Tuesday, September 11, 2012

Local communities and entrepreneurial capabilities


Schumpeter (1934) asserted that an entrepreneur is an innovator or developer who recognizes and seizes opportunities, converts those opportunities to marketable ideas, adds value through skills and effort, assumes the risks of competition and realizes the rewards.

Entrepreneurial capabilities develop and maintain the fit between the changing opportunities and objectives for superior performance. Factors such as location, support activities and intensity affect performance.
An entrepreneur recognizes and exploits beneficial opportunities by moving an idea from the mind to the potential client.

 As argued by Lerner and Haber (2000), often people with greater efficacy are more likely to exploit opportunities when expected demand is high, the margins are high, product life cycle is young, the intensity of competition in a particular opportunity space is neither too low nor too high, the cost of capital is low, and population learning from others is available.

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