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 persons expectations and ability to meet demands as well as discrepancies between the individuals expectations and personality

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

entrepreneurial mind-set

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

entrepreneurial persistence

an entrepreneurs choice to continue with an entrepreneurial opportunity regardless of counter influences or other enticing alternatives

entrepreneurial behavior

an entrepreneurs decision to initiate the new venture formation process

family and social risk

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

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 cognition theory

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

risk

involves uncertain outcomes or events; the higher the rewards, the greater the risk entrepreneurs usually face

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

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 that they are for the firm even though they are not, and involving entrepreneurs who commit individual acts and rationalize that they are in the firms long run interests

role assertion

unethical acts involving entrepreneurs who represent the firm and who rationalize that they are in a position to help the firms long run interests

rationalization

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 new venture fails