Abstract
Over the last half-century, advanced economies have had to deal with unprecedented levels of change and related challenges (Stam, 2008). In the midst of such upheaval, attention has been drawn to the importance of creating enabling environments conducive to the emergence of opportunities for entrepreneurs (Baumol, 1996; Shane and Venkataraman, 2000). However, concerns have been raised regarding continued weak levels of entrepreneurial dynamism and reluctance among traditionally salaried people to commit to starting new businesses (Audretsch and Thurik, 2004). In the midst of global economic slowdown, calls have been made for more work which looks at the (un)attractiveness of entrepreneurship as a career option among specific groups: for example, young people, women and university students (Venkataraman, 2004). This is seen as a way of understanding the wider process through which individuals and demographic groups engage with, learn about and become skilled in entrepreneurial practices. The focus of this book is on the barriers to engagement in entrepreneurship within societies, and how policy decisions can contribute to making entrepreneurship more attractive to more people.
Therefore, this edited volume is of its time, providing a broad insight into the various facets of an important practical and policy debate. The book consists of 19 thematically linked chapters, and its contributors as well as authors are predominantly drawn from universities in Europe and South America. The volume is introduced in terms of the European Parliament’s ambitions relating to regional development and lifelong learning (European Parliament Recommendation 2006/962/EC, p.17). In their introduction the editors state clearly their intention to inform policy decisions around innovation, and to contribute to the promotion of an atmosphere conducive to entrepreneurial development. This is achieved by highlighting the role of education, access to an efficient financial system and regulatory frameworks. These issues frame the layout of the book.
The volume is organised into four parts. The first (Chapters 1 to 4) looks at ‘Entrepreneurial motives, education and performance’ and examines the inter-relationship between human capital, entrepreneurship and the educational system. Chapter 1 provides an interesting discussion of entrepreneurship as a career choice, and how entrepreneurship might be seen as an avenue for (re)valuing one’s human capital. Chapter 2 presents an ‘entrepreneurial process requirements approach’ methodology and focuses on a list of competences which might increase the probability of entrepreneurial success. In Chapter 3 the influence of gender on the likelihood of becoming an entrepreneur is explored. Chapter 4 demonstrates that setting up an innovative firm enables the founder to respond to dissatisfactions which they may have developed in their previous career.
Part 2 of the book focuses on ‘Entrepreneurial sustainability and innovation’. These chapters (5 to 9) represent studies looking at the multiple facets of innovation and sustainability, including enabling and constraining pressures. Chapter 5 explores how innovation contributes to economic, social and environmental sustainability. Emphasis is placed on the need for firms to engage with knowledge-producing organisations as they focus on product innovation. In Chapter 6 the main barriers to innovation are explored in the developing Mexican context. Building on this perspective, Chapter 7 focuses on the role of inter-firm cooperation and information sharing as an enabler of innovation. Emphasis is placed on the need to coordinate the cooperation process effectively. Chapter 8 draws comparison between the UK and Spain as a way of understanding the main factors that promote research and development. This is followed in Chapter 9 by a socio-spatial view of innovation as an embedded learning process, closely linked to creative problem-solving on the part of firms.
Section 3 (Chapters 10 to 14), entitled ‘Entrepreneurship, finance and crisis’, explores a series of questions related to the access and structuring of entrepreneurial finance at a time of global economic crisis. Looking at Spanish venture capital companies, Chapter 10 shows the growing importance of contractual clauses relating to periodic presentation of economic and financial reports. This is extended by Chapter 11, which looks at how new French firms are capitalised. While confirming the role of risk, collateral and subsidy, this study also recognises the role of human and social capital. Chapter 12 builds on this by demonstrating weaker relationships between new firms and banks in entrepreneurial French regions, but closer relationships with sources of proximity finance and other firms. In Chapter 13, links are drawn between finance and sustainability: when finance is viewed as an administrative burden, it can impact negatively on sustainability and growth. Chapter 14 explores the concerns of entrepreneurs in Catalonia during economic crisis, and outlines themes including training infrastructure, administration and communication between banks and entrepreneurs.
Part 4 (Chapters 15 to 19) provides a policy-related capstone by dealing broadly with the relationship between ‘Entrepreneurship and regulation’. Chapter 15 defines regulation as rules that mandate and prohibit actions by individuals and organisations. A need for entrepreneurial regulations which create opportunities rather than constraints is proposed. Chapter 16 places recent trends towards self-employment within the context of wider societal changes, and highlights the weak link between solo self-employment and a revival of entrepreneurship. These authors challenge policymakers to move away from static equilibrium analysis, in order to understand better the dynamics of firm-specific processes and performance. Chapters 17 and 18 use the challenges faced by firms in Portugal to explore the factors influencing firm survival. Chapter 19 revisits the challenge of creating an entrepreneurial society, and emphasises the importance of acknowledging regional variations. In a time of crisis, localness is important, including both the entrepreneur’s commitment to place and an understanding of contextualised sources of finance and opportunity.
This book was interesting to read and provided a good overview of the issues facing actual and would-be entrepreneurs, firms and policymakers with an interest in local, regional and national development. The highly contextualised nature of most chapters was a strength of this book, and contributed to an understanding of the unique conditions, challenges and opportunities facing different countries and regions. A consistent theme in all chapters was the need for cooperation and relationship-building between individuals and institutions, particularly between those producing knowledge and those developing new products and services. The editors conclude that policies can create entrepreneurial opportunities, but stress the need for clarity in the desired outcomes. Policy decisions need to be targeted and understood in terms of what they enable or promote, rather than constrain. Overall, this edited volume should find a wide audience of researchers and policy practitioners seeking to understand their actions in a societal context. It is easy to read, with the outcome being a broad appreciation of the issues facing societies as they work to adapt to the flexible patterns of work and organisation which the post-industrial economy demands.