An Assessment of the Saudi Entrepreneurial Ecosystem

2.1 Entrepreneurship Definitions

Defining entrepreneurship is one of the main obstacles in building conceptual frameworks (Shane & Venkataraman, 2000). This literature review presents some of the most recognizable definitions of this dynamic field. The majority of researchers have defined entrepreneurship from the perspective of entrepreneurs and their activities (Venkataraman, 1997). This approach of definition neglects that entrepreneurship involves a combination of both: the presence of profitable opportunities and the availability of enterprising individuals. Defining the entrepreneur as an individual who starts a new business is misleading because it does not consider the opportunities (Venkataraman, 1997). The existence of entrepreneurial opportunities is crucial when discussing entrepreneurship. These opportunities could be new services, goods, materials, or organizing methods that can be offered for a price that is higher than its production (Casson, 1982). Miller (1983) defined entrepreneurial firms as businesses that undertake risks and demonstrate product-market innovation. On the other side, non-entrepreneurial firms are defined with minimal innovation, high risk-averse, and following competitors instead of leading the market (Lumpkin & Dess, 1996; Miller, 1983).