Entrepreneurship To Small Business@ Bec Dmos

Transcript

Introduction The present paper introduces yet another question in entrepreneurship education: Are we teaching entrepreneurship to small business managers and at the same time teaching small business management to to entrepreneurs? The foregoing question presupposes that entrepreneurship and small business management contain some degree of conjointness but are mostly unique domains of activity. In order to adequately address the question presented, exacting definitions of the terms small business management and entrepreneurship are required. There continues to be a definitional confusion over the roles of small business managers as compared to entrepreneurs (Gartner, 1987, Carland, et al., 1984, Gregoire, et al., 2006). I realize that most entrepreneurship scholars are exasperated by the hang-up on defining entrepreneurship and seek to get on with their research and teaching in the field. But here I am tackling a real issue in entrepreneurship education that mandates a serious examination of the similarities/differences between small business and entrepreneurship. This examination should certainly influence content and pedagogy in entrepreneurship education. The reader might well learn from the following definitional safari that presents both classic and modern viewpoints. Entrepreneur(s) and Entrepreneurship: The Who and the What This analysis will be classified utilizing several representative approaches to defining entrepreneurship. Joseph Schumpeter Currently, no single definition of "entrepreneur" has been uniformly accepted in the 1 literature. Schumpeter (1934) credits Mill (1848) with bringing the term into general use among economists, but the word was used much earlier than that. Cantillon, circa 1700, described an entrepreneur as a rational decision maker who assumes the risk and provides management for the firm (Kilby, 1976). Entrepreneur is derived for the French verb "entreprendre": which means to undertake, to attempt, to try in hand, to contract for; or, to adventure; to try. Mill (in Schumpeter 1934) focused on risk bearing as the key differentiating factor between entrepreneurs and managers. Consequently, it should come as no surprise that the Webster's New World Dictionary defines the term as "one who organizes and manages a business and undertakes the risk for the sake of profit." Despite the long history of the term, scholars continue to disagree as to who is an entrepreneur (Carland, et al., 1988). Since the pioneering work of Schumpeter, the study of entrepreneurship and enterprise development has aroused interest in both academic and professional circles. For those who work on the question of entrepreneurship, Schumpeter's contribution has probably been the most significant. He accepted the concept that a state of equilibrium was the fundamental view of economic theory. While the entrepreneur could not play much of a role in a state of equilibrium, Schumpeter did see the entrepreneur as a significant force in the economy. He was careful to make the distinction between inventions and innovations. For Schumpeter the entrepreneur was the innovator par excellence. As innovator, the entrepreneur destroyed the existing equilibrium state. Schumpeter helped to romanticize the vision of the entrepreneur as a swashbuckling business tycoon, and/or as someone who clearly contributes to human betterment by introducing a new product, or a new way of doing things that expands options and lowers costs. The emphasis he put on innovation seemed to narrow the concept of the entrepreneur since it left out the more humble types of changes, directly or indirectly, that occur in economic activities. The 2 imagery behind Schumpeter's entrepreneur is of a man who introduces striking changes into everyday economic activities. Further, in his book “The Theory of Economic Development,” Schumpeter (1934) presented three typologies around the theory of entrepreneurship. The first identifies the main type of entrepreneurial behavior; introducing a new good, new method of production, opening a new market, conquering a new source of raw materials, and reorganizing an industry in a new way (Schumpeter, 1934, Gross, 2005). The second deals with three forms of entrepreneurial motivation, the desire to found a private kingdom or dynasty, the will to win, to fight and conquer; and the joy and satisfaction that comes from creation and problem solving (Schumpeter, 1934, Gross, 2005). The third and final typology concerns the factors that inhibit the expression of entrepreneurial action. There is firstly, the nature of innovative task: because it is new, it will be more difficult to plan and understand than well-established and customary activities. Second there is the inertia that “lies in the psyche of the individuals themselves: the human tendency to resist change from accustomed, routine and habitual ways of acting, even if a better alternative is available. Finally there is the fear of social sanctioning: the condemnation and disapproval heaped upon iconoclasts and deviants. To overcome these inhibitions, contends Schumpeter, an individual needs unusually strong will and great “personal weight” (Schumpeter, 1934, Gross, 2005). David McClelland In the 1960s, David McClelland developed his three factor theory of motivation and expanded his research by examining achievement motivation and economic development and the role of the entrepreneur. His early research built upon the work of Schumpeter but focused primarily on how to train individuals to be more achievement oriented thus becoming entrepreneurial. His research in 1987, (McClelland, 1987) on cross-cultural competences examined traits of successful entrepreneurs regardless of country and type of business. He reports three groups of competencies: 1) the entrepreneurs seem more proactive; 2) they show several characteristics of previously identified achievement motivation and 3) they show a commitment to 3 others stressing the importance of customer satisfaction (see Table 1). Table 1 McClelland's Cross Cultural Competencies Proactivity 1. Initiative 2.Assertiveness Achievement Orientation 3.Sees and acts on opportunities 4. Efficiency orientation 5. Concern for high quality of work 6.Systematic Planning 7. Monitoring Commitment To Others 8. Commitment to work contract Does things before being asked or forced to, by events. Confronts problems with others directly. Tells others what they have to do. Seizes unusual opportunities, obtains financing, land, work, space, or assistance. Looks for or finds ways to do things faster or at less cost. States a desire to produce or sell a top or better quality product or service. Breaks a large task down into subtasks, or sub goals, anticipates obstacles, and evaluates alternatives. Develops or uses procedures to ensure that work is completed or that work meets standards of quality. Makes a personal sacrifice or expends extraordinary effort to complete a job, pitches in with workers or works in their place to get the job done. 9. Recognizing the importance of business Acts to build rapport or friendly relationships with relationships customers, sees interpersonal relationships as a fundamental business resource, places long-term goal will over short-term gain. In short, McClelland’s research examined achievement motivation and its effect upon an individual’s desire to start and manage a new venture. His later research showed some causality between a highly achievement motivated individual and economic growth (McClelland and Winter, 1986). William Gartner 4 Gartner (1990) in his article “What are we talking about when we talk about Entrepreneurship?” attempted to lay the ‘foundation to define entrepreneurship and also to discern what the current body of knowledge believed constituted entrepreneurship at the time. Using a Delphi technique, Gartner segmented responses into the following attributes: A. B. C. D. E. F. G. Activities associated with becoming an Owner-Manager of a Firm Creation of a New Business Innovative Purchasing an Existing Business Starting an Innovative venture within an established organization Creation of a Non-Profit Business Creation of a Government Organization Gartner’s second round of data collection yielded numerous responses and a more precise definition of entrepreneurship that required him to perform factor analysis on the data. An eight factor solution was chosen, which accounted for 67.3% of the variances of the responses (Gartner, 1990). The eight major themes were: Table 2 Eight Major Themes Gartner Research 1. The Entrepreneur theme (including unique attributes such as: risk taking, locus of control, autonomy, perseverance, commitment, vision and creativity) 2. 3. 4. 5. 6. 7. Innovation Organization Creation (Resource Integration and Acquisition) Creating Value For Profit Growth Uniqueness 5 8. Owner-Manager (George: does #8 above show that in this Delphi study the entrepreneur also functions as the owner-MANAGER? If so, then isn’t s/he doing what the small business manager does and does this imply a conjoint function? If so, you should point this out to the reader. If it is something different, you should then point that out to the reader) Finally, cluster analysis was undertaken to discover whether participants could be grouped together based on the rating of the eight themes in Table 2. One cluster’s centered around (1) characteristics of entrepreneurship (the entrepreneur, innovation, growth and uniqueness) the other cluster centered on and (2) outcomes of entrepreneurship (organizational creation, creating value, for profit, owner-manager) (Gartner 1990). Janet Nixdorff’s Meta-Analysis Scholars and researchers continue to write about and examine characteristics and competencies describing entrepreneurs. Janet Nixdorff, a doctoral student at The George Washington University, examined the literature and developed a table showing the wide diversity of competencies attributed to entrepreneurs to see if there were any commonalities in competencies across authors (See Table 3). Solomon & Winslow developed a working definition of entrepreneur as "an innovative person who creates something unique with value [added] by devoting time and effort, assuming the financial, psychological and social risks in an action oriented perspective and receiving the resulting rewards [and punishments] of monetary and personal satisfaction" (Solomon & Winslow, 1988) Table 3 Entrepreneurial Competencies from a Small Sample of Journal Articles 6 Competencies Achievement/task motivation Change-oriented Create & utilize networks Create capital Creativity/Idea generation Decision making/evaluation Design business organization Design products or services Discipline/Drive Functional Interpersonal skills Leadership Listening Manage growth Manage project Manage risk Maneuver in industry Monitor the work of others Motivate organizational members Need for control of financial outcomes Negotiation Opportunity recognition Oral communication Reality Testing Resource finding/financing Planning, comprehensive Plan strategy Technology Tolerance for ambiguity Vision Writing Ethics Bird, 2002* X X X Thompson, 1999 X Santi, 1994* * Fiet, 2000 Hisrich, 1992 Hood et al, 1993 Nieuwenhuizen et al, 2002 X Vesper et al, 1988 Ronstadt, 1985 X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Source: Janet Nixdorff, Doctoral Comprehensive, The George Washington University, June 2005. *Success competencies with empirical support. Based on Working List of Entrepreneurial Competencies, Bird, 1995 **As cited in Fayolle, 1998 Note: Hisrich lists three primary categories: technical, business management, and personal entrepreneurial skills Note: Names of competencies may not match exactly those named in papers. Babson College Babson College’s defines entrepreneurship as “a way of thinking and acting that is opportunity obsessed, holistic in approach and leadership balanced…regardless of the resources currently available and acting on [the] opportunity for the purpose of wealth creation in the private, public and global sectors.” 7 In summary, from Schumpeter to today, there is a dearth of definitions, characteristics, competencies and behaviors that many believe describe the entrepreneur. Is it any wonder then, that the teaching of entrepreneurship education is fragmented with no general agreement established on whom or what are entrepreneurs or entrepreneurship? The confusion is compounded by the similarities exhibited by the small business owner manager. Small Business and the Owner-Manager: The Who and the What How important are small businesses to the U.S. economy? In 2005, there were approximately 25.8 million businesses in the United States, 99.7 percent were classified small businesses according to Office of Advocacy estimates. Census data show that there were 5.8 million firms with employees and 18.6 million without employees in 2003, the most recent year with data. Yet, little research has been conducted on the nature of the work of small business owners and/or managers. This neglect gives textbook writers and teachers of small business management little substance on which to build curricula and courses. In this section of the present paper, I will attempt to analyze the small business management literature to surface any unique activities, skills, and behaviors that distinguish small business from entrepreneurship. The common view of steady but low or no-growth small businesses is captured by noted scholar David Birch’s terminology. Birch categorized high growth entrepreneurial firms and gazelles and slow or no-growth small businesses as mice (Birch, 1987). Ray Smilor, formerly a Vice President of the Kauffman Foundation and presently the President of the Beyster Institute, has referred to small businesses as lifestyle activity (Kaplan, 2003). The use of the word lifestyle for 8 small business owners and/or managers at least hints a lesser importance for these small entities in the overall picture of economic development. This contrasting portrayal of gazelles or growth entrepreneurship versus mice or lifestylers demeans the legitimate role that small business plays in all economies. This pompous characterization of small business resonates in collegiate business schools where traditional small business management courses are almost extinct. Some of what was covered in these courses now finds its way into the curriculum labels titled “entrepreneurship”. A few scholars have attempted to examine distinctions between teaching small business management and entrepreneurship. Some of these potential distinctions are listed below: • • • • • • • growth goals (Brawer, 1998) capitalizing on new opportunities (Weaver & Solomon, 2003) ownership exit strategies family orientations expansion orientation (Wikland, Davidsson, Delmar, 2003) innovation/stability mix (Carland, et al., 1984) Critical Distinctions between Small Business and Entrepreneurship Carland, et al, (1984) suggest the critical factor distinguishing small business and entrepreneurial owners is innovation, with entrepreneurial types showing more innovative combination of resources to achieve a profit, while small business is focus on stability. 9 Table 4 Differentiating between a Small Business and an Entrepreneurial Venture Small Business Owner A small business owner is an individual who establishes and manages a business for the principal purpose of furthering personal goals. The business must be the primary source of income and will consume the majority of the individual’s time and resources. The owner perceives the business as an extension of his or her personality, intricately bound with family needs and desires. Entrepreneurship An entrepreneur is an individual who establishes and manages a business for the principal purpose of profit and growth. The entrepreneur is characterized principally by innovative behavior and will employ strategic management practices in the business. Small Business Venture A small business venture is any business that is independently owned and operated and not dominant in its field, and does not engage in any new marketing or innovative practices Entrepreneurial Venture An entrepreneurial venture is one that engages in at least one of Schumpeter’s four categories of behavior: that is, the principal goals of an entrepreneurial venture are profitability and growth and the business is characterized by innovative strategic practices. Source: Carland et al, 1984 Peter Drucker has gone so far as to say that most small businesses are incapable of being innovative and, therefore, are not run by entrepreneurs. His ideas appear based on the lack of resources available to most small firms. Jerry Katz in his textbook “Entrepreneurial Small Business” (Katz & Green, 2006) offers his views on what differentiates a small business from a high growth or entrepreneurial venture (Table 5). He postulates that small businesses owners are interested in control, financial independence and autonomy. They are less likely to plot growth strategies and are more interested in income generation rather than wealth creation. Basic management and marketing skills augmented with networking and resource management are foremost in the minds of the small business owner-manager. 10 The high growth venture entrepreneurs are fascinated by the birth and growth of their ideas. They want to create wealth, are highly innovative and creative and seek to form, where feasible, strategic alliances. Table 5 Differentiating between a Conventional Small Business and a High Growth (Entrepreneurial) Venture Conventional Small Business Imitation Autonomy Control as goal Financial Independence Fund with Your Own money Cash Flow as Key Cash Crunch? Tighten Belt Source: Katz and Green 2006 High Growth Ventures Novelty Involve Key Others Growth as Goal Wealth Fund with other peoples money Profit as key Crash Crunch? See More A preliminary differentiation defines small business and entrepreneurship based goals at founding. This includes: wealth creation potential, family concerns, job creation, and desired independence in the firm. This suggests that small business is initially concerned with income substitution with a reasonable return on capital, a desire for family participation or considerations, low (less than 20) job creation, and high independence and ownership control. The entrepreneurial model suggests significant wealth creation rather than salary lower family considerations, significant job creation potential, and a willingness to give up "control" to investors to grow the firm significantly. The Weaver-Solomon SB/E Differentiation Model This paper now turns its attention to (a) how to differentiate small business from entrepreneurship, and (b) the potential effects of this differentiation on curriculum and 11 pedagogy. A model is proposed to encapsulate this differentiation between small business and entrepreneurship (the SB/E Model). The previous research of Carland, et al, (1984), Gartner (1990) and Katz & Green (2006) and others have suggested ways of differentiating a small business owner-manager from an entrepreneur. Carland, et al, expanded upon their earlier work in 1984 and developed their conceptual continuum model in 1988 (Carland, et al, 1988). Table 6 Carland, et al, Conceptual Model Factor Personality Characteristics Managerial Style Preference for Innovation Small Business Venture Entrepreneurial Venture The conceptual model presented in Table 6 above was refined by Carland and Carland (1992) through survey research of business owners. This “entrepreneurial preferences” study indicated that there is a differentiation among these business owners that can help distinguish small business owners from entrepreneurs on the 1988 continuum. Carland and Carland concluded that the discovery and addition of more differentiating factors would enhance the differentiation power of their findings. In this regard, a Lumpkin & Dess (1996) study found that entrepreneurial propensity varied positively with goals of wealth and job creation, and negatively with family concerns and desire for independence. The more differentiating power that can be delineated then the easier it will be to distinguish between small business and entrepreneurship. This distinguishment can then be applied to curriculum and course 12 development. Based on the research cited in this paper, the Weaver-Solomon SM/E model includes both Carland continuum, but also the following descriptors that can be tested and used for developing research and teaching models. The descriptors include: 1. 3. 5. 7. 9. Personality characteristics Innovativeness Desire for job creation Desire for independence Desire for profits 2. 4. 6. 8. 10. Managerial Style Desire for wealth creation Desire for family involvement Desire for growth Risk Propensity Weaver and Solomon (2003) developed a basic model building on earlier research by Carland, et al, (1984) which examined entrepreneurial propensity. To illustrate the fluid nature of this phenomenon, Weaver & Solomon created a ten factor model to show the varying propensities between an entrepreneur and a small business owner-manager (Table 7). Table 7 Weaver-Solomon Conceptual Model of Entrepreneurial Propensity Factor Micro/Part-time Business Small Business Family Business Entrepreneurial Venture Personality Characteristics Managerial Style Innovativeness Desire for wealth creation Desire for job creation Desire for family involvement 13 Desire for independence Desire for growth Desire for profits Risk propensity The importance of the Weaver & Solomon model is that it shows a continuum on which the small business owner-manager and the entrepreneur exist in a similar but unique reality where both share, at times, similar characteristics and yet are different in their perceptions, motivations and needs. Entrepreneurship as King of the Hill How then can this help resolve the central tenet of this paper? Are We Teaching Small Business Management to Entrepreneurs And Entrepreneurship to Small Business Managers? As was mentioned earlier in this paper the alarming trend in entrepreneurship education is to slowly phase out or incorporate the teaching of small business management into an entrepreneurship curriculum. This incorporation/elimination process is occurring even though small businesses continue to be vital economic contributors in the United States and worldwide. According to the US Small Business Administration, the definitive source on small businesses, the majority of business entities in existence are small businesses. The Office of Advocacy defines a small business, for research purposes, as an independent business having fewer than 500 employees. But most small businesses employ fewer than 20 employees. College and university curricula have neglected these small firms in favor of focusing on large corporations. Now, this neglect of small business is being worsened by the elimination of small business courses. 14 As a relatively new academic discipline, the “new” entrepreneurship education is constantly dealing with issues that we have earlier raised in this paper, specifically, who is an entrepreneur, who is a small business owner-manager and can we differentiate them sufficiently to design courses to meet the needs of today’s student? Also, as we examine the current field of entrepreneurship education we again examine the central tenet of the paper “Are We Teaching Small Business Management to Entrepreneurs and Entrepreneurship to Small Business Managers? Entrepreneurship Education As we delve into the literature on entrepreneurship education, it would be helpful to define what we mean by “entrepreneurship education.” Colton, (as cited by Garavan and O'Cinneide 1994, p. 4), suggests: The major objectives of enterprise education are to develop enterprising people and inculcate an attitude of self-reliance using appropriate learning processes. Entrepreneurship education and training programs are aimed at stimulating entrepreneurship which may be defined as independent small business ownership or the development of opportunity-seeking managers within companies. Shepherd and Douglas (1997) are rather more specific: The essence of entrepreneurship is the ability to envision and chart a course for a new business venture by combining information from the functional disciplines and from the external environment in the context of the extraordinary uncertainty and ambiguity which faces a new business venture. It manifests itself in creative strategies, innovative tactics, uncanny perception of trends and market mood changes, courageous leadership when the way forward is not obvious and so on. What we teach in our entrepreneurship classes should serve to instill and enhance these abilities. It is evident that the courses suggested by Colton and by Shepherd & Douglas ignore any 15 differentiation between entrepreneurship and small business management course content. Number of Colleges and Universities offering Courses As indicated in Figure 1, the current number of colleges and universities offering small business management and entrepreneurship education programs has grown from one university in 1947 to over 1600 ( Solomon, et al, 2002, Solomon et al, 1994, Solomon and Fernald, 1991, Solomon, 1979 and Solomon and Sollosy, 1977). This growth has been nurtured in part by the explosion of entrepreneurial activities in the United States, the mythology generated by the popular press on the role of the entrepreneur and the aging “Baby Boomers” who during the turmoil of the 1960s, rebelled against the existing establishment thinking and embraced the counter cultural thinking which created an entrepreneurial climate. Figure 1 Number of Schools Offering Courses in Small Business Management and Entrepreneurship. (Solomon Studies) 1800 1600 16 Sourc Small Business Management and Entrepreneurship Courses: Differentiation? Unlike many specialized business courses, courses in both small business management and entrepreneurship focus on the total firm. These courses examine a breadth of business skills and knowledge that is the “closest approach to the original concept of professional management education offered at colleges and universities” (Zeithaml and Rice, 1987, p. 50). Both types of courses frequently provide students with opportunities to gain the knowledge and skills needed to generate a business concept, determine its feasibility, launch and operate a business, and develop exit strategies (Solomon, Weaver, and Fernald, Jr., 1994). Although small business management and entrepreneurship courses are closely related, there are also important conceptual differences between the two education types (Zeithaml and Rice, 1987; Solomon and Fernald, Jr., 1993). Small business management courses focus on achieving normal sales, profits and growth within an existing business. The traditional objective of small business management programs is to provide students with management know-how related to managing and operating small, post-startup companies including “setting goals and objectives, leading, planning, organizing and controlling from a small business perspective” (Solomon and Fernald, 1993, p.5). In contrast, entrepreneurship education focuses on originating and developing new growth ventures with an emphasis on high profitability, rapid growth, and expedient exit strategies (Solomon, et al., 1994, Kirby, 2003). Continued rapid growth in entrepreneurship courses offers some credibility for the assumption that skills relevant to successful entrepreneurship can be taught (Solomon and Fernald, 1991). In a study of entrepreneurial program graduates, Clark, et al, (1984) found 17 evidence to suggest that the teaching of entrepreneurial and small business management skills aided new venture creation and success. A survey of 100 chief executives in entrepreneurial firms found that respondents believed that “while personality traits are difficult to influence, the vast majority of knowledge required by entrepreneurs can be taught” (Hood and Young, 1993). Additional support for this view comes from a ten-year (1985-1994) literature review of enterprise, entrepreneurship and small business management education that reported “. most of the empirical studies surveyed indicated that entrepreneurship can be taught, or at least encouraged, by entrepreneurship education” (Gorman, Hanlon & King, 1997, p. 63). Given the relationship between entrepreneurial activity and economic development and the widely accepted notion that entrepreneurial ventures are the key to innovation, productivity and effective competition (Plaschka and Welsch, 1990), the question of whether entrepreneurship can be taught is moot. Ronstadt (1987) posed the more relevant question regarding entrepreneurial education: what should be taught and how should it be taught? Trends in Entrepreneurship Education: Where Have We Been? As the field of small business management and entrepreneurship education grows in terms of courses, degrees and concentrations offered one needs to not only examine the various pedagogical issues that this presents, but analyze the textbooks and materials being used and what implication this has for the field and those teaching. Leading publishers of textbooks were contacted to provide a list of the most popular, in terms of book adoptions at two and four-year colleges and universities, in both small business management and entrepreneurship. The purpose was to examine and conduct content analysis on the proverbial road maps 18 used by educators and students to understand and apply the salient theories and concepts of small business management and entrepreneurship. Based on this, copies of the leading six textbooks in small business management and entrepreneurship were obtained. Content analysis was conducted to ascertain what topical chapters were presented in the textbooks and whether there was any consistency in terms of topics presented among the authors and the textbooks. The results of the content analysis are displayed in Tables 8 and 9. Content Analysis of Current Texts in Small Business and Entrepreneurship As shown in Table 8, for the small business management texts examined, of all the topics chapters presented, the most frequently cited (see total ‘6’ column) topical chapters were: The Business Plan, Organizing and Selecting the Legal Form of Operation, Inventory Control/Operations Management, Accounting/ Financial Management & Recordkeeping, Financial Analysis (Cash Flow, Planning for Profit), Location, Human Resource Management and Marketing Plan. _____________________________________________________________________ Insert Table 8 here _____________________________________________________________________ In addition, of all the topical chapters presented, the most frequently (see total ‘6’ column) cited chapters were: Pricing, Promotion, and The Role of Small Business in the Economy, Start, Buy or Exit Strategies for a Small Business, Franchising and Business Law and Legal Issues. As one can see, the authors took an endogenous viewpoint believing that the students and potential small business owners were interested in, and needed to know, the operational 19 issues of starting, managing and in some cases, growing a small business. Growth or wealth creation was secondary to stability and sound management practices. Traditionally, small business owner-managers are focused on the day-to-day issues affecting the viability and survival of the business. Creativity and innovation, growth, and market expansion are not topics of concern to individuals starting out in their small business. As such, setting up and managing a small business is critical and contributes to the likelihood of long term viability and success in the business. A recent study by the US Small Business Administration’s Office of Advocacy shows that, two-thirds of new employer establishments survive at least two years, and 44 percent survive at least four years. Major factors in a firm’s remaining open include an ample supply of capital, being large enough to have employees, the owner’s education level, and the owner's reason for starting the firm in the first place, such as freedom for family life or wanting to be one’s own boss (Sources: Knaup, 2005, Headd, 2003). It is interesting to note that with this dynamic flux of new starts and failures/discontinuances of almost 56 percent of businesses there is little treatment in the textbooks regarding closing one’s business with dignity and integrity. In fact, according to the US Small Business Administration’s Office of Advocacy (http://www.sba.gov/advo/stats/ sbfaq.pdf) almost 80 percent of all small businesses are proprietorships. As such the need for a business plan to manage the business and/or secure external funding is probably non-existent. Yet one of the most frequently included text chapters dealt with creating a business plan. In fact, no treatment of government laws and regulations impacting small business is addressed. Also, one needs to examine the pedagogical approaches to educating tomorrow’s small business owner-mangers to the dilemmas facing them as they often struggle to survive and 20 hopefully grow. In summary, the textbooks and authors of the more popular small business management texts were in agreement on the topical coverage and main points. As shown in Table 9, for entrepreneurship texts, the topical chapters most frequently cited (see total ‘6’ column) included but were not limited to: Business Plan, and Sources of Capital. An additional four topical chapters were covered by five out of the six texts reviewed. They were: The Financial Plan: Recognizing and Creating Opportunities, Industry Analysis/Feasibility Analysis and Venture Capital. _____________________________________________________________________ Insert Table 9 here _____________________________________________________________________ As one can see, the authors believe that the students and potential entrepreneurs interested in entrepreneurship issues would be more focused on the business plan, securing capital, some treatment of creating and identifying opportunities, and an analysis of the external factors impacting the firm, including legal and marketing factors. Unlike the small business management text, growth or wealth creation is important but the various popular authors cannot agree in large part on a consistent curriculum or text coverage. Some authors even include family business and legal issues as well as a whole host of topics. Where is the discussion on creativity and innovation? Where is the coherent paradigm showing the full range of this phenomenon? As shown in Table 10 below, a comparison of the most frequently cited (see total column 6) and frequently cited (see total column 5) topical chapters in small business management and entrepreneurship yield some interesting trends. In the case of small business texts, authors universally agree on five or more texts presenting these topical chapters, in about fourteen topical chapters. The focus of these chapters is internally directed primarily on starting and 21 managing a small business. In comparison, entrepreneurship texts and authors only universally agree on, five or more texts presenting these topical chapters, in about six topical chapters. There is wide diversity of subject matter coverage. The disparity in consistency only leads to more fragmentation of the field of entrepreneurship education. _____________________________________________________________________ Insert Table 10 here _____________________________________________________________________ Although small business owner-managers and entrepreneurs may in fact have motives and desires, authors of both small business management and entrepreneurship cover similar topics such as business plans, financial planning, marketing issues, and legal issues. Unfortunately, the similarity of topical coverage seems to indicate that there is less agreement among scholars, teachers, and more importantly, authors of entrepreneurship texts as to the basic cornerstones of the field and what entrepreneurs and students of entrepreneurship need to know in order to have a firm grasp of the essential knowledge core needed to succeed in an entrepreneurial venture. So what does this all mean? Small business is a vital economic force woven into the fabric of America’s economic system and is the engine of the American economy. The majority of the 25 million plus businesses in the United States are classified as small businesses according to the US Small Business Administration. Dr. David Birch, in his book Job Generation, (Birch, 1987) indicated that on the one hand, most small businesses are focused on income generation or mice as he labeled them. While on the other hand, a small percentage of small businesses are focused on wealth creation or as Birch labeled them gazelles. An economy based on a multitude of small 22 businesses creates the foundation for the economic environment supportive of entrepreneurial pursuits. This synergy of small business and entrepreneurial ventures nurtures the development of creative and innovative business opportunities and sustainable growth. The study and the teaching of small business is vital to the economic growth and stability of any free market system and the cornerstone of democracy. Learning how to properly start, manage and, in some cases, grow small businesses provides the next generation of small business owner-managers with the knowledge, skills and tools needed to succeed. Today’s small business management textbooks, for the most part, focus on the internal factors that affect the sustainability and viability of small businesses. A review of the various textbooks examined for this paper indicated that some topics are absent or lightly treated. Among these topics are: the impact of public policies on small businesses and how they respond and react to them, how to deal with failure or terminating the business with dignity, franchising, self-employment and home based businesses. In reviewing the titles and contents of the six small business management textbooks, there was general agreement on what to teach, although three of the textbooks, Longenecker et al Small Business Management: An Entrepreneurial Emphasis, Katz Entrepreneurial Small Business and Scarborough & Zimmerer Effective Small Business Management: An Entrepreneurial Approach seem to include discussion of various entrepreneurial concepts or integrate entrepreneurial focus in the book title. In some regards they are straddling the fence between small business management and entrepreneurship. As a result of this duality, one is left to ponder the following issues. Do the authors or publishers believe that their books will sell better by integrating or implying entrepreneurial content in their books? Pedagogically, small business management educators need to ensure that the knowledge 23 disseminated and evaluation criteria employed in the classroom is consistent with the phenomenon surrounding small business ownership. They should focus on case analysis, development of real-live cases and provide student based consulting projects to their students. They should invite guest speakers to tell both their successes and failures invite local accountants and bankers who interact daily with small business owner-managers. They should conduct more in depth discussions into alternative start-up strategies such as franchising, self employment and home-based businesses. Finally, they should explore the creation of web-based businesses as this is a growing .trend among small business start-ups. In short, there is a need to create a learning environment which mirrors the living environment within which small businesses struggle to survive and grow As for entrepreneurial education, lets start by defining the who, what, where, when and how. As stated earlier in the paper, there are divergent opinions and views as to who these entrepreneurs really are. Some individuals indicate that entrepreneurs start ventures, generally on a small scale; others claim that entrepreneurs focus on controlling their destiny that they are creative and innovative, and still others talk about entrepreneurs as individuals dealing with ambiguity, marshalling resources, creating teams and generating wealth, and finally, there are some who believe that entrepreneurs are mostly involved with growth and high growth ventures. This spectrum of views can be seen in the lack of consistent subject coverage among the six textbooks reviewed. Therefore, if we cannot universally agree on the identity of entrepreneurs, then why would anyone believe that we could agree on the teaching of the entrepreneurial phenomenon? To define the what of entrepreneurship one needs to look at the phenomena of entrepreneurial processes. Are they only involved in new business creation? Do they examine 24 the individual and the process or just the process? More importantly, do they deal with the endogenous and exogenous factors affecting the entrepreneurial event? As to the where, does the entrepreneurial event only occur when a new venture is created? Doesn’t the literature talk about corporate entrepreneurship? What about Apple’s introduction of the iPod? Should we not study organizational entrepreneurs and their triumphs and tragedies with new ideas, new products, and new systems? Because entrepreneurship is at its core, is a process, constantly evolving, the when is yesterday, today and tomorrow. It is a never ending activity always changing and adapting to the environment. In some respects it is a growing entity whose life cycle is defined by the individuals involved in the process. How one becomes an entrepreneur is unclear to most scholars. Some indicate that entrepreneurs are born, that it is in their DNA. If that was the case, then teaching entrepreneurship should be limited to those passing a specific blood test. Others believe that everyone has an ember of entrepreneurial behavior within them and some significant emotional event, as defined by the individual, triggers that ember to grow and become what many entrepreneurs have stated in interviews as having “Fire in the Gut.” So where does that leave entrepreneurship educators? The field must agree upon what topical treatments are consistent with the literature. For example, discussing franchising from the point of view of the franchisee fails to understand the entrepreneur and the relationship to the franchisor. Therefore, one should examine growth strategies that include franchising to expand markets and grow the business. We need to examine the process of entrepreneurship as more than that just a single act. We need to devote considerable time and subject coverage to both entrepreneurial intentions and opportunity recognition. Successful entrepreneurs seemingly have 25 mastered the ability to marshal and direct various resources toward an accomplishing a set of defined goals. Entrepreneurship educators need to devote more time to marketing, creativity and innovation and less time to just creating business plans. One should consider integrating concepts and theories presented in the fine arts, drama and the engineering department. Create an entrepreneurial environment in the classroom. Some educators based the entire grade on the successful implementation of a business, idea, concept or process. Growth issues, interface with external forces, developing a management team, are all significant factors in understanding the entrepreneurial process. Creation of a universally accepted paradigm may allow greater clarity in the teaching of entrepreneurship. In reviewing the titles and contents of the six entrepreneurship textbooks, there was a lack of general agreement on what to teach, although all six of the of the textbooks, included a discussion of The Business Plan, Sources of Capital, The Financial Plan, Recognizing and Creating Opportunities, Industry and or Feasibility Analysis and Venture Capital. The remaining topics covered a wide spectrum of concepts and theories. If the authors of the leading textbooks cannot generally agree on more than six topical chapters how can the field reconcile their diverse views of the entrepreneurial reality? Pedagogically, entrepreneurial educators need to ensure that the knowledge disseminated and evaluation criteria employed in the classroom is consistent with the phenomenon surrounding the entrepreneurial process. They should focus on integrating the classroom with the reality confronting entrepreneurs daily. Visit and/or interview entrepreneurs using a structured interview guide. Create, possibly in cooperation of the drama, fine arts departments, activities and exercises to realize the full potential of entrepreneurial students. In essence, entrepreneurship educators should take a cue from both the Coleman and Kauffman 26 Foundations’ recent support of “cross-campus” initiatives. They should integrate the subject matter with a discussion of technology. They should interact with the engineering, and medical schools if they are on campus. They should invite entrepreneurs to tell both their successes and failures invite local accountants and bankers who interact daily with entrepreneurs. They should focus on the process of converting good ideas into viable business opportunities. They should examine the process of building a sound entrepreneurial team. Finally, as with small business management educators, they should explore the creation of web-based businesses as this is a growing .trend among entrepreneurial start-ups. In short, there is a need to create a learning environment which mirrors the living environment within which entrepreneurs and entrepreneurial ventures exist. A further in depth pedagogical discussion appears in Appendix A. Conclusion Recently, the Vice President of the United States delivered some remarks at the swearing in of the US Small Business Administration’s new Administrator Steve Preston. He said, “Americans are, by nature, an entrepreneurial people -- and we have filled a continental nation with small firms that create the majority of our economy's new jobs and export their products to the world. The incredible strength, vibrancy, and flexibility of our economy spring from the creative gifts of men and women striving in freedom. So every step that government takes to encourage free enterprise adds not just to the wealth of our society, but also to its character.” He went on to say, “You're helping to make possible the investment and enterprise that generates jobs, strengthens communities, and improves the lives of your fellow citizens. Whether it's aiding an inventor as he turns out a new idea, or coming up to help a shop owner rebuild after a natural disaster.” 27 Clearly small businesses and entrepreneurial ventures are important not only to the US economy, but the global economic. As educators, we have a responsibility and duty to ensure that we presented and provide pertinent and germane knowledge to the treatment of small business management and entrepreneurship. In some regards these individuals and phenomena under investigation exhibit similar characteristics at inception but gradually their differences become apparent and we, as educators, should ensure that we provide the learning environment consistent with what we profess to teach. 28 Table 8 Small Business Textbooks and Topics Author(s) Title of Book/.Chapters Small Business Management: A Framework for Success Bamford & Bruton (2005) Effective Small Business Management: An Entrepreneurial Approach Scarborough & Zimmerer (2003) 1 1 Entrepreneurial Small Business Katz and Green (2006) Small Business Management Entrepreneurship and Beyond Hatten (2005) Small Business Management: An Entrepreneurial Emphasis Longenecker, Moore & Perry (2003) 1 1 Effective Small Business Management Hodgetts & Kuratko (2001) Total Across All Six Textbooks The Business Plan Organizing and Selecting the Legal Form of Operation Inventory Control/Operations Management Accounting, Financial Management. and Recordkeeping Financial Analysis (Cash Flow, Profit Planning) Location Human Resource Management Marketing & Marketing Plans Pricing Promotion Role of Small Business or Owner in Economy Start ,Buy or Exit a Business 1 1 1 1 1 1 1 1 6 6 1 1 1 1 1 1 6 1 1 1 1 1 1 6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 6 6 1 1 1 1 6 5 5 5 1 1 1 1 1 1 5 29 Table 8 Small Business Textbooks and Topics Author(s) Title of Book/.Chapters Small Business Management: A Framework for Success Bamford & Bruton (2005) Effective Small Business Management: An Entrepreneurial Approach Scarborough & Zimmerer (2003) 1 1 1 Entrepreneurial Small Business Katz and Green (2006) Small Business Management Entrepreneurship and Beyond Hatten (2005) Small Business Management: An Entrepreneurial Emphasis Longenecker, Moore & Perry (2003) 1 Effective Small Business Management Hodgetts & Kuratko (2001) Total Across All Six Textbooks Franchising Business Law & Legal Issues Affecting a Small Business International Opportunities Risk Management/Insuran ce Family Business Technology, Computers & Small Businesses Business Idea Generation Ethics and Social Responsibility External Analysis Professional Management Characteristics of Small Business Entrepreneur Part-Time Entrepreneurship Full-Time Entrepreneurship Small Business Strategies 1 1 1 1 1 1 5 5 1 1 1 1 1 1 4 1 1 1 1 1 1 3 3 2 1 1 2 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 30 Key = 6 Included in all Textbook as a topical chapter, 5= Most Frequently Included as a Topical Chapter; 4 = Frequently Included as a Topical Chapter; 3= Generally Included as a Topical Chapter Table 9 Entrepreneurship Textbooks and Topics Title of Book Author(s) Year/ Chapter Subjects Launching New Venture Kathy Allen (2006) Entrepreneurship: A Contemporary Approach Kuratko and Hodgetts (2006) Entrepreneurship Hisrich, Peters & Shepherd (2006) Entrepreneurship: Successfully launching new ventures Barringer & Ireland (2005) Entrepreneurship: Strategies and Resources Marc Dollinger (2003) New Venture Creation: Entrepreneurship for the 21st Century Timmons & Spinelli (2006) Total Across All Six Textbooks Business Plan Sources of Capital The Financial Plan Recognizing and Creating Opportunities Industry and or Feasibility Analysis Venture Capital The Marketing Plan/Issues Understanding the Nature and Importance of Entrepreneurs and the Entrepreneurial Process Analyzing Structure-Legal Risks and Issues Business Law & 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 1 6 1 5 1 1 1 1 1 1 1 1 1 1 5 1 1 1 1 5 1 5 4 1 1 4 1 1 1 1 1 1 1 1 4 4 31 Table 9 Entrepreneurship Textbooks and Topics Title of Book Author(s) Year/ Chapter Subjects Launching New Venture Kathy Allen (2006) Entrepreneurship: A Contemporary Approach Kuratko and Hodgetts (2006) Entrepreneurship Hisrich, Peters & Shepherd (2006) Entrepreneurship: Successfully launching new ventures Barringer & Ireland (2005) Entrepreneurship: Strategies and Resources Marc Dollinger (2003) New Venture Creation: Entrepreneurship for the 21st Century Timmons & Spinelli (2006) Total Across All Six Textbooks legal Issues Affecting a Small Business Ethics and Social Responsibility Entrepreneurial and Intrapreneurial Mind Impact of Entrepreneurship The Founding and/or Venture Team Planning& Managing Strategies for Growth Developing a Business Model Entrepreneurial Revolution Family Business Franchising Evolutionary Development of Entrepreneurship Creativity and Innovation Individual Entrepreneur International Entrepreneurial Opportunities 1 1 1 1 1 1 1 4 3 1 1 1 1 1 1 1 1 1 1 3 3 3 1 1 1 1 1 1 1 2 2 2 2 1 1 1 1 1 1 1 1 32 Table 9 Entrepreneurship Textbooks and Topics Title of Book Author(s) Year/ Chapter Subjects Launching New Venture Kathy Allen (2006) Entrepreneurship: A Contemporary Approach Kuratko and Hodgetts (2006) Entrepreneurship Hisrich, Peters & Shepherd (2006) Entrepreneurship: Successfully launching new ventures Barringer & Ireland (2005) Entrepreneurship: Strategies and Resources Marc Dollinger (2003) New Venture Creation: Entrepreneurship for the 21st Century Timmons & Spinelli (2006) Total Across All Six Textbooks The Operational Plan Products and Services Producing and Analyzing Intellectual Property Discussion on Theory of Entrepreneurship Planning for Change Technology/Comput ers and Small Business Valuation of a venture Entrepreneurial Manager The Deal Harvesting a Venture The Entrepreneur and the Troubled Company Resource Requirements Screening Opportunities 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 33 Key = 6 Included in all Textbook as a topical chapter, 5= Most Frequently Included as a Topical Chapter; 4 = Frequently Included as a Topical Chapter; 3= Generally Included as a Topical Chapter 34 Table 10 A Rank Order of the Most Frequently and Frequently Cited Small Business Textbook Chapter Topics Versus Entrepreneurship Textbook Chapter Topics Small Business Textbook Chapter Topics The Business Plan Organizing and Selecting the Legal Form of Operation Inventory Control/Operations Management Accounting, Financial Management. & Recordkeeping Financial Analysis (Cash Flow, Profit Planning) Location Human Resource Management Marketing & Marketing Plans Pricing Promotion Role of Small Business or Owner in Economy Start ,Buy or Exit a Business Franchising Business Law & Legal Issues Affecting a Small Business International Opportunities Entrepreneurship Textbook Chapter Topics 6 6 6 6 6 6 6 6 5 5 5 5 5 5 4 Industry and or Feasibility Analysis Venture Capital The Marketing Plan/Issues Understanding the Nature and Importance of Entrepreneurs and the Entrepreneurial Process Analyzing Structure-Legal Risks and Issues Business Law & Legal Issues Affecting a Small Business Ethics and Social Responsibility The Financial Plan Recognizing and Creating Opportunities Business Plan Sources of Capital 6 6 5 5 5 5 4 4 4 4 4 Key 6= Most Frequently Included as a Topical Chapter; 5 = Frequently Included as a Topical Chapter; 4= Generally Included as a Topical Chapter 35 References Ahiarah, S. 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Monroy and J. Reichert. Berea, CA, Monroy Educational Systems, Inc. 1: 9-13. Brawer F.B. (1998). Academic Entrepreneurship in Higher Education. Kauffman Center for Entrpreneurial Leadership Clearinghouse on Entrepreneurship Education, 98-3 September, pp.1-3. Brush, C., J. et al. (1995). Perceived value of entrepreneurship course content and pedagogy. National Small Business Consulting Conference Small Business Institute Director's Association (SPIDA), Nashville, TN. Carland, J. W. and J. C. Carland (1997). Entrerpreneurship education: An integrated approach using an experiential learning paradigm. Conference Internationalizing Entrepreneurship Education and Training, IntEnt97, Monterey Bay, CA. Carland, J.A. and Carland, J.W. (1992) Managers, Small Business Owners and Entrepreneurs: The Cognitive Dimension. Journal of Business and Entrepreneurship, 4(2), July, p55. Carland et al (1988) An Empirical Investigation into the Distinctions between Entrepreneurial and Small Business Ventures. International Journal of Management, Vol. 5, pp.98. Carland, J. et al (1984) Differentiating Entrepreneurs from Small Business Owners: A Conceptualization. Academy of Management Review, 9 (2), pp.354-359. Carroll, J. J. (1993). Course and curriculum design in developing and changing nations: Problems following the U.S. model. Proceedings of the International Council for Small Business, Las Vegas, NV, 254-263. Charney, A. & G Libecap. (2000). Impact of Entrepreneurship Education. Insights: A Kauffman Research Series. Kauffman Center for Entrepreneurial Leadership. Clark. B. W., Davis, C. H. & Harnish, V. C. (1984). Do courses in entrepreneurship aid in new venture creation? Journal of Small Business Management, 2, 26-31. Davis, C., Hills, G. E. & LaForge, R. W. (1985). The marketing/small enterprise paradox: A research agenda. International Small Business Journal, 3, 31-42. DeTienne, D. R. and G. N. Chandler (2004). "Opportunity identification and its role in the entrepreneurial classroom: A pedagogical approach and empirical test." Academy of Management Learning and Education 3(3): 242-257. Donckels, R. (1991). Education and entrepreneurship experiences from secondary and university education in Belgium. Journal of Small Business and Entrepreneurship, 9(1), 35-42. 36 Garavan, T. N. and B. O'Cinneide (1994). "Entrepreneurship education and training programmes: A review and evaluation - Part 2." Journal of European Industrial Training 18(11): 13-22. Gartner, W. B. (1988). ""Who is an entrepreneur" is the wrong question." American Journal of Small Business 12(4): 11-32. Gartner, W., (1990) “What are we talking about when we talk about entrepreneurship?”Journal of Business Venturing, Volume 5,Issue.1, pp.15-28. Gartner, W. B. and K. H. Vesper (1994). "Experiments in entrepreneurship education: Successes and failures." Journal of Business Venturing 9(3): 179-187. Gibb,A. (1993) The enterprise culture and education. International Small Business Journal, 11(3), pp. 11-34. Gregiore, D et.al. (2006) Is There Conceptual Convergence in Entrepreneurship Research? A Co-Citation Analysis of Frontiers of Entrepreneurship Research, 1981–2004 Entrepreneurship Theory and Practice, Volume 30, Issue 3 pp. 333-373 Gross, D. (2005) “Schumpeter's Legacy? Interaction and Emotions in the Sociology of Entrepreneurship” Entrepreneurship Theory and Practice, Volume 29, Issue 2, pp 205218 Headd, Brain, (2003) Redefining Business Success: Distinguishing Between Closure and Failure" Small Business Economics, Volume 21, Number 1 (August 2003), pp. 51-61. Hills, G. E. (1988). "Variations in university entrepreneurship education: An empirical study of an evolving field." Journal of Business Venturing 3(2): 109-122. Hisrich, R. D. (1992). Toward an organization model for entrepreneurship education. Conference Internationalizing Entrepreneurship Education and Training, Dortmund, Germany. Hood, J. N. and J. E. Young (1993). "Entrepreneurship's requisite areas of development: A survey of top executives and successful entrepreneurial firms." Journal of Business Venturing 8: 115-135. Kaplan, J. (2003) Patterns of Entrepreneurship. United States of America, John Wiley & Sons, Inc., pp. 10-11. Katz, J.A. 2003. The Chronology and Intellectual Trajectory of American Entrepreneurship Education. Journal of Business Venturing 18(2) 283-300 Katz, J. A. and R. P. Green, II (1996). "Academic resources for entrepreneurship education." Simulation & Gaming 27(3): 365-374. Kilby, P. (1976). Hunting the heffalump., Entrepreneurship & Economic Development N. Y. Free Press, pp.1- 25 Kirby, D. A. (2003). Entrepreneurship education: Can business schools meet the challenge? IntEnt03. Knaup. Amy, E (2005). "Survival and Longevity in the Business Employment Dynamics Database" Monthly Labor Review, Volume 128, Number 5 (May 2005), pp. 50-6; Kuratko, D. F. (2003). Entrepreneurship education: Emerging trends and challenges for the 21st Century, U.S. Association of Small Business & Entrepreneurship. Lumpkin, G. T. and G. G. Dess (1996). "Clarifying the entrepreneurial orientation construct and linking it to performance." The Academy of Management Review 21(1): 135-173. Meyer, G.D. 2001. Major Unresolved Issues and Opportunities in Entreprenurship Education. Coleman White Paper (USASBE National Conference, February 2001) Plaschka, G. R. and H. P. Welsch (1990). "Emerging structures in entrepreneurship education: Curricular designs and strategies." Entrepreneurship Theory and Practice 14(3): 55-71. 37 Porter, L. W. (1994). "The relation of entrepreneurship education to business education." Simulation & Gaming 25(3): 416-419. Porter, L. W. & McKibbin, L. E. (1988). Management Education: Drift or Thrust into the 21st Century? New York: McGraw-Hill. Robinson, P. & Hayes, M. (1991). Entrepreneurship education in America’s major universities. Entrepreneurship Theory and Practice, 15(3), 41-52. Ronstadt, R. (1990). The educated entrepreneurs: A new era of entrepreneurial education evolves. In C.A. Kent (Ed.) Entrepreneurship Education, New York: Quorum Books, pp. 69-88. Schumpeter, J. A. (1934). The creative response in economic history. Essays on Entrepreneurs, Innovations, Business Cycles, and the Evolution of Capitalism. R. V. Clemence. New Brunswick, Transaction Publishers: 221-231. Shane, S. and J. Eckhardt (2003). The individual-opportunity nexus. Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction. Z. J. Acs and D. B. Audretsch. Boston, Kluwer Academic Publishers: 161-191. Shepherd, D. A. and E. J. Douglas (1997). Is management education developing, or killing, the entrepreneurial spirit? United States Association for Small Business and Entrepreneurship Conference, San Francisco, CA. Solomon, G. T., S. Duffy, et al. (2002). "The state of entrepreneurship education in the United States: A nationwide survey and analysis." International Journal of Entrepreneurship Education 1(1): 65-86. Solomon, G. T., E. K. Winslow, et al. (1998). Entrepreneurial education in the United States: An empirical review of the past twenty years. International Council for Small Business (ICSB) Conference. Solomon, G. T. Weaver, K., M. & Fernald, L. W., Jr. (1994). Pedagogical Methods of Teaching Entrepreneurship: An Historical Perspective. Gaming and Simulation, Volume 25 Number 3, 67-79 Solomon, G. T., L. W. Fernald, et al. (1993). Trends in small business management and entrepreneurship education in the United States: An update. International Council for Small Business (ICSB) Conference, Las Vegas, NV. Solomon, G. T., & Fernald, L. W., Jr. (1991). Trends in small business management and entrepreneurship education in the United States. Entrepreneurship Theory and Practice, 15(3), 25-40. Solomon, G. T. and E. K. Winslow (1988). "Toward a descriptive profile of the entrepreneur." Journal of Creative Behavior 22(3): 162-171. Solomon, G. T. (1988). Small Business Management and Entrepreneurial Education in America: A National Survey Overview. Journal of Private Enterprise, November, 1988. 109-118 Vesper, K. and Gartner, W. (1997) Measuring Progress in Entrepreneurship Education. Journal of Business Venturing, Vol. 12, pp.403-421. Vesper, K. H. (1993). Content of entrepreneurship courses versus needs of entrepreneurs. Conference Internationalizing Entrepreneurship Education and Training, Dortmund, Germany. Weaver, K.,M, and Solomon, G.T. “Are We Teaching Entrepreneurship to Small Businesses and Small Business to Entrepreneurs?” Proceedings: 48th Conference of the International Council for Small Business Belfast, Northern Ireland, June, 2003 Wiklund, J. Davidsson, P. & Delmar, F. (2003) What Do They Think and Feel about Growth? 38 An Expectancy-Value Approach to Small Business Managers’ Attitudes Toward Growth. Entrepreneurship Theory and Practice, Spring, pp.247-270. Zeithaml, C. P. & Rice, G. H. (1987). Entrepreneurship/small business education in American universities. Journal of Small Business Management, 25(1), 44-50. Textbooks (Used for the content analysis) Allen, Kathleen Launching New Ventures: An Entrepreneurial Approach 4th Ed. (Houghton Mifflin Company, 2006) Bamford, Charles and Bruton, Gary (2005) Small Business Management: A Framework for Success, (South-Western Division of Thomson Learning). Barringner, Bruce and Ireland, Duane (2005). Entrepreneurship: Successfully Launching New Ventures. ( Pearson- Prentice-Hall) Dollinger, Marc J. Entrepreneurship: Strategies and Resources, 3rd edition, (Pearson Education, Inc., 2003) Hatten, Timothy. Small Business Management, 3rd edition, (Houghton Mifflin Company, 2005) Hisrich, Robert, Peters, Michael P. and Shepherd Dean (2006). Entrepreneurship, 6th edition (McGraw-Hill Companies) Katz, J. and Green, Richard. (2006) Entrepreneurial Small Business, (McGraw-Hill Companies) Kuratko, Donald H. and Richard M. Hodgetts (2006). Entrepreneurship: A Contemporary Approach. (South-Western Division of Thomson Learning,) Longnecker, Justin G., Carlos W. Moore and J. William Petty (2003). Small Business Management: An Entrepreneurial Emphasis, 12th edition. (South-Western Division of Thomson Learning) Scarborough, Norman and Thomas W. Zimmerer (2006). Effective Small Business Management, (Pearson-Prentice-Hall Inc.) Timmons, Jeffry A.and Spinelli, Stephen , New Venture Creation: Entrepreneurship for the 21st Century, 5th edition, (Irwin/McGraw-Hill, 2006). Zimmerer, Thomas W. and Norman Scarborough. Essential of Entrepreneurship and Small Business, 3rd edition (Pearson Education Inc., 2002) 39 Appendix A Courses and Pedagogies The data in Table 11 shows an historical trend from 1979 to 2003. Studies undertaken by Solomon (Solomon, et al, 2002, Solomon et al, 1994, Solomon and Fernald, 1991, Solomon, 1979 and Solomon and Sollosy, 1977) not only examined the growth of courses, seminars and degrees, but also, which pedagogies were being used in the classroom and to what degree they employed innovative and experiential approaches in the teaching of both small business management and entrepreneurship. Where Are We Now? Selected data collected from the 2003 National Survey of Entrepreneurship Education and sponsored by the Kauffman Foundation is displayed in Tables 12, 13 and 14 to show the current state of small business management and entrepreneurship education. Table 12 displays the data on the diversity of course offering. Often students are unclear as to what differentiates a course in entrepreneurship from new venture and small business management. Finally, there is still a high demand for both small business management related courses and entrepreneurial education courses. 40 TABLE 11 Small Business Management and Entrepreneurial Education Programs and Major Project Assignments 1979-2003 Year of the Study 1979 N=263 2 Year 4 Year 1982 N=262 2 Year 4 Year 1986 N=414 2 Year 4 Year 1992 N=470 2 Year 4 Year 1997 N=210 2 Year 4 Year 2000 N=225 2 Year 4 Year 2 Year 2003 N=279 4 Year Course, Concentrations, Degrees and Seminars* Credit Courses Certificates/ Seminars Degrees Concentrations 167 8 NA NA 154 6 NA NA 185 75 NA NA 176 51 NA NA 274 68 NA NA 385 94 NA NA 197 72 NA NA 634 143 NA NA 112 39 32 89 211 86 22 78 116 41 46 133 202 92 27 88 47 28 29 23 283 175 171 251 Major Projects, Tests and Experiential Learning Activities** Tests Business Plans Cases Consult Small Businesses (SBI) Interview Entrepreneurs Simulations Individual Projects Group Projects Other Key = 86 32 36 0 6 3 8 4 24 13 14 13 10 0 4 13 9 16 76 27 50 1 3 5 11 9 24 67 54 41 40 2 9 18 11 43 145 73 27 2 2 10 12 8 31 138 113 73 67 8 18 35 22 37 83 33 64 2 8 16 11 4 81 206 173 120 195 14 17 33 29 70 75 46 40 9 30 NA 10 NA NA 92 112 94 46 65 NA 88 NA NA 80 51 46 11 36 NA 19 NA NA 108 129 107 50 78 NA 116 NA NA NA 85 50 20 NA 4 40 20 15 NA 159 167 36 NA 36 100 150 25 *Responding Colleges and Universities may have offered multiple choices to students - Course, Concentrations, Degrees and Seminars ** Multiple Pedagogies used by professors Source: Solomon, 2002, 2000, 1997, 1991, 1986, 1982 and 1979 41 As indicated earlier in the paper, entrepreneurial firms (gazelles) only exist if there is a strong presence of small businesses (mice). One cannot exist without the other so the teaching of this economic force of small entrepreneurial ventures requires a robust treatment of both economic entities -- the small business and the entrepreneurial firm. The data in Table 12 indicates that among the most popular course offerings are in small business management (36%), small business finance (20%) and small business consulting (18%). Table 12 Course Offerings 2004-2005 Academic Year Types of Courses Offered Entrepreneurship Small Business Management New Venture Creation Small Business Finance Small Business Consulting Entrepreneurial Marketing Technology/Innov ation New Product Dev elopment Venture Capital Creativ ity Small Business Strategy Seminar Franchising 53 36 30 20 18 16 16 14 12 9 9 4 0 10 20 30 Percent of Respondents 40 50 60 Total respondents: 279 Source: Solomon, 2003 As for entrepreneurship course offerings, entrepreneurship leads with (53%) followed by Entrepreneurial Marketing (16%), Venture Capital (12%) and Creativity (9%). Finally courses that could be for those contemplating either a small business or entrepreneurial venture included 42 New Venture Creation (30%), Technology/Innovation (16%), New Product Development (14%) and Franchising (4%). As you can see, some courses are specific for small business ownership (income generation) others are more focused on entrepreneurial ventures (wealth creation) and some are for either. The entrepreneurial/small business experience can be characterized as being chaotic and ill-defined, and entrepreneurship education pedagogies appear to reflect this characterization. In addition, we often make the assumption that it is relatively easy for small business management and entrepreneurship education students to develop new ideas for their business start-ups. Table 10 displays the data on the various pedagogies used in the classroom. Table 13 Pedagogies 2004-2005 Academic Year Most Popular Teaching Methods Discussions Business Plans Guest Speakers Case Studies Lectures by business owners Research Projects Feasibility Studies Internships In class exercises On-site visits Small Business Institute (SBI) Computer Simulations 0 10 13 13 20 30 40 50 60 70 23 32 32 37 37 52 50 48 57 60 Percent of Respondents Total respondents: 279 Source: Solomon, 2003 The data in Table 13 indicates that the most popular type of teaching method in 43 entrepreneurship courses/curriculum offered by two and four-year colleges and universities was: Class Discussion (60%), Creation of Business Plans (57%), followed by Guest Speakers (52%), Case Studies (50%) and then Lectures by Business Owners (48%), Research Projects (37%), Feasibility Studies(37%), Internships (32%), In Class Exercises (32%), On-Site Visits (23%), Small Business Institute (SBI) (13%) and Computer Simulations (13%). A review of these pedagogies indicate that most are passive in learning and do not address a number of prevalent issues and characteristics of both the small business ownermanager and the entrepreneur. There are no pedagogies that require interaction with the entrepreneur such as interviewing entrepreneurs and owner-managers to distinguish their various motives and needs. There is no examination of opportunity recognition such as requiring an environmental scan. Limited integration of technology and the Internet fails to take into account the technological savvy of the younger generation (18-25) who have been raised on the integration of technology into their everyday life, including but not limited to: cell phones, I pods, PDAs, instant messaging and computers. One could hypothesize that the data indicated an over reliance on creation of a business plan versus development of feasibility analysis and the importance of creating a revenue model for transforming an idea into a business. In short, there is a need to evolve the current pedagogies employed in the classroom. As seen in Table 14, there is a movement among educators to incorporate more use of technology into the dissemination of small business and entrepreneurial knowledge. Table 14 indicates the following: (A) 50% of two- and four-year colleges and universities require their students to complete web-assignments on the web (question 5), (B) 41% of two- and four-year colleges and universities offer entrepreneurship course(s) on the web (question 6); (C) 49% of two- and four-year colleges and universities offer information on the web regarding 44 entrepreneurship, new venture creation and small business to both students and entrepreneurs (question 7); and (D) 49% of two- and four-year colleges and universities offer management and technical assistance on-line for students and entrepreneurs (question 8). Quite a number of researchers have written about entrepreneurial competencies; however, the competencies that are required for new business start-ups are often addressed by educators in an ad-hoc manner. There is little consensus on just what exactly entrepreneurship students should be taught. For entrepreneurship and small business educators, the challenge is to provide the subject matter, resources and experiences and pedagogies that will prepare entrepreneurship students to cope with the myriad of expectations and demands they will face as they start their new ventures. More importantly, administrators and funders now have added to the discussion by requiring outcome measures, specifically, the number of new business starts as a result of students taking entrepreneurship education course and program. Table 14 Technology Pedagogy 60 50 40 30 20 10 0 50 41 49 49 Percent Complete web- Entrepreneurship Offer Information Offer on-line based Courses on the on web to management and assignments Web students and technical (Question 5) (Question 6) entrepreurs assistance (Question 7) (Question 8) Category Yes Total respondents: 279 Source: Solomon, 2003 Recently, Entrepreneur Magazine joined The Princeton Review in ranking entrepreneurship 45 programs. Among the criteria for judging the importance of the entrepreneurial program was the number of business starts generated by students and alumni. If entrepreneurship education is to produce entrepreneurial founders capable of generating real enterprise growth and wealth, the challenge to educators will be to craft courses, programs and major fields of study that meet the rigors of academia while keeping a reality-based focus and entrepreneurial climate in the learning experience environment. The data in tables 12-14 show some promise among educators but the challenge is to continue developing innovative methods and materials capable of capturing the imagination and drive of tomorrow’s entrepreneurs. 46