Entrepreneurship: Concepts and Theories

This assignment delves into the fundamental concepts and theories of entrepreneurship. It draws upon a range of scholarly works by prominent authors like Peter Drucker, Kirzner, and A.C. Cooper. The readings cover diverse aspects of entrepreneurship, including self-help among Black Americans, networks and alliances, innovation, social capital, entrepreneurship education, and the role of government policy. Students are expected to synthesize these ideas and develop a comprehensive understanding of the multifaceted nature of entrepreneurship.

ENTREPRENEURSHIP
AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1. Types of entrepreneurial ventures and their relation with typologies..............................1
P2. Similarities and differences between entrepreneurial ventures........................................4
P3 Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy...........................................................................................................7
P4. Significance of small businesses towards development of national economy.................9
M1. Investigation of diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both public and private sector:.................................12
D1. Scope development and growth of entrepreneurship ventures......................................13
D2 Impact of small business on different level of economy................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
It can be said that entrepreneurship and small business management plays an important
and vital role in order to develop domestic market that helps to increase economic advantage for
particular nation effectively (Wright and Stigliani, 2013). The report will cover different types of
entrepreneurial ventures and how they relate to the typology (different types) of
entrepreneurship. In addition to this, the similarities and differences between each f
entrepreneurial ventures and considering the roles, characteristics and Objectives of different
types of ventures: private; public; social enterprises - as well as different sized ventures: micro;
small; medium will be discussed in this report. The report will also demonstrate and present
relevant data and statistic to illustrate the impact micro and small business have on the economy.
Finally, the report will cover the importance that small businesses and business start-ups on the
growth of the social economy.
PART 1
P1. Types of entrepreneurial ventures and their relation with typologies
Entrepreneurship: Entrepreneurship is an process of building something new of value by
devoting the necessary time and efforts. Entrepreneur venture make efforts to accepting and
acknowledging the necessary financial, psychological and social risk within the business in order
to meet their desired entrepreneurial goals and objectives (Trimi and Berbegal-Mirabent, 2012).
It is a process of creating something new value and assuming the risk and rewards within
entrepreneurial venture. In addition, entrepreneur is an individual who is dedicated to execution
of such activities and leading their own business and nature them for growing and prosperity of
business. They are entitled to creating the changes by identifying appropriate opportunities
which make differences from other organisations which are operating in current market.
Intrepreneur: An intrepreneur is a person who behaves like an entrepreneur whilst being
employed. Intrepreneurs are usually encourages to develop their ideas into a workable product by
the companies they work for (Schaper, 2016). Like an entrepreneur, an intrepreneur is motivated,
creative, and able to think outside of the box.
The difference between entrepreneurs and intrapreneur are provided below:
Basis Entrepreneur Intrapreneur
Meaning Refers to an individual who Employee in a company who
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establish own business. is responsible for undertaking
innovation.
Approach Intuitive Restorative
Resources Utilise own resources Company provide resources
Risk Borne by him Borne by company
Enterprise Newly established Existing one
Dependency Independent Dependent
Works for Developing own market
position
Transformation and
redesigning organisational
system
Capital Raised by him Financed by company
Different types of entrepreneur:
Small business entrepreneur: Small business entrepreneur are those who pick up short
ideas by which they can develop short form of products and services by which they can attain
short terms business objectives efficiently. Small business operates their business functioning for
gaining short terms financial goals.
Large business entrepreneurs: Large business entrepreneur have goals and objectives to
introducing large kinds of products and services who has potential to make differences between
existing same types of goods in marketplace. They mostly utilised approaches to implementation
of innovation within core business products and gaining wide range of profitability. Large scale
of business entrepreneur taking initiatives for making innovation within existing products and
through large amount of products, gaining high range of profitability (Morris, 2015).
Social business entrepreneur: These are those entrepreneurs, who work for social
welfare program in order to generating sufficient amount of success by provision of effective
social welfare products. It has examined that, social business entrepreneur works for furnishing
products and services by which communities development can be executed within societal
environmental efficiently. Social entrepreneur introduce variety of services at free of cost and
they contain aim for earning non-profitability.
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Scalable business entrepreneur: Scalable entrepreneur ventures are those who work for
coming up into market by introducing totally different innovative products and services which
conduct characteristic antithetic from existing products in the marketplace. So they have major
aim to introducing unique product and services for earning large amount of profitability or
containing desired to changing the world by their different innovative ideas. Scalable
entrepreneur are increasing broad level in the country (Moroz and Hindle, 2012). Corporate Entrepreneurs: These entrepreneurs worked in order to establish their own
corporation in future. For example, these types of entrepreneurs worked in large scale
corporate sector organisation (Estrin, Mickiewicz and Stephan, 2013). Public entrepreneur: These entrepreneurs worked under government and provide
products and services to the public as per government. Private entrepreneur: These entrepreneurs can be found in sole business, partnership or
joint venture. The main motive is to earn profits and revenue.
 Academic Entrepreneur: These are university scientist, most often a professor,
sometimes a PhD student or a post-doc researcher, who sets up a business company in
order to commercialize the results of his/her research.
P2. Similarities and differences between entrepreneurial ventures
Different types of entrepreneurial ventures are running in the nation which is operating
their business functionalities within particular industries of the nation. They have different types
of characteristics and differences which is as following:
Differences
Small scale ventures Large scale ventures
 The role of small scale ventures or
organization is to provide products and
services to limited number of target
customers.
 The objective of small business
enterprises is to earn revenue by
retaining their target markets.
 These are considered as small ventures
as they have limited paid up capital and
 The role of large scale ventures and
organisations is to provide products and
services to large target markets and to
enhance the national economy of the
country.
 The objective of large scale ventures is
to keep on enlarging their target market
to become market leader.
 These are considered large scale
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employees
 Small business entrepreneur is
generally operating their business
operational activities for earning small
amount of money for sustainable life.
 Small types of entrepreneur business is
not following uniform structure for
running its various business
functionalities within the industry.
They chose random approach to
completion of business tasks within
short time period.
 Small types of entrepreneur has very
few volumes of employees who does
not require to possessing extra
expertise. Employees of small business
require to having less knowledge than
large business's employees (Kirzner,
2015).
 Small business organisations are not
following specific types of working
culture on which the firm can get
success. Small businesses contain huge
risk upon its various decision making
process,
ventures due to enormous paid up
capital invested by the management,
large number of employees and market
share.
 Large business entrepreneur operate
their operational activities by earning
large amount of profitability and
revenue generation from the
marketplace.
 Small scale of business have particular
approaches and strategies to following
the way of completion of various
business tasks within the business
environment in order to completion of
business tasks on time (Landes, Mokyr
and Baumol, 2012).
 Large business have wide numbers of
employees at workplace for completion
of various types of business activities in
industry in respective manner.
 Large scale of businesses are following
specific types of culture at workplace
while performing various tasks of the
business activities.
Social entrepreneur venture Scalable entrepreneur venture
 Social entrepreneur venture is different
from all other entrepreneur ventures.
The role of these venture is to provide
 The role of scalable entrepreneurial
ventures is to provide innovative and
unique products according to the needs
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welfare services to the communities
and societies.
 Social entrepreneur venture works for
developing social welfare services and
products by which development
program and campaign can be carried
out by social bodies.
 Social entrepreneur does not work for
earning profitability and generating
revenue (Estrin, Mickiewicz and
Stephan, 2013).
 This type of entrepreneur does not
require to having wide range of
expertise within its employees in order
to provision of social care services.
They only need to hire voluntary works
for completion various business
functionalities.
of customers.
 Scalable entrepreneur venture works for
developing innovative and unique
products and services for resolving
short terms and long terms issues of
peoples in society.
 Scalable business is running for earning
profit and productivity for the business
in terms of gaining sustainable
development in competitive world.
 Scalable business entrepreneur require
to expertise and skilled employees in
case of improvement of new or
innovative invention within products
and services.
Similarities
Large scale organisation Small entrepreneur venture
 Large organisation works for delivering
unique and core business products and
facilities for earning high volume of
profitability.
 The objective of large scale
organisation is similar to small and
scalable venture which is to earn more
and more profits and revenue to sustain
in the competitive market.
 Small entrepreneur is also working for
earning wide range of profitability
within business environment.
 The objective of small scale
entrepreneurial ventures are similar to
other ventures in terms of generating
profits and revenue.
 Numbers of small entrepreneur
businesses also running for
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 Large scale of organisation are running
for offering wide offering large amount
of employment in nation to
development of economic value of the
nation.
 They make efforts to introducing such
product and services by which country
peoples can reduce their risk and
resolve issues which is facing by them.
development within economic values of
the nation by offering of wide range of
employment opportunities to reducing
unemployment rate of country (Cooper,
2017).
 Small entrepreneurs are working for
introducing such kinds of services that
can be utilised by their existing
customers in order to resolving various
types of problems which is facing by
societal peoples of the country.
Social entrepreneur Scalable entrepreneurs
 Social entrepreneur works for
developing such products and services
by which people welfare activities can
be carried out by them in respective
manner.
 Social entrepreneur works for people's
welfare in country to improving quality
of life of their societal peoples.
 Scalable entrepreneur also operating
their business functionalities in order to
launching such types of products and
services by which peoples of
communities can resolve their various
issues within easy ways.
 Scalable entrepreneur making efforts
for delivering such kinds of products
and services which has potential for
developing various types of services
that can be utilised by customers to
improving life style of peoples at great
manner.
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P3 Interpret and assess relevant data and statistics to illustrate how micro and small business
impact on the economy
It can be analysed that there is a great impact of micro and small-business in order to improve
and develop economic advantage that helps to enhance employment and future sustainable
growth of nation effectively. The small business has a great impact on UK economy that there
are various impact of such domestic markets are described below:
Number of SME in UK
Table 1: Total Enterprises in UK 2015-2016
Country Total Enterprises %SME
United Kingdom 5.5 million 93.3
The above table shows that there are 5.5 million entrepreneurial ventures exists in United
Kingdom. Out of which approximately 5.1 million are small and medium scale organisations
(Brenkert, 2017).
Number of Employment provided by SME
Table 2: Total Employment in UK
Country Total person employed %SME
United Kingdom 15.7 million 60
The above table shows number of person employed in different ventures in the country. It
was identified that more than 15.7 million people was employed in different organisations out of
which 9.42 million people are employed in small and medium scale organisations (Cooper,
2017).
Gross Value added by SME
Table 3: Gross Value Added 2015-2016
Country Gross Value Added %SME
United Kingdom £634 billion (Gross Value Added (GVA),
2017)
54.4
The above table shows gross value contribution by various organisations incorporating in
United Kingdom. From the analysis it was identified that gross value added by all the
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organisations in 2016 was £634 billion out of which £344 billion was contributed by the small
and medium scale organisations
Gross Annual Turnover by SME
Table 4: Gross Annual Turnover 2016
Country Gross Annual Turnover %SME
United Kingdom £1.8 trillion 47
The above table shows the gross annual turnover generated by all the entrepreneurial
ventures and share of small and medium scale enterprises. From the analysis it was identified
that in 2015-2016, the gross annual turnover contributed by all the organisations and enterprises
was around £1.8 trillion pounds out of which £84.6 billion pound was contributed by small,
micro and medium enterprises.
Economic growth: small business helps towards effective growth and development in
local communities as well as domestic market. This will help to create employment opportunities
which helps to increase economic standard of nation. There are different types of businesses
helps to produce profitability for national and international activities or firms which is done by
outsourcing effectively.
Adaptability to change climates: There are many small business's skill to respond quick
changes ti changing economic climate (Burrows, 2015). Many local customers are there who
stays loyal with organisation and small-business often build up revenue which is less than large
business but they may have less in lose in times of economic crisis.
Future growth: It can be said that small business does not stay for long time expect the
those who become profitable and increase their business activities. This will help to enhance
business future growth and development in order to increase profitability and production.
Various small companies that grow into large businesses often remain in the community in
which the business was first established. Having a large corporation headquarter in a society can
further help provide employment and stimulate the local economy effectively and efficiently.
It can be said that there is a great importance of small business in the development and
effective growth of economy for United Kingdom effectively. The local market contributes
almost 9% of the total economy and GDP rate of UK. Thus, it can be said that these businesses
are able to improve and develop international growth which helps to provide employment and
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other opportunities to improve and develop life of an individual effectively. Various small
companies that grow into large businesses often remain in the community in which the business
was first established. This will help to achieve business desired goals and objectives in order to
achieve sustainable growth and development which contributes towards economic growth and
development.
P4. Significance of small businesses towards development of national economy
From the above analysis, it has examined that, multiple numbers of small businesses are
running in the nation in case of provision of effective products and services in industry. It has
examined that, small business operations are playing vital role in case of growing of social
economy of the country efficiently. Small entrepreneur ventures are playing crucial role to
proving as important part of UK's country economy (Brenkert, 2017). Numbers of SMEs are
increasing frequently in the country year by year and making contribution for sustainable
development of country peoples. From the analysis, it was noticed that, SMEs are making great
contribution with respect to betterment of people welfare and social economy development of the
UK effectively. In this context, the importance of small businesses and startups are described
below:
Economic development contribution: IT has examined that, numbers of SMEs business
are making contribution for economic development within various prospect of the economic
environment of the UK. Small business provides varied of new products and services by which
sufficient amount of profitability can be gained by numbers of small and medium business
entrepreneurial. They are generating small amount of profit abilities by which sufficient types of
entrepreneurial opportunities can be gained in sufficient form. From the analysis, it was
examined that, numbers of employment opportunities are being furnished by SMEs
entrepreneurial ventures and also generating wide range of profitability and revenue generation
from the marketplace. So it can be said that, SMEs are being important for development of social
economy of the nation.
Competition level: In case of small and medium business, numbers of entrepreneurial
ventures are being increased within the business environment and increasing rate of profitability
for the business. So it can be said that, competition level within SMEs industry raisin up because
of increment in numbers of small and medium business in industries regularly increment in
numbers of small business and their new core business products being cause of raising up
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competition level in SMEs sector efficiently (Audretsch, 2012). An agile start up might be
focusing on to implementation of innovative technologies upon business activities at faster rate
in order to generating desired success in business environment. So it can examine that,
competition level has been increased in case of increment in the profitability level of the
business. Competition level of the nation being cause of increment within innovation within
business core products and new products as well. So innovative products assisting the country's
people to resolving their current and contemporary issues of the firm within business
environment.
Reducing unemployment: Unemployment is one of the crucial issues which is facing by
UK country in order to increment in economic development of the nation. From the abive data
analysis. It was identified that, in total employment rate of the nation in companies, more than
92% of total employed peoples of the country doing jobs in small and medium types of
organisation in nation effectivel (Ahl and Marlow, 2012)y. So it can be said that, SMEs of the
nation is making contribution for the UK country to reducing unemployment rate of the nation in
sufficient form. Unemployment rate has been reduced after increment in SMEs business in
nation, so peoples of the country preferring to working with SMEs to getting efficient
employment form small types of organisations. In addition, new job opportunities are being
increased within the corporate sector with the help of SMEs businesses. Country's
unemployment issues has been reduced by it effectively.
Diversity: Diversity plays important role in case of invention and innovation within
various existing and new products and services generation within business environment. It has
examined that, SMEs also have more flexibility and can be started by almost anyone. SMEs is
applying diversity approaches in case of generating and manufacturing of new products and
services that can be applied in perfect form. These business are applying diversity approach
which is, business functionalities, cultural and potential and large corporations at great rate. So it
makes differences from each one business to another one. Diversity is being cause of arising
invention in core business products of firms, so it helps to making contribution of diverse areas
of the business in sufficient form. Small business is such business sector which can be started by
anyone in marketplace, so diverse kinds of small business generating small amount of revenue
for sustain lives of peoples. Overall revenue generation from small businesses is making
contribution to development of economic values of UK respectively.
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Innovation: Innovation in each sector is considered to be necessary factor which making
contribution for proper development within business environment in respective form (Ács, Autio
and Szerb, 2014). SMEs coming up in marketplace by introducing innovative products and
services which has potential to satisfy customer's long terms and short terms needs. Innovation
can be applied upon core and new business products which helping people to increasing
lifestyles of communities or betterment in living quality and standard of customers. According to
identification of current and modern demand of their customers, small and medium business
owners making development and modification within its existing and new products which can
gain expected market growth within the industry in respective form.
Sustainability: As education level of country's people are increasing, they are taking step
further towards opening up new start-up in order to invention of new product and services which
can resolve people's contemporary issues in effective ways. Sustainability of business is
necessary part which must be adopted by its owner to having proper desired growth within
business sector to sustain in marketplace perfectly. Sustainability of business in industry plays
important role for social economic development of the country because of several corporate
sector is making contribution to raising up national income and employment rate of the nation.
Turnover: Turnover can be considered as effective factor for economic development of
the UK in possible manner. Among numbers of small businesses, most of them facing failure in
case of reaching out to desired success in industry. So it provides opportunities to them to change
to learn, recover, and rebuilt which is beneficial in the long for entrepreneurial ventures in
corporate sector is driving new growth for economic development within business environment
in perfect form. So it can be said that, turnover of new business towards starting up new venture
can contribute to economic development of the UK.
International differences affecting the start-up businesses:
International differences affecting the start-up businesses in UK effectively. Various
external environmental factors influencing small and medium business sector in UK to coming
up within the country by introducing new products and services which build up gape among
other existing products which is delivering by other companies in current marketplace of the
state. UK government has introduced a memorandum which allow new start-ups and new
business into UK's industrial areas to delivering innovative products and services according to
customer needs and demand (Acs, Audretsch and Lehmann, 2013). Hence, it can be said that,
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numbers of foreign companies coming into UK country to launching their existing products and
services which has potential to development country social economic value efficiently.
M1. Investigation of diverse range of entrepreneurial ventures to demonstrate an understanding
of entrepreneurship in both public and private sector:
Public sector entrepreneur: Public sector entrepreneur is totally owned by Government
of the nation which operate each business functionalities as per guidelines of government. In
case of UK, multiple numbers of public sector organisations are being operated in the country
which is serving variety of products and services by associating with government body to
making changes into the traditional structures and processes of government. Networking and
collaborating approaches are being implemented by organisations in order to building coalition
for change across government. They are making efforts to building up agenda for government
capacity for public innovation to provisions of sustainable life to peoples for mutual welfare. In
nation, varied of public sector organisations are running as per government norms and carrying
out various types of people development's governments to country's populations.
Following some examples of public sector entrepreneur in UK: Audit commission The government economic services The government legal services The Highways agency
 Export credit guarantee department
Private sector entrepreneur: Private sector organisation is those who works for own
personal business to developing new and innovative product or services by which they will be
able to meeting their desired financial and business goals in industry efficiently 9Meyer, Neck
and Meeks, 2017). It assists the national economy and controlled and managed by private
individuals or enterprises. Numbers of private entrepreneur are running in UK and new start-ups
are also arising within corporate sector. In order to competing its competitors in market, private
sector drive down the prices of their existing products and services by which they can meet to
desired goals and objectives of the firm. Various types of private sector businesses are running in
the industry which is as following: Sole proprietorships partnerships
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 small and medium size entrepreneurship
 large coronation and trade association
Social entrepreneurship – It is the utilization of start-up companies and other entrepreneurs to
develop, fund and implement solutions to social, cultural, or environmental issues. This idea may
be applied to a variety of organizations with different sizes, aims, and beliefs. A social
entrepreneur is a leader or pragmatic visionary who: Achieves large scale, systemic and
sustainable social change through an invention, a different approach, a more rigorous application
of known technologies or strategies, or a combination of these.
Similarities and Differences
Social entrepreneur - They have double bottom line i.e., social and sustainable business model.
They address a "critical gap or need" of the Poor. Have a proven & tested innovative idea.,
Predominantly NGOs, Not-for-Profits, Foundations or CSR activity. Ability to replicate and
scale is limited by resource availability.
Public and private sector -The focus is on leveraging, the strengths of each player to achieve
scale both - horizontally (geographically). And vertically (number of beneficiaries).
D1. Scope development and growth of entrepreneurship ventures
The scope of entrepreneurship development in country like India is tremendous.
Especially since there is widespread concern that the acceleration in GDP growth in the post
reforms period has not been accompanied by a commensurate expansion in employment.
D2 Impact of small business on different level of economy
Small business are flourishing and thriving in market economy of United Kingdom. They
have greatly influences the national economy of the country and also provide adequate support in
reducing the unemployment in the country. They have significant impact on different level in a
economy such as local, regional, national and international. Impact on local economy: Small business greatly impact on local economy. They
provide products and services to the local market according to their needs and
expectation. Impact on national economy: 90 per cent of ventures in UK are small or medium size.
They contributed greatly in enhancing the national economy by contributing greatly
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towards it (Trimi and Berbegal-Mirabent, 2012). These ventures further assist in reducing
the unemployment rate of the country.
 Impact on International Economy: Small and medium size ventures are now expanding
globally laying footprints in the world. This helps in enhancing profits and revenue which
ultimately effect the national economy.
M2
Entrepreneurship ventures in the United Kingdom are growing drastically and rapidly
with the increase in governmental intervention and support. There are different types of
entrepreneurial ventures that operates in the market of United Kingdom. Each of them have
different scope, development and growth strategies. For instance, small business enterprises have
limited scope but vast opportunities to capture the market and earn higher profits. Social
entrepreneur ventures works for the welfare of the society (Naudé, 2014). There objective is to
enhance the current state of societies by providing welfare and social services. Scalable
entrepreneurial ventures are established when need of innovation arises. Large scale
entrepreneurial ventures contributed greatly towards the growth and development of national
economy. As the government of UK has been funding adequately in order to boost up the
motivation and morale of entrepreneurs.
CONCLUSION
It can be concluded from the above report analysis that An entrepreneur must be
responsive towards the business opportunity which has been pick out by them by creative ideas.
An entrepreneur conveys several types of characteristics and behaviours. In addition, they must
be always motivate in case of execution of several types of complicated tasks within business
environment. Different types of entrepreneurial ventures are running in the nation which is
operating their business functionalities within particular industries of the nation. It can be
analysed that there is a great impact of micro and small-business in order to improve and develop
economic advantage that helps to enhance employment and future sustainable growth of nation
effectively. Multiple numbers of small businesses are running in the nation in case of provision
of effective products and services in industry. SMEs are making great contribution with respect
to betterment of people welfare and social economy development of the UK effectively.
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REFERENCES
Books and Journals
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entrepreneurship. Small Business Economics, 41(4), pp.757-774.
Ács, Z. J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement
issues and policy implications. Research Policy, 43(3), pp.476-494.
Ahl, H. and Marlow, S., 2012. Exploring the dynamics of gender, feminism and
entrepreneurship: advancing debate to escape a dead end?. Organization, 19(5),
pp.543-562.
Audretsch, D., 2012. Entrepreneurship research. Management Decision, 50(5), pp.755-764.
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Butler, J. S., 2012. Entrepreneurship and self-help among black Americans: A reconsideration
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Cooper, A. C., 2017. Networks, alliances, and entrepreneurship. Strategic Entrepreneurship:
creating a new mindset, pp.201-222.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
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Entrepreneurship from ancient Mesopotamia to modern times. Princeton University
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Meyer, G. D., Neck, H. M. and Meeks, M. D., 2017. The entrepreneurship‐strategic management
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