Enterpreneurship Pdf

Individuals and Opportunities: A resource-based and institutional view of entrepreneurship

Nikolina Fuduric Aalborg University Department of Development and Planning Ph.D. Supervisor: Professor Anne Lorentzen

January 2008 Luzern, Switzerland
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ABSTRACT Individual and Opportunities: A resource-based and institutional view of entrepreneurship
Entrepreneurial activity holds many promises for economic well-being. Some of the most well-documented promises are economic growth and job creation. Considering entrepreneurship’s potential in creating jobs and economic growth, one would think that it is an ideal strategy to use in those places that need it the most; in the economically depleted regions of the world. The answer is yes and no. It is an ideal strategy because a healthy entrepreneurial base has far-reaching effects on the economy and society. It is not an ideal strategy if the human and institutional resource base is weak. Since entrepreneurship is a socially constructed phenomenon, it will only be as robust as the people practicing it and the institutional environment in which it is enacted. This paper has two goals. The first is to examine human capabilities and the institutional environment as a set of resources giving rise to different processes and forms of entrepreneurship. The second goal is to consider how novel (Schumpeterian) and non-novel (Kirznerian) forms of entrepreneurship are affected by resources on these levels. Two theoretical platforms aid in this consideration: Edith Penrose’s resource-based theory of firm growth and Douglas North’s Theory of Institutions and Institutional Change. Penrose’s theory supports the notion of the development of individual resources since the entrepreneur functions as a firm and is engaging in an individual process and not a collective one. His personal resources are anchored in his psychological traits and capability set. Douglas North and his Theory of Institutions and Institutional Change provide us with the

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