A strategic perspective of entrepreneurship

Contends that the E-V-R (environment-values-resources) congruence model provides an ideal framework for examining what entrepreneurs and entrepreneurial managers must achieve strategically in order to create and sustain organisational effectiveness and success. E-V-R shows how the environment is a source of opportunities and threats – external key success factors; and that resources constitute strengths and weaknesses, strategic competencies which either match, or fail to match, environmental needs. Sustaining and changing this strategic fit is dependent on leadership, culture and values. Goes on to show that entrepreneurship is a process which is essential for establishing winning strategic positions and, as such, is relevant and vital for all types and size of organisation. Concludes with a summary model which relates the characteristics of successful strategic leadership with the key issues of risk and crisis management. Introduction The fundamental thinking behind this paper is the premise that if we examine what entrepreneurs and entrepreneurial managers achieve strategically, we can help foster enterprise in a wider range of organisations. It is widely acknowledged that entrepreneurship is not confined to any one type of business; moreover there are several types of entrepreneur. Some build businesses from nothing, invariably with determination and effort. These can be profit-seeking businesses; equally they can be community-based initiatives by “social entrepreneurs”. One key challenge for all entrepreneurs is dealing with the strategic and structural changes required with growth. Some entrepreneurs cannot manage this transition effectively and their business loses direction and momentum, whilst others are able to change their style appropriately. Consequently, in this paper we are focusing on businesses and initiatives with some growth potential, albeit limited perhaps. We are less concerned with the so-called lifestyle businesses, for which growth is not a major objective, but nonetheless the messages are still relevant here. In a quite different way, but requiring many of the same qualities, company doctors who succeed in turning around companies which are in difficulty are entrepreneurial as they restore growth potential. Success for any business is dependent upon the ability to find a valuable strategic position, whereby the company’s resources, competencies and capabilities are deployed and managed to meet and satisfy the demands and expectations of key stakeholders. This invariably involves trade-offs and International Journal of Entrepreneurial Behaviour & Research, Vol. 5 No. 6, 1999, pp. 279-296. © MCB University Press, 1355-2554 The author is grateful for the assistance of Duncan Macdonald (at the Ardgowan Hospice) and Steven Whitaker in developing some of the case material included in this paper.