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First published June 1988

Entrepreneurship: Past Research and Future Challenges

Abstract

The contributions and shortcomings of past entrepreneurship research can be viewed within the context of six research design specifications: purpose, theoretical perspective, focus, level of analysis, time frame and methodology. The authors suggest a unifying definition of the field of entrepreneurship. The recent trend toward theory driven research that is contextual and process oriented is encouraging. It is time for entrepreneurship researchers to pursue causality more aggressively. Exploratory studies that are not theory driven should be discouraged unless the topic is highly original. Implications for practicing entrepreneurs are discussed.

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1 There are several sources that can provide basic background for the non-specialist interested in entrepreneurship research. The Encyclopedia of Entrepreneurship (Kent, Sexton, & Vesper, 1982) and its recent sequel, The Art and Science of Entrepreneurship (Sexton and Smilor, 1986) provide comprehensive reviews under a range of entrepreneurship related subject headings. Entrepreneurship and National Policy (Vesper, 1983) provides an excellent discussion of the new venture process and implications for national policy. Finally, review articles by Gartner (1985a) and Wortman (1987) provide a good overview of the literature.
2 Limitations of space have meant that this review has focused primarily on US literature related to new firm creation. It is important to note that there is a well defined literature on corporate venturing as well as a rapidly growing body of European literature that is not discussed in this review.
3 It can be argued that the term entrepreneurship is too imprecise a concept to be of much use to researchers. In this respect, it is interesting to make a comparison with the term leadership. Pfeffer (1977) argues that the concept of leadership is so broad that its usefulness is called into question: "Apparently there are few meaningful distinctions between leadership and other concepts of social influence. Thus, an understanding of the phenomenon subsumed under the rubric of leadership may not require the construct of leadership" (p. 105). It seems that the same argument could be made about the construct of entrepreneurship.
4 In this context, it is appropriate for us to explicitly raise our point of view regarding the outcomes of entrepreneurial effort. A comprehensive research program cannot confine itself solely to studies of entrepreneurial success. This is for two reasons. First, the venture's failure may be the result of established competitors' reactions to the entry of the new firm. If this competitive response enhances the industry's overall competitiveness, then economic progress has still been achieved, even if the venture fails. Second, failure is an important source of learning, and even though a specific venture may fail, the people involved may have developed skills and knowledge that will lead to future entrepreneurial success (Maidique & Zirger, 1985).
5 There are some interesting parallels that can be made between the personality-based entrepreneurship research and the studies that sought to identify leadership traits. Theories of leadership progressed from simple "trait" theories through two-dimensional personal-behavioral approaches and on to highly complex models that considered a variety of forces at work within the leader, the situation, and the subordinate. As we shall see, entrepreneurship research has followed a similar pattern to become much more contextual and dynamic.

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Ian C. MacMillan
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