Toward a dynamic learning perspective of entrepreneurship.

This conceptual article introduces a dynamic learning perspective of entrepreneurship that builds upon existing "dominant" theoretical approaches to understanding entrepreneurial activity. As many aspects of entrepreneurial learning remain poorly understood, this article maps out and extends current boundaries of thinking regarding how entrepreneurs learn. It presents key conclusions from emergent empirical and conceptual work on the subject and synthesizes a broad range of contributory adult, management, and individual learning literature to develop a robust and integrated thematic conceptualization of entrepreneurial learning. Three distinctive, interrelated elements of entrepreneurial learning are proposed--dynamic temporal phases, interrelated processes, and overarching characteristics. The article concludes by demonstrating how a "learning lens" can be applied to create further avenues for research in entrepreneurship from a learning perspective.

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An examination of the entrepreneurship literature reveals several "dominant" theoretical perspectives that have heavily influenced both the scope and legitimacy of extant research. Stevenson and Sahlman (1989) identify three primary schools of thought regarding the nature of entrepreneurship. First, theories that equate the word with an economic function, which can be described as the functional perspective. Second, theories that associate entrepreneurship with an individual, which can be termed the personality perspective. Third, theories that conceptualize entrepreneurship from a behavioral perspective. As Gartner's (1988) work illustrates, within this final perspective, the term "behavioral" can be understood as a broad descriptor for theories that focus primarily on the entrepreneurial process of new venture creation.

The aim of this article is to introduce a dynamic learning perspective of entrepreneurship that builds upon these existing theoretical approaches to explaining entrepreneurial activity. It is apparent that learning is gaining acceptance as an integral element of entrepreneurial practice and study. As Minniti and Bygrave (2001) state, "entrepreneurship is a process of learning, and a theory of entrepreneurship requires a theory of learning" (p. 7). However, a convincing argument exists that the entrepreneurship discipline does not currently possess sufficient conceptual frameworks to explain how entrepreneurs learn (Cope & Watts, 2000). Consequently, in terms of theory building, many aspects of entrepreneurial learning remain poorly understood (Deakins, 1996; Rae & Carswell, 2000). Utilizing a wide range of theories and models from management, adult, and individual learning literature, this article introduces new concepts for the study of entrepreneurial learning and develops a deeper conceptualization of emergent themes embodied within the growing literature on learning in entrepreneurial contexts.

Informed by qualitative empirical work with practicing entrepreneurs (Cope, 2001), this conceptual article works toward an integrated understanding of entrepreneurial learning by proposing three different yet interconnected elements of a learning perspective of entrepreneurship. (1) Theory building begins by conceptualizing the dynamic nature of entrepreneurial learning, illustrating key temporal phases that are central to how and what entrepreneurs learn. Interrelated processes of entrepreneurial learning are then conceptualized and, importantly, the relationship between processes demonstrated. Particular emphasis is placed on the emerging significance of "critical learning events" (Cope & Watts, 2000; Deakins & Freel, 1998) as an essential entrepreneurial learning mechanism. Finally, the affective and social characteristics of entrepreneurial learning are introduced, which represent integrative, overarching dimensions of a dynamic learning perspective of entrepreneurship.

Before engaging in this process of conceptualization, it is vital to establish the credibility of a learning perspective of entrepreneurship as a useful and distinctive approach to comprehending and researching entrepreneurship. In demonstrating how it extends beyond existing theoretical approaches, the following section makes two meaningful claims. First, this article contends that entrepreneurship is an inherently dynamic phenomenon, the study of which extends beyond a focus on new venture creation. As such, the ways in which entrepreneurs manage and grow their businesses represent a rich arena for studying entrepreneurial learning (Reuber & Fischer, 1999). This reflects a wider recognition that a better conceptual grasp is needed of entrepreneurship post start-up, as Naffziger, Hornsby, and Kuratko (1994) emphasize:

Previous models imply that entrepreneurship ceases somewhere during

the operation of the ongoing venture ... An expanded view of

entrepreneurship should include the entirety of the entrepreneurial

experience, that is, behaviours necessary in the operation of the

firm, its performance, and the psychological and non-psychological

outcomes resulting from firm ownership. (Naffziger et al., 1994,

p. 31)

The second proposition put forward is that the entrepreneur continues to be a worthy subject for research. Rather than trying to define "who an entrepreneur is," it is argued that it is more productive to view entrepreneurship as a contextual process of "becoming" (Rae, 2000), where the entrepreneur is continually learning and developing in relation to his or her business and the wider environment.

Dominant Perspectives of Entrepreneurship

Early theories of entrepreneurship originate from the field of economics and have been concerned with defining the "entrepreneurial function" (Casson, 1982), which encapsulates activities and behavior characteristic of entrepreneurship. Conceptualizing the entrepreneur's interaction with his or her environment has been a major thrust of theorizing within this functional perspective. More contemporary economic theorists, Hebert and Link (1988), describe the notion of entrepreneurial "action," which is defined as "the creation of an opportunity as well as a response to existing circumstances" (p. 159).

More recently, research in entrepreneurship has been dominated by the desire to define the entrepreneur through the identification of "entrepreneurial traits." The main premise of this personality perspective is the notion that certain individuals have a unique set of inherent, stable, and enduring personality characteristics that predispose them to entrepreneurial activity (Greenberger & Sexton, 1988). Of significance is the perception that these traits are permanent and remain consistent across time and context. This search for the entrepreneurial personality has received heavy criticism in recent years, and it is not the intention here to engage in a prolonged critique of this approach. Several seminal articles have already undermined the credibility of this trait-based perspective (see, for example, Gartner, 1988; Shaver, 1995).

One of the most problematic aspects of much theorizing within the entrepreneurial personality perspective is that it symbolizes a static approach to understanding entrepreneurs and therefore represents the antithesis of a dynamic learning perspective of entrepreneurship. The assumed permanence of entrepreneurial personality traits precludes the ability of entrepreneurs to learn, develop, and change as they manage their businesses. As Deakins and Freel (1998) assert, "most writers of this [personality] approach would not allow for an experiential learning role to alter behaviour in entrepreneurship" (p. 146). In moving the study of entrepreneurs forward, this article argues that rather than trying to identify "who an entrepreneur is" (an objective that, as Gartner [1988] demonstrates, has unsuccessfully preoccupied trait-based theorists), it is beneficial to consider the evolutionary nature of entrepreneurship and explore who, through learning, an entrepreneur may become (Rae, 2000).

A more comprehensive approach to conceptualizing the nature of entrepreneurial activity is provided by the behavioral perspective. First proposed by Gartner in 1985, the emergence of this process-based view of new venture creation was, in part, the result of the "inherently futile" (Low & Macmillan, 1988, p. 148) search for the elusive entrepreneurial personality. From a behavioral perspective, the personality characteristics of the entrepreneur are viewed as ancillary to behavior. Consequently, research should concentrate on what entrepreneurs do rather than who they are (Gartner, 1988). The main aim of this perspective is to discern the "entrepreneurial process," defined by Bygrave and Hofer (1991) as "the functions, activities, and actions associated with the perceiving of opportunities and the creation of organizations to pursue them" (p. 14).

A key aim of the behavioral perspective is to examine the entrepreneurial "function" that enables new organizations to come into existence, by developing "contingency approaches which examine the behaviour of the subject in relation to salient contextual variables" (Chell & Haworth, 1988, p. 16). As Gartner (1985) asserts, "entrepreneurs do not operate in vacuums--they respond to their environments" (p. 700). Clearly, similarities can be observed between the functional and behavioral perspectives of entrepreneurship.