Entrepreneurship Theories

The Psychology of Social Entrepreneurship: From Compassion to Xenophilia (opposite Xenophobia) The field of entrepreneurship is generally defined by the pursuit of opportunities to add value. However, for social entrepreneurs , the stakes are different. This unique breed of business leader aims to tackle complex social issues—often in different cultural contexts—in addition to producing economic value. But what drives someone to take on this double burden? Research into the motivations of social entrepreneurs reveals a complex psychological landscape that goes far beyond simple charity. The Traditional View: Altruism vs. Self-Interest There are two prevailing theories regarding what sparks a social venture: Prosocial Motives: The most common explanation is that altruism and compassion inspire social entrepreneurs to provide social benefits. According to Miller et al. (2012), this "heart-led" approach is the primary engine for social change. Self-Interes...

International Entrepreneurship: Innovation Across Borders Is starting a business in Canada the same as starting one in Japan? And what happens when a startup tries to sell to both countries on Day One? International Entrepreneurship (IE) is a unique domain that sits at the intersection of international business, entrepreneurship, and strategy. While mainstream entrepreneurship often focuses on domestic growth, IE focuses on cross-border and cross-cultural dimensions. Defining the Field According to the seminal definition by Oviatt and McDougall (2005) : "International entrepreneurship is the discovery, enactment, evaluation, and exploitation of opportunities—across national borders—to create future goods and services." This definition moves beyond simple "exporting." It suggests that the opportunity itself is international in nature. The Three Pillars of Research Jones et al. (2011) reviewed over 300 articles to classify exactly what this...

Born Global Startups: Skipping the Local Stage Traditionally, the path to business growth was linear: entrepreneurs focused on domestic markets first, developed skills through trial and error, and only pursued internationalization gradually. This is often known as the "stage model" of growth. However, a new breed of venture has emerged: the Born Global Startup . According to Knight and Cavusgil (2004) , these are ventures that act globally from their very early stages, utilizing international markets and resources to scale growth immediately. Why the Shift? Technology and Cost Modern advances in internet technologies, global talent flows, and international supply chains have substantially lowered the barriers to entry. McCormick & Somaya (2020) argue that entrepreneurs can now bypass home-country constraints, such as government inefficiencies or physical location limitations. For example, a tax software startup based in the U.S. might decide to ignore the o...