An introduction to “Entrepreneurship” 

In business there is a difference between someone that manages the business and someone that can lead it (Lee, 2006:81), and a leader with a visionary outlook is seen to encompass an “Entrepreneurial flair.”

So what exactly is the meaning of the word “entrepreneur” and what can be described as “entrepreneurship?”

Like many definitions there is not one fixed term; David Rae (2007) describes an entrepreneur as a person who acts in an enterprising way, identifying and creating opportunities through business ventures (3-5). Viewing entrepreneurship as the “subject” of entrepreneurs, “encompassing both the academic knowledge and practical skills used to be an entrepreneur. John Legge and Kevin Hindle (2004), discuss an entrepreneur as one who is an enterprise creator and agent of change, a builder of teams and organisations providing leadership (15). While David Kirby (2003) author of “Entrepreneurship,” describes the term as those who are visionaries seeing opportunities and taking action.

Although the definitions approach the meanings in various ways, it is clear that being an entrepreneur and embarking on entrepreneurship involves an element of risk taking, and being able to find opportunities that turn those risks into economic gain. Reading various literatures there is an apparent “nature vs. nurture” argument around being an entrepreneur (Baker, 2007, Gray and Field, 2006). With the government investing a “further £180m over three years to continue funding for enterprise education” (Baker, 2007) it is evident that the government views entrepreneurs as a significant part of the economy. So, is entrepreneurship something innate in a person, can it be taught or are people simply just born entrepreneurs (SME blog, 2006)?  

What does it take? 

One thing is for certain, not everyone has an entrepreneurial spirit. Being an entrepreneur firstly means taking risk no matter how big they are. As eighteen year old Fraser Doherty owner and creator of the confectionary brand “SuperJam” explained, “everyone can be more enterprising, but not all of us can be entrepreneurs,” (Fraser in BBC, 2007). This a view also shared by Paul Fleming, 52, who founded P.F. Chang’s China Bistro, a Scottsdale-based restaurant chain that brought in $675 million in sales last year.

“Entrepreneurship is about having guts — something professors cannot teach. The steps you have to take, the risks you have to take- I don’t think in a million years you can teach it in a classroom,”

(Gray and Field, 2006). 

Apart from taking and managing risks, there are other characteristic traits that an entrepreneur has to embody in order to be a success. According to Hisrich and Peters, (2002: 21-22) the following are some of the traits encompassed by an entrepreneur: 

• Opportunity “vision” – ceasing potential opportunities
• Tenacity and drive
• Passion
• Skill at organizing
• Future orientation – the ability to visualize opportunities in the future
• Value of achievement over money
• Confidence in their ability to succeed

These traits are also embodied by the “cultural entrepreneur,” one who is situated at the intersection of entrepreneurship, art, and the economy (Swedberg, 2006).  

The Cultural Entrepreneurs 

Although cultural entrepreneurs undertake the same tasks as corporate entrepreneurs, there is an element of difference in both their activities and characteristics. Corporate entrepreneurship refers to the efforts of corporations to generate new business (Sathe, 2003). They mainly focus on strategy, top level management and consist of bureaucratic interference. However, cultural entrepreneurs are seen as being:

“…engaged with the technologies, systems and relationships through which ideas are experienced by the end user. This requires a managerial approach which can accommodate multiple competences and which recognises the importance of networks and partnerships.”

(Wilson, 2006) 

They are learners, doers and visionaries. Due to less bureaucratic restraints and levels in management ‘Cultural entrepreneurs’ are able to recognise the need not only to innovate but to deliver and disseminate new ideas to the customer (Wilson, 2006). Cultural entrepreneur characteristics not only include the traits mentioned above, as Charles Leadbeater and Kate Oakley (1999, 25) authors of “The Independents” mention they also encompass the following:

• Independent
• Work and non-work issues are packaged together
• They are collaborative and work together as independents and as clusters.
• Mostly socially engage with outside issues.
• Use idea exchange as a cultural currency.
• Build networks, share information and resources.
• Interested in business affects on society.

What mainly differentiates them from the classic corporate entrepreneur is the fact that their motivations are less profit driven and more cultural driven providing a more meaningful approach to business. 

Is the “Cultural Entrepreneurship” approach beneficial? 

If both corporate and cultural entrepreneurs take risk, identify opportunities and take action then how is one approach better from the other? As more corporate companies adopt strategies and work ethics of cultural entrepreneurs (Sathe, 2003: 1-12), this then demonstrates the cultural shift to a cultural entrepreneurship way of working in business.

Leadbeater and Kate Oakley (1999), suggest this exact shift mentioning how “they provide one model of how work and production is likely to change in the future in other sectors (13).” 

By setting goals and visions that are not entirely focused on making profit, but inherent true altruistic values, allows you to find niche markets that can be catered for. By seeking the use of new technologies, more opportunities arise through collaborative work or highlighting innovative areas of development. This can allow the process of focused planning and quick action needed to take the necessary risks that can lead to success. An evident example of this can be found in the case study of Angus Thirlwell and Peter Harris co-founders of “Hotel Chocolat.”  

-Hotel Chocolat

Looking on their website or even reading various articles written about their success, Thirlwell and Peter Harris both came up with an idea to produce quality confectionary in one of the worlds leading confectionary sectors- chocolate. 

Their goal was to produce the best quality chocolate that was second to none, but also undertaking an innovative way of producing the chocolate and delivering it to their consumers. Starting as a mail order catalogue business, their brand of “exclusive chocolates” was first made available to UK consumers, then taking advantage of technology they produced their  “…award-winning website” in which consumers could order the confectionary online. Last but not least 2004 the first of many Hotel Chocolat retail stores across the
UK (Hotel Chocolat, 2008). With a global market, the company prides itself on being “passionately committed” to producing chocolate that has a “combination of authentic, premium ingredients with plenty of imagination and flair.” They also own their own cocoa plantation in
St. Lucia, training local farmers and establishing a programme that allows joined members to sell their cocoa at “30-40% above the world market rate making sure that their values are implemented in the whole confectionary making process.”  

As Leadbeater and Kate Oakley state, “technology, values and economics” have converged in the process of cultural entrepreneurship.  “Their values encourage them towards entrepreneurship. The falling price of technology has made self employment a real possibility” (15) and these new cultural entrepreneurs are not afraid to take the risk, to be innovative, creative and ambitious (15-6) becoming what Joseph Schumpeter author of “The Theory of Economic Development” terms as men of action (Schumpeter, (1911) in Swedberg, 2006) 

Through all this process their goals and values have acted as a focal point for the direction of the company, something that has been planned, implemented and translated creatively through their brand. It has led them to global success and continues to keep them heading in the correct direction as everyone in Hotel Chocolat encompasses that culture and strive towards the same outcome. 

For my own company’s benefit this is a great example of how cultural entrepreneurship can focus Erratic Events direction. Our values and goals are based on producing creative work that is untamed unleashed and unrivalled in Events, Promotions and Public Relations for all clients. Utilising new communication technologies such as social networks, blogging and podcasting we can take advantage of an area that is in real demand in PR. Working in such an industry the majority of our work depends on good relationships, collaborative processes and networking, ideally the best work ethic for our business.

It’s decided “Cultural Entrepreneurship” the best way

All entrepreneurs take risks but the planning, implementation and creative process appears to be more fluid and active in the cultural entrepreneurial approach. The focus on value and converging that with technology and the economy seems to be the secret behind the success of a cultural entrepreneur. The need to understand that it is not just about attracting new business, increasing profits or sales or that the process of running a business excludes relationships with others outside the managerial sector is extremely significant in today’s business world. The process of being a cultural entrepreneur and being cultural entrepreneurial is as Hotel Chocolat  puts it very much “a state of mind” and it is that drive and focus that keeps the cultural entrepreneur going regardless of what adversities come their way.

Sources

Books 

Kirby, D. A. (2003): Entrepreneurship; London, McGraw-Hill

Rae, D. (2007): Entrepreneurship from Opportunity to Action; Basingstoke Palgrave Macmillan.

Sathe, V. (2003): Corporate Entrepreneurship: Top Managers and New Business Creation; Cambridge, University Press.

Leadbeater, C. and Oakley, K. (1999): The Independent: Britain’s New Cultural Entrepreneur; London, Demos.

Lee, G. (2006): Leadership Coaching; From Personal Insight to Organisational Performance. London, CharteredInstitute of
Professional Development.

Legge, J. and Hindle, K. (2004): Entrepreneurship: Context, Vision and Planning; Basingstoke Palgrave Macmillan.

Online Journals Swedberg, R. (2006): The Cultural Entrepreneur and the Creative Industries in Journal of Cultural Economics Vol. 30 issue 4, pp.243-261 (19) [Online] Available from: http://proquest.umi.com/pqdlink?index=4&did=1180152651&SrchMode=3&sid=1&Fmt=6&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1204209629&clientId=32045&aid=1 [Accessed 12 February 2008] Malach-Pines, A.  Levy, H. and Utasi, A. (2005): Entrepreneurs as Cultural Heroes: A cross-cultural, interdisciplinary perspective in Journal of Managerial Psychology, Vol. 20, Issue 5/6 pp. 541 (15) [Online] Available from: http://proquest.umi.com/pqdlink?index=4&did=918428101&SrchMode=3&sid=2&Fmt=4&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1204210371&clientId=32045&aid=3 [Accessed 12 February 2008] 

Online Sources 

Baker, M. (2007): Can you teach entrepreneurship? [Online] Available from: http://news.bbc.co.uk/1/hi/education/6735325.stm [Accessed 14 February 2008] 

BBC (2007): Jammy Teenager secures store deal [Online] Available from: http://news.bbc.co.uk/1/hi/scotland/edinburgh_and_east/6380399.stm [Accessed 14 February 2008] 

Gray, P. B. and Field, A. (2006): Can entrepreneurship be taught? [Online] Available from: http://money.cnn.com/magazines/fsb/fsb_archive/2006/03/01/8370301/index.htm [Accessed 14 February 2008] Hotel Chocolat, (2008) [Online] Available from: http://www.hotelchocolat.com/cid/6XR0ZHC21E26IGDJGBKJEASAPE3ZI3KT/Hotel-Chocolats-Unique-Story-Aabout/ [Accessed 13 February 2008]

Molian, D. (2006): The Secrets of a Successful Partnership [Online] Available from: www.som.cranfield.ac.uk/som/groups/enterprise/credo/downloads/partner.pdf [Accessed 13 February 2008] 

SME Blog, (2006): Are you a born entrepreneur? [Online] Available from: http://www.sme-blog.net/sme_blog/2006/05/ive_taken_a_kee.html [Accessed 14 February 2008] Wilson, D. (2006): Management of Culture/ Culture of Management [Online] Available from: http://www.lse.ac.uk/collections/geographyAndEnvironment/research/28th%20June%20summary.doc [Accessed 12 February 2008]