The Functions of the Proto-entrepreneur in Building up Startup Innovation Capabilities

Objective: this paper aims to deepen the current understanding of the concept of the 'proto-entrepreneur' while explaining how this agent works in the process of building up startup innovation capabilities. Methods: we argue that behind new ventures (such as startups) there may be no Schum...

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Bibliographic Details
Published in:BAR, Brazilian administration review Brazilian administration review, 2024-10, Vol.21 (4S), p.1-12
Main Authors: Schilling Marquesan, Fabio Freitas, Antonio Zawislak, Paulo, Freitas Camboim, Guilherme
Format: Article
Language:English
Subjects:
Accumulation
Businesspeople
Entrepreneurs
Entrepreneurship
innovation
Innovations
Knowledge
New business enterprises
Profits
proto-entrepreneur
schumpeter
Startups
Ventures
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Summary:Objective: this paper aims to deepen the current understanding of the concept of the 'proto-entrepreneur' while explaining how this agent works in the process of building up startup innovation capabilities. Methods: we argue that behind new ventures (such as startups) there may be no Schumpeterian entrepreneurs as the traditional literature defines it, but instead what we call proto-entrepreneurs. Results: entrepreneurs are agents capable of, in discontinuous intervals, changing the status quo of already established firms, and even society. Proto-entrepreneurs aspire to do so in startups, but they still lack the knowledge and the necessary set of capabilities to make such changes. Therefore, the conversion of a proto-entrepreneur into an entrepreneur, in the Schumpeterian sense of the term, depends on a process of knowledge accumulation for building the missing innovation capabilities, without which extraordinary profits cannot be reached. This process usually happens in startups--here taken as the primary locus of the proto-entrepreneurial action--, and the proto-entrepreneurs should undertake a sequence of activities for building such capabilities. Conclusions: in such conditions, the proto-entrepreneur should seek knowledge and capabilities, to develop a minimum valuable product, find an initial marketplace, establish scalable operations, and constitute enough management competence. Keywords: proto-entrepreneur; entrepreneurship; innovation; startups; Schumpeter JEL Code: L26, O32
ISSN:1807-7692
1807-7692
DOI:10.1590/1807-7692bar2024230076