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