Entrepreneurial Confluence: an emerging paradigm of Entrepreneurial Strategy

Abstract

The entrepreneurial construct has many definitions, is still to be fully understood and lacks an updated and unifying framework. Relatively little research has been done on entrepreneurial strategy, despite it being distinct and important. Often, the focus has been on whom the entrepreneur is and not what he does, which is critical. While one of the objectives of an entrepreneurial firm is growth, the enigma of growth and its relationship to entrepreneurship is relatively new. The researcher answers the question as to whether there is something in the make-up of today’s entrepreneurial organisation that can promote or limit its growth, depending on how well it is managed. Entrepreneurial Confluence impacts positively on the creation and growth of enduring value within entrepreneurial firms. In today’s hyper-competitive, globalised business landscape, entrepreneurial strategy is defined at the confluence of the continuous identification of new, risk-adjusted opportunities and formulation of concomitant plans (ENTERPRISE), the adaptation and transformation of the firm’s environments, ideas and business models to viable products or services (EVOLUTION), and the discipline to get new things done to deliver results against the strategy (EXECUTION). ‘Entrepreneurs at the confluence’ grow value through innovation. An exploratory, mixed research methodology was used to create a generalisable paradigm of the creation and growth of firms. A new, self-tailored, pilot-tested, valid and reliable multi-dimensional 80 item questionnaire Entrepreneurial Confluence Measuring Instrument (ECMI) was administered to a purposive sample of 41 founders/CEOs of entrepreneurial, high-growth firms listed on the Johannesburg Stock Exchange, including four from other African countries. The outcome is a dynamic and innovative 3 x 3 entrepreneurial growth strategy matrix which re-defines entrepreneurial strategy and has practical applications for both entrepreneurs and corporate managers in delivering enduring growth. Limitations were that the sample was purposively selected, and that the respondents are leaders of large public-listed South African firms who fit a demographic group. A random, more diverse sample, including younger and small and medium enterprises (SMEs), across other geographies might deliver different results. However, given that these large businesses were once SMEs, this research gives insight into what can reduce start-up mortality and enable firms to grow sustainably over time. Future research might look at the impact of entrepreneurial leadership talent on an enterprise’s growth, the connection between entrepreneurial strategy and economic value creation and enhancing the rigour of the ECMI.