Foundational Entrepreneurial Behavior and Leadership

These flashcards cover the foundational concepts of entrepreneurial behavior, including mindsets, motivation, risk-taking, resource management, leadership styles, and networking strategies as presented in the lecture notes.

Entrepreneurial Mindset

The combination of Mind + Set, representing the mental attitude that determines how an individual interprets and responds to situations.

Fixed Mindset

The belief that basic qualities such as intelligence or talent are rigid traits that create success without the need for effort.

Growth Mindset

The belief that basic abilities can be developed through dedication and hard work, fostering a love of learning and resilience.

Entrepreneurial Motivation (EM)

The way in which urges, drives, desires, or needs direct, control, and explain human behavior in an entrepreneurial context.

Motive

Internal needs, wants, or drives that determine an individual's "will to do" as part of the motivation process.

Behavior

Need-based and goal-oriented activities, such as working or talking, that are driven by internal motives.

Goal

External incentives toward which motives and behaviors are directed.

Intrinsic Motivation

Motivation driven by internal factors such as personal goals, the need for achievement, and personal ambition.

Extrinsic Motivation

Motivation driven by external factors such as status, access to capital, successful role models, or compulsion.

Need for Achievement ($n-ach$)

The drive to attain realistic but challenging goals, where individuals seek improvements and job-relevant feedback.

Need for Authority and Power ($n-pow$)

The desire to be influential and to gain personal status or prestige.

Need for Affiliation ($n-aff$)

The drive for friendly relationships and social interaction.

Need for Security ($n-sec$)

A preference for stable and secure employment over entrepreneurial ventures.

Intentionality

The decision to start a business, which occurs when internal and external triggers outweigh common barriers.

Risk (Entrepreneurial context)

The possibility of damage, injury, or loss, denoting a potential negative impact on an asset or value like capital or reputation.

Risk (Knight, 1921)

Occurs when future events have a measurable probability and the outcome is susceptible of measurement.

Uncertainty (Knight, 1921)

A state of limited knowledge where the likelihood of future events is indefinite or incalculable.

Pure Risk

Situations where loss is the only possible outcome, such as fire or theft.

Speculative Risk

Situations where there is a possibility of either a gain or a loss.

Calculated Risks

Focusing on moderate risks and taking accountability for consequences rather than engaging in reckless gambles.

Strategic Resources

Power player resources that provide a sustained competitive advantage and are valuable, rare, non-substitutable, and hard to copy.

Common Resources

Basic resources necessary for carrying out usual activities that provide no specific advantage over competitors.

Farming (Networking)

The act of planting and nurturing long-term relationships rather than simply collecting one-time contacts.

Hunting (Networking)

An ineffective networking approach focused strictly on collecting contacts for one-time use.

Memorandum of Understanding (MOU)

A formal agreement that typically follows the negotiation process to establish intent between parties.

Entrepreneurial Leadership

The process of creating a vision and inspiring a team to enact it within high-velocity, uncertain environments.

Autocratic Leader

A leader who sets goals and commands execution without consulting the team.

Consultative Leader

A leader who solicits ideas from followers but makes the final decision alone.

Democratic (Participative) Leader

A leader who participates equally with the group in the decision-making process.

Laissez-faire Leader

An extremely laid-back approach where the group is allowed to take whatever action it feels is necessary.

Transactional Leadership

A social exchange where a leader provides rewards strictly in return for task accomplishment and desired behaviors.

Transformational Leadership

A style built on trust and charisma to inspire followers to exceed normal expectations and turn around difficult situations.

Visionary Leadership

Increasing efficiency by delegating decision-making to the frontline, allowing management to focus on higher-level goals.

Perceived Net Desirability (NDSE)

An individual's personal desire to be self-employed as part of the Entrepreneurial Intentions Model.

Self-Efficacy (Perceived Feasibility)

The individual’s belief in their own capability to successfully start and run a business.

No Market Need ($42\%$)

The primary reason for startup failure according to post-mortem analyses.

Risk Accepting / Profit Seeking

A risk style characterized by high profit motive and high personal financial risk.

Risk Avoiding / Activity Seeking

A risk style characterized by low profit motive and low personal financial risk.