Entrepreneurship Chapter 2

dark side of entrepreneurship

A destructive side that exists within the energetic drive of successful entrepreneurs.

stress

A function of discrepancies between a person's expectations and ability to meet demands, as well as discrepancies between the individual's expectations and personality. If a person is unable to fulfill role demands, then stress occurs.

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.

entrepreneurial mind-set

All the characteristics and elements that compose the entrepreneurial potential in every individual.

entrepreneurial persistence

An entrepreneur's choice to continue with an entrepreneurial opportunity regardless of counterinfluences or other enticing alternatives.

entrepreneurial behavior

An entrepreneur's decision to initiate the new venture formation process.

social cognition theory

Cognition is used to refer to the mental functions, mental processes (thoughts), and mental states of intelligent humans. Social cognition theory introduces the idea of knowledge structures - mental models (cognitions) that are ordered in such a way as to optimize personal effectiveness within given situations - to the study of entrepreneurship.

entrepreneurial experience

Entrepreneurs 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, emergence of the venture, and emergence of the entrepreneur.

metacognitive model

Integrates the combined effects of entrepreneurial motivation and content, toward the development of metacognitive strategies applied to information processing within an entrepreneurial environment.

risk

Involves uncertain outcomes or events. The higher the rewards, the greater the risk entrepreneurs usually face.

cognition

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

family and social risk

Starting a new venture uses much of the entrepreneur's energy and time. Entrepreneurs who are married, and especially those with children, expose their families to the risks of an incomplete family experience and the possibility of permanent emotional scars. In addition, old friends may vanish slowly because of missed get togethers.

cognitive adaptability

The ability to be dynamic, flexible, and self-regulating in one's cognitions given dynamic and uncertain task environments.

psychic risk

The great psychological impact on and the well-being of the entrepreneur who creates a new venture.

entrepreneurial cognition

The knowledge structures that people use to make assessments, judgements, or decisions involving opportunity evaluation, venture creation, and growth.

financial risk

The money or resources at stake for a new venture.

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.

role failure

Unethical acts against the firm involving a person failing to perform his or her managerial role, including superficial performance appraisals (not being totally honest) and not confronting someone who is heating on expense accounts.

role distortion

Unethical acts committed on the basis that they are "for the firm" even though they are not, and involving managers/entrepreneurs who commit individual acts and rationalize that they are in the firm's longrun interests.

role assertion

Unethical acts involving managers/entrepreneurs who represent the firm and who rationalize that they are in a position to help the firm's longrun interests.

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 her venture fails.