The entrepreneur's 'resource potential' and the organic square of entrepreneurship: Definition and application to the French case

The aim of this conceptual paper is to study the origin of the entrepreneur's function. We examine the construction of the entrepreneur's 'resource potential' (the set of knowledge, relations and financial resources gathered together by the entrepreneur) and the role of the socio-economic background in this matter. The 'organic square of entrepreneurship' (resource potential, market, economic organization and public policy) links the individual characteristics of the entrepreneur and the environmental factors to explain entrepreneurship. It is also a tool to study entrepreneurship in different social, economic and political context. We illustrate this role through the analysis of the French case, which reveals the assets and limits of the entrepreneurial context. We particularly show the importance of taking account of the structural characteristics of the productive system in the design of future entrepreneurship policies.