Entrenovation is not entrepreneurship. Today, entrepreneurship is generally defined as the business practice that is associated with the act of creating a business and managing the business in pursuit of a profit.
The following definition describes a practice that is separate from entrepreneurial practice. Definition – The practice of entrenovation focuses on the institution that is the carrier of innovation. It deals with entrenovational management. “[Entrenovation] is neither a science nor an art. It is a practice. It has a knowledge base. … [entrenovation] is not a personality trait, it is behaviour. And its foundation lies in concept and theory rather than intuition.“ Abridged from Drucker, Peter F. – Innovation and Entrepreneurship. HarperCollins e-books. Kindle Edition.
What is an entrenoveur*?
In his 1985 book Innovation and Entrepreneurship Peter F. Drucker wrote, “An entrepreneur is not a capitalist, not an investor, not an employer. The entrepreneur upsets and disorganizes – his/her task is creative destruction.” By replacing the word entrepreneur in this Drucker definition and using entrenoveur, the evident communication confusion will be eliminated. The point being, innovation (creative destruction) is no longer commonly included in the meaning of entrepreneur. The increasing recognition of the importance of innovation in business demands the practice of entrenovation be recognized as distinct from entrepreneurship.
Thus, entrenoveur – A business, or person, that employs an innovative initiative intended to promote organic growth in a company or to create a new venture that results in the destruction of an existing business paradigm, introduces a new product, or creates a new market. The action endows a resource with the ability to create new wealth. Entrenoveurs innovate. Innovation is the specific instrument of entrenovation. Drucker wrote, entrenoveurs “create something new, something different; they change or transmute values”. P. Drucker and J. Schumpeter, in their definitions of entrepreneurship, defined innovation as being a practice different than the practice of starting and running a business .
Innovation: The specific tool of entrenovation
Entrenoveurs innovate. Their intent is to use innovation to disrupt a market, or to create a market. “Innovation is the specific function of [entrenovation], whether in an existing business, a public service institution, or a new venture started by a lone individual in the family kitchen. It is the means by which the [entrenoveur] either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth”. – P. Drucker, The Discipline of Innovation. Harvard Business Review, August 2002.
Early in the twentieth century Joseph Schumpeter identified five types of innovation that define the entrenoveurial act: a new good, a new method of production, opening a new market, creating a new source of supply of raw materials, and reorganizing an industry. “At all levels, Schumpeter’s litmus test is whether the players are pursuing innovation and bringing about creative destruction. If they are, then the program is Schumpeterian. If they are not, it isn’t.” – Thomas K. McCraw, Prophet of Innovation, Belknap Press 2007. In this context, then, to be Schumpeterian is to use innovation, an entrenoveurial practice, for the purpose of creative destruction.