Entrepreneurship Chapter 2
What are some ways to deal with stress? Specific ways?
1) Acknowledge its existence 2) developing coping mechanisms 3) probing unacknowledged personal needs 1] Networking -other business owners 2] Getting away from all -holiday 3]Communicating with employees -accessing concerns of employees 4] Finding satisfaction outside the company -get away from business 5]Delegating -delegate tasks 6] Exercising rigorously
What are the different types of risk?
1) Financial risk: -the money or resources at stake for a new venture --personal bankruptcy 2) Career risk -whether an entrepreneur will be able to find a job or go back to an old job if his or her ventures fail 3) Family and social risk -starting a new venture uses much of the entrepreneurs energy and time -married or those with children expose risk to incomplete family experience/emotional scars 4) Psychic risk -psychological impact and on the well being of entrepreneur
What are some of the sources of stress in the case of entrepreneurs?
1) Loneliness -isolated from people in whom they can confide 2) Immersion in business -Can't partake in leisurely activities 3) People problems -partnerships dissolved 4) The need to achieve -unable to temper their need to achieve
What do researcher advise companies that embrace corporate entrepre. to do?
1) establish the needed flexibility, innovation, and support of employee intiative and risk taking 2) remove the barriers that the entrepreneurial middle manager may face to more closely align personal and organizational intiiatives and reduce the need to behave unethically 3) include an ethical component to corporate training that will provide guidelines for instituting compliance and values components into state of the art corporate entre. programs
Why are the business decisions of entrepreneurs highly complex?
1) ethical decisions have extended consequences -ripple effect felt by other outside of the venture ex) unsafe products 2) Business decisions that involve ethical questions have multiple alternatives -not always do or dont do -ex) may have option to use unsafe cheaper products 3) Ethical business decisions often have mixed outcomes -social benefits as well as costs are involved with every major business decision 4) Most business decisions have uncertain ethical consequences -never absolutely certain 5) Most ethical business decisions have personal implications -difficult for entrepreneur to divorce them from a decision or its potential outcome
Why does unethical behavior occur in business?
1) greed 2) distinctions between activities at work and at home 3) lack of a foundation in ethics 4) survival 5) reliance on other social institutions to convey and reinforce ethics
What are the categories of barriers that include organizational obstacles?
1) internal network issues 2) leadership issues
What three conclusions were made in regards to the relationship between legal requirements and moral judgement?
1) requirements of law may overlap at times but do not duplicate the moral standards of society -some laws have no moral content, some are morally unjust, some have no legal basis 2) legal requirements tend to be negative, whereas morality tends to be positive 3) legal requirements usually lag behind the acceptable moral standards of society
What are some characteristics associated with the entrepreneurial mindset?
1)Determination and perserverance -total dedication to success as an entrepreneur and committment to win out against odds 2) Drive to Achieve 3) Opportunity orientation -focus on opportunity rather than on resources, structure, or strategy (let understanding of opportunity guide other important decisions) 4) Persistent problem solving -not intimidated by difficult situations 5) Seeking feedback -quick learners, and have desire to know their flaws and how to improve 6) Internal locus of control -do not believe in fate or luck but that their own setback are their control 7) Tolerance for ambiguity -dealing with various setbacks and changes that constantly confront him or her 8) Calculated risk taking -think out everything to avoid taking unnecessary risks 9) High energy level 10) Creativity and Innovativeness 11) vision - knowing where you can go and vision of what the concept can be 12) Passion 13) Team building
What is the dark side of entrepreneurship?
A destructive side that exists within the energetic drive of successful entrepreneurs
What is entrepreneurial 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 person unable to fulfill role demands, stress occurs
What is a code of conduct?
A statement of ethical practices or guidelines to which an enterprise adheres -cover multitude of subjects, ranging from misuse of corporate assets, conflict of interest, and use of inside information to equal employment practices
What is role failure?
Acts that go against the firm but they involve a person failing to perform his or her managerial role, including superficial performance appraisals and not confronting someone cheating on expenses
What is restoration orientation?
Alternative approach and is based on both distracting oneself from thinking about the failure event and being proactive toward secondary causes of stress
What is the entrepreneurial persistence?
An entrepreneur's choice to continue with an entrepreneurial opportunity regardless of counterinfluences or other enticing alternatives
What is the entrepreneurial ego? What are the 4 characteristics?
Certain characteristics that usually propel entrepreneurs into success also can be exhibited to their extreme 1) Overbearing need for control -strong need to control their venture and their destiny -overbearing need for autonomy 2) Sense of distrust -scan the environment -distrust is dual edged sword 3) Overriding desire for success -individual becomes more important than the venture itself 4) Unrealistic optimism -allow others to believe them during rough periods -fantasy approach -inability to handle the reality of the business world
What is the entrepreneurial experience?
Entrepre. 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 -emergence of the entrepreneur
What is 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
What are rationalizations and what are the four managers use?
Managers use to justify questionable conduct 1) that the activity is not "really" illegal or immoral; 2) that it is in the individual's or the corporation's best interest; 3) that it will never be found out; 4) that, because it helps the company, the company will condone it
What is cognition?
Mental processes and they include attention, remembering, producing and understanding language, solving problems, and making decisions
What are role distortion and role assertion acts?
Rationalized as being "for the firm" These acts involve managers/enterpreneurs who rationalize that the long-run interests of the firm are foremost ex) bribery, price fixing, manipulating suppliers assertion: -Think they are acting in the best interests of the firm; "distorted" -ex) investing in unethically governed countries
What is the ethical process and structure?
Refer to the procedures, position statements (codes), and announced ethical goals designed to avoid ambiguity
What is entrepreneurial ethics?
Set of principles prescribing a behavioral code that explains what is good and right or bad and wrong Many ethical decisions that entrepreneurs are faced with in the early stages of their new ventures -No simple universal formula for solving ethical problems -choose our own codes of conduct
What is cognitive adaptability?
The ability to be dynamic, flexible, and self-regulating in one's cognitions given dynamic and uncertain task environments Adaptable cognitions are important in achieving desirable outcomes from entrepreneurial actions
What is entrepreneurial cognition?
The knowledge structures that people use to make assessments, judgements, or decisions involving opportunity evaluation, venture creation, and growth about understanding how entrepreneurs use simplifying mental models to piece together previously unconnected
What is grief recovery and how can failure deter this?
The traditional process of recovering from grief involves focusing on the particular loss By focusing on the failure, entrepreneur's thoughts can shift from the events leading up to the failure to the emotions surrounding the failure event. -Negative thoughts and memories lead to ruminations that escalate grief
What is the dream of the millennial generation?
They believe that career success requires them to be more nimble, independent, and entrepreneurial than past generations
What are nonrole acts?
Those the person takes outside of his or her role as manager, yet they go against the firm ex) cheating/embezzlement
Why is the ethical influence of the owner more powerful in smaller ventures?
because his or her leadership is not diffused through layers of management Owners are easily identified and employees usually can observe them on a regular basis
What is institutionalization?
deliberate step to incorporate the entrepreneur's ethical objectives with the economic objectives of the venture -where entrepre. commitment to ethics and values is tested
What is the metacognitive model?
integrates the combined effects of entrepreneurial motivation (the willingness of an entrepreneur to sustain his or her entrepreneurial behavior) and context, toward the development of metacognitive strategies applied to information processing within an entrepre. environment
What is the profit motive?
the desire for monetary gain or return from the venture
What is ethical consciousness?
the development of ethical consciousness is responsibility of entrepre., because his or her vision created the venture key figure to set the tone for ethical decision - making and behavior is the entrepreneur