Knowledge Potential and Cost of Entrepreneur Teams in India

Abstract

In this paper I argue about the knowledge potential (Samuelson and Nordhaus, 2001) of teams of entrepreneurs (Chowdhury 2005; Shah, Agarwal and Echambadi, 2019) with different skills and the resulting competitive advantage (Porter,1997). For example, a social entrepreneur could team up with a woman entrepreneur and a tech entrepreneur to form a team of entrepreneurs leading to improved production of innovative products and services as well as reducing in the overall risk taking of the team of entrepreneurs. There is a division of labor (Marshall, 2009) between the various members of the team with significant respect for each other’s capabilities as well as sum of capabilities that effects the performance of the startup or MSME. Current theory (Chowdhury 2005, Nahapiet and Ghoshal, 1998) argues for entrepreneurial abilities but to shift the capability to a team of entrepreneurs is the purpose and contribution of this paper. There is a cost of acquisition of knowledge in terms of the cost of the degree of education and potential which is the average earning in India for that particular degree.