Livestock Entrepreneurship

THE SCHOOLS OF ENTREPRENEURIAL THOUGHT

Macro view

• The macro view of entrepreneurship presents a broad array of external processes that are beyond the control of the individual entrepreneur.
• In macro view there are three schools of entrepreneurial thought
  • The environmental school of thought,
  • The financial/capital school of thought, and
  • The displacement school of thought.

The Environmental School of Thought

• This school of thought deals with the external factors that affect a potential entrepreneur’s lifestyle. These can be either positive or negative forces in the molding of entrepreneurial desires.
• Here, the focus is on institutions, values, and customs that, grouped together, form a sociopolitical environmental framework that strongly influences the development of entrepreneurs.
• For example, if a middle manager experiences the freedom and support to develop ideas, initiate contracts, or create and institute new methods, the work environment will serve to promote that person’s desire to pursue an entrepreneurial career.
• Another environmental factor that often affects the potential development of entrepreneurs is their social group. The atmosphere of friends and relatives can influence the desire to become an entrepreneur.

The Financial/Capital School of Thought

• This school of thought is based on the capital seeking process. The search for seed and growth capital is the entire focus of the entrepreneur.
• Certain literature is devoted specifically to this process, whereas other sources tend to treat it as one segment of the entrepreneurial process.
• The venture capital process is vital to an entrepreneur’s development. This school of thought views the entire entrepreneurial venture from a financial management standpoint.

The Displacement School of Thought

• The displacement school of thought focuses on the negative side of group phenomena where someone feels “out of place” or is literally “displaced” from the group.
• It holds that the group hinders a person from advancing or eliminates certain critical factors needed for that person to advance.
• Due to such actions the frustrated individual will be forced into an entrepreneurial pursuit out of his or her own motivation to succeed. The individuals will not pursue a venture unless they are prevented or displaced from doing other activities.
• Cultural awareness, knowledge of political and public policy, and economic indoctrination will aid and improve entrepreneurial understanding under the displacement school of thought. The broader the educational base in economics and political science, the stronger the entrepreneurial understanding. Three major types of displacement, i.e. political, cultural and economic, illustrate this school of thought.