Sei sulla pagina 1di 3

Table One

Three Critical Assumptions of Theories of Entrepreneurship and Two


Internally Consistent Sets of These Assumptions

Discovery Theory Creation Theory

Nature of Opportunities Objective, exist Emerge as a function


independently of the process of
of individuals searching for
economic wealth

Nature of Entrepreneurs Entrepreneurs are Entrepreneurs may be


different than the same or different
non-entrepreneurs than non-entrepreneurs
Critical differences include Any differences reflect
alertness the effect of search
and are not the cause
of search

Nature of Decision Making Risky Ambiguous or Uncertain

i:\institut\egp\papers summer institute\sharon alvarez\amr discovery and creation paperv4.doc


Table Two. Definition of Risk, Ambiguity, and Uncertainty.

Possible Outcomes Probability of Outcomes

Risk Known or Knowable Known or Knowable

Ambiguity Known or Knowable Unknown

Uncertainty Unknown Unknown

i:\institut\egp\papers summer institute\sharon alvarez\amr discovery and creation paperv4.doc


Table Three:
Applying Discovery Theory and Creation Theory to Three Entrepreneurial Phenomena

Discovery Theory Creation Theory

Decision Making Entrepreneurs collect Entrepreneurs use


information about their biases and
opportunities from heuristics and/or
focus groups, government iterative learning to
reports, etc. make decisions about
which opportunities to
They use this information pursue
to calculate the present value
of exploiting opportunities Focus groups, reports,
and present value tools
Cognitive biases and iterative can be used to evaluate a
learning play a limited role particular opportunity but
cannot be used to describe
the entire search process

Business Planning Assumptions about the nature Assumptions about the


of opportunities may be nature of opportunities
modified, but rarely may be abandoned several
abandoned times

Numerous large changes Numerous large changes


in a business plan in a business plan
suggests poor planning suggests good planning
skills, e.g., the inability skills, e.g., flexibility, the
to collect and analyze ability to learn, creativity.
available data

Finance Outside sources of capital Self-funding, or funding


including banks and from people closely
venture capital firms associated with a firm
is preferred (bootstrapping) is
preferred

Outside sources of Related sources of


capital invest in opportunities capital invest in
they can understand entrepreneurs they trust

i:\institut\egp\papers summer institute\sharon alvarez\amr discovery and creation paperv4.doc

Potrebbero piacerti anche