Entrepreneurial Creativity as Discovery and Exploitation of Business Opportunities

Our perception of the creative formation of organizations through entrepreneurship has changed dramatically during the past ten years (e.g., Carlsson and Eliasson 1993: Davidsson 2003). For a long time, entrepreneurship was construed in terms of managing a small business or being the owner-manager thereof. However, entrepreneurship is not directly associated with this particular context; it is essentially context-free organizational creativity (Gartner et al. 2003; Hjorth 2003, 2004; Sarasvathy 2001; Steyaert and Hjorth 2003). It is equally likely to be present in large corporations' renewal efforts and in the identification of new markets and technologies as in the development projects of public organizations or, for that matter, in the reorganization of universities (cf. institutional or social entrepreneurship). At the core of entrepreneurship lies the creation and exploitation of entrepreneurial opportunities regardless of the context (Shane 2003). Entrepreneurship is a creative activity taking place when neither the goal nor often the initial conditions are known at the start, but constructed during the process (Sarasvathy 2001). This happens, because there is no single right or best solution, and even the starting situation may be so complex and constantly changing that it is difficult to analyze it reliably in the extent necessary. Bearing in mind the discussion above, this paper uses the term entrepreneur to refer to an individual or a community of individuals (organization) that creates new business in its operational environment (cf. Hjorth 2003)