Frontiers of Entrepreneurship
D. K. Sarasvathy, Carnegie Mellon University
THE ENTREPRENEURIAL PROCESS-DEFINITIONS
FIGURE 1 The Entrepreneurial Process
TABLE 1 Examples of an "idea"
A. Theories That Deal With Resources
B. Theories That deal With Stakeholders
C. Theories That Deal With The Environment
ENTREPRENEURIAL PROCESS-ENTREPRENEURIAL DECISIONS
THE ENTREPRENEURIAL PROCESS-THE MODEL
FIGURE 2 Interconnected causal domains for entrepreneurial decisions
THE ENTREPRENEURIAL PROCESS-THE ENTREPRENEUR
AN APPLICATION OF THE MODEL OF THE PRE-FIRM
THE PRE-FIRM-EMPIRICAL INVESTIGATIONS
THE PRE-FIRM-POSSIBILITIES FOR THEORETICAL LINKAGES
This paper challenges the basic assumption of microeconomics that firms and households are the primitive entities in the economic process.
The paper presents a model of the pre-firm-defined here as the entity that transforms an idea into a firm. The entrepreneur who undertakes the pre-firm process creates the firm through a set of entrepreneurial decisions that arise out of four interconnected decision domains. Every pre-firm, whether it aborts early or creates a firm, provides the economy with an opportunity to create economic novelty and discover/create new demand-and leads to constraints and consequences that influence economic realities down the road. Developing a theory of the pre-firm should enhance our understanding of a variety of economic phenomena in terms of their initial conditions.
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Last Updated 06/01/98