Entrepreneurship Needs

Our discussion thus far has revolved around the need for and cultivation of entrepreneurial culture, but this is not enough. If entrepreneurship is likely to become the base of economic development programs, particularly in developing parts of the world, understanding and encouraging the entrepreneur is a must. Local authorities need to be well informed about the special characteristics of entrepreneurs and how their efforts in creation of economic development can be sustained. Sustaining entrepreneurial movements is particularly critical since they are small and quite vulnerable, particularly at the beginning of the entrepreneurial journey. Perhaps here we must reiterate Drucker’s (1985) five principles of innovation and how, if they are followed carefully, entrepreneurship will be sustained. These are presented in Exhibit 10-1. The first principle depends on good quality research identifying existing market opportunities. This quality research must be a continuing proposition in the sense that it must indicate what changes, if any, are taking place in the market, and how they might affect existing entrepreneurial businesses. The second principle is related both to research quality and the individuality of entrepreneurs. Here the research findings are going to be perceived and interpreted by entrepreneurs. The changing conditions, say, in the market must be understood well by the decision makers of these businesses in order to assure their survival. The third principle is that the entrepreneurial project must be reasonably simple and the entrepreneurs need to be focused on the details of what they are doing. The applicability of the entrepreneurial project must be emphasized by maintaining focus and keeping the project simple.