Entrepreneurs and entrepreneurship: a study of organisational founding

Abstract

An examination of the literature on entrepreneurs shows several discrete strands of interest with no attempt at providing an overall framework for the analysis of the concept of entrepreneurship. However, certain themes do recur, notably innovation (which in incorporated in a theory of economic growth by Schumpeter, ' and which more recently is the basis for an examination of technology transfer within industrial complexes); the idea of the "marginal man"; and the suggestion that perhaps entrepreneurship is a generalized social role, not simply in the economic sphere, but in other areas of activity (the "fixer", the tolkatch, the religious, political or ceremonial leader). Consideration is therefore given to Weber's discussion of charisma which it is suggested may provide a framework within which the innovating economic entrepreneur can be placed* Previous studies of founders of new enterprises are reviewed and their findings provide a basis for a study of 37 now independent Scottish firms founded in 1969: information on 60 entrepreneurs has been obtained by in-depth interviews and questionnaires. (Detailed comparative information on almost 1000 other firms registered in the same year is also given*) The survey data are used to provide a picture of the Scottish entrepreneur and his firm - his family, educational and career background, the reasons for founding, the difficulties he has faced and his early progress. (The firms are small, employing under 100 persons, self-contained and self-financed with almost no outside help.) A more detailed analysis based on the interviews shown the relative unimportance of innovation and technology transfer, compared with the stress laid on independence, which is in fact an expression of anti-bureaucracy, a rejection of the large organisation.

A significant proportion of the entrepreneurs are mid-career men, blocked in promotion, or refusing to leave Scotland on promotion.

It is suggested that the demand for autonomy which their 'independence' represents is part of a wider societal trend (one middle class solution to the problems for which so called "industrial democracy" is a working class solution). The frequent reference to ideals of quality (of product, of trust and business relations, of life style) is examined in the context of "anti-bureauoracy". The option of independence as a strategy in career planning is examined, its role both in technology transfer and in extending and widening the distribution of economic decision makers, and the relative hostility of the economic environment are stressed.