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Annu. Rev. Sociol. 1999. 25:19–46
Copyright © 1999 by Annual Reviews. All rights reserved
Annu. Rev. Sociol. 1999.25:19-46. Downloaded from arjournals.annualreviews.org by Stanford University Libraries on 07/29/05. For personal use only.
THE SOCIOLOGY OF
ENTREPRENEURSHIP
Patricia H. Thornton
Department of Sociology, Duke University, Durham, North Carolina 27708; e-mail: thornton@soc.duke.edu
KEY WORDS: entrepreneurs, new ventures, organizational founding, demand side perspective, intrapreneurship, venture capital, initial public offerings,
ABSTRACT
Recent research on entrepreneurship by sociologists has focused on subsectors of the discipline rather than on entrepreneurship as a class. This review draws insights from diverse literatures to develop a sociological perspective on entrepreneurship as a whole. Until recently, the supply-side perspective, which focuses on the individual traits of entrepreneurs, has been the dominant school of research. Newer work from the demand-side perspective has focused on rates, or the context in which entrepreneurship occurs. This review emphasizes this less developed demand-side perspective—in particular, the influence of firms and markets on how, where, and why new enterprises are founded. I take stock of the differences and separation in the two perspectives and argue that sociological frameworks, an embeddedness perspective, institutional and ecological theory, and multilevel models can be used to integrate the two schools and extend their research implications.
INTRODUCTION
Entrepreneurship occurs at significantly higher rates than at any time in the last
100 years (Gartner & Shane 1995). Recent survey evidence suggests that entrepreneurship is a meaningful lifestyle and career identity for many, with 4% of all adults, 1 in 25, trying to start a new firm at any given time (Reynolds &
White 1997:7).
Along with the increase in entrepreneurship has come growth in the number of endowed chairs in business schools; positions in
Copyright © 1999 by Annual Reviews. All rights reserved
Annu. Rev. Sociol. 1999.25:19-46. Downloaded from arjournals.annualreviews.org by Stanford University Libraries on 07/29/05. For personal use only.
THE SOCIOLOGY OF
ENTREPRENEURSHIP
Patricia H. Thornton
Department of Sociology, Duke University, Durham, North Carolina 27708; e-mail: thornton@soc.duke.edu
KEY WORDS: entrepreneurs, new ventures, organizational founding, demand side perspective, intrapreneurship, venture capital, initial public offerings,
ABSTRACT
Recent research on entrepreneurship by sociologists has focused on subsectors of the discipline rather than on entrepreneurship as a class. This review draws insights from diverse literatures to develop a sociological perspective on entrepreneurship as a whole. Until recently, the supply-side perspective, which focuses on the individual traits of entrepreneurs, has been the dominant school of research. Newer work from the demand-side perspective has focused on rates, or the context in which entrepreneurship occurs. This review emphasizes this less developed demand-side perspective—in particular, the influence of firms and markets on how, where, and why new enterprises are founded. I take stock of the differences and separation in the two perspectives and argue that sociological frameworks, an embeddedness perspective, institutional and ecological theory, and multilevel models can be used to integrate the two schools and extend their research implications.
INTRODUCTION
Entrepreneurship occurs at significantly higher rates than at any time in the last
100 years (Gartner & Shane 1995). Recent survey evidence suggests that entrepreneurship is a meaningful lifestyle and career identity for many, with 4% of all adults, 1 in 25, trying to start a new firm at any given time (Reynolds &
White 1997:7).
Along with the increase in entrepreneurship has come growth in the number of endowed chairs in business schools; positions in
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