The Making of an Entrepreneur
By: Jadyn Hanson
Jadyn Hanson
**Who is an Entrepreneur? **
According to William B Gartner, asking the question ‘who is an entrepreneur’ will lead to no answer. However, the question of entrepreneurship is much more complex than that. One can see the combination of elements through various studies and opposing research approaches. Through the differentiation of questions, one can see the variations in approaches to this inquiry. Some people want to know who is an entrepreneur, while others, like Saras D. Sarasvathy, beg the question: ‘what makes people entrepreneurial?’ (Sarasvathy, 2006). I agree with William B Carter in his argument that the question should not be asked if it fails to capture the essence of entrepreneurship. This research helped me to understand the mindset of an entrepreneur and develop the framework to support it.
Before reading and evaluating these articles, I had a preconceived idea of what I thought it took to be an entrepreneur. I believe the willingness to take risks is a characteristic that applies directly to entrepreneurship. Additionally, Sarasvathy (2006) emphasizes that entrepreneurs are driven by passion and willing to take calculated risks to achieve their goals. Some people love risk, while others hate it. I believe this difference is a determining point on if someone will succeed as an entrepreneur. We see this thought process expanded through Gartner’s research on the behaviors and traits of individuals and its pertaining to entrepreneurial success. (Gartner, W. B. 1988). While the ability to take risk is a factor that contributes to the mindset of an entrepreneur, the framework requires much more.
Traits and Behavior of an Entrepreneur
Garter further evaluated entrepreneurship based on behaviors and traits, extending into the work environment and resource allegation. People’s behavior and character traits strife them to act, as he states, ‘Research on the entrepreneur should focus on what the entrepreneur does and not who the entrepreneur is.’(Gartner, W. B. 1988). He insists that there is significance in the behavior of those who develop organizations. Garner states, “If entrepreneurship is behavioral, then it can be seen that these behaviors cease once organization creation is over.” (Gartner, W. B. 1988, Pg. 48). Generations have been taught that actions speak bigger than words. I believe that what an entrepreneur accomplishes should be evaluated in higher regard than what they say.
Herbert and Link further explored Gartner’s ideas on external forces, focusing on the meaning of entrepreneurship. They concluded that an entrepreneur has a vision for a business project or venture. Through their writing, I gained deep insight into how risk-taking, innovation, and creativity played into an entrepreneur’s success. They argued that entrepreneurship involves a complex combination of opportunity, skill, and resources. It is essential to look beyond a person’s character and consider external forces pertaining to entrepreneurship.
Entrepreneur vs. Entrepreneurship
Robert F. Hebert suggests that two usages can be derived from entrepreneurship. One is based on popularity, while the other is academic. Because each person can define themselves, their unique definitions of who they are skew the definition of entrepreneurship. I believe that an entrepreneur provokes change and gets good at adapting along the way.
Herbert presented the idea that there is a clear distinction between manager and entrepreneur, but not economic development and entrepreneurship. My thoughts about his research on entrepreneurship were further understood as he explained, “The question of whether the entrepreneur provokes change or merely adjusts to it has sparked a lively debate in the history of the subject. Yet at the most elemental level, the issue is not that important.”(Hébert, R. F., & Link, A. N. 1989, pg 48). This quote reflects a common theme seen throughout all research. Entrepreneurship is constantly changing, and there are many different types of entrepreneurs. There is not one behavior or trait that makes an entrepreneur. Instead, they have a unique mindset and desire to add value.
Causal vs. Effectual Reasoning
Sarasvathy, an associate professor at the University of Virginia, researched for a more definitive answer. Rather than trying to understand how to define a select population, she evaluated the traits, behaviors, and habits that cause a population to act entrepreneurial. To examine significant character traits more deeply, she looked at two groups: those who use causal reasoning and those who use effectual reasoning. According to research, people who use causal reasoning fall into two-thirds of the world population. This rationality insists there is a final goal, different ways to get there, and a set of expectations. One can conclude this is more presently seen in today’s culture. Effectual reasoning is perceived quite differently from casual. Effectual reasoning is shown when someone starts with their given means and explores opportunities through the standards. An entrepreneurial mindset and its effects differ significantly from those with a non-entrepreneurial mindset.
**Effectual Reasoning **
There is no answer supporting if an entrepreneur must be one; however, a person can be both at a given time. Saravathly presented this information by sharing the principles of effectual reasoning.“Effectual Reasoning, however, is based on logic. To the extent that we can control the future, we do not need to predict it.” (Sarasvathy, S. D. 2006, pg. 6).Regarding how we respond, it seems evident that we would do so in a way that aligns with our beliefs.
**Conclusion **
Entrepreneurs take calculated risks, create innovative solutions to problems, and utilize their resources well. Sarasvathy presents several strategies that help people to understand what they can do to create value. The theory of effectuation helped provide some framework for understanding this mindset. Coming from a Christian background, I know I can not predict the future. However, I have a definitive purpose on earth and an end goal. I conclude that effectual reasoning is an understanding that helps a person be entrepreneurial. They ultimately succeed because of their open-mindedness to the future and want, like most, to contribute to a better future.
**References **
Gartner, W. B. (2009, November 17). "who is an entrepreneur?" is the wrong question. SSRN. Retrieved January 31, 2023, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1505236 In search of the meaning of entrepreneurship - UNCG. (n.d.). Retrieved January 31, 2023, from https://libres.uncg.edu/ir/uncg/f/A_Link_In_Search_1989.pdf Saras D. Sarasvathy. UVA Darden School of Business. (n.d.). Retrieved January 31, 2023, from https://www.darden.virginia.edu/faculty-research/directory/saras-d-sarasvathy