Topic 2: The Entrepreneurial Thinking

Flashcards covering the nature of entrepreneurship, types of reasoning (causal vs. effectual), sources of entrepreneurship, and organizational ethics based on the lecture notes.

Nature of Entrepreneurship

A multi-dimensional concept and an economic activity which emerge and functions in socio-economic and cultured setting.

Entrepreneurship Features

Critical attributes including management skill, leadership, handling risk and uncertainty, high achievement, target-based decision making, and innovations.

Entrepreneur Competencies

Core capabilities such as risk taking, networking, commercial aptitude, integrity, optimism, strategic planning, and fresh approaches.

Causal Reasoning (Managerial Thinking)

A thinking process characterized by selecting between given means to achieve a pre-determined goal.

Strategic Thinking

A form of creative thinking focused on generating new means to reach a predetermined goal.

Effectual Thinking (Entrepreneurial Thinking)

A thinking process that involves imagining possible new ends using a given set of means.

The Three Categories of Means

Foundational resources for entrepreneurs: who they are (traits, tastes, abilities), what they know (education, training, expertise), and whom they know (social and professional networks).

Affordable Loss

A principle where entrepreneurs find ways to reach the market with minimum expenditure of resources such as time, effort, and money, aiming for zero resources in the ideal case.

Strategic Partnership

A focus on building partnerships rather than competitive analysis, often involving the induction of customers into partnerships to move an idea to market with the least capital outlay.

Leveraging Contingencies

The ability to turn the unexpected into the profitable by using both good and bad surprises as inputs into new venture creation.

Causal Logic about the Future

The belief that "To the extent that we can predict the future, we can control it."

Effectual Logic about the Future

The belief that "To the extent that we can control the future, we do not need to predict it."

Entrepreneurial Intentions

Motivational factors that influence individuals to pursue entrepreneurial outcomes, including how much effort they plan to exert to perform the behavior.

Entrepreneurial Self-efficacy

The conviction that one can successfully execute entrepreneurial success; high levels lead to increased initiative and persistence.

Perceived Desirability

The degree to which an individual has a favorable or unfavorable evaluation of a potential entrepreneurial outcome, influenced by demand and government support.

Entrepreneur Age Characteristics

Most entrepreneurs start careers between ages $22$ to $45$, often at milestones every five years such as $25, 30, 25, 40, 45$, with men starting in their early $30s$ and women in their mid $30s$.

Role Models

Individuals such as parents, family members, or other entrepreneurs who influence an entrepreneur's career choice and style and serve as mentors.

Moral Support Networks

A "cheering squad" of individuals, including friends and relatives, who provide psychological support, encouragement, and honest advice.

Professional Support Networks

Interpersonal relationships that provide advice and counsel, including mentors, business associates, suppliers, and trade associations.

Sustainable Entrepreneurship

The process of sustaining development to create a paradigm shift in economic activity, such as national $GDP$, job growth, and quality of life, while addressing unmet stakeholder demands.

Ecopreneurship

A subset of entrepreneurship where the core motivation is to contribute to solving environmental problems and creating economic value.

Social Entrepreneurship

Entrepreneurial activity aimed at solving societal problems and creating value for society, often treating societal goals as ends.

Institutional Entrepreneurship

Entrepreneurship that contributes to changing regulatory, societal, and market institutions.

Compliance Orientation

An organizational ethical approach that uses legal terms, statutes, and contracts to teach employees rules and penalties for noncompliance.

Values Orientation

An ethical approach focusing on abstract core ideals such as respect and responsibility, which is considered most effective at creating ethical reasoning.

Codes of Conduct

Formal statements that describe what an organization expects of its employees.

Codes of Ethics

The most comprehensive ethical document, consisting of general statements that serve as principles and the basis for rules of conduct.

Statement of Values

An ethical document that serves the general public and addresses stakeholder interests.

Corporate Core Values

Identified as the six core values: trustworthiness, respect, responsibility, fairness, caring, and citizenship.

Ethics Officers

Individuals or committees responsible for oversight of an ethics program, including assessing risks, revising the code, and conducting employee training.