MANAGERS

LEADERS

ENTREPRENEURS
SOME POSSIBLE QUESTIONS:

IS AN ENTREPRENEUR ALWAYS AN ENTREPRENEUR AND

IF NOT, CAN HE OR SHE BE A MANAGER AND/OR LEADER
WHEN NOT?

IS LEADERSHIP A QUALITY OF A GOOD MANAGER OR

SOMETHING SEPARATE?

IS AN ENTREPRENEUR ALWAYS A LEADER TO SOME

EXTENT AND, IF SO, WHAT KIND OF LEADER?
MANAGER -------------------------------- ENTREPRENEUR

SIMILARITIES

BOTH NEED TO PLAN, ORGANIZE AND CONTROL THEIR ACTIVITIES

DIFFERENCES

TENDS TO BE SHORT-TERM TENDS TO BE LONG-TERM

ORIENTED TOWARDS PROBLEM ORIENTED
ACCOUNTING PERIODS

LOW RISKTAKER, TRIES TO HIGHER RISKTAKER, TRIES TO

AVOID MAKING MISTAKES LEARN FROM MISTAKES MADE

EXTERNAL STANDARDS, INTERNAL STANDARDS,

ORIENTED TOWARDS REWARDS REWARDS HIMSELF OR
AND PUNISHMENTS IN THE HERSELF
ORGANIZATION
MANAGER --------------------------------- LEADER

SIMILARITIES

* MANAGERS (WHEN HAVING TO DO WITH PEOPLE) SHOULD HAVE

LEADERSHIP QUALITIES

DIFFERENCES

DOES NOT HAVE TO INVOLVE MUST INVOLVE OTHER PEOPLE

OTHER PEOPLE (CAN HAVE A (HAVE FOLLOWERS)
DEPARTMENT OR VENTURE
BEING ALONE)

SOURCE OF POWER: A SOURCE OF POWER: PERSONAL

POSITION
QUALITIES

DECIDES AND GIVES ORDERS

IS A ROLE MODEL
ENTREPRENEUR ------------------------ LEADER

SIMILARITIES

* MOST SUCCESSFUL ENTREPRENEURS ARE LEADERS IN THEIR BUSINESS

FIELD AND (IF THEY ARE NOT ALONE) OF THEIR EMPLOYEES

DIFFERENCES

IS INVOLVED IN NEW VENTURES IS INVOLVED IN OTHER PEOPLE

MANY START AND RUN SMALL

BUSINESS VENTURES WITHOUT
HAVING ANY EMPLOYEES (SOLO
VENTURERS)
SOME PROBLEMS WITH THIS KIND OF KNOWLEDGE:

THERE IS NO ABSOLUTE AND DEFINITE SOCIAL KNOWLEDGE. ALL SUCH

KNOWLEDGE IS CONTEXTUAL AND RELATED TO A PURPOSE (WHAT
KNOWLEDGE IS FOR)

MANAGERS, ENTREPRENEURS AND LEADERS ARE IMPLICITLY MADE

INTO SOMETHING POSITIVE:
* THERE ARE MANY NEGATIVE ASPECTS OF ALL THREE
* IT LEADS TO MYTHS, ESPECIALLY OF WHAT IS LESS ”PRECISE”, I.E.,
LEADERS AND ENTREPRENEURS

THE RESULTS ARE VALID ONLY IN THE WESTERN WORLD, IN

PARTICULAR IN THE US
SOME MYTHS ASSOCIATED WITH LEADERS:

LEADERSHIP IS A RARE QUALITY

LEADERS ARE CHARISMATIC

LEADERS EXIST ONLY AT THE TOP OF THE ORGANIZATION

LEADERS ARE MAGICIANS AND MANIPULATORS

LEADERSHIP (AS WELL AS ENTREPRENEURSHIP) IS SOMETHING WHICH

IS BASED ON CERTAIN QALITIES THAT YOU ARE BORN WITH; IF YOU DO
NOT HAVE THOSE QUALITIES, YOU CANNOT LEARN TO BE A LEADER
(OR AN ENTREPRENEUR)
SOME MYTHS ASSOCIATED WITH ENTREPRENEURS:

THERE ARE SO MANY WAYS TO BECOME AN ENTREPRENEUR; THE

RECIPE FOR SUCCESS CAN THEREFORE NOT BE TAUGHT

THE MOST IMPORTANT FACTOR FOR ENTREPRENEURIAL SUCCESS IS

THE IDEA ON WHICH THE VENTURE IS BASED, THE ENTREPRENEUR
COMES SECOND

THE MORE MONEY YOU INVEST IN ENTREPRENEURSHIP, THE MORE

YOU GET OUT OF IT
THE INHERITAGE FROM ECONOMICS:

THE ENTREPRENEUR IS A:

RISK TAKER (CANTILLON; BEGINNING OF EIGHTEENTH

CENTURY)

BUILDER OF A BUSINESS VENTURE; THE FOURTH PRODUCTION

FACTOR (SAY; BEGINNING OF NINETEENTH CENTURY)

INNOVATOR (SCHUMPETER; BEGINNING OF TWENTIETH

CENTURY)

OPPORTUNIST (KIRZNER; MID TWENTIETH CENTURY)

FOUR AREAS OF ENTREPRENEURSHIP RESEARCH TODAY:

ENTREPRENEURIAL CONSEQUENCES?

ENTREPRENEURIAL THINKING?

ENTREPRENEURIAL ENVIRONMENTS?

ENTREPRENEURIAL PROCESSES?
THE NEW ECONOMIC ERA:

CHANGE

GENUINE UNCERTAINTY

CHANGE AGENTS

NEW FORMS OF CAPITAL

UNCLEAR INDUSTRY BORDERS

INFORMATION SOCIETY; KNOWLEDGE SOCIETY; RISK SOCIETY;

NETWORK SOCIETY; ECONOMY OF EXPERIENCES
A SIMPLE STAIRCASE OF DEVELOPMENT:

ENTREPRENEURSHIP
TECHNOLOGY

CAPITAL
INFRA-
STRUCTURE
AN ALTERNATIVE ”SET OF FACTS”:

KNOWLEDGE TO UNDERSTAND
MANAGEMENT, ENTREPRENEURSHIP AND
LEADERSHIP IN THE NEW ECONOMIC ERA
ENTREPRENEURS = CREATORS OF NEW USER
VALUE

INNOVATORS

OPPORTUNISTS

BUT NOT SO MUCH

• RISK TAKERS

• BUSINESS VENTURE BUILDERS

THREE ”POSITIONS” IN THE NEW ECONOMIC ERA:

MANAGEMENT IS A PROFESSION. MANAGERS NEED ”TECHNICAL”

SKILLS. THEY RELATE TO THEIR EMPLOYERS AND ARE JUDGED BY
THEM.

LEADERSHIP IS A ROLE. LEADERS NEED SOCIAL SKILLS. THEY RELATE

TO THEIR FOLLOWERS AND ARE JUDGED BY THEM.

ENTREPRENEURSHIP IS AN ATTITUDE IN APPLICATION (A LIFE FORM).

ENTREPRENEURS NEED MENTAL SKILLS. THEY RELATE TO THE USERS
OF THEIR INNOVATIONS AND ARE JUDGED BY THEM.
THREE PARTS OF THE ENTREPRENEURIAL ATTITUDE:

THE WORLD IS NOT PERFECT!

THERE ARE ALTERNATIVE SOLUTIONS TO THE WORLD’S

PROBLEMS!

I (!) WANT TO BE PART OF REALIZING THESE SOLUTIONS

(OR AT LEAST THE GOOD ONES)!
THE TERMINOLOGY (AND WAY OF THINKING) IN TWO MODES
OF GROWING (IN MATCHED PAIRS):

MANAGERIAL GROWTH ENTREPRENEURIAL GROWTH

PLANNING LEARNING
UNITY VARIETY
SYSTEMS ACTORS
STRUCTURES PROCESSES
BUSINESS CONCEPTS VISIONS
WE ARE WE BECOME
EFFICIENCY COMMITMENT
ECONOMIES OF BIG SCALE ECONOMIES OF SMALL SCALE
EDUCATION CULTURE
MANAGEMENT LEADERSHIP
THERE ARE TWO KINDS OF MARKETING:

1. TRANSACTIONAL MARKETING

MARKETING MEANS THE PROCESS WHEREBY THE

CONCEPTUALIZATION OF IDEAS, GOODS AND SERVICES IS PLANNED
AND IMPLEMENTED IN ORDER TO CREATE EXCHANGES
ACCOMPLISHING INDIVIDUAL AND ORGANIZATIONAL GOALS.

2. RELATIONSHIP MARKETING

MARKETING MEANS TO IDENTIFY AND ESTABLISH, MAINTAIN AND

DEEPEN, AND IF NECESSARY END, RELATIONSHIPS WITH
CUSTOMERS (AND OTHER PARTIES) IN ORDER TO ACCOMPLISH
ECONOMIC AND OTHER GOALS FOR ALL PARTIES. THIS IS DONE
THROUGH MUTUAL EXCHANGE AND THROUGH CARRYING OUT
PROMISES MADE.
THERE ARE TWO KINDS OF ORGANIZATIONS:

1. FOCAL ORGANIZATIONS (OFTEN CALLED FORMAL ORGANIZATIONS)

RELATIVELY CLEAR CONSTRUCTIONS WITH RELATIVELY FIRM

POSITIONS AND RELATIONSHIPS, OFTEN IN HIERARCHIES, BETWEEN
INDIVIDUALS AND DEPARTMENTS WITHIN SPECIFIC FIRMS AND/OR
LEGAL UNITS.

2. IMAGINARY (OR VIRTUAL) ORGANIZATIONS (OFTEN CALLED

NETWORKS)

LOOSELY JOINED, AND CONSTANTLY FLOWING, RELATIONSHIPS

BETWEEN INDIVIDUALS AND ORGANIZATIONS, RELATIONSHIPS,
WHICH IN PRINCIPLE EXIST AS POSSIBLE TO REALIZE ONLY FOR
THOSE WHO ARE PART OF THEM AND WHO ARE STRONG ENOUGH
TO USE THEM.
THERE ARE TWO KINDS OF LEARNING:

1. EXPLOITATIVE LEARNING (TO CREATE RELIABILITY IN EXPERIENCE)

REFINE, ROUTINIZE, RETRIEVE AND APPLY KNOWLEDGE (LEARN

MORE OF AND BETTER WHAT YOU KNOW ALREADY). THIS USUALLY
LEADS TO IMPROVEMENTS BUT IS OFTEN BLIND TO ESSENTIALLY
NEW DIRECTIONS.

2. EXPLORATIVE LEARNING (TO CREATE VARIETY IN EXPERIENCE)

RESEARCH, INVENT, VARY, INNOVATE (LEARN GENUINELY NEW

THINGS). THIS OFTEN LEADS TO DISASTER BUT SOMETIMES TO
IMPORTANT NEW DIRECTIONS AND DISCOVERIES.
THERE ARE TWO WAYS TO CREATE VALUE:

1. FOLLOWING EXISTING VALUE-ADDING FLOWS (SOMETIMES CALLED

VALUE CHAINS)

ADAPT TO EXISTING RELATIONSHIPS BETWEEN PRESENT AND

COMING PARTICIPANTS ON THE MARKET ARENAS.

2. BUILDING NEW VALUE CONSTELLATIONS (SOMETIMES CALLED

VALUE STARS)

CONSTRUCT (ALTERNATIVELY FINDING ONLY), AT LEAST PARTLY

NEW, RELATIONSHIPS BETWEEN PRESENT AND COMING
PARTICIPANTS ON THE MARKET ARENAS.
 1 2
ENTREPRENEURIAL MANAGERIAL
GROWTH GROWTH

LEADERSHIP MANAGEMENT

RELATIONSHIP TRANSACTIONAL
MARKETING MARKETING

IMAGINARY FOCAL
ORGANIZATIONS ORGANIZATIONS

EXPLORATIVE EXPLOITATIVE
LEARNING LEARNING

VALUE STARS VALUE CHAINS

 2
1

NOTE: THERE ARE TWO KINDS OF LEADERS IN THIS CONTEXT:

A. TAKE A LEADING ROLE IN CONSTRUCTING AND REALIZING NEW

IMAGINARY ORGANIZATIONS AND NEW VALUE CONSTELLATIONS
(ONLY IN ) 1

B. LEAD THOSE WHO FOLLOW IN FOCAL ORGANIZATIONS (THE

TRADITIONAL LEADERSHIP ROLE; MAINLY IN ) 2
size

LEADERSHIP MANAGEMENT

EXPLORATIVE EXPLOITATIVE
LEARNING LEARNING

ENTREPRENEURSHIP SMALL BUSINESS MANAGEMENT

RELATIONSHIP TRANSACTIONAL
MARKETING MARKETING

time
IMAGINARY FOCAL
ORGANIZATIONS ORGANIZATIONS

VALUE STARS VALUE CHAINS

GROWTH

ICAROS

SUCCESSFUL
GROWTH

SMALL – BUT HAPPY

THE MINNOW THAT

NEVER TOOK OFF

TIME