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A Business Model for Entrepreneurship

A Business Model for Entrepreneurship

Thierry Verstraete and Estele Jouison-Laffitte

This book takes an original approach to business models and entrepreneurship, resulting from a durable involvement with entrepreneurs and from experiments combining theory and practice.

Chapter 2: Theory and Business Model: The Generation, Remuneration and Sharing Model

Thierry Verstraete and Estele Jouison-Laffitte

Subjects: business and management, entrepreneurship, strategic management


This chapter begins by summarizing stakeholder theory, the resources-based view (RBV) and conventions theory. Conventions theory is capital in our model because the BM proves to be a convention relating to the generation of value, the remuneration of this last, and the sharing of the business success. The chapter then turns to a first effort at articulating the GRS model in the context of literature on the BM. It leads to a set of charts that becomes an instrumental model. 2.1 From theory to definition of the model The entrepreneur must identify the stakeholders who are able to adhere to his project, because he needs customers, financers, employees, suppliers, etc. Each one of them has invaluable resources for the firm foundation and the durability of the organization. So that they offer their resources in exchange for the value that the impelled organization brings or will bring to them, the entrepreneur must convince them and obtain their confidence1, which comes to the same thing as minimizing the risks that they perceive, or offering them an interesting potential return on investment. This exercise of conviction is constitutive of the concrete actions which the entrepreneur must carry out in particular to gather the resources necessary for his project. (Verstraete, 2005, p. 87) Verstraete thus addresses conventions theory, articulating it with the theory of social representations to explain that the difficulty inherent in the exercise of conviction is increased for an entrepreneur undertaking a new project for the first time. He is more discrete...

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