NEW VENTURE
CREATION
Paul Burns
ACADEMIC INSIGHTS
, Chapter 1 The New Venture Creation Framework
Gazelles Young, high-growth firms, few in number but have a disproportionate
importance to national economies. Gazelles compose less than 1% of
all companies yet generate about 10% of new jobs every year in the
USA.
Entrepreneur myths
• Entrepreneurs are visionary
• Entrepreneurs have good ideas and you don’t
• Entrepreneurs are risk-takes
• Entrepreneurs have money and you don’t
• Entrepreneurs are extraordinary forecasters
• Entrepreneurs are not like the rest of us
• You don’t know how to take the plunge
Business Model Canvas
Chapter 2 What You Bring To Entrepreneurship
Cognitive development theory Shifts the emphasis from the individual towards the situations that lead
to entrepreneurial behavior. It seeks to understand how people think and
react in different situations. Chen et al. (1998) argue that it is self-
efficacy that motivates entrepreneurs and gives them the dogged
determination to persist in the face of adversity when others just give
in. Delmar (2000) outlines two other cognitive concepts. Intrinsic
motivation suggests that people who undertake tasks for their own sake
perform better than those motivated by external factors. The second
concept, intentionality, suggest that people who intend to do thing are
more likely to do them than people who do not.
National culture The most widely used dimensions of national culture are those
developed by Hofstede (1981). Hofstede established four dimensions:
• Individualism vs. collectivism – the degree to which people
prefer to act as individuals rather than groups. In these cultures
the task prevails over personal relationships and the atmosphere
is competitive.
• Power distance – degree of inequality amount people that the
community is willing to accept. Low power distance cultures
endorse egalitarianism – relations are open and informal,
information flows are functional and unrestricted and
CREATION
Paul Burns
ACADEMIC INSIGHTS
, Chapter 1 The New Venture Creation Framework
Gazelles Young, high-growth firms, few in number but have a disproportionate
importance to national economies. Gazelles compose less than 1% of
all companies yet generate about 10% of new jobs every year in the
USA.
Entrepreneur myths
• Entrepreneurs are visionary
• Entrepreneurs have good ideas and you don’t
• Entrepreneurs are risk-takes
• Entrepreneurs have money and you don’t
• Entrepreneurs are extraordinary forecasters
• Entrepreneurs are not like the rest of us
• You don’t know how to take the plunge
Business Model Canvas
Chapter 2 What You Bring To Entrepreneurship
Cognitive development theory Shifts the emphasis from the individual towards the situations that lead
to entrepreneurial behavior. It seeks to understand how people think and
react in different situations. Chen et al. (1998) argue that it is self-
efficacy that motivates entrepreneurs and gives them the dogged
determination to persist in the face of adversity when others just give
in. Delmar (2000) outlines two other cognitive concepts. Intrinsic
motivation suggests that people who undertake tasks for their own sake
perform better than those motivated by external factors. The second
concept, intentionality, suggest that people who intend to do thing are
more likely to do them than people who do not.
National culture The most widely used dimensions of national culture are those
developed by Hofstede (1981). Hofstede established four dimensions:
• Individualism vs. collectivism – the degree to which people
prefer to act as individuals rather than groups. In these cultures
the task prevails over personal relationships and the atmosphere
is competitive.
• Power distance – degree of inequality amount people that the
community is willing to accept. Low power distance cultures
endorse egalitarianism – relations are open and informal,
information flows are functional and unrestricted and
