Exploring the Dynamics of Entrepreneurship

Exploring thE Dynamics of EntrEprEnEurship

edited by

aleksander surdej and Krzysztof Wach

SpiS treści

PART IEXPLORING INNOVATIVE AND ENTREPRENEURIAL MANAGEMENT

Chapter 1. The Determinants of Entrepreneurship Based in Innovation in Business Services Firms: An Empirical Model (Luísa Carvalho and Teresa Costa) .................... 131.1. Introductory Note ............................................................................................................. 131.2. Conceptual Model and Hypotheses: A literature review ........................................... 131.3. Econometric Model and Empirical Results .................................................................. 191.4. Concluding Remarks ........................................................................................................ 23References ................................................................................................................................. 25

Chapter 2. Business Services Outsourcing: Contribution to Innovation in Distribution Services (Teresa Costa and Luísa Carvalho) ........................................... 272.1. Innovation Literature Review ......................................................................................... 272.2. Methodological Approach ............................................................................................... 312.3. The Case Study of Sonae .................................................................................................. 322.4. Concluding Remarks ....................................................................................................... 40References ................................................................................................................................. 41

Chapter 3. The Iberian Franchising Companies: Development of a model for Internationalization (Maria Isabel Pedro, José António Filipe and Manuel Ferreira) ... 433.1. Introduction ....................................................................................................................... 433.2. Methodology ..................................................................................................................... 453.3. The Inquiry Model Conception ...................................................................................... 553.4. Conclusions ........................................................................................................................ 563.5. Recommendations ............................................................................................................. 59References ................................................................................................................................. 60

Chapter 4. Succession Planning in Polish Family Businesses. An Exploratory Investigation (Aleksander Surdej and Krzysztof Wach) .................................................. 624.1. Introduction ....................................................................................................................... 624.2. Literature Review .............................................................................................................. 634.3. Methodological Assumptions ........................................................................................ 674.4. Empirical Findings ............................................................................................................ 694.5. Conclusions and Implications ......................................................................................... 73References ................................................................................................................................ 74

Chapter 5. Medical Professionals as Entrepreneurs. The Review of the Literature (Jacek Klich) .............................................................................................................................. 755.1. Introduction ....................................................................................................................... 755.2. Entrepreneurship in Health Care Sector ....................................................................... 765.3. Entrepreneurship in Health Care in the Polish Literature .......................................... 815.4. Summary ........................................................................................................................... 83References ................................................................................................................................. 84

PART IIHUMAN AND SOCIAL DYNAMICS OF ENTREPRENEURSHIP

Chapter 6. Entrepreneurs’ Selection Methodology in Social Entrepreneurship Programmes (Susana Correia Santos and António Caetano) ............................................ 896.1. Introduction ....................................................................................................................... 896.2. The Selection Methodology of Entrepreneurial Potential and the Present Study ... 936.3. Studies – Results and Discussions .................................................................................. 946.4. General Discussion ......................................................................................................... 104References ............................................................................................................................... 105

Chapter 7. Microenterprises and Family Businesses as a Manifestation and Empowerment of Entrepreneurship (Barbara Siuta-Tokarska) ............................. 1087.1. Introduction ..................................................................................................................... 1087.2. Selected Aspects of Microenterprises’ Activity in Poland in the Years 1999–2007 ... 1097.3. Specific Features of the Activity of the Family Enterprises ...................................... 1147.4. Conclusions ...................................................................................................................... 122References ............................................................................................................................... 122

Chapter 8. New Generation Entrepreneurship and Family-Owned Companies: A Field Study on the Turkish University Students (Belgin Aydintan) ....................... 1248.1. Introduction ..................................................................................................................... 1248.2. Theoretical Study on Entrepreneurship ...................................................................... 1248.3. Culture, Family Owned Companies and Entrepreneurship in Turkey .................. 1278.4. Material and Method ...................................................................................................... 1308.5. Results ............................................................................................................................... 1328.6. Limitations and Conclusions ......................................................................................... 136References ............................................................................................................................... 137

Chapter 9. Entrepreneurship Education as a Growth Stimulus for Family Firms (Tomasz Rachwał) .................................................................................................................. 1399.1. Introduction ................................................................................................................... 1399.2. Entrepreneurship as a Key Competency in the Educational Strategy

of the European Union ................................................................................................. 140

9.3. Contextual Parameters for the Entrepreneurship Education Curriculum Changes in Poland ........................................................................................................................ 142

9.4. Basic Assumptions of Entrepreneurship Education ............................................... 1439.5. Position of Entrepreneurship Education in the New Core Curriculum ............... 1459.6. Entrepreneurship Teaching Contents in the New Core Curriculum .................... 1479.7. Conclusions ................................................................................................................... 151References ............................................................................................................................... 155

PART IIIENTREPRENEURSHIP AND ITS INSTITUTIONAL ENVIRONMENT

Chapter 10. Advantages and Disadvantages of Family Business: Preliminary Insights from Poland (Marek Szarucki and Jan Brzozowski) ....................................... 15910.1. Introduction ................................................................................................................... 15910.2. Theoretical Considerations on Family Firms ........................................................... 15910.3. Advantages and Disadvantages of Family Firms’ Foundation and Management ... 16410.4. Family Firms in Poland ................................................................................................ 16710.5. Advantages and Disadvantages – Poland’s Family Firms’ Perspective ............... 16910.6. Conclusions ................................................................................................................... 172References ............................................................................................................................... 172

Chapter 11. Family Businesses and the Impact of Economic Recession (David Pollard) ....................................................................................................................... 17411.1. Introduction .................................................................................................................. 17411.2. Literature Review ......................................................................................................... 17511.3. The Study ....................................................................................................................... 17811.4. Results ........................................................................................................................... 17911.5. Discussion ...................................................................................................................... 18411.6. Conclusions ................................................................................................................... 185References ............................................................................................................................... 186

Chapter 12. Efforts to Retain SME Sector’s Performance Throughout the Recession in Hungary (Adrienn Erős and Andrea Gubik) ................................................................ 18812.1. Introduction .................................................................................................................. 18812.2. Global economic trends .............................................................................................. 18812.3. Growth Prospects of Hungary .................................................................................... 19012.4. Judging the Situation of the SME Sector in Hungary .............................................. 19312.5. Provisions Aiming to Decrease the Economic Crisis’ Effects on SME Sector ...... 19612.6. Conclusions ................................................................................................................... 200References ............................................................................................................................... 201

Chapter 13. The Role of Local Environment in SMES’ Operation (Andrea Gubik) .... 20213.1. Introduction ................................................................................................................... 20213.2. Methodology ................................................................................................................. 20413.3. Results of the Empirical Research .............................................................................. 20513.4. Conclusions ................................................................................................................... 210References ............................................................................................................................... 211

About the Authors ................................................................................................................. 213

introDuction

Economic development in modern times depends on the strength and vi-tality of private enterprise sector. Not denying that the government has a role in developing infrastructure (for instance developing transportation system and assuring energy supply) the overall economic efficiency stems from the efficiency of private enterprises operating on competitive markets, from en-trepreneurship dynamics and from businesses’ innovations (product, proc-ess, organizational, and marketing innovations).

But several authors have observed that the private sector in many coun-tries, especially in developing / low income countries suffers from low qual-ity private enterprises. Even if a country is characterized by a large number of entrepreneurs and enterprises this is not enough to ensure a constant increase of economic productivity and an increase of societal well being.

Many scholars have examined factors causing an apparent easiness of start-ing new businesses and a widely spread self-employment, which alas is often followed by organizational stagnation. Researchers have pointed to the phe-nomenon of “structurally forced entrepreneurship” which emerges in coun-tries where the lack of well paid wage-employment, and not entrepreneurial resources and opportunities, is the main engine of entrepreneurship. But in such contexts entrepreneurial activities are rather survival oriented and char-acterized by a low overall productivity. At a higher level of economic devel-opment many such entrepreneurial activities lose attractiveness as the avail-ability of paid employment eliminates such low quality business initiatives. It is thus possible to state that the relationship between the number of early stage entrepreneurial activity and the level of economic development resem-bles a U-shape with the number of new business initiatives falling when econ-omy develops and once again increasing when an economy reaches the devel-opment stage called “innovation driven growth”.

introduction�

Theoretical reasoning and empirical evidence back a general statement that many, if not all, societies are “abundant in entrepreneurial initiatives”, but without entrepreneurial skills and appropriate institutional environment these initiative lead to a poor quality entrepreneurship with self-employed and mi-croenterprises dominating the landscape of private business. Small business-es in many economies, especially in developing and transitional ones, do not grow up as often they are either intentionally designed to provide an income necessary to survive or they are unable to grow (despite attempts at the firm’s development).

If entrepreneurs in many economies are trapped into “a survivalist busi-ness model”, we should study what factors make this model dominant and what kind of policy changes might induce a growth oriented entrepreneur-ship.

Entrepreneurial ventures in all economies (and in developing ones in par-ticular) are undertake in a family context. It can be said that most of new busi-ness initiatives lead to the creation, at some stage, of a family owned and con-trolled firm. It is thus extremely important to study the link between family and firm. And, in the perspective of business growth, it is interesting to ex-plore the following question: what factors, which make family an entrepre-neurship nurturing environment, might block family firms’ further devel-opment. Despite ongoing efforts to formulate a theory of family firm and its place in modern economic development researchers till now have produced solely partial insights which do not create a coherent picture of family firm’s economic role.

Entrepreneurship and family firms development should be analyzed against the background of economic development in an attempt to explain family firms’ role in economic development. If it is true that family firms are not disappearing in most advanced economies, probably one should not por-tray their presence in less developed countries as a symptom of economic backwardness – an obstacle to economic development and a relic of the past. Rather it seems necessary to take a more nuanced view and to identify condi-tions under which family firms make productive contribution to economic de-velopment and conditions which make them less productive players.

The papers collected in this volume do not aspire to resolve the theoretical and empirical controversies, but they shed the light on the question of entre-preneurship and firm organizational growth in different industries and soci-etal contexts. They are divided into three parts. The first part, including five papers, is dedicated to innovative and entrepreneurial management. The sec-

�introduction

ond part, including another five papers, focuses on human and social dynam-ics of entrepreneurship as well as entrepreneurship education. The last part of the book, including also five papers, elaborates on the institutional business environment, which in some cases can be even called “entrepreneurial en-vironment” (Dogel, 2001) or “environment for entrepreneurship” (Gnyawali and Fogel, 1994).

Aleksander Surdej and Krzysztof WachCracow, January 2010