthemeistheideathatentrepreneurshipinvolvesindividualswithunique personalitycharacteristicsandabilities.Mostoftheattributesthatdescribedtheentrepreneur (e.g.,risktaking,locusofcontrol,autonomy,perseverance,commitment,vision,creativity) correlatedwiththisfactor.Itwasnotsurprisingthatthisthemecaptured17%ofthetotal variance.Aspreviouslymentioned,theBabsonsurveyrankedentrepreneurialtraitsand characteristicsasthetopicofhighestinterestaswellasthethirdleastinteresting.Inboth definitionsandrankingsfromtheDelphi,respondentsbeliefsabouttheimportanceofthe entrepreneurasamajorthemeinadefinitionofentrepreneurshipshowedgreatcontrast.For example,definitions7and10inTable1showedrespondentsonoppositeendsofthe spectrum.Respondent7believedthatpersonalitytraitsareahopelessdirectionforentre- preneurship,whilerespondent10 believedthatentrepreneurshipwasthespecialunteachable TABLE 3 Entrepreneurship Factors Factor 1 The Entrepreneur 17.4% V. 23.6 E UN 3 m g CORR - 17 17 34 32 ,889 12 27 29 32 ,864 15 17 32 36 ,847 17 17 24 42 ,847 17 10 34 39 ,840 15 17 37 31 ,833 24 34 22 20 ,826 17 17 24 42 ,189 24 30 24 22 ,766 12 17 31 34 ,762 20 29 24 21 ,758 21 24 29 20 ,689 32 22 37 09 ,622 24 29 32 I5 ,621 22 20 37 21 ,621 27 20 34 19 .617 IO 24 34 32 ,608 24 22 37 17 ,599 22 20 32 26 ,576 20 20 37 23 ,565 41 22 24 13 .545 27 21 32 14 ,545 Assume management risk Assume financial risk Capacity for hard work Requires perseverance Perseverance A risk taker Assume social risk Requires commitment Willingness to sacrifice Risk taking Assume psychological risk Need for achievement Willingness to move quickly without full information Locus of control Requires autonomy Risk career Involves creativity (.475 on factor 2) Someone who wants to be his/her own boss Vision Ability to go out on ones own Self-assessment Creates self-employment Factor 2 Innovation 12.0% V, 10.0 E 15 29 41 15 ,878 Innovation service 10 20 49 21 ,840 Meets market demand in 12 27 39 22 ,825 12 32 37 19 .825 17 24 49 10 ,791 12 10 37 41 .744 a new way Innovative product Innovative market Innovative technology Refines a creative idea and adapts it to a market opportunity Innovative Draws together resources in a new way Can occur in older organizations Starts an innovative venture within an established organization Convinces others to join the venture Corporate entrepreneurship Can occur in large organizations 10 20 24 46 ,697 07 27 37 29 ,680 22 39 27 12 ,653 24 17 41 18 ,614 17 32 37 14 ,524 32 32 29 17 ,517 22 34 29 15 ,503 Factor 3 UN SI -- pJ VI - 05 20 37 38 07 22 24 47 ,134 07 29 39 25 ,725 20 20 29 31 ,716 05 22 46 27 ,676 22 31 20 21 ,644 00 15 02 22 37 48 ,639 24 52 ,538 Factor 4 Organization Creation 6.6% V, 5.8 E CORR ,744 Brings resources to bear on a perceived opporhmity Integrates opportunities with resources to create product or service Gathers resources Must add value Mobilizes resources Creates incremental wealth New ventllre development The creation of a business that adds value Creating Value 5.9% V. 5.3 E gNgIMVI= 20 34 34 12 ,784 02 05 34 59 ,587 34 37 22 07 ,547 27 29 17 21 ,518 46 27 17 10 ,513 17 24 39 20 ,509 42 34 12 12 ,502 The transformation of a business that adds value The creation of a new business Manages a growth strategy for an organization Process of breaking away from traditional procedures Destroys the status quo The creation of wealth A special talent that few have TABLE 3 (continued) Factor 5 27 29 51 15 Factor 6 yNg 34 27 20 22 29 34 32 05 63 12 17 08 56 29 10 05 56 32 12 00 12 20 34 34 IM VI -- 22 22 24 10 IM VI -- 32 07 44 14 Profit or Nonprofit 5.7% V, 4.9 E CORR .-Ill .I61 Creation of a not-for- profit business Creation of a government organization Growth 6.1% V, 4.5 E CORR .738 ,685 .662 ,618 ,617 ,540 .510 Involves rapid growth A growth-oriented undertaking Creates profit Must be for-profit business A leveraged buy-out Egocentric behavior The creation of a business growth intent on significant growth Factor 7 Uniqueness 8.7% V, 3.4 E UN g E E CORR - 27 34 22 17 ,651 12 29 34 24 ,623 15 32 38 14 ,606 07 22 49 22 ,587 17 34 32 17 ,587 15 41 24 20 ,566 20 44 20 16 ,554 22 32 29 17 ,530 15 24 29 32 ,517 39 29 27 05 ,506 A special way of thinking A vision of accomplishment for an enterprise Creates a competitive advantage Identifies a market Provides a concept of a product or service Creates a unique combination Understands the requirements to accomplish goals Identifies others to join the venture Ability to see situations in terms of unmet needs Understands the government regulations influencing the business Factor 8 The Owner-Manager 4.9% V, 3.1 E 49 24 22 05 ,815 The creation of a mom- and-pop business 49 20 27 04 ,736 The creation of life- a style business 34 39 22 05 ,550 Purchasing an existing business 20 37 24 19 .525 Activities associated with becoming an owner- manager of a firm V, variance; E, eigenvalue; UN, % unimportant; SI, %, slightly important; IM, % important; VI, % very important; CORR, correlation. 24W.B.GARTNER TABLE4Ratings,Rankings,andCorrelationsofThemes ScoreCorrelations on RatingRankbRankENTINNRIACVFPGRH UNQ OWN ENT3.0044.091.00 INN3.1523.24.42I .oo RIA3.4433.27-.I5-.I31.00 cv3.2913.08-.I1-.25.071.00 FP1.5087.24-.03-.05.I0.231.00 GRH2.3575.24.30.23-.I6-.I6-.I91.00 UNQ2.5565.00.26.61-.24-.21-.13.351.00 OWN2.7754.85-.03-.05.22.I8.38-.09-.I81.00 ENT,TheEntrepreneur:INN,Innovation:RIA.OrganizationCreation(ResourceIntegrationandAcquisition);CV,Creating Value;FP.ForProfit:GRH,Growth:UNQ.Uniqueness;OWN,TheOwner-Manager. *Veryimportant=4.notlmpottant=I. bHighest rank=1.lowestrank=8. skillsandtalentsofuniqueindividuals.Almost50%oftherespondentsratedcharacteristics oftheentrepreneurasnotimportanttoadefinitionofentrepreneurship;thatis,anaverage oftheresponsestotheattributeslistedinfactor1 (Table3)foundthat22%and23%ofthe respondentsrankedtheseattributesasunimportantandslightlyimportant,respectively. Whethertheentrepreneurismalignedandacclaimed,theentrepreneurthemehasa prominent placeinourthoughtsaboutentrepreneurship.Thisresultfurthersupportsthesuggestion fromtheBabsonsurveythatperhapsthetimemayberipefordebateonthesubject TABLE5SummaryStatisticsforK-meansClusterAnalysis Variable Between ss 4 WithinSS 4 FratioProbability ENT INN RIA cv FP GRH UNQ OM 2.87I31.12323.96,095 6.54121.72329.63,004 .66121.7232.96,332 4.39118.67327.53,010 7.60120.893211.64,002 10.04123.723213.54,001 8.59I33.78328.13,008 10.52129.523211.37,002 Variable Cluster1Cluster2 MeanSDMeanSD ENT3.151.012.43.73 INN3.37.822.29.70 RIA3.37.873.71.45 cv3.11.834.00.OO FP1.26.522.431.40 GRH2.63.871.29.70 OM2.481.031.57.49 ENTREPRENEURSHIPDEFINITIONS25 (Ronstadtetal.1986:xiv).Thequestionthatneedstobeaddressedis:Doesentrepreneurship involveentrepreneurs(individualswithuniquecharacteristics)? Innovation Theinnovationthemeischaracterizedasdoingsomethingnewasanidea,product,service, market,ortechnologyinaneworestablishedorganization.Attributesthatdescribedvarious typesofinnovationcorrelatedwiththisfactorarelistedinTable3(factor2).Theinnovation themehadrespondentswhowereeitherpro(definition9)orcon(definition4)onitsim- portancefordefiningentrepreneurship.Itshouldberecognizedthattheattributesthatde- scribedcorporateentrepreneurshipandolder,largerorganizationswerealsocorrelatedto thisfactor.Theinnovationthemesuggeststhatinnovationisnotlimitedtonewventures, butrecognizedassomethingwhicholderand/orlargerorganizationsmayundertakeaswell (e.g.,definition3).Doesentrepreneurshipinvolveinnovation? OrganizationCreation Theorganizationcreationthemedescribedthebehaviorsinvolvedincreatingorganizations. Thisthemedescribedacquiringandintegratingresourceattributes(e.g.,Bringsresources tobear...,Integratesopportunitieswithresources...,Mobilizesresources,gathers resources)aswellasattributesthatdescribedcreatingorganizations(Newventuredevel- opmentandThecreationofabusinessthataddsvalue).TheresultsinTable2indicatethat participantsrankednewventuredevelopmentandthecreationofabusinessthataddsvalue asthesecondandthirdmostimportantattributes,respectively,ofalltheattributesdescribing entrepreneurship.Butsomeparticipants(e.g.,definitions9,10,and12)indicatedthat organizationcreationwasnotnecessaryforentrepreneurship.Doesentrepreneurshipinvolve resourceacquisitionandintegration(newventurecreationactivities)? CreatingValue Thisthemearticulatedtheideathatentrepreneurshipcreatesvalue.Theattributesinthis factorindicatedthatvaluecreationmightberepresentedbytransforminga business,creating anewbusinessgrowingabusiness,creatingwealth,ordestroyingthestatusquo.Does entrepreneurshipinvolvecreatingvalue? ProfitorNonprojt Theprofit/nonprofitthemeisconcernedwithwhetherentrepreneurshipinvolvesprofit-making organizationsonly.Respondentshadverydifferentviewpointsonthistheme.Thefirst attributecorrelatedtothisfactor(Creationofanot-for-profitbusiness)showedaneven distributionofresponses:veryimportant(22%),important(22%),slightlyimportant(29%), unimportant(27%).Mostrespondentsfeltthatthesecondattribute(Creationofagovernment organization)wasnotanimportantcharacteristicofentrepreneurship:veryimportant(lo%), important(24%),slightlyimportant(15%),unimportant(51%).Theseratingsandsomeof thedefinitionsprovidedinTable1indicatethatmanypeoplethinkthatentrepreneurship canonlybeafor-profitundertaking(definition2).Butothersbelievethatorganization creationcanbeentrepreneurialwhetheritisfor-profitornot(definitions3and6).Does entrepreneurshipinvolveprofit-makingorganizationsonly? 26W.B.GARTNER Growth Atissueinthisthemeistheimportanceofgrowthasacharacteristicofentrepreneurship. Mostoftheattributesinthisfactordescribedgrowth(e.g.,Involvesrapidgrowth,Agrowth- orientedundertaking,Thecreationofabusinessintentonsignificantgrowth),althoughtwo oftheattributesdescribedprofitsaswell(Createsprofits,Mustbeafor-profitbusiness). Theattributeratingsshowedmixedresults.Forexample,morethanhalfoftherespondents indicatedthatgrowthwasnotimportanttoadefinitionofentrepreneurshipbytheranking ofthefirstattribute(Involvesrapidgrowth):veryimportant(7%),important(32%),slightly important(27%),unimportant(34%).Somedefinitions(e.g.,5and12)indicatedthatgrowth wasoneofthemajorcharacteristicsofentrepreneurship.Doesentrepreneurshipinvolve growth-orientedorganizations? Uniqueness Thisthemesuggestedthatentrepreneurshipmustinvolveuniqueness.Uniquenesswaschar- acterizedbyattributessuchasaspecialwayofthinking,avisionofaccomplishment,ability toseesituationsintermsofunmetneeds,andcreatesauniquecombination.Doesentre- preneurshipinvolveuniqueness? TheOwner-Manager Theownershipandmanagementofanongoingbusinesswasthelastthemegeneratedfrom thefactoranalysis.Thefourattributescorrelatedwiththistheme(Thecreationofamom- and-popbusiness,Thecreationofalife-stylebusiness,Purchasinganexistingbusiness, Activitiesassociatedwithbecominganowner-managerofafirm)pointoutthattheman- agementandownershipofanongoingsmallerorganizationisoftentiedtoentrepreneurship. Mostoftherespondentsdidnotfeelthatmom-and-poptypeorganizationswereentrepre- neurial:veryimportant(5%),important(22%),slightlyimportant(24%),unimportant(49%). Butsomeofthedefinitions(e.g.,3and7)clearlyidentifytheowner-managerasthemost importantcharacteristicofentrepreneurship.Doesentrepreneurshipinvolveowner-managed businesses? PhaseThree Thevalueofidentifyingtheseeightthemesofentrepreneurshipwasthatthediversityand complexityontheoriginal44definitionsofentrepreneurshipcouldbesimplifiedtosome commonconcerns.Theeightthemesprovidedawayforindividualstoreflectontheirown definitionsofentrepreneurship.ThethirdpartoftheDelphiaskedparticipantstocarefully considertheimportanceoftheseeightthemestotheirideasaboutentrepreneurship.One benefitofthiswasthatitaskedindividualstoconsiderthemesthattheymightnothave broughtupintheirowndefinitionsbutthatwerearticulatedbyothers.Assomeofthe writtendefinitionsindicate,manyrespondentsfocusedsolelyoninnovationorgrowth, withoutconsideringissuesofuniqueness,valueorganizationcreation,profits,theentrepre- neur,ortheowner-manager.Inaddition,thequestionnaireaskedrespondentstoconsider whytheybelievewhattheybelieve.Whyiscreatingvalueimportant?Whymustacompany beinnovative?Whymustacompanyhavegrowth?Howimportantistheentrepreneur?Is athemeimportanttotheparticipantbecauseitissupportedintheentrepreneurshipliterature ENTREPRENEURSHIPDEFINITIONS27 orbytheindividualsexperience?etc.Takingalloftheparticipantsscoresintotal,the resultsfromtheratingandrankingoftheeightthemes(Table4)appeartodividethethemes intoahighrated/rankedgroup(theentrepreneur,innovation,organizationcreation,and creatingvalue),andalowrated/rankedgroup(for-profit,growth,uniqueness,andtheowner- manager).Yettheonlythemethatwasclearlyalow-rankingthemewasfor-profit.A consensusfromtheparticipantsappearstobethatentrepreneurshipcaninvolvenonprofit organizations. TwoViewpointsonEntrepreneurship Aclusteranalysiswasundertakentodiscoverwhethertheparticipantscouldbegrouped togetherbasedontheirratingofalleightthemes;thatis,whetherthe34participants represented34distinctviewsonentrepreneurshiporasmallernumberofviewpoints.Exactly thesametwogroupsemergedfromboththehierarchicalclusteringandtheK-meansclustering (Table5).Participantsineachofthesetwogroupsdidnotratetheeightthemesexactlythe same,buttheirratingsacrosstheeightthemesweremoresimilartoparticipantsintheir groupthantoparticipantsintheothergroup.Onethemethatshowednosignificantdifference betweenthetwogroupswastheresourceacquisitionandintegrationtheme(newventure creationactivities).Bothgroupsindicatedhighratingsforthistheme(thisthemereceived thehighestratingovertheparticipants;Table4).Wemighttakefromthisresultanindication thatorganizationcreationisoneimportantaspectofentrepreneurship.Forsomeindividuals, itappearstobetheonlyaspectofentrepreneurship,butforothers,thisthemeisimportant onlyinthecontextofsomeoftheotherthemes.Afterreadingovereachgroupswritten responsestotheeightthemes,twomajorviewpointsonhowtoseeentrepreneurshipbecame apparent. Themajority(79%)oftheparticipantswereclusteredingroup1.Thefocusofthis groupseemstobeonthecharacteristicsofentrepreneurship.Participantsratedtheentre- preneur,innovation,growth,anduniquenesssignificantlyhigherthantheothergroup.Group 1lookedatwhathappenedinthesituation.Thisgroupindicatedthatasituationwas entrepreneurialiftheycouldansweryestothesequestions:Isthereanentrepreneur involved?Isthereinnovation?Istheregrowth?Isthereuniqueness?Forthisgroup,itappears thatsituationswithoutthesecharacteristicsarenotentrepreneurialsituations. Theothergroup,group2,focusedontheoutcomesofentrepreneurship.Participants rankedcreatingvalue,forprofit,andowner-managerhigherthantheothergroup,while rankingtheotherthemesmuchlower.Group2sawasituationasentrepreneurialonlyif valuewascreatedorifsomeonegained.For-profitandowner-managerwereratedhigher becausegroupmembersfeltthatsituationsinwhichtheentrepreneurcouldexperience positiveoutcomeswerelikelytobeentrepreneurial.Forthisgroup,itappearsthatsituations wherenovalueiscreated,orwherenoonegains,arenotentrepreneurialsituations. IMPLICATIONSANDCONCLUSIONS Weneedtogiveseriousconsiderationtoarticulatingourbeliefsaboutentrepreneurshipand torecognizingthatthesebeliefsinfluencethekindsofquestionsweaskourselvesandothers aboutthistopic.Forexample,researcherswhobelievethatentrepreneurshiprequiresin- dividualswithspecialpersonalitycharacteristicsareprobablygoingtodoresearchthat exploresthesebeliefs.Individualswhoconsiderentrepreneurshiptobethedomainofowner- managersarelikelytodoresearchthatisverydifferentfromindividualswhobelievethat 28W.B.GARTNER innovationandgrowthareimportant.Yetnoneofthesedomainsareexclusiveoftheothers, andaconcernaboutonethemeprobablywilloverlapanother. Entrepreneurshipisaverycomplexidea.Theeightthemesdescribemanydifferent typesofactivitiesandstatesofexistence.Weneedtobeawarethatwhenwetalkabout entrepreneurshipwecarryaroundawiderangeofbeliefs.Someofusmaybelievethat entrepreneurshipmustinvolverisk-takingindividualswhostartnewventuresthatarein- novativeandexperiencerapidgrowth.Othersmaybeconcernedonlyaboutentrepreneurship asstartingnewventures.Whatwemustallbeconcernedaboutismakingsurethatwhen wetalkaboutentrepreneurshipwerecognizethatithasmanydifferentmeaningsattached toit. Adefinitionofentrepreneurshiphasyettoemerge.Theviewsonentrepreneurship thathavebeenarticulatedherereflecttherobustnessofanewfield,buddingwithnewideas andthoughts,allcompetingfora prominentplaceinsomefutureorthodoxy.Noonedefinition ofentrepreneurshipneedemerge.Adefinitionofentrepreneurshipthatissosimplethatit failstoreflectthethingweareconcernedaboutdoesnothavetobecreated.Butifno existingdefinitioncanbeagreeduponbymostresearchersandpractitioners,thenitis importanttosaywhatwemean.Ifmanydifferentmeaningsforentrepreneurshipexist,then itbehoovesustomakesurethatothersknowwhatwearetalkingabout.Thevariousthemes ofentrepreneurshipexpressedhereseemtoreflectdifferentpartsofthesamephenomenon. TheimportanceofthisentrepreneurshipDelphiisinhelpingusmakeexplicitwhatweare talkingaboutwhenwetalkaboutentrepreneurship.Onlybymakingexplicitwhatwebelieve canwebegintounderstandhowallofthesedifferentpartsmakeupawhole. REFERENCES Anderberg,M.R.1973.ClusterAnalysisforApplications.NewYork:AcademicPress. 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