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the identification, acquisition, and combination of entrepreneurial resources,particularly by women and minority entrepreneurs.Lisa K. Gundry is Professor of Management in the Charles H. Kellstadt Graduate School of Business at DePaul University where she teaches courses inentrepreneurship and New Venture Management, Creativity in Business, andEntrepreneurship Strategy. Dr. Gundry is Director of the Leo V. Ryan Centerfor Creativity and Innovation at DePaul, which offers hands-on learning for creative discovery and business innovation.Gerald E. Hills holds the Coleman/Denton Thorne Chair in Entrepreneurship,Executive Director of the Institute for Entrepreneurial Studies, Professor ofMarketing, and former Associate Dean at the University of Illinois atChicago. Dr. Hills has written and edited ten books and written morethan 75 articles. He has served on the Editorial Boards of all of the leadingentrepreneurship journals, including, currently, the Journal of BusinessVenturing.Jill Kickul is the Elizabeth J. McCandless Professor in Entrepreneurship at theSimmons School of Management. Prior to joining Simmons, she served on thefaculty in Entrepreneurship and Management of the Kellstadt Graduate Schoolof Business at DePaul University. Her research interests include entrepreneurialintentions and behavior, strategic and innovation processes in start-up ventures,and, most recently, women in entrepreneurship.Barbara A. Kuhns is Assistant Professor of Management at DePaul University. Dr. Kuhns’ research interests include technology commercialization,new ventures in emerging markets, and entrepreneurial enterprises related toeconomic development. Her research has been presented at Academy ofManagement Annual Conferences and in Simulation & Gaming.Raymond W. LaForge is the Brown–Forman Professor of Marketing at the University of Louisville. Dr. LaForge currently serves on the Direct Selling Education Foundation Board of Directors, DuPont Corporate Marketing FacultyAdvisory Team for the Sales Enhancement Process, Family Business CenterAdvisory Board, Board of Trustees of the Sales and Marketing ExecutivesInternational Accreditation Institute, and as Vice President of Marketing forthe American Marketing Association Academic Council.Jianwen Liao is on the faculty of Department of Management in School of Business and Management at Northeastern Illinois University. He has also been avisiting professor of DePaul University, Hong Kong University of Science andTechnology and China European International Business School. Dr. Liao’sresearch expertise and interests are in strategic formulation and implementation, management of technological innovation, venture creation process, andentrepreneurial growth.Selection and editorial matter 2004 Harold P. Welsch;individual chapters the contributors

G.T. Lumpkin is Associate Professor of Managerial Studies and Entrepreneurship at the University of Illinois at Chicago. His research interests includestrategy-making processes, innovative forms of organizing work, and entrepreneurial orientation in a variety of organizations.Mark A. Maltarich holds an MBA in Entrepreneurship from DePaul Universityand is currently pursuing doctoral education at the University of Wisconsin atMadison.Michael H. Morris holds the Witting Chair in Entrepreneurship at SyracuseUniversity. He previously served as the Noborikawa Distinguished Professor ofEntrepreneurship at the University of Hawaii and the Cintas Chair in Entrepreneurship at Miami University. He has authored over one hundred articlesin academic publications. His recent research interests have included smallventure strategy, corporate entrepreneurship, the marketing and entrepreneurship interface, and entrepreneurship under adverse conditions.Lynn Neeley is Professor of Management at Northern Illinois University atDeKalb. Her primary teaching and research interests are strategic management,entrepreneurial finance, bootstrapping, and efficient allocation of resources.She has served as President of the United States Association for Small Businessand Entrepreneurship.Patrick Sandercock received his MBA with a concentration in Entrepreneurship from DePaul University. He earned a Bachelor of Science degree from theU.S. Coast Guard Academy. Pat engaged in organizational development asboth a U.S. Coast Guard (USCG) officer and a civilian. Pat has been anadvisor and Director of Projects for OneBlueWorld, Inc. Currently, he is asmall-business advisor with the Harris Bank in Chicago, where his responsibilities include cash management and identification of small business borrowingneeds.Minet Schindehutte is Assistant Professor in Entrepreneurship at Miami University and Director of the Foundation for Entrepreneurial Performance andInnovation. Her research and consulting interests include innovation processesin companies and entrepreneurial approaches to marketing.Rodney C. Shrader received his Ph.D. in strategic management from GeorgiaState University and is Associate Professor of Managerial Studies at the University of Illinois at Chicago. His research examines the recognition of entrepreneurial opportunities, the accelerated internationalization of firms, and theinternationalization of electronic commerce.Howard H. Stevenson is Sarofim-Rock Professor of Business Administration atHarvard University’s Graduate School of Business Administration. He hasauthored, edited, or co-authored six books and 41 articles, and has authored,co-authored, or supervised over 150 cases at Harvard Business School.Selection and editorial matter 2004 Harold P. Welsch;individual chapters the contributors

Michael Stoica is Professor at the School of Business, Washburn University. Heholds Ph.D. degrees in business administration and engineering. Dr. Stoica hasbeen involved in two entrepreneurial start-ups, and has done extensive teaching,research, and consulting in entrepreneurship in Romania, Canada, and theUnited States.Steve Taplin received his MBA with a concentration in Entrepreneurship fromDePaul University. He earned a Bachelor of Science degree in ManagementInformation Systems from the School of Business at Northern Illinois University. Mr. Taplin was a highly successful Sales Executive for IBM from1996–2003 selling Internet Outsourcing solutions to start up and Fortune 1000companies. In 2003, Mr. Taplin embarked his entrepreneurial career andstarted Taplin Enterprises, LLC and AZ Investment Property Experts, LLC bothof which are real estate investment companies.Karl H. Vesper is Professor in the Department of Management of the School ofBusiness Administration at the University of Washington. His primary researchand teaching interests include venture development, entrepreneurship, and strategic management. Dr. Vesper is a recognized leading authority in the field ofentrepreneurship and has published numerous books and innovative articles inthe field.Harold P. Welsch holds the Coleman Foundation Endowed Chair in Entrepreneurship at DePaul University and has been active in entrepreneurship development for over 20 years in his roles as educator, consultant, researcher,entrepreneur, author, and editor. In addition to his role as founder/director ofthe Entrepreneurship Program at DePaul University, Dr. Welsch has served asChairman of the Academy of Management Entrepreneurship Division, Presidentof the International Council for Small Business, and President of the UnitedStates Association for Small Business and Entrepreneurship.Dianne Wyndham Wingham is Principal Researcher and Founding Entrepreneur of M.D. Wingham Consultants in Bicotn, Australia. Dr. Wingham is aLecturer at Edith Cowan University in Western Australia and also at RowanUniversity.Selection and editorial matter 2004 Harold P. Welsch;individual chapters the contributors

ForewordAs in any dynamic field, entrepreneurship is evolving, reforming, and reinventing itself as it passes through its stages of evolution. The most intriguingquestion is: “what will entrepreneurship look like in its next stage of development?” Thus the title: Entrepreneurship: The Way Ahead. As the world-classhockey player Wayne Gretzky suggested, one never skates to where the puck isor has been, but where it will be. In anticipation of where the field is going,some of the best minds in the field have been tapped to provide their prognostications and predictions of the future.Howard Stevenson, Karl Vesper, Dianne Wingham, and John Sibley Butlerprovide the grounding foundations of the field and provide some innovativedirections with which the field might experiment. Earlier, Howard Stevensonhas suggested that “Entrepreneurship has won!,” but later concludes that everyentrepreneur, educator, and institution must refocus to take on the challenge oftechnology, globalization, and community development and their nuances withinentrepreneurship. He is in close agreement with Karl Vesper who challenges usto recognize “Unfinished Entrepreneurship” as the opportunity of the twentyfirst century. What battles are yet to be fought? What are the remaining oropen issues in the field that will thrust us forward in our understanding?Perhaps the most innovative and rapidly moving component in the field isentrepreneurship practice. Entrepreneurs themselves are expanding the boundaries with technology, network marketing, creative arts, serial, and social entrepreneurship. Academics are racing to keep up with theories to explain many ofthese new phenomena. Practitioners are often leading the way with innovations,inventions, new combinations, new markets, and new products and services.Opportunity recognition is becoming recognized as a burgeoning sub-specialtyas well as a unique distinguishing characteristic of the field.As leading thinkers in this field, Lumpkin, Hills, and Shrader viewopportunity recognition as both a process involving iterations of creativeSelection and editorial matter 2004 Harold P. Welsch;individual chapters the contributors

thinking as well as the actual creation of a new venture. Following this functional approach, entrepreneurship can be viewed from a marketing, financing,or growth perspective. These chapters are constructed by some of the leadingthinkers in their respective fields.Despite the bursting of the technology bubble, this specialty continues todraw attention because it permeates entrepreneurship in a persistent manner.Do technology entrepreneurs do it differently? How is e-commerce and mobilecommerce impacting the field? What are the emerging practices, key challenges, and future directions of this rapidly-paced industry? These are questionsaddressed by contemporary scholars such as Stoica, Kickul, and Gundry.The evolution of entrepreneurship has also incorporated the not-for-profitsector of social entrepreneurship. Barbara Kuhns has recognized that entrepreneurial principles can also be effectively applied in community-based enterprisesand assist in economic development of a region. Fairchild and Greene similarlysuggest that wealth can be created in the inner-city through entrepreneurialendeavors.Entrepreneurship can be sliced and analyzed in a myriad of ways – bygender (Gundry and Ben-Yoseph), by frequency (Taplin), or by ethnicity(Fregetto). Women entrepreneurs are one of the fastest growing segments ofsociety as they become recognized as an equal partner or competitor in the economic system. The phenomenon of serial entrepreneurship has continued tointrigue scholars around the globe. What is it that drives individuals to committo entrepreneurial endeavors over and over again? Is there a virus that infectsthese individuals? Is it the excitement of starting up that motivates repeatentrepreneurs? Are they fearful of daily management duties that drive themaway from later-stage commitments?Are immigrants more likely to become entrepreneurs because they arefrozen out of the domestic/mainstream job market or do they simply value theirfreedom more than the corporate ladder climbers? Fregetto examines variousethnic groups in the U.S. and explains the displaced ethnic entrepreneur’s rolein the economy.In the last section, we look forward to see what entrepreneurship educationhas in store for academia. Sandercock provides a review of the innovative, toptier entrepreneurship programs and “puts a face” on the theory of entrepreneurship by introducing specific initiatives of higher education programs thatcharacterize this evolving discipline.Finally, Hills provides a provocative perspective on the new layers of entrepreneurship that have never been revealed. This blossoming flower of the field ismade possible by the generation of new knowledge combined with conceptualand theoretical development represented by various schools of the thoughtwithin the context of market segmentation concepts.All these perspectives, when combined into a total package, provide aguiding light to the road ahead in entrepreneurship.Selection and editorial matter 2004 Harold P. Welsch;individual chapters the contributors

AcknowledgmentsComplex undertakings always require the contributions of a team including notonly the authors, but individuals working in the background who help take the ideaand move it into reality. The original idea emanated from a senior scholars’ conference held in conjunction with an annual meeting of the U.S. Association for SmallBusiness and Entrepreneurship (USASBE) sponsored by the Coleman Foundation.This roundtable discussion, spearheaded by the Council of Entrepreneurship Awareness and Education (CEAE) led to the identification of gaps in our field and forcedus to look ahead to see where the field is going. Hence the title of the book.Through the foresight of the board of the Coleman Foundation, including John E.Hughes and Michael W. Hennessy, funds were allocated to the commissioning andwriting of many significant white papers which formed the basis of this book. Internationally recognized scholars were selected to collect their best thoughts aboutwhere the field of entrepreneurship might be three to five years from now andcommit these to paper so we can disseminate them to the community.To the many editors at Routledge, we are grateful for their professionalassistance as well as my staff, Lynne Wiora, Dajana Vucinic, Ilya Meiertal,Edward Papabathini, John Lanigan, and Dan Jarczyk who have spent manyhours typing, tracking down references, editing, copying, and the dozens oftasks required to produce a quality product.Dean Art Kraft, Alex Devience, Scott Young, and the Management Department of DePaul University allowed me the time to concentrate on completingthe manuscript. Chairman John E. Hughes and President Michael W. Hennessyof the Coleman Foundation provided the guidance and focus on entrepreneurship development and had the courage to risk capital entrusted to their careinto this project. For their moral and financial support we are forever grateful.Harold P. Welsch, Ph.D.Coleman Foundation Chair in EntrepreneurshipProfessor of ManagementAugust 18, 2003Selection and editorial matter 2004 Harold P. Welsch;individual chapters the contributors

PART ONEOverviewSelection and editorial matter 2004 Harold P. Welsch;individual chapters the contributors

Chapter 1Howard H. StevensonHarvard Business SchoolINTELLECTUAL FOUNDATIONSOF ENTREPRENEURSHIPIntroductionTH E F I E L D O F E N T R E P R E N E U R S H I P was described in 1983 as “anintellectual onion. You peel it back layer by layer and when you get to thecenter, there is nothing there, but you are crying.” This description of the fieldby a senior faculty member at Harvard Business School was given to a youngperson being recruited into the field. This not-so-kind advice reflected a longstanding set of complaints (Cole 1968; Drucker 1985; Kirzner 1973). In spite ofthe lack of earlier academic attention, studies have shown the vital importanceof new ventures and small businesses in job creation (Birch 1979, 1987). SiliconValley, Silicon Alley, Route 128, Austin, and Research Triangle are the envy ofthe world. There has been a change in the sociology of entrepreneurship inmany parts of the world (Thorton 1999). It is occurring at a higher rate(Gartner and Shane 1995) and with more capital behind it than at any time inthe last century (Gompers and Lerner 1998).Never before in history have so many individuals been able to identify andimplement the definition that we use to guide our research and teaching atHarvard. That definition is: “Entrepreneurship is the pursuit of opportunitybeyond the resources you currently control” (Stevenson 1983; Stevenson andGumpert 1985; Stevenson and Jarillo-Mossi 1990). This definition takes intoaccount both the individual and the society in which the individual is embedded.The individual identifies an opportunity to be pursued and then, as an entrepreneur, must seek the resources from the broader society. This approach followson the work of early scholars such as Schumpeter (1934) who identified theinteraction of the individual with the context in his early work. It correspondsto later admonitions, such as those of Aldrich (1992), who argued thatSelection and editorial matter 2004 Harold P. Welsch;individual chapters the contributors

individuals, organizations, and the context need to be studied to develop atheory of entrepreneurship.This chapter will argue that progress in entrepreneurship has been enhancedby the societal environment in which it flourishes and by the strong development of theoretical underpinnings.Societal changeThe author would assert that the number of resources available for the pursuitof opportunity has never been greater, and has taken note of the availability offinancial capital. This is perhaps the least unique resource required to pursueopportunity. Intellectual capital, human capital, and public capital in the form ofinfrastructure and social norms provide even more important resources to theentrepreneur. The embeddedness perspective (Granovetter 1985) addresses thedescriptive and practical weaknesses of the dichotomous treatment of hierarchies and markets (Williamson 1985). When history and culture in more thanforty countries over the last two decades are examined, some hypothesesemerge. They are:1234entrepreneurship flourishes in communities where resources aremobile.entrepreneurship is greater when successful members of a communityreinvest excess capital in the projects of other community members.entrepreneurship flourishes in communities in which the success of othercommunity members is celebrated rather than derided.entrepreneurship is greater in communities that see change as positiverather than negative.It appears that the last two decades have seen major societal changes in all ofthese dimensions. Changes in the financial and labor markets have increasedmobility substantially. Perhaps more important, improvement in logistics,cross-border flows of labor, capital, and ideas, weakening of intellectual property protection, and the growth in global communication have helped people,money, products, and ideas disperse throughout the world, flowing to the areasof greatest opportunity.The entrepreneurial community’s success has attracted capital on anunprecedented scale. The venture capital market and the market for initialpublic offerings have gone to unprecedented valuations. Perhaps most interesting, however, is the extent to which successful entrepreneurs have reinvested inventure funds and in angel networks. The entrepreneurial community is thebasis of much of the monetary and managerial capital being invested in newcompanies (Darwall and Roberts 1998; Prasad and Linde 1999). Reinvestmentin the entrepreneurial community by the entrepreneurial community continuesand reinforces the tradition of entrepreneurial ethnic communities such as theoffshore Chinese, the emigrant Koreans, and many others.Out of the decade of greed of the 1980s emerged the celebration of theSelection and editorial matter 2004 Harold P. Welsch;individual chapters the contributors

entrepreneur. Gates, Walton, and countless others are

ate School of Business at DePaul University where she teaches courses in entrepreneurship and New Venture Management, Creativity in Business, and Entrepreneurship Strategy. Dr. Gundry is Director of the Leo V. Ryan Center for Creativity and Innovation at DePaul, which offers hands-on learning for cre-ative discovery and business innovation.