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research / germany
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Entrepreneurship is not only working within the system. It is rather about
building and modifying the business. In order to operationalize what entrepreneurship
really is, entrepreneurial functions based on German entrepreneurship research have been
introduced in detail. Four different entrepreneurial functions have been highlighted:
innovation, coordination, market-making, and risk management. With regard to any
activity in order to overcome the primary commodities dilemma of developing countries
one should take into account, which entrepreneurial functions are core,
how different entrepreneurial functions are to be blended,
which activities are to be derived from the mix of relevant entrepreneurial
functions.
Entrepreneurship and entrepreneurial functions open the door in order to shape market
conditions in a desired way from firms’ point of view. Unlike neoclassic theory, the
entrepreneurship discussion which is deeply rooted in the classic tradition is based upon
disequilibria and follows a voluntaristic point of view. This is a clear message with
regard to firms in developing countries. In many cases the market situation is not given. It
can be shaped to a certain degree, and the more firms come together in order to
cooperate, the stronger they are and the more leeway is in order to trigger processes such
as a creative destruction.
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