The concern universe can be seen as a complex system of persons and concern administrations that, in a free market economic system such as South Africa, involves the activity of transforming scarce resources into merchandises and services in order to run into the demands of society ( Du Toit, Erasmus & A ; Strydom, 2007:4 ) . Business administrations hence solve the cardinal economic job of how to guarantee the highest possible satisfaction of demands with scarce resources ( Cronje, Du Toit & A ; Motlatla, 2001:23 ) . In order to understand how the concern administration satisfies the demands of society in a free market economic system, it is of import to understand the drive force behind the concern administration, viz. the enterpriser ( Du Toit et al. , 2007:37 ) . The enterpriser is at the bosom of a free market economic system and establishes concern administrations and in making so creates occupations and wealth ( Cronje et al. , 2001:3 ) .
Entrepreneurs and new concern creative activity is cardinal to the growing of the South African economic system and to the future socio-political stableness of the state ( Von Broembsen, Wood & A ; Herrington, 2005:5 ) . Due to low economic growing, high unemployment and an unsatisfactory degree of poorness in South Africa, entrepreneurship becomes a critical solution ( Rwigema & A ; Venter, 2004:27 ) . As mentioned in Chapter 1, one of the most of import groups of enterprisers within the economic system with considerable possible to lend to economic growing, economic development and employment coevals are concern adult females ( Blumberg & A ; Kenan, 2008 ; Ahl, 2006 ; Negash, 2006 ; Blumberg, 2005 ; Republic of South Africa, 2005 ; Baker, Aldrich & A ; Liou, 1997 ) . Therefore, this survey focuses on the strategic entrepreneurial behavior of concern adult females in South Africa.
An improved apprehension of entrepreneurial behavior and decision-making would enable concern direction pupils to better understand how concern administrations map in today ‘s competitory environment. In this chapter the construct of concern direction is addressed. The chapter starts by presenting the topic of economic sciences, followed by an overview of concern direction as a subject. This subdivision leads to a treatment of the relationship between economic sciences and concern direction. Then follows a subdivision which elaborates on entrepreneurship and strategic direction every bit good as a subdivision how these two Fieldss overlap. Particular attending is given to entrepreneurship and strategic direction in an effort to clear up the place of this survey in a concern direction context. The place of the survey within the field of economic sciences and concern direction is illustrated in Figure 2.1.
Figure 2.1: The place of the survey within the field of economic sciences and concern direction
Economicss has been defined in assorted ways in its more than 200 twelvemonth history ( Arnold, 2004:3 ) . It is hence utile to reexamine a figure of definitions of what economic sciences entails. Alfred Marshall ( 1824-1924 ) loosely defined economic sciences as “ the survey of world in the ordinary concern of life ; it is the survey of wealth and of adult male ” . Lionel Robbins ‘ ( 1898-1984 ) definition focussed on alternate end products that can be achieved with scarce resources. He defined economic sciences as “ the scientific discipline which surveies human behavior as a relationship between terminals and scarce agencies which have alternate utilizations ” . Similarly, Milton Friedman ( 1912-2006 ) said that “ economic sciences is the scientific discipline of how a peculiar society solves its economic jobs ” . He so argues that “ an economic job exists whenever scarce agencies are used to fulfill alternate terminals ” ( Arnold, 2004:3 ) . It seems from the above definitions that economic science is the survey of how society manages its scarce resources ( Mankiw, 2004:4 ) . More comprehensively, economic sciences is the survey of how persons and societies trade with the fact that wants are greater than the limited resources available to fulfill those wants ( Arnold, 2004:3 ) .
The status, under which wants are greater than the limited resources available to fulfill those wants, is called scarceness ( Arnold, 2004:3 ) . This enterprise to accomplish the highest possible satisfaction of demands with scarce resources is known as the cardinal economic rule ( Smit, Cronje, Brevis & A ; Vrba, 2007:20 ) and every economic system is capable to it ( Cronje et al. , 2001:23 ) . That being so, it follows that any constituent of an economic system, including a concern administration, is besides capable to the economic rule ( Nieman & A ; Bennett, 2006:6 ; Cronje et al. , 2001:23 ) .
In order to make wealth and satisfy wants, as implied in the definitions, resources are utilized ( Nickels, McHugh & A ; McHugh, 2008:9 ) . Resources are divided into four wide classs, called factors of production. These factors of production are: land, labor, capital, and entrepreneurship ( Arnold, 2004:5 ) . Land includes all natural resources, such as minerals, woods, H2O and unimproved land. Labour, on the other manus, consists of the physical and mental endowments people contribute to the production procedure. Capital consists of produced goods that can be used as inputs for farther production. Entrepreneurship, the focal point of this survey, refers to the peculiar endowment that some persons have for organizing the resources of land, labor, and capital to bring forth goods, seek new concern chances, and develop new ways of making things ( Arnold, 2004:5 ) . It furthermore refers to the enterprise of seting together a scope of production factors in assorted combinations in diverse concerns to fulfill the legion demands of consumers ( Nieman & A ; Bennett 2006:6 ) .
The field of economic sciences is traditionally divided into two wide subfields, viz. , microeconomics and macroeconomics ( Mankiw, 2004:4 ) . On the one manus, microeconomics trades with human behavior and picks as they relate to comparatively little units and surveies interactions through single markets, given scarceness and authorities ordinance ( Arnold, 2004:27 ) . In other words, microeconomics is the survey of how families and houses make determinations and how they interact in specific markets. On the other manus, macroeconomics trades with human behavior and picks as they relate to extremely aggregative markets or to the full economic system ( Arnold, 2004:4 ) . Macroeconomics is therefore the survey of economy-wide phenomena ( Mankiw, 2004:27 ) . The present survey is related to microeconomics as it deals with persons i.e. concern adult females and how they make determinations to apportion scarce resources.
Neoclassic economic experts are interested in decision-making, particularly the costs and inducements associated with economic picks ( Hicks, 1937 ) . The decision-making procedure plays an of import function in any concern administration and is of importance for problem-solving, the development of concern programs, and purposive behavior ( Gray, 2001 ) . In macroeconomics, a neoclassical synthesis was developed in the early 1950 ‘s, based on an integrating of Keynes ‘s thoughts and the thoughts of earlier economic experts ( Blanchard, 2006:576 ) . These theories had a cardinal impact on the modern apprehension of houses and their relation to the environment.
In economic sciences theories are utile for explicating and foretelling economic behavior. Theories are developed to explicate ascertained phenomena in footings of a set of basic regulations and premises ( Pindyck & A ; Rubinfeld, 2005:5 ) . The theory of the house consists of a figure of economic theories which describe the nature of the house, company, or corporation, including its being, its behavior, and its relationship with the market ( Coase, 1937 ) , which impact concern direction bookmans ‘ apprehension of the field. The theory of the house is based on a simple premise viz. that houses try to maximize their net incomes ( Pindyck & A ; Rubinfeld, 2005:5 ) . The theory of the house moreover provides an account of how a steadfast makes cost-minimising production determinations and how its cost varies with end product ( Pindyck & A ; Rubinfeld, 2005:188 ) . In simplified footings, the theory of the house attempts to reply inquiries sing the being of houses, the boundaries of houses, the administration of houses and inquiries refering heterogeneousness of steadfast actions and public presentations ( Coase, 1937 ) .
To summarize, the field of economic sciences focal points on how society manages its scarce resources, besides called factors of production, to fulfill the demands of society. In order to understand how entrepreneurship, as one of the factors of production, influences wealth creative activity in the economic system, one has to appreciate the function of concern direction which is concerned with the direction facets of the factors of production.
2.3 BUSINESS MANAGEMENT AS A DISCIPLINE
The beginnings of traditional direction can be traced back to the demand for efficiency and effectivity ( Weymes, 2004:340 ) . The enterprise to accomplish the highest possible satisfaction of demands with scarce resources is known as the cardinal economic rule ( Smit et al. , 2007:20 ) . Within economic and direction scientific disciplines, traditional concern direction is capable to this rule, and the direction ‘s undertaking is therefore is to make up one’s mind how an administration can accomplish the highest possible end product with the least possible input ( Smit et al. , 2007:20 ; Scheepers, 2009:7 ) . More specifically, it entails an scrutiny of the factors, methods and rules that enable a concern to map every bit fruitfully as possible in order to maximize its net incomes ( Nieman, 2005:39 ) . In short, the person concern endeavor should concentrate on gaining the economic rule ( Scheepers, 2009:7 ) .
The survey of concern direction depends on comprehensive and on-going research and the scrutiny of direction jobs, the testing of attacks and rules every bit good as experimentation with methods and techniques. Business direction is therefore an applied scientific discipline that surveies how concern administrations can best be directed towards gaining their aims given their limited resources ( Du Toit et al. , 2007:27 ) .
Klekamp ( 1968:54 ) defines concern direction as “ accomplishing organizational ends through people ” . It is utile to see this time-worn definition through the position of three cardinal schools of direction. These schools are: the traditional school of direction ; the behavioral school of direction and the quantitative school of direction.
It appears that the traditional school sees the accomplishment of organizational ends as a procedure. It farther suggests that the procedure is cosmopolitan i.e. the separating feature of a director is the command of her subject and the application of her art instead that the environment in which it is practiced. The behavioral school, on the other manus, focuses on the accomplishment of ends, as the procedure does, but dwells to a big extent upon why people act as they do when under the influence of the direction procedure and in the company of people grouped together for the achievement of organizational ends. Alternatively, the quantitative school proposes that the accomplishment of ends depends to a big extent on the quality of the determinations made in the pattern of the direction scientific discipline ( Klekamp, 1968:54 ) .
Although, concern direction has been defined by a figure of writers, cardinal to most definitions is the thought that direction is a societal procedure of planning, coordination, control, and motive ( Pettinger, 2002 ; Hodgetts, 1981:114 ) . One can deduce that concern direction therefore involves fulfilling demands with a limited sum of resources through planning, coordination, control, and motive of these resources ( Ward, 2008:19 ) .
The many definitions offered in the literature on direction demonstrate the broad differences of sentiment among authors and experts about the undertakings and activities of direction. Figure 2.2 illustrates the four cardinal undertakings that are singled out as the most of import activities of the direction procedure. These are: planning, organizing, taking and control ( Du Toit et al. , 2007:129 ) .
Figure 2.2: The four cardinal direction undertakings represented as a procedure
Beginning: Adapted from Du Toit et al. , 2007:130
The undermentioned brief description of the cardinal direction undertakings clarifies the construct of direction and the direction procedure. The first cardinal undertaking of direction, viz. be aftering, determines the mission and ends of the administration, including the manner ends are to be reached in the long-run, and the resources needed for this undertaking ( Du Toit et al. , 2007:130 ) . Strategic direction is an built-in portion of planning and is the procedure of developing a vision, mission and long-run aims for the administration as a whole. Harmonizing to Nieman and Bennett ( 2002:14 ) , administrations win if their schemes are appropriate for the fortunes they face, and executable in regard of their resources, accomplishments and capablenesss. Strategic direction is discussed in more deepness in Section 2.6.
The 2nd cardinal undertaking in the direction procedure is organizing. This undertaking refers to the development of a model or organizational construction to bespeak how people, equipment and stuffs should be employed to make the preset ends ( Du Toit et al. , 2007:130 ) . Leading, the 3rd cardinal undertaking, entails directing the human resources of the concern and actuating them ( Du Toit et al. , 2007:130 ) in order to acquire them to execute in such a manner that the organizational aims can be achieved ( Nieman & A ; Bennett, 2006:99 ) . The concluding fundamental undertaking, viz. control, implies that directors should invariably set up whether the concern is on a proper class towards the achievement of its ends ( Du Toit et al. , 2007:131 ) every bit good as structuring the activities of the administration to ease the attainment of its aims ( Nieman & A ; Bennett, 2006:93 ) .
The cardinal undertaking of concern direction is, nevertheless, non merely to be after, organize, take, and to command but to analyze those factors, rules and methods that will take a concern administration, as a constituent of the predominating economic system, to make its aims against the background of limited resources ( Du Toit et al. , 2007:28 ) within the microeconomic field of survey. In the undermentioned subdivision the relationship between economic sciences and concern direction is discussed. Particular attending is paid to the treatment of a concern administration as a constituent of the economic system, specifically how, as a need-satisfying establishment in the free market economic system, it provides for the demands of the community ( Cronje et al. , 2001:32 ) .
2.4 RELATIONSHIP BETWEEN ECONOMICS AND BUSINESS MANAGEMENT
On the one manus, economic sciences, as a societal scientific discipline, surveies how worlds and society exercising picks refering different ways of using their scarce resources in order to fulfill limitless demands. On the other manus, concern direction as an applied scientific discipline is concerned with the survey of those establishments in a peculiar economic system which satisfy the demands of a community. Economicss examines the full economic system, while concern direction limits its surveies to one constituent of the economic system, viz. the single administration ( Cronje et al. , 2001:23 ) .
Business direction is therefore closely linked with microeconomics and the theory of the house as the intent of concern direction is to keep an administration to the economic rule ( Cronje et al. , 2001:23 ) . Business direction, as a field of survey, is concerned with the direction facets of the inputs, the transition procedure, and the end products ( Nieman & A ; Bennett, 2006:6 ) . More specifically, it entails an scrutiny of the factors, methods and rules that enable a concern to map every bit fruitfully as possible in order to maximize net incomes ( Nieman & A ; Bennett, 2002:4 ) .
In order to recognize how the concern administration satisfies the demands of society in a free market economic system, such as South Africa, one has to understand one of the drive forces behind the concern administration, viz. the enterpriser ( Du Toit et al. , 2007:37 ) .
Economic development can be straight attributed to the degree of entrepreneurial activity in a state ( Bird, 1989 ; Schumpeter, 1934 ) as entrepreneurial concerns are responsible for growing and occupation creative activity in the economic system ( Nieman, Hough & A ; Nieuwenhuizen, 2003:3 ) . Entrepreneurship is the procedure that causes alteration in the economic system through inventions of persons who respond to chances in the market. Entrepreneurs are disputing bing premises every bit good as conventional regulations of concern and are making value in novel and originative ways for themselves and society ( Morris, Kuratko & A ; Covin, 2008:3 ) . It is hence of import to analyze entrepreneurship in an progressively globalised universe where endurance frequently depends on people who are driven by chance and who seek to accomplish their ends in a sustainable manner ( Rwigema & A ; Venter, 2004:9 ) .
Although the term entrepreneurship has been in usage for over 200 old ages, considerable dissension remains over its significance. Although the dissension seems greatest if definitions of entrepreneurship between subjects are compared, a consensus is found if definitions produced by specializers in the same field, are compared ( Nieman et al. , 2003:9 ) . Economists, for illustration, tend to hold that enterprisers are associated with invention and are seen as the drive forces of development ( Filion, 1998 ) . The behaviorists, on the other manus, seek to understand the enterpriser as a individual and ascribe to the features of chiefly the flexible interpretive theoretical accounts. The behavioral attack topographic points accent on explicating how determinations are taken within the house. However, any theory of entrepreneurship must be flexible and multidimensional to reflect its multidisciplinary roots ( Nieman et al. , 2003:9 ; Filion, 1998 ) .
While multiple definitions of entrepreneurship could be found in the literature ( Sharma & A ; Chrisman, 1999 ; Venkataraman, 1997 ; Schumpeter, 1983 ; Kirzner, 1973 ) , no individual definition has been accepted by the whole entrepreneurship field ( Scheepers, 2007:25 ) . For the intents of the present survey entrepreneurship can be defined as “ the procedure of making value by conveying together a alone combination of resources to work an chance ” ( Barringer & A ; Ireland, 2006:5 ; Stevenson, Roberts & A ; Grousback, 1989 ) . Since this definition implies that: ( 1 ) entrepreneurship may change in footings of the extent and figure of times it occurs ; ( 2 ) entrepreneurship occurs in assorted contexts for illustration start-ups and corporate houses ; ( 3 ) it is a procedure that can be managed ; and ( 4 ) it creates value and it is opportunity-driven ( Scheepers, 2009 ) .
First, sing the deduction that entrepreneurship may change in footings of the extent and figure of times it occurs, it is utile to analyze the construct of entrepreneurial strength ( EI ) . The term of EI was pioneered by Morris and Sexton ( 1996 ) , who view EI as a map of the grade and frequence of entrepreneurship ( Morris, 1998:42 ) . Frequency of entrepreneurship refers to the figure of times an endeavor acts entrepreneurially. In other words, the figure of entrepreneurial events that takes topographic point within a company over a given period of clip ( Morris et al. , 2008:69 ; Morris, 1998:42 ) .
The grade of entrepreneurship could be assessed against the background of three dimensions: innovativeness, risk-taking, and proactiveness ( Erasmus & A ; Scheepers, 2008 ; Morris, 1998:37 ) . Innovativeness, the first dimension of the grade of entrepreneurship, refers to the ability to bring forth thoughts that will climax in the production of new merchandises, services and engineerings. Risk-taking, the 2nd dimension, involves the finding and bravery to do resources available for undertakings that have unsure results. Attempts are made to pull off these hazards by researching a market, enrolling and using skilled staff among other schemes. Proactiveness, the 3rd dimension, indicates top direction ‘s stance towards chances, encouragement of enterprise, competitory aggressiveness and assurance in prosecuting enhanced fight ( Morris, 1998:18, 41-43 ) .
The construct of EI is illustrated in Figure 2.3. The planar matrix, referred to as the entrepreneurial grid, shows the frequence of entrepreneurial events on the perpendicular axis, and the grade to which these events are advanced, risk-taking and proactive on the horizontal axis ( Morris et al. , 2008:69 ) . EI must go a cardinal activity ratio that is monitored on an on-going footing within administrations. Appraisal at the degree of the administration can be used for assorted intents: to benchmark and path degrees of entrepreneurship ; set up norms and draw industry comparings ; set up entrepreneurship ends ; develop schemes ; and measure relationships between EI and administration public presentation variables over clip ( Morris et al. , 2008:78 ) .
Figure 2.3: The entrepreneurial grid
Beginning: Morris et al. , 2008:70
Second, as implied in the definition of Stevenson et Al. ( 1989 ) entrepreneurship in world can happen in assorted organizational contexts ( Morris et al. , 2008:11 ) . These organizational contexts may run from set uping a new endeavor, turning an bing little concern, or invention within big administrations ( Scheepers, 2009:27 ) . In other words, entrepreneurship can besides be used to depict entrepreneurial actions within a house. In this case, an entrepreneurial house creates wealth by concentrating on being advanced, proactive, and risk-taking ( Ireland, Hitt, Camp & A ; Sexton, 2001:51 ) . Corporate entrepreneurship is a term used to depict entrepreneurial behavior inside bing administrations ( Morris et al. , 2008:11 ) . Within these different contexts the definition above still applies, since the procedure and required inputs are similar, even if the end products differ ( Scheepers, 2009 ) , hence the female entrepreneurial behavior examined in this survey is still regarded as entrepreneurship, even though it may happen in two contexts, viz. within a corporate context or in an independent venture.
Third, as stipulated in the definition, entrepreneurship can be viewed as a procedure. Therefore even though entrepreneurship and invention are inherently unpredictable, helter-skelter and create ambiguity ; entrepreneurship is a procedure, and as such it can be managed. Entrepreneurial events are characterised by different phases, such as chance designation, concern construct definition, appraisal of the resource demands, acquisition of the needful resources, and so the direction and harvest home of the concern ( Morris & A ; Kuratko, 2002 ) .
Finally, the ability to move entrepreneurially is linked to the perceptual experience of chance. The chase of chances besides emphasises that those chances, which create the greatest value, could be exploited.
It is of import to observe that entrepreneurship differs from direction. There are of import differences between the entrepreneurial and managerial maps, every bit good as the expertness and competency with respect to each ( Nieman et al. , 2003:13 ) . Management is a societal procedure of planning, coordination, control, and motive ( Ward, 2008:19 ) . Management therefore involves acquiring things done through other people and is, in a sense, a transmutation procedure, where human, proficient, and conceptual accomplishments are used to transform inputs into end products ( Morris et al. , 2008:12 ) . Entrepreneurship, on the other manus, is the procedure of making value by conveying together a alone combination of resources to work an chance ( Barringer & A ; Ireland, 2006:5 ; Stevenson, Roberts & A ; Grousback, 1989 ) . Entrepreneurs envision the hereafter, recognize emerging forms, place untapped chances, and make inventions to work those chances ( Morris et al. , 2008:12 ) .
Figure 2.4 contrasts the primary functions of the director with those of the enterpriser. The figure shows that directors are charged with the efficient and effectual use of the resources under their control. They tend to be focussed on optimizing current operations. Entrepreneurs, instead, demonstrate originative capablenesss in obtaining resources, get the better ofing obstructions, and prevailing in implementing new thoughts that represent alteration ( Morris et al. , 2008:12 ) .
Figure 2.4: Comparison and uniting cardinal functions of directors and enterprisers
THE ENTREPRENEURIAL MANAGER
Beginning: Adapted from Morris et al. , 2008:13
One of the general attacks to direction methods with the intent of making a sustainable competitory advantage is that of strategic direction ( Cronje et al. , 2001:24 ) . Harmonizing to Nieman and Bennett ( 2002:14 ) , scheme is basically about a tantrum between the administration ‘s resources and the markets targeted by it, every bit good as the ability to prolong tantrum over clip and in altering fortunes and to make and keep a competitory advantage within a given market. Therefore, the nature and features of strategic direction is discussed in the undermentioned subdivision.
2.6 STRATEGIC MANAGEMENT
Several schools of idea with different sentiments about the nature and range of scheme can be distinguished from the literature ( Gallic, 2009:13 ) . There is besides a deficiency of a universally recognized definition of strategic direction. However, cardinal to most definitions is the impression that strategic direction is the procedure through which directors formulate, implement, and supervise action programs to optimize the accomplishment of cardinal ends ( Rwigema & A ; Venter, 2004:195 ) .
Barney and Arikan ( 2001:140 ) specify strategic direction as “ a house ‘s theory of how it can derive superior public presentation in the markets within which it operates ” . Venkataraman and Sarasvathy ( 2001:651 ) specify the topic of strategic direction as holding to make with the methods used to make value and the resulting battle to capture a important portion of that value. Hough, Thompson, Strickland and Gamble ( 2008:4 ) propose that scheme consists of the competitory moves and concern attacks that directors employ in order to turn the house, pull and delight clients, compete successfully, behavior operations, and achieve the targeted degrees of organizational public presentation. For the intent of the present survey strategic direction is defined as “ a procedure that deals with the long-run entrepreneurial work of the administration, with organizational reclamation and growing, and more peculiarly, with developing and using scheme, which is a usher to the administration ‘s operations ” ( Lyles, 1990:363 ) .
Strategic direction has gained prominence in recent old ages as administrations compete in volatile environments ( Rwigema & A ; Venter, 2004:197 ) . The dynamic environment in which administrations operate airss ongoing direction and leading challenges, marked by complexness, uncertainness, and ambiguity ( Rwigema & A ; Venter, 2004:93 ) . Traditional concern theoretical accounts are frequently no longer applicable and some directors are abandoning conventional attacks to scheme as they search for new ways to accomplish a competitory advantage in a disruptive environment. Strategic direction paradigms have shifted from basically inactive to more dynamic worldviews ( Scheepers, 2007:46 ) .
To summarize, in today ‘s fast-paced competitory environment, houses face the demand to be progressively agile and adaptative ( Ireland & A ; Webb, 2007:49 ) . Ireland et Al. ( 2001:53 ) province that successfully incorporating entrepreneurial and strategic actions improves a house ‘s ability to turn and make wealth. The undermentioned subdivision elaborates on the relationship between entrepreneurship and strategic direction and on how these two Fieldss overlap.
2.7 RELATIONSHIP BETWEEN STRATEGIC MANAGEMENT AND ENTREPRENEURSHIP
While the Fieldss of strategic direction and entrepreneurship have developed mostly independently of each other, they both focus on how houses adapt to environmental alteration and feat chances created by uncertainnesss and discontinuities in the creative activity of wealth ( Hitt, Ireland, Camp & A ; Sexton, 2001:480 ; Venkataraman & A ; Sarasvathy, 2001:480 ) . Making wealth is at the bosom of both entrepreneurship and strategic direction. Figure 2.5 illustrates how houses create wealth by utilizing entrepreneurial actions and strategic actions within different spheres.
Figure 2.5: Creating wealth through entrepreneurial and strategic actions
Beginning: Ireland et al. , 2001:51
As illustrated in Figure 2.5, houses can make wealth by utilizing entrepreneurial actions and strategic actions within different spheres. These spheres are critical in the procedure of making sustainable income watercourses by developing and working competitory advantages. ( Ireland et al. , 2001:51 ) .
Strategic direction and entrepreneurship convergences in footings of their involvement in venture creative activity, fresh schemes, growing and public presentation of administrations ( Scheepers, 2007:46 ) . Entrepreneurship involves placing and working entrepreneurial chances. However, to make the most value entrepreneurial houses besides need to move strategically. An integrating of entrepreneurial and strategic thought is hence necessary ( Hitt et al. , 2001:479 ) .
In the old subdivision entrepreneurship was defined as the procedure of making value by conveying together a alone combination of resources in order to work an chance ( Barringer & A ; Ireland, 2006:5 ; Stevenson et al. , 1989 ) . As such, entrepreneurial actions, on the one manus, entail making new resources or uniting existing resources in new ways to develop and commercialize new merchandises, move into new markets, and/ or service new clients ( Hitt et al. , 2001:480 ) . On the other manus, strategic direction entails the set of committednesss, determinations, and actions designed and executed to bring forth a competitory advantage and gain above-average returns ( Hitt et al. , 2001:480 ) . Strategic direction therefore provides the context for entrepreneurial actions ( Ireland, Hitt, Camp & A ; Sexton, 2001 ) . Entrepreneurship is about creative activity ; strategic direction is about how advantage is established and maintained from what is created ( Venkataraman & A ; Sarasvathy, 2001 ) .
Entrepreneurship is concerned with how the chance to make value in society is discovered and acted upon by some persons. Strategic direction is concerned with the methods used to make this value and the resulting battle to capture a important portion of that value by persons and houses ( Venkataraman & A ; Sarasvathy, 2001:650-651 ) . Strategic Management has to make with the accomplishment of terminals – obtaining market portion, net income and sustained competitory advantage. Then once more, entrepreneurship has to make with the accomplishment of beginnings – making markets, houses and merchandises ( Venkataraman & A ; Sarasvathy, 2001:651 ) .
Therefore, entrepreneurial and strategic positions should be integrated to analyze entrepreneurial behavior. For the intent of the present survey this attack is called strategic entrepreneurial behavior ( SEB ) . SEB is entrepreneurial action and behavior with a strategic position. It is the integrating of entrepreneurial ( i.e. opportunity-seeking behavior ) and strategic ( i.e. advantage-seeking behavior ) perspectives in developing and taking actions to make wealth ( Hitt et al. , 2001:480-481 ) .
2.8 Chapter Summary
This chapter attempts to supply position on the place of this survey within the wide field of economic sciences and concern direction. It defines the construct of concern direction as fulfilling consumer demands with a limited sum of resources, through the planning, coordination, control, and motive of these resources. Based on this definition of concern direction, the chapter provides an account of how concern direction stems from economic sciences. Economicss is defined as the allotment of scarce resources in order to carry through the limitless demands of society. This subdivision leads to a treatment of the relationship between economic sciences and concern direction. The chief nexus between economic sciences and concern direction is that the one surveies the economic system as a whole, while the other surveies a individual constituent of that system.
The treatment of economic sciences and concern direction is followed by a subdivision on entrepreneurship. Entrepreneurship is viewed as the procedure of making value by conveying together a alone combination of resources to work an chance. The importance of entrepreneurship is emphasised as it contributes to growing and occupation creative activity and therefore to economic development. Within this subdivision a clear differentiation between entrepreneurship and direction is made.
One of the general attacks to direction methods, viz. strategic direction was so reviewed. The intent of strategic direction is to make a sustainable competitory advantage through a procedure where directors formulate, implement, and supervise action programs to optimize the accomplishment of cardinal ends.
Then follows a subdivision which elaborates on how entrepreneurship and strategic direction convergences in footings of their involvement in venture creative activity, fresh schemes, growing and public presentation of administration. In this subdivision, particular attending is given to entrepreneurship and strategic direction in an effort to clear up the place of this survey in a concern direction context.