Entrepreneurial ch 2

Psychic risk

FAILURE

Entrepreneurs know where they want to go.

They have a vision or concept of what their firms can be.

ethics

a set of principles prescribing a behavioral code that explains what is good and right or bad and wrong

code of conduct

a statement of ethical practices or guidelines to which an enterprise adheres.

failure

a venture not being able to survive as caused by inexperience or incompetent management

having identified these causes , entrepreneurs then can combat excessive stress by

acknowledging it's existence, Developing coping mechanisms, and probing unacknowledged personal needs.

entrepreneurial mind-set

all the characteristics and elements that compose the entrepreneurial potential in every individual

external optimism

allows others to believe in them during rough periods

entrepreneurial persistence

an entrepreneur's choice to continue with an entrepreneurial opportunity regardless of counter influences or other enticing alternatives

entrepreneurial behavior

an entrepreneur's decision to initiate the new venture formation process

Entrepreneurial Cognitive

as the knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation and growth

Stress

can be viewed as a functional of discrepancies between a persons expectations and ability to meet demands, as well as discrepancies between the individuals expectations and personality.

The desire for independence and autonomy

does not preclude the entrepreneurs' desire to build a strong entrepreneurial team.

entrepreneurial experience

emerge as a function of the novel, idiosyncratic, and experiential nature of the venture creation process involving three parallel, interactive phenomena: emergence of the opportunity, venture, and the entrepreneur

Family and social risk

entrepreneurs expose their families to the risks of an incomplete family experience and the possibility of permanent emotional scars

Dark side of Entrepreneurship

exists, and its destructive source can be found within the energetic drive of successful entrepreneur

Entrepreneurs face a number of different type of risks.

financial risk, career risk, family and social risk and psychic risk

unethical behavior does not take place in business. why? few possible explanations

greed, distinctions between activities at work and activities at home, a lack of foundation in ethics, survival ( bottom line thinking) ,and a reliance on other social institutions to convey and reinforce ethics

Successful Entrepreneurs

highly qualified, well- motivated team that helps handle the venture's growth and development

Metacognitive model

integrates the combined effects of entrepreneurial motivation and context, toward the development of metacognitive strategies applied to information processing within an entrepreneurial environment

social cognitive theory

introduces the idea of knowledge structures mental models that are order in such a way as to optimize personal effectiveness within given situations

risk

involves uncertain outcomes or events. the higher the rewards the greater the risk.

Cognition

it refers to mental processes. these processes include attention, remembering, producing and understanding language, solving problems and making decisions.

SIx specific ways to cope with stress

networking, getting away from it all, communicating with employees, finding satisfaction outside the company, delegating and exercising rigorously

in addition to the roles and environment experienced by entrepreneurs

stress can result from a basic personality structure.

Cognitive Adaptability

the ability to be dynamic, flexible, and self-regulating in one's cognition given dynamic and uncertain task environment

Financial risk

the money or resources at stake for a new venture

Successful entrepreneurs start with

the opportunity and let their understanding of it guide other important decisions

Grief recovery

the traditional process of recovering from grief involves focusing on the particular loss to construct an account that explains why the loss occurred

entrepreneurial motivation

the willingness of an entrepreneur to sustain his or her entrepreneurial behavior

Type A Behavior

this personality structure describes people who are impatient, demanding, and overstrung

role failure

unethical acts against the firm involving a person failing to perform his or her managerial role

role distortion

unethical acts committed on the basis they are " for the firm" even though they are not.

role assertion

unethical acts involving people who represent the company by helping the firms long term

rationalizations

what managers use to justify questionable conduct

Career Risk

whether an entrepreneur will be able to find a job or go back to an old job if his or venture fails