Chapter 1

Increasing cognitive ability helps to:

-adapt to new situations -be creative -communicate one's reasoning behind a particular response

How to achieve congitive adaptability

1. Comprehension questions: increase entrepreneurs' understanding the nature of the environment 2. Connection tasks: stimulate thinking about similarities and differences of current situations with situations previously faced and solved. 3. Strategic tasks: identify strategies that are appropriate for solving the problem or pursuing the opportunity 4. Reflection Tasks: stimulate entrepreneurs to think about their understanding and feelings as they progress through the entrepreneurial process

How Entrepreneurs Think

1. Think Structurally 2. Bricolage 3. Effectuation 4. Cognitively Adapt 5. Learn from failures

Entrepreneur background and characteristics

Education, age, and work history *ENTREPRENEUARIAL EXPERIENCE IS ONE OF THE BEST PREDICTORS OF SUCCESS

Innovation

Has something to do with the tangible

Idea Vs. Opportunity

Opportunity has the qualities of being attractive, durable and timely, anchored by a product or service, window of opportunity, must create value, solves a problem, make money, good fit with entre.

Business Plan

Shows an idea is actually an opportunity, makes you come up with alternatives, and makes you get honest

Entrepreneurial self-efficacy

The conviction that one can successfully execute the entrepreneurial process

Causal process

a process that starts with a desired outcome and focuses on the means to generate that outcome.

Effectuation process

a process that starts with what one has and selects among possible outcomes *Helps entrepreneurs think in an environment of high uncertainty

Entrepreneurial mind-set

ability to rapidly sense, act, and mobilize even under uncertain conditions

Metacognitive awareness

ability to reflect upon, understand, and control one's thinking and learning

entrepreneurial action

action through the creation of new products/ processes and/or the entry into new markets, which may occur through a newly created organization or within an established organization

Superficial similarities

basic elements of the technology resemble the basic elements of the market

Expertise + incentives = ?

creativity

Cognitive adaptability

describes the extent to which entrepreneurs are: Dynamic, flexible, self-regulating and engaged in the process of generating multiple decision frameworks -Focused on sensing and processing changes in their environments and then acting on them

Bricolage

entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities

Structural similarities

exist when the underlying mechanisms of the technology resemble the underlying mechanisms of the market

Moral-support network

individuals who give psychological support to an entrepreneur. a cheering squad

Professional Support Network

individuals who help the entrepreneur in business activities. Includes suppliers, clients, and buyers, and personal affiliations **entrepreneurial activity is embedded in networks of interpersonal relationships **can get the entrepreneur highly valuable resources

entrepreneurial thinking

individuals' mental processes of overcoming ignorance to decide whether a signal represents an opportunity for someone and/or reducing doubt as to whether an opportunity for some is also an opportunity for them specifically, and/or processing feedback from actions steps taken

Role Models

part of the support system. aka mentors. individuals whose example an entrepreneur can aspire to and copy

Sustainable entreneurship

preserving nature, life support, and community in the pursuit of perceived opportunities to bring future products, processes , and services into existence for gain. -can generate economic, environmental, and social gains

perceived desirability

the degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes

entrepreneurial intentions

the motivational factors that influence individuals to pursue entrepreneurial outcomes

entrepreneurial opportunities

those situations in which new goods, services, raw materials, and organizing methods can be sold at greater than their cost of production