IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2502.00009.html
   My bibliography  Save this paper

The Solo Revolution: A Theory of AI-Enabled Individual Entrepreneurship

Author

Listed:
  • Venkat Ram Reddy Ganuthula

Abstract

This paper presents the AI Enabled Individual Entrepreneurship Theory (AIET), a theoretical framework explaining how artificial intelligence technologies transform individual entrepreneurial capability. The theory identifies two foundational premises: knowledge democratization and resource requirements evolution. Through three core mechanisms skill augmentation, capital structure transformation, and risk profile modification AIET explains how individuals can now undertake entrepreneurial activities at scales previously requiring significant organizational infrastructure. The theory presents five testable propositions addressing the changing relationship between organizational size and competitive advantage, the expansion of individual entrepreneurial capacity, the transformation of market entry barriers, the evolution of traditional firm advantages, and the modification of entrepreneurial risk profiles. Boundary conditions related to task characteristics and market conditions define the theory's scope and applicability. The framework suggests significant implications for entrepreneurship theory, organizational design, and market structure as AI capabilities continue to advance. This theory provides a foundation for understanding the evolving landscape of entrepreneurship in an AI-enabled world.

Suggested Citation

  • Venkat Ram Reddy Ganuthula, 2025. "The Solo Revolution: A Theory of AI-Enabled Individual Entrepreneurship," Papers 2502.00009, arXiv.org.
    • Handle: RePEc:arx:papers:2502.00009
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2502.00009
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
    2. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    3. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    4. Kristina McElheran & J. Frank Li & Erik Brynjolfsson & Zachary Kroff & Emin Dinlersoz & Lucia Foster & Nikolas Zolas, 2024. "AI adoption in America: Who, what, and where," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 33(2), pages 375-415, March.
    5. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    6. Martin Obschonka & David B. Audretsch, 2020. "Artificial intelligence and big data in entrepreneurship: a new era has begun," Small Business Economics, Springer, vol. 55(3), pages 529-539, October.
    7. Ajay Agrawal & Joshua Gans & Avi Goldfarb, 2019. "The Economics of Artificial Intelligence: An Agenda," NBER Books, National Bureau of Economic Research, Inc, number agra-1, October.
    8. Israel M. Kirzner, 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 60-85, March.
    9. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    10. Frank M. Fossen & Trevor McLemore & Alina Sorgner, 2024. "Artificial Intelligence and Entrepreneurship," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 20(8), pages 781-904, December.
    11. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    12. Ikujiro Nonaka & Georg von Krogh, 2009. "Perspective---Tacit Knowledge and Knowledge Conversion: Controversy and Advancement in Organizational Knowledge Creation Theory," Organization Science, INFORMS, vol. 20(3), pages 635-652, June.
    13. Dominic Chalmers & Niall G. MacKenzie & Sara Carter, 2021. "Artificial Intelligence and Entrepreneurship: Implications for Venture Creation in the Fourth Industrial Revolution," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1028-1053, September.
    14. Herbert A. Simon, 1996. "The Sciences of the Artificial, 3rd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691914, December.
    15. Townsend, David M. & Hunt, Richard A., 2019. "Entrepreneurial action, creativity, & judgment in the age of artificial intelligence," Journal of Business Venturing Insights, Elsevier, vol. 11(C), pages 1-1.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shore, Adam & Tiwari, Manisha & Tandon, Priyanka & Foropon, Cyril, 2024. "Building entrepreneurial resilience during crisis using generative AI: An empirical study on SMEs," Technovation, Elsevier, vol. 135(C).
    2. Frank M. Fossen & Trevor McLemore & Alina Sorgner, 2024. "Artificial Intelligence and Entrepreneurship," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 20(8), pages 781-904, December.
    3. Davidsson, Per & Sufyan, Muhammad, 2023. "What does AI think of AI as an external enabler (EE) of entrepreneurship? An assessment through and of the EE framework," Journal of Business Venturing Insights, Elsevier, vol. 20(C).
    4. Darcy W E Allen, 2020. "When Entrepreneurs Meet:The Collective Governance of New Ideas," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number q0269, September.
    5. Avimanyu Datta, 2011. "Combining Networks, Ambidexterity and Absorptive Capacity to Explain Commercialization of Innovations: A Theoretical Model from Review and Extension," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(4), pages 2-25, December.
    6. Yosem Companys & Jeffery McMullen, 2007. "Strategic Entrepreneurs at Work: The Nature, Discovery, and Exploitation of Entrepreneurial Opportunities," Small Business Economics, Springer, vol. 28(4), pages 301-322, April.
    7. Shepherd, Dean A. & Majchrzak, Ann, 2022. "Machines augmenting entrepreneurs: Opportunities (and threats) at the Nexus of artificial intelligence and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 37(4).
    8. Lupp, Daniel, 2023. "Effectuation, causation, and machine learning in co-creating entrepreneurial opportunities," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    9. Brea, Edgar & Ford, Jerad A., 2023. "No silver bullet: Cognitive technology does not lead to novelty in all firms," Technovation, Elsevier, vol. 122(C).
    10. Boeker, Warren & Howard, Michael D. & Basu, Sandip & Sahaym, Arvin, 2021. "Interpersonal relationships, digital technologies, and innovation in entrepreneurial ventures," Journal of Business Research, Elsevier, vol. 125(C), pages 495-507.
    11. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    12. Rui Baptista & Murat Karaöz & João Correia Leitão, 2020. "Diversification by young, small firms: the role of pre-entry resources and entry mistakes," Small Business Economics, Springer, vol. 55(1), pages 103-122, June.
    13. Pedota, Mattia & Cicala, Francesco & Basti, Alessio, 2024. "A Wild Mind with a Disciplined Eye: Unleashing Human-GenAI Creativity Through Simulated Entity Elicitation," OSF Preprints 3bn95, Center for Open Science.
    14. Landström, Hans & Harirchi, Gouya & Åström, Fredrik, 2012. "Entrepreneurship: Exploring the knowledge base," Research Policy, Elsevier, vol. 41(7), pages 1154-1181.
    15. D'Al, Francesco & Santarelli, Enrico & Vivarelli, Marco, 2024. "The KSTE+I approach and the advent of AI technologies: evidence from the European regions," GLO Discussion Paper Series 1473, Global Labor Organization (GLO).
    16. Lerch, Christian M. & Horvat, Djerdj & Jasny, Johannes, 2024. "When manufacturers turn into digital platform providers: A transformation model to understand the platformization pathway," International Journal of Production Economics, Elsevier, vol. 273(C).
    17. William Lazonick, 2010. "Entrepreneurial Ventures and the Developmental State: Lessons from the Advanced Economies," Working Papers id:3167, eSocialSciences.
    18. D'Allesandro, Francesco & Santarelli, Enrico & Vivarelli, Marco, 2024. "The KSTE+I approach and the AI technologies," MERIT Working Papers 2024-016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.
    20. Schrettle, Stefan & Hinz, Andreas & Scherrer -Rathje, Maike & Friedli, Thomas, 2014. "Turning sustainability into action: Explaining firms' sustainability efforts and their impact on firm performance," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 73-84.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2502.00009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.