erms of itsentrepreneurial and innovative powers,the source of brilliant new products,services and processes of the future.There has also been another recurring themethat is currently enjoying a second lease oflife: the social ‘‘missionary’’ role as a modelfor a new ‘‘enterprise culture’’. The focus ofthis article is on the second of these themes,the entrepreneurial role of small firms withfewer than 50 employees as agents foreconomic change and innovation and onreasons why most small firm owner-managersseem reluctant to accept this challenging role.EntrepreneurshipThere are literally dozens and dozens ofdifferent definitions of ‘‘the entrepreneur’’and the concept of ‘‘entrepreneurship’’.Researchers and writers often seem to pickthe definition that best fits the area they arediscussing (He´bert and Link, 1989; Gartner,1990; Stanworth and Gray, 1991; Gray,1998; Chell, 2001). Leaving to one side thefact that individuals working in the public andnon-profit sectors can be very enterprising,usually entrepreneurship refers to businessbehaviour related to innovation and growth(Schumpeter, 1934; Bolton, 1971; AdvisoryCouncil on
Science and Technology, 1990;Stanworth and Gray, 1991; Storey, 1994;DTI, 1998). Thus, for the purposes of thisarticle, entrepreneurs may be broadly definedas individuals who manage a business with theintention of expanding that business and withthe leadership and managerial capacity forachieving their goals, generally in the face ofstrong competition from other firms, largeand small. This provides a framework forexamining such phenomena as competitiveadvantage, economic change and innovation,which are familiar topics in entrepreneurshippolicy and research (Davidsson, 2001). Inmost small firms, especially the very smallmicrofirms (fewer than ten employees), theleading manager is also the principal owner. Itis now widely accepted that, apart from thestart-up phase, most small firm ownermanagersare more concerned about survivalrather than growth per se and are often
notespecially entrepreneurial once they feel thatthey are established (Davidsson, 1987;Storey, 1994; Gray, 1998). Consequently, alot of research in this field has focussed onfinding the characteristics that determine theentrepreneurial person or firm.For instance, Chell (1985, 1999, 2001), asocial psychologist, has examined numerouspsychological trait-based approaches andsociological type-based approaches to suggestthat, whilst psychological aspects such as‘‘entrepreneurial intention’’ and the ‘‘ability torecognise opportunities’’ generally appear tobe linked to an entrepreneurial approach,entrepreneurial behaviour itself is usuallysituated in a particular context. This meansthat influences of location, industry and sizehave to be taken into account as do those ofthe business cycle. Indeed, Chell (2001)points out that many, if not most, small firmsdeal with other firms rather than directly withconsumers, which means that their customersare subject to similar influences as well.Entrepreneurial firms that deal directly withconsumers are, of course, rather moreimmediately exposed to switches in consumertastes. Thus, entrepreneurship reflectscomplex interactions between the individualand the situation. Perceptions and judgementare key elements in this process. Chell (1999)cites Casson’s (1982) focus on ‘‘judgement’’as one of the qualities that distinguishes thesuccessful entrepreneur from the much largergroup of non-entrepreneurial small firmowners.While these
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