Wickham provides a very comprehensive account of enterprise and entrepreneurship which ranges from the issue of trying to define entrepreneurship to how to sustain competitive advantage in the entrepreneurial firm. It is not a “how to start your own successful business” manual, nor is it an overtly theoretical text book, but it is an exploration of many of the issues involved in starting and developing a new venture. In some ways this very comprehensiveness detracts from the value of the book, in that in seeking to cover every issue Wickham is forced into a very proscriptive mode, telling the reader how enterprise ought to be strategically formulated. Similarly the breadth of his commentary often leads to a certain blandness in the generality of his remarks. For example, (1998, p. 123) “The venture will achieve success if it directs its resources in an appropriate way towards delivering a rewarding and sustainable strategy content.” It also leaves the reader a little unsure about whether the book is about entrepreneurship, strategy or things you should know before starting your business.
What makes this book rather different from many entrepreneurial texts is the unusual approach which Wickham adopts. He argues that entrepreneurship is largely a about ways of managing; that it is not something to which we are born into, nor is a matter of predisposition. He explains this:
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entrepreneurship is a style of management;
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entrepreneurial management is about pursuing opportunity and driving change;
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entrepreneurial management is strategic management;
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entrepreneurism is an approach which can be learnt.
This leads him to propose, “ It is not what an entrepreneur does (the business they are in) that matters. What makes a manager entrepreneurial is the way he or she organises the venture and uses it to innovate and to deliver value to the customer in a way that existing players cannot (1998, p. 124).
A major advantage of this approach is that it allows Wickham to explore the diversity of issues which surround successful enterprise. This element is done rather well. For example, he describes how value must be generated by the enterprise, not just for customers, but for all the stakeholders involved in the business. Thus the entrepreneur may gather value in terms of being their own boss, as well as perhaps acquiring wealth; those providing capital may recognise value in capital growth as well as income and the employees must share in the values generated by the new business. This approach is empathetic to the different perspectives of stakeholders and helps to build a very complete, and useful, picture of the development of a business.
However, on the debit side on reading the book one is left feeling that if this systematic, and atomistic approach, is really all there is to creating a successful business why have so few entrepreneurs simply followed the recipe? This is not to say that what is attempted is wrong, far from it, all Wickham’s points are sound and most are good business practice. The issue seems to be rather larger than this, that entrepreneurship is rather more than its parts; that as a socio‐economic process it is holistic. Each new entrepreneurial venture is unique, an idiosyncratic fusion of the skills, talents and aspirations of an individual. This is the reason why entrepreneurial scholars have struggled so long and hard to define the phenomenon. This is why we cannot predict entrepreneurship and why we have so many diverse explanations and theoretical accounts. We cannot reduce the myriad forms of entrepreneurship to a formula. The uniqueness of entrepreneurship means that we cannot routinize the unroutine. That which makes entrepreneurship different from management is, it seems, a production of the very entrepreneurial process. Bill Bygraves of Babson once described the difference between what we can teach in an MBA programme and what we can teach in an entrepreneurial programme as, the first is about resource allocation but the latter is about the creation of resources. The consequence is we may be able to manage the entrepreneurial process, but that we cannot process entrepreneurship. Understanding entrepreneurship is therefore most likely about comprehending the dynamics of the relationships of the interdependent elements. Hence the reader may be mislead if s/he relies on the book’s prescriptions for successful entrepreneurship.
In spite of this criticism of the book’s approach the content provides an extremely useful framework to explore the entrepreneurial issues. Furthermore some of the insights generated by the approach are challenging and thought provoking (1998, p. 96); “An entrepreneurial venture is distinguished from a small business by the ambition of its strategic goals”. Others are gems, for instance in discussing the entrepreneurial mission. Wickham (1998, p. 119), proposes that the mission should be “a constant in a time of flux.” Somehow this captures the drive and enthusiasm which characterise new dynamic enterprise.
The book is presented in four parts. Part One, Chapters One to Eight, discuss the nature of enterprise. It begins by discussing the lack of entrepreneurial definition and uses this to examine the role and activities of entrepreneurs. These are briefly considered before moving on to look at, and criticise the models of the entrepreneurial personality. Wickham turns then to compare small business management with entrepreneurship and concludes that they can be distinguished by three characteristics: innovation; potential for growth and strategic objectives. This leads him to propose that, “entrepreneurship is management aimed at pursuing opportunity and creating change”. Chapter Two reflects on the entrepreneurial process, arguing that it is about the creation of new value through the recognition of new opportunities. The process is about attracting the resources needed to build the entrepreneurial organisation. Chapters Three and Four return to the entrepreneurial individual to very briefly consider theories of entrepreneurial push and pull factors, then turn to review essential characteristics and skills.
The business opportunity provides the interesting focus for Chapter Five. Here the constitution of opportunity is thoughtfully considered and linked into the idea of innovation. Chapter Six looks at the resources needed for the subject of Chapter Seven, the entrepreneurial organisation. Wickham’s ideal organisation is very proactive, but seems to better describe a polished learning organisation than the rough and tumble of most new businesses. Finally, Chapter Eight explores success; its internal meaning and how it might also be considered by wider stakeholders.
Part Two, Chapters Nine to Twelve is entitled, “Choosing a direction”, and is about strategy. It begins appropriately by considering entrepreneurial vision and moves on in Chapter Ten to show how this can be shaped into a mission statement. Chapter Eleven considers strategy proper, in terms of content and process it describes the advantages of developing strategy. The final chapter in this section explores the business plan. It discusses the role and the contents and offers a few suggestions for the production of the plan. One invaluable aspect of this section is the significance placed on flexibility within strategy, how goals should be given priority over means. This emphasis helps to distinguish a “proper” iterative and dynamic entrepreneurial approach to strategy.
Part Three, Chapters Thirteen to Nineteen, is about “Initiating the new venture”. Wickham uses the metaphor of a strategic window to demonstrate how gaps arise as opportunities for new ventures. Hence this section explores spotting, locating, measuring , opening and closing this window of opportunity. The concepts of strategic and market positioning helpfully demonstrate how a new business might fit into the environment. Chapter Sixteen advocates the use of, and briefly describes, market research techniques to evaluate this opportunity while Seventeen discusses the elements involved in actual start‐up. Closing the window, how to sustain competitive advantage is the next topic which is rounded off in Chapter Nineteen which explores financial support for the new venture.
The final section of the book, “Managing the growth and development of the venture” comprises Chapters Twenty to Twenty‐five. The first of these describes growth and the techniques of financial analysis. One particular section, the venture as a theatre for human growth, is refreshingly different because it contemplates the richness of the enterprise in human values. Next, strategies for expansion are considered in a conventional manner, listing techniques. Chapter Twenty‐two first looks at theories of organisational growth then relates this to entrepreneurial vision, mission and strategy. The next chapter is concerned with leadership, power and motivation. A very general discussion is provided but one which overlooks the power of the charismatic aspects of entrepreneurship. The penultimate chapter deliberates upon the mature venture to describe the process of consolidation and how intrapreneurship might help retain vigour. Finally the changed role of the entrepreneur in the mature organisation is discussed to point out the danger of unnecessary radical changes in contrast to the incremental change associated with the chief executive of a mature organisation. An appendix of case studies from the Financial Times of the mid‐1980s is provided as “a theme” to illustrate some of the points made in the text.
One might take issue with a number of minor points Wickham makes. For example he stresses the significance of networks for entrepreneurs, while few would disagree with this, many might find his comments (1998, p. 88) that they “are easy to set up” and “ entry costs are low” rather less convincing. Although Wickham provides some interesting case studies it would have been very helpful if these had been integrated into, or at least referred to within, the main text. They could have been used to great advantage to try to illustrate the points which Wickham argues are important. A list of suggestions for further reading is provided at the end of each chapter but more references in the text would also have been useful for enquiring students.
Wickham suggests that this book is suitable for a full range of students, undergraduates, post graduates and post experience. It is also considered to be useful for practising managers. Without doubt its comprehensive approach will make it very useful text for providing a good background knowledge for newer students. As a first text it should appeal to those less experienced in small business management. However it has little new to offer the more specialised student and the lack of references will limit its use for research students. Its novel and proscriptive approach will make it interesting reading for business advisors but its generality may restrict its appeal to businesspeople.
In essence this is a useful book for those wishing to acquire background knowledge of the entrepreneurial venture. It does provide a description of many of the elements involved in enterprise. It will not appeal to anyone who wishes to grasp what it is that makes entrepreneurship different, nor will it attract readers who wish to explore the theoretical issues surrounding enterprise.
