ENTR: Chapter 2 key terms

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.

code of conduct

A statement of ethical practices or guidelines to which an enterprise adheres.

cognition

Mental processes including attention, remembering, producing and understanding language, solving problems, and making decisions.

cognitive adaptability

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

dark side of entrepreneurship

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

entrepreneurial behavior

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

entrepreneurial cognition

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

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.

entrepreneurial mind-set

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

entrepreneurial motivation

The willingness of an entrepreneur to sustain his or her entrepreneurial behavior.

entrepreneurial persistence

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

ethics

A set of principles prescribing a behavioral code that explains what is good and right or bad and wrong.

failure

A venture not being able to survive as caused by inexperience or incompetent management.

family and social risk

The exposure of an entrepreneur's family to incomplete family experiences and possible emotional strain due to the time and energy demands of starting a new venture.

financial risk

The money or resources at stake for a new venture.

grief recovery

The traditional process of recovering from grief that involves focusing on the particular loss to construct an account that explains why the loss occurred.

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.

psychic risk

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

rationalizations

What managers use to justify questionable conduct.

risk

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

role assertion

Unethical acts involving managers/entrepreneurs who represent the firm and rationalize that they are acting in the firm's long-run interests.

role distortion

Unethical acts committed on the basis that they are "for the firm" even though they are not, involving managers/entrepreneurs who rationalize individual acts as being in the firm's long-run interests.

role failure

Unethical acts against the firm involving a person failing to perform his or her managerial role, such as superficial performance appraisals or not confronting expense account cheating.

social cognition theory

Introduces the idea of knowledge structures—mental models ordered to optimize personal effectiveness within given situations—to the study of entrepreneurship.

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.