ENTREPRENEURSHIP IN A NON-LINEAR PARADIGM: EARLY EVIDENCE FROM ENTREPRENEURS IN ACTION
Alistair Campbell and Murray Gillin, Australian Graduate School of Entrepreneurship, Swinburne University of Technology
Principal Topic
The paper presents a non-linear paradigm, with a holistic combination of the physical implementation of entrepreneurship and what might be termed the spiritual or intangible aspects that together constitute the observed craft of entrepreneurship. The research highlights the dynamic skill-set used by entrepreneurs to balance key elements in the entrepreneurial process. The focus is on the high-tech industry which is especially prone to the use of linear descriptions of the entrepreneurship process which takes an idea to become a product.
The paradigms used to examine the nature of the entrepreneurship process have generally been linear, despite strong early advice to the contrary [Bygrave, Shaver, Mitton]. When examining the nature of a situational process, statistical correlations and linear descriptions have significant limitations. This is especially true for entrepreneurship where inclusion of unpredictable, non-linear aspects adds the key human vitality of entrepreneurship. This allows a richer, and more accurate description than linearity alone is able to capture.
Method
The results of semi-structured interviews with seventeen practicing entrepreneurs in the high-tech industry form the database against which this non-linear paradigm is investigated. To ensure that both the richness and complexity of the sources is captured, without sacrificing academic rigour, N-Vivo software (used by GEM) is employed to help extract coherent data from the interview transcripts in a systematic and holistic way.
Results and Implications
The initial analysis confirms that the success of the entrepreneurial process depends on far more than the linear descriptions commonly used to describe the process. Once the basics are in place, entrepreneurs appear to shift their focus to achieving a multi-dimensional and harmonious balance among the key elements in the entrepreneurial process. So, when 20 times the best-case estimate of site visits avalanched an IT startup on its first day in a new market, technology, financials, policies and procedures, all became unimportant. The key was a quick and savvy balance of the needs of customers, clients, suppliers and advertisers with the skills and abilities of staff.
The use of the non-linear paradigm enables a more holistic understanding of this empirically observed process of entrepreneurship, and has some significant implications for the management and evaluation of nascent technology enterprises. A more accurate description of the entrepreneurship process suggests better evaluation success rates for the venture capital industry and improved best-practice techniques for entrepreneurs.
CONTACT: Alistair Campbell, AGSE, Swinburne University of Technology, Hawthorn, Victoria 3122, Australia; (T) +613 9214-5891; (F) +613 9214-8381; AlCampbell@swin.edu.au
2002 Babson College. All Rights Reserved. Last Updated March 2003.