ENT200 Chapters 1,2 & 3
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186 Terms
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What are entrepreneurs?
Individuals who recognize opportunities where others see chaos, contradiction and confusion
* They are aggressive catalysts (creators of rapid change in an environment) for change in the workplace
* THINK OF athletics who push through agonizing pain or orchestrators who balance multiple skills, they have changed the work world and made people embrace free enterprise as the MOST significant force of economic development
* Quote: As an entrepreneur, you can’t have success without the deep canyons of ambiguity and uncertainty
* They are aggressive catalysts (creators of rapid change in an environment) for change in the workplace
* THINK OF athletics who push through agonizing pain or orchestrators who balance multiple skills, they have changed the work world and made people embrace free enterprise as the MOST significant force of economic development
* Quote: As an entrepreneur, you can’t have success without the deep canyons of ambiguity and uncertainty
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What is the difference between entrepreneurs and small business owners?
Small business owners are independently owned and operated and not dominant in their field.
* They never grow big and prefer stable and less aggressive AKA they manage their businesses by expecting stable sales, profits and growth.
Entrepreneurs care about innovation, profitability and growth.
* They see rapid growth and immediate profits. They might even sell their businesses as opposed to owning small ones and they view certain things in a different manner from small-business owners on the way they develop things.
* They never grow big and prefer stable and less aggressive AKA they manage their businesses by expecting stable sales, profits and growth.
Entrepreneurs care about innovation, profitability and growth.
* They see rapid growth and immediate profits. They might even sell their businesses as opposed to owning small ones and they view certain things in a different manner from small-business owners on the way they develop things.
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What are the two types of entrepreneurs mentioned in the lecture?
Not for profit - focused on sustainable entrepreneurship
Corporate entrepreneurs - takes place in a business with focus on new products, services or markets
Corporate entrepreneurs - takes place in a business with focus on new products, services or markets
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What is the entrepreneurial mindset?
the way someone can look at the world and view it as innovative (useful) or the cognition and commitment to view it as innovative.
* The potential to be entrepreneurial doesn’t only apply to the workplace but in so many different ways. FOR EX. in and outside organizations, in for-profit or nonprofit enterprises, in business or nonbusiness activities
* The potential to be entrepreneurial doesn’t only apply to the workplace but in so many different ways. FOR EX. in and outside organizations, in for-profit or nonprofit enterprises, in business or nonbusiness activities
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Is entrepreneurship risky and fear-inducing?
Yes, it is.
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What is a comprehensive definition of entrepreneurship?
It is derived from the French word “to undertake” aka to take on a task.
* They “undertake” organizing, managing and assuming the risks of a business, but the meaning has changed.
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Today, an entrepreneur is someone who recognizes an opportunity and seizes it and convert these opportunities to workable/marketable ideas; adds value to the opportunity through time, effort, money, or skills; assumes the risks of the competitive marketplace to implement these ideas; and realizes the rewards from these efforts.
* They “undertake” organizing, managing and assuming the risks of a business, but the meaning has changed.
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Today, an entrepreneur is someone who recognizes an opportunity and seizes it and convert these opportunities to workable/marketable ideas; adds value to the opportunity through time, effort, money, or skills; assumes the risks of the competitive marketplace to implement these ideas; and realizes the rewards from these efforts.
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What are the characteristics of an entrepreneur?
An aggressive catalyst for change who dares to be different amongst a background of common events is a general one. Specific characteristics would be:
* personal initiative
* the ability to consolidate resources
* management skills
* a desire for autonomy
* risk taking
* personal initiative
* the ability to consolidate resources
* management skills
* a desire for autonomy
* risk taking
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What are other characteristics of an entrepreneur?
* aggressiveness
* competitiveness
* goal-oriented behavior
* confidence
* opportunistic behavior
* intuitiveness
* reality-based actions
* the ability to learn from mistakes
* the ability to employ human relations skills
* competitiveness
* goal-oriented behavior
* confidence
* opportunistic behavior
* intuitiveness
* reality-based actions
* the ability to learn from mistakes
* the ability to employ human relations skills
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Is there a single definition for entrepreneurship?
No, no one profile (identity or word) can represent today’s entrepreneur, but research is beginning to provide an increasingly sharper focus on the subject and the history of entrepreneurship shows this.
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Is entrepreneurship a “new thing”?
No, it isn’t. The world currently is in the midst of a new wave of business and economic development, and entrepreneurship is its catalyst. Yet the social and economic forces of entrepreneurial activity existed long before the new millennium. In fact, the entrepreneurial spirit has driven many of humanity’s achievements.
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What is the agent of change in human history?
Today we recognize that the agent of change in human history has been, and most likely will continue to be, the entrepreneur.
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What is the history of entrepreneurship?
18th century France - Entrepreneurship was recognized when Richard Cantillon decided to do “risk-bearing” activity in the economy with the entrepreneur
* The association of entrepreneurship and economics has long been the accepted norm. Until the 50s, a lot of definitions and references in entrepreneurship had come from economists.
It continued to attract economists in the 18th and 19th century.
* The association of entrepreneurship and economics has long been the accepted norm. Until the 50s, a lot of definitions and references in entrepreneurship had come from economists.
It continued to attract economists in the 18th and 19th century.
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What were the three aspects of the kind of behaviour needed from an entrepreneur, according to Cantillon (1725), the French economist Jean Baptiste Say (1803), and twentieth-century economist Joseph Schumpeter (1934)?
1. initiative taking
2. the organizing or reorganizing of social economic mechanisms to turn resources and situations to practical account
3. the acceptance of risk of failure
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What is entrepreneurship according to Robert C. Ronstadt? How is it created?
* the dynamic process of creating incremental wealth
* this wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service.
* the product or service itself may or may not be new or unique but the value must somehow be infused by the entrepreneur by securing and allocating (distributing for a purpose) the necessary skills and resources.
* this wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service.
* the product or service itself may or may not be new or unique but the value must somehow be infused by the entrepreneur by securing and allocating (distributing for a purpose) the necessary skills and resources.
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How did the 20th century categorize and define entrepreneurship?
They made it synonymous with free enterprise (an economic system in which private business operates in competition and largely free of state control) and capitalism (an economic and political system in which a country's trade and industry are controlled by private owners for profit).
* Although they did recognize them as agents of change, innovative ideas for business enterprises and help businesses grow and become profitable.
* Although they did recognize them as agents of change, innovative ideas for business enterprises and help businesses grow and become profitable.
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What is another word people use to describe entrepreneurship?
“Pioneership”; on the frontier of business
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What is the definition of entrepreneurship in the 21st century?
* Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy and passion toward the creation and implementation of innovative ideas and creative solutions.
* Essential ingredients include the willingness to take calculated risks—in terms of time, equity, or career; the ability to formulate an effective venture team; the creative skill to marshal needed resources; the fundamental skill of building a solid business plan; and, finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion.
* Essential ingredients include the willingness to take calculated risks—in terms of time, equity, or career; the ability to formulate an effective venture team; the creative skill to marshal needed resources; the fundamental skill of building a solid business plan; and, finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion.
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What are the ten myths about entrepreneurs?
* Entrepreneurs are doers, not thinkers
* Entrepreneurs are born, not made
* Entrepreneurs Are Always Inventors
* Entrepreneurs Are Academic and Social Misfits
* Entrepreneurs Must Fit the Profile
* All Entrepreneurs Need Is Money
* All Entrepreneurs Need Is Luck
* Entrepreneurship Is Unstructured and Chaotic
* Most Entrepreneurial Initiatives Fail
* Entrepreneurs Are Extreme Risk Takers
* Entrepreneurs are born, not made
* Entrepreneurs Are Always Inventors
* Entrepreneurs Are Academic and Social Misfits
* Entrepreneurs Must Fit the Profile
* All Entrepreneurs Need Is Money
* All Entrepreneurs Need Is Luck
* Entrepreneurship Is Unstructured and Chaotic
* Most Entrepreneurial Initiatives Fail
* Entrepreneurs Are Extreme Risk Takers
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How do you debunk the myth that entrepreneurs are doers, not thinkers?
They tend towards action, but they are also thinkers. They are methodical people who plan their next move carefully.
* The emphasis on the creation of clear and complete business plans indicates that entrepreneurs are thinkers as much as they are doers (aka it is just as important tot them)
* The emphasis on the creation of clear and complete business plans indicates that entrepreneurs are thinkers as much as they are doers (aka it is just as important tot them)
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How do you debunk the myth that entrepreneurs are born, not made?
People think that traits such as aggressiveness, initiative, drive, a willingness to take risks, analytical ability, and skill in human relations are genetic traits, but the recognition of entrepreneurship as a discipline has helped debunk it.
* Like every other discipline (job), entrepreneurship has models, processes, and case studies that allow the topic (entrepreneurship) to be studied and to gain knowledge from it.
* Like every other discipline (job), entrepreneurship has models, processes, and case studies that allow the topic (entrepreneurship) to be studied and to gain knowledge from it.
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How do you debunk the myth that entrepreneurs are always inventors? Where does this myth come from?
The myth comes from misunderstanding and tunnel vision.
* Although many entrepreneurs are inventors, many of them encompass all sorts of innovative activity.
* FOR EX. Ray Kroc did not invent the fast-food franchise, but his innovative ideas made McDonald’s the largest fast-food enterprise in the world.
* A contemporary understanding of entrepreneurship covers more than just invention; it requires a complete understanding of innovative behaviour in all its forms.
* Although many entrepreneurs are inventors, many of them encompass all sorts of innovative activity.
* FOR EX. Ray Kroc did not invent the fast-food franchise, but his innovative ideas made McDonald’s the largest fast-food enterprise in the world.
* A contemporary understanding of entrepreneurship covers more than just invention; it requires a complete understanding of innovative behaviour in all its forms.
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How do you debunk the myth that entrepreneurs are academic and social misfits? Where does this myth come from?
* It comes from the result of some business owners having started successful enterprises after dropping out of school or quitting a job. It was just blown out of proportion to “profile” the typical entrepreneur.
* Historically, educational and social organizations did not recognize the entrepreneur.
* FOR EX. Business education was aimed at primarily corporate activity (opposite of private; complete state control)
* Today, the entrepreneur is considered a hero—socially, economically, and academically and viewed as a professional role model
* Historically, educational and social organizations did not recognize the entrepreneur.
* FOR EX. Business education was aimed at primarily corporate activity (opposite of private; complete state control)
* Today, the entrepreneur is considered a hero—socially, economically, and academically and viewed as a professional role model
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How do you debunk the myth that entrepreneurs must fit the profile? Where does this myth come from?
Books and articles made checklists on the characteristics of a successful entrepreneur, but they weren’t valid or even complete because they were based on case studies and on research findings among achievement-oriented people.
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What are things that make it hard to compile a entrepreneurial profile?
* the environment
* venture (a business enterprise or speculation in which something is risked in the hope of profit)
* entrepreneur have interactive effects, which result in many different types of profiles.
Contemporary studies conducted at universities across the world will, in the future, provide more accurate insights into the various profiles of successful entrepreneurs.
* venture (a business enterprise or speculation in which something is risked in the hope of profit)
* entrepreneur have interactive effects, which result in many different types of profiles.
Contemporary studies conducted at universities across the world will, in the future, provide more accurate insights into the various profiles of successful entrepreneurs.
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What is more realistic and understandable than a particular profile?
The concept of the entrepreneurial mindset
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How do you debunk the myth that all entrepreneurs need is money?
* Money is not the only bulwark (defensive wall) against failure
* But It is true that a venture needs capital to survive; it is also true that a large number of business failures occur because of a lack of adequate financing
* Failure is due to a lack of proper financing often is an indicator of other problems: managerial incompetence, lack of financial understanding, poor investments, poor planning, and the like
* Money is a resource, but never an end in itself to entrepreneurs. A lot of them overcame a lack of money.
* But It is true that a venture needs capital to survive; it is also true that a large number of business failures occur because of a lack of adequate financing
* Failure is due to a lack of proper financing often is an indicator of other problems: managerial incompetence, lack of financial understanding, poor investments, poor planning, and the like
* Money is a resource, but never an end in itself to entrepreneurs. A lot of them overcame a lack of money.
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How do you debunk the myth that all entrepreneurs need is luck?
* Prepared entrepreneurs who seize the opportunity when it arises often seem “lucky.”
* Being in “the right place at the right time” is always an advantage—but “luck happens when preparation meets opportunity” is an equally appropriate adage (a proverb or short statement expressing a general truth).
* They are, in fact, simply better prepared to deal with situations and turn them into successes. What appears to be luck is actually preparation, determination, desire, knowledge, and innovativeness.
* Being in “the right place at the right time” is always an advantage—but “luck happens when preparation meets opportunity” is an equally appropriate adage (a proverb or short statement expressing a general truth).
* They are, in fact, simply better prepared to deal with situations and turn them into successes. What appears to be luck is actually preparation, determination, desire, knowledge, and innovativeness.
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How do you debunk the myth that all entrepreneurship is unstructured and chaotic?
The reality is that entrepreneurs are heavily involved in all facets of their ventures, and they usually have a number of balls in the air at the same time. As a result, they are typically well-organized individuals. They tend to have a system—perhaps elaborate, perhaps not—that is personally designed to keep things straight and maintain priorities. In fact, their system may seem strange to the casual observer, but it works.
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What is the E-myth?
that today’s business owners are not true entrepreneurs who create businesses but merely technicians who have created a job for themselves.
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What is the solution to the E-myth?
the key is for a person to develop an “entrepreneurial perspective.”
it lies in the owner’s willingness to begin thinking and acting like a true entrepreneur: to imagine how the business would work without him.
* the owner must begin working on the business, in addition to working in it. The business owner must leverage the company’s capacity through systems development and implementation.
it lies in the owner’s willingness to begin thinking and acting like a true entrepreneur: to imagine how the business would work without him.
* the owner must begin working on the business, in addition to working in it. The business owner must leverage the company’s capacity through systems development and implementation.
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What are the 3 types of roles according to Michael E. Gerber?
* An entrepreneur is someone who creates a business that can run on its own. They are like a big thinker who gives the business a special and exciting purpose. They can see what people will want in the future and do things to take advantage of that.
* A manager is someone who gets things done by working with other people. They make sure everyone knows what to do and helps them feel good about themselves so they can do a good job. They can make the entrepreneur's ideas happen by planning, doing things, and looking at how well they worked.
* A technician is someone who does specific tasks in a business. They follow the rules and ways of doing things that the manager made. In the best businesses, they not only do their work but also give ideas to make things better.
* A manager is someone who gets things done by working with other people. They make sure everyone knows what to do and helps them feel good about themselves so they can do a good job. They can make the entrepreneur's ideas happen by planning, doing things, and looking at how well they worked.
* A technician is someone who does specific tasks in a business. They follow the rules and ways of doing things that the manager made. In the best businesses, they not only do their work but also give ideas to make things better.
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Most small businesses don’t work…
their owners do
* most small businesses fail because the owner is more of a technician than an entrepreneur meaning that the small business owner realizes too little reward for so much effort, and eventually, according to Gerber, the business fails.
* most small businesses fail because the owner is more of a technician than an entrepreneur meaning that the small business owner realizes too little reward for so much effort, and eventually, according to Gerber, the business fails.
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How do you debunk the myth that most entrepreneurial initiatives fail?
Statistics show the opposite.
* FOR EX. In fact, one researcher, Bruce A. Kirchhoff, has reported that the “high failure rate” most commonly accepted might be misleading. In 1993, Kirchhoff traced 814,000 businesses started in 1977 and found that more than 50 percent were still surviving under their original owners or new owners. Additionally, 28 percent voluntarily closed down, and only 18 percent actually “failed” in the sense of leaving behind outstanding liabilities. More recent studies have supported the fact that new ventures do not fail at such an alarming rate.
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While many entrepreneurs do suffer a number of failures before they are successful, they follow the adage “If at first you don’t succeed, try, try, again.” In fact, failure can teach many lessons to those willing to learn, and often it leads to future successes. This is clearly shown by the corridor principle.
* FOR EX. In fact, one researcher, Bruce A. Kirchhoff, has reported that the “high failure rate” most commonly accepted might be misleading. In 1993, Kirchhoff traced 814,000 businesses started in 1977 and found that more than 50 percent were still surviving under their original owners or new owners. Additionally, 28 percent voluntarily closed down, and only 18 percent actually “failed” in the sense of leaving behind outstanding liabilities. More recent studies have supported the fact that new ventures do not fail at such an alarming rate.
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While many entrepreneurs do suffer a number of failures before they are successful, they follow the adage “If at first you don’t succeed, try, try, again.” In fact, failure can teach many lessons to those willing to learn, and often it leads to future successes. This is clearly shown by the corridor principle.
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What is the corridor principle?
States that with every venture launched, new and unintended opportunities arise.
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How do you debunk the myth that entrepreneurs are extreme risk-takers?
The concept of risk is a major element in the entrepreneurial process. However, the public’s perception of the risk most entrepreneurs assume is distorted. Although it may appear that an entrepreneur is “gambling” on a wild chance, the entrepreneur is usually working on a moderate or “calculated” risk. Most successful entrepreneurs work hard—through planning and preparation—to minimize the risk involved and better control the destiny of their vision.
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Have the studies of entrepreneurship increased? What is the pattern that they follow now?
Have the studies of entrepreneurship increased? What is the pattern that they follow now?
Yes, research methodology has progressed from empirical surveys of entrepreneurs to more contextual and process-oriented research
* Theory development is what drives a field of study.
* Theory development is what drives a field of study.
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What is a theory of entrepreneurship?
What is a theory of entrepreneurship?
A verifiable and logically coherent formulation of relationships, or underlying principles, that either explain entrepreneurship, predict entrepreneurial activity (e.g., by characterizing conditions that are likely to lead to new profit opportunities or to the formation of new enterprises), or provide normative guidance (i.e., prescribe the right action in particular circumstances).
* It is apparent that we have some cohesive theories to better understand entrepreneurship
* It is apparent that we have some cohesive theories to better understand entrepreneurship
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What is the concept that recurs in the study of contemporary entrepreneurship?
What is the concept that recurs in the study of contemporary entrepreneurship?
It is interdisciplinary
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What are the two major views of entrepreneurship and what are the schools of thought do they have?
* Macro view:
* environmental school of thought
* financial/capital school of thought
* displacement school of thought
* Micro view:
* entrepreneurial trait school of thought (people school)
* venture opportunity school of thought
* strategic formulation school of thought
* environmental school of thought
* financial/capital school of thought
* displacement school of thought
* Micro view:
* entrepreneurial trait school of thought (people school)
* venture opportunity school of thought
* strategic formulation school of thought
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What is the macro view of entrepreneurship?
It presents a broad array of factors related to success and failure. It blames or accounts for this failure on something called an external locus of control view. This means that external processes that are sometimes beyond the control of the individual entrepreneur.
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What is the environmental school of thought?
The external factors that affect a potential entrepreneur’s lifestyle (basically influence whether or not they will be and how they handle it). This can be positive or negative and includes things like such as your social group or having a lot of freedom in the workspace to develop ideas in a managerial position that would positively influence his entrepreneurial potential. A negative would be not having many friends interested in entrepreneurship.
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What is the financial/capital school of thought? (Table 1.1)
It is based on the capital-seeking process aka the search for seed and growth capital is the entire focus of this entrepreneurial emphasis.
* Some work is devoted specifically to this process, but some work tends to treat it as part of it or a segment of the entrepreneurial venture. Regardless, the capital-seeking process is a vital part of an entrepreneur’s development.
* Some work is devoted specifically to this process, but some work tends to treat it as part of it or a segment of the entrepreneurial venture. Regardless, the capital-seeking process is a vital part of an entrepreneur’s development.
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What is the displacement school of thought? What motivates the entrepreneur in this case?
It focuses on the negative side of group phenomena, in which someone feels out of place—or is literally “displaced”—from the group. Meaning a group hinders a person from advancing or eliminates certain critical factors needed for that person to advance.
* As a result, the frustrated individual will be projected into an entrepreneurial pursuit out of her own motivations to succeed. Individuals fight adversity and tend to pursue a venture when they are prevented or displaced from doing other activities.
* As a result, the frustrated individual will be projected into an entrepreneurial pursuit out of her own motivations to succeed. Individuals fight adversity and tend to pursue a venture when they are prevented or displaced from doing other activities.
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What are the three major types of displacement?
What are the three major types of displacement?
1. Political displacement. Caused by factors ranging from an entire political regime that rejects free enterprise (international environment) to governmental regulations and policies that limit or redirect certain industries.
2. Cultural displacement. Deals with social groups precluded from professional fields. Ethnic background, religion, race, and sex are examples of factors that figure in the minority experience. Increasingly, this experience turns various individuals away from standard business professions and toward entrepreneurial ventures. In the United States, minority businesses represented 15 percent of all businesses during the last 20 years.
3. Economic displacement. Concerned with the economic variations of recession and depression. Job loss, capital shrinkage, or simply “bad times” can create the foundation for entrepreneurial pursuits, just as it can affect venture development and reduction.
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Cultural awareness, knowledge of political and public policy, and economic indoctrination will aid and improve entrepreneurial understanding under the displacement school of thought. The broader the educational base in economics and political science, the stronger the entrepreneurial understanding.
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What is the micro view of entrepreneurship? What is the difference between the macro view and micro view?
It blames entrepreneurship on the internal locus of control. The potential entrepreneur has the ability, or control, to direct or adjust the outcome of each major influence in this view. Unlike the macro approach, which focuses on events from the outside looking in, the micro approach concentrates on specifics from the inside looking out.
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What is the entrepreneurial trait school of thought?
It is grounded in the study of successful people who tend to exhibit similar characteristics that, if copied, would increase success opportunities for the emulators. For example, achievement, creativity, determination, and technical knowledge are four factors that usually are exhibited by successful entrepreneurs.
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What is examined when looking at the entrepreneurial trait school of thought?
Educational incubation:
* Certain researchers have argued against educational development of entrepreneurs, because they believe it inhibits the creative and challenging nature of entrepreneurship.
* Other authors, however, contend that new programs and educational developments are on the increase because they have been found to aid in entrepreneurial development.
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Family development:
* Focuses on the nurturing and support that exist within the home atmosphere of an entrepreneurial family. This reasoning promotes the belief that certain traits established and supported early in life will lead eventually to entrepreneurial success.
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* Certain researchers have argued against educational development of entrepreneurs, because they believe it inhibits the creative and challenging nature of entrepreneurship.
* Other authors, however, contend that new programs and educational developments are on the increase because they have been found to aid in entrepreneurial development.
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Family development:
* Focuses on the nurturing and support that exist within the home atmosphere of an entrepreneurial family. This reasoning promotes the belief that certain traits established and supported early in life will lead eventually to entrepreneurial success.
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What is the venture opportunity school of thought?
Focuses on the opportunity aspect of venture development.
* The search for idea sources, the development of concepts, and the implementation of venture opportunities are important interest areas for this school.
* Creativity and market awareness are viewed as essential. Additionally, according to this school of thought, developing the right idea at the right time for the right market niche is the key to entrepreneurial success.
* The search for idea sources, the development of concepts, and the implementation of venture opportunities are important interest areas for this school.
* Creativity and market awareness are viewed as essential. Additionally, according to this school of thought, developing the right idea at the right time for the right market niche is the key to entrepreneurial success.
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What is the principle developed by this school of thought? What does it mean?
The corridor principle. It means new pathways or opportunities will arise that lead entrepreneurs in different directions. The ability to recognize these opportunities when they arise and to implement the necessary steps for action are key factors.
* The maxim that preparation meeting opportunity equals “luck” underlies this corridor principle. Proponents of this school of thought believe that proper preparation in the interdisciplinary business segments will enhance an entrepreneur’s ability to recognize venture opportunities.
* The maxim that preparation meeting opportunity equals “luck” underlies this corridor principle. Proponents of this school of thought believe that proper preparation in the interdisciplinary business segments will enhance an entrepreneur’s ability to recognize venture opportunities.
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What is the strategic formulation school of thought? What are the four unique elements leveraged used in strategic formulation?
What is the strategic formulation school of thought? What are the four unique elements leveraged used in strategic formulation?
The strategic formulation school of thought approach to entrepreneurial theory emphasizes the planning process in successful venture development. Unique markets, unique people, unique products, or unique resources are identified, used, or constructed into effective venture formations
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Explain each of the four unique elements leveraged used in strategic formulation. The interdisciplinary aspects of strategic adaptation are apparent in the following characteristic elements.
* Unique markets. Mountain versus mountain gap strategies, which refers to identifying major market segments as well as interstice (in-between) markets that arise from larger markets.
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* Unique people. Great chef strategies, which refers to the skills or special talents of one or more individuals around whom the venture is built.
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* Unique products. Better widget strategies, which refers to innovations that encompass new or existing markets.
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* Unique resources. Water well strategies, which refers to the ability to gather or harness special resources (land, labor, capital, and raw materials) over the long term.
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* Unique people. Great chef strategies, which refers to the skills or special talents of one or more individuals around whom the venture is built.
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* Unique products. Better widget strategies, which refers to innovations that encompass new or existing markets.
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* Unique resources. Water well strategies, which refers to the ability to gather or harness special resources (land, labor, capital, and raw materials) over the long term.
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What is the process approach? What are the two traditional process approaches to entrepreneurship?
It is another way to examine the activities involved in entrepreneurship
* The integrative approach
* The dynamic approach
* The integrative approach
* The dynamic approach
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What is the integrative approach?
Inputs and Outcomes of the entrepreneurial process
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What is the input component and what are the five key elements that contribute to the input component of the process? (Figure 1.2)
It focuses on the actual entrepreneurial process itself and identifies the five key elements that contribute to it.
* Environmental opportunities: Such as a demographic change, the development of a new technology, or a modification to current regulations.
* Entrepreneurial individuals (the individual entrepreneur): the person who assumes personal responsibility for conceptualizing and implementing a new venture.
* Unique business concepts: The entrepreneur develops some type of business concept to capitalize on the opportunity (e.g., a creative approach to solving a particular customer need).
* An organizational context: Implementing this business concept typically requires some type of organizational context, which could range from a sole proprietorship (owning a business or property) run out of the entrepreneur’s home or a franchise of some national chain to an autonomous business unit within a large corporation.
* Resources: Finally, a wide variety of financial and non-financial resources are required on an ongoing basis.
* Environmental opportunities: Such as a demographic change, the development of a new technology, or a modification to current regulations.
* Entrepreneurial individuals (the individual entrepreneur): the person who assumes personal responsibility for conceptualizing and implementing a new venture.
* Unique business concepts: The entrepreneur develops some type of business concept to capitalize on the opportunity (e.g., a creative approach to solving a particular customer need).
* An organizational context: Implementing this business concept typically requires some type of organizational context, which could range from a sole proprietorship (owning a business or property) run out of the entrepreneur’s home or a franchise of some national chain to an autonomous business unit within a large corporation.
* Resources: Finally, a wide variety of financial and non-financial resources are required on an ongoing basis.
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What is the outcome potent of entrepreneurship?
It focuses on the level of entrepreneurship being achieved (entrepreneurship is a variable).
* Meaning that the entrepreneurial process can result in any number of entrepreneurial events and can produce events that vary considerably in terms of how entrepreneurial they are.
* Meaning that the entrepreneurial process can result in any number of entrepreneurial events and can produce events that vary considerably in terms of how entrepreneurial they are.
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Based on this level of “entrepreneurial intensity”, final outcomes can include..
* one or more going ventures
* value creation
* new products and processes
* new technologies, profit, jobs
* economic growth.
Moreover, the outcome can certainly be failure and thereby include the corresponding economic, psychic, and social costs.
* value creation
* new products and processes
* new technologies, profit, jobs
* economic growth.
Moreover, the outcome can certainly be failure and thereby include the corresponding economic, psychic, and social costs.
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What is the benefit of the integrative approach?
The model describes the phenomenon of entrepreneurship in both the independent start-up company and within a department, division, or strategic business unit of a large corporation
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What is the dynamic states model? (Figure 1.3)
It depicts ventures (businesses being at high risk) being dependent on their environment for survival.
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What is a dynamic state?
A network of relationships and systems that convert opportunity tension into value for a venture’s (business’s) customers, generating new resources that maintain the dynamic state.
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Explain how the dynamic states model work.
It is more process-oriented view
* The strategy for value creation chosen by the firm is enacted by its business model, which itself is derived from the emerging dominant logic of the firm.
* The strategy for value creation chosen by the firm is enacted by its business model, which itself is derived from the emerging dominant logic of the firm.
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What is the benefit of the dynamic states model?
It is more optimistic for entrepreneurs, suggesting that smaller and newer firms have more flexibility in making ongoing changes. Thus, it may be easier for new ventures to create a high degree of interdependence between themselves and their environment, enabling entrepreneurs to organize for the current and anticipated demands of their market.
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What is the framework of frameworks approach? (Figure 1.4)
Theories or frameworks based on combinations offer a more dynamic view of the phenomenon of entrepreneurship. Much like the “multiple lens” approach that characterizes general management, the theories based on combinations can delve into some of the particular aspects of entrepreneurship with greater granularity.
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How does the framework of frameworks theory contrast to the process approach and the school of thoughts approach?
The schools of thought and the process approaches that exist in the field of entrepreneurship are based on a phenomenon that incorporates many diverse and heterogeneous dimensions that indicate only a comprehensive framework approach might afford researchers the capacity to explore and expand the knowledge base. A sizable body of research has developed that supports the individual frameworks through the schools of thought or process models, but the integration of previously disparate aspects of entrepreneurship may be particularly valuable to advancing the field of entrepreneurship. As such, greater knowledge could be gained from the extrapolation of particular insights from each of the frameworks presented in this approach. Thus a “framework of frameworks” that allows for the profession to move forward identifying the static and dynamic elements of new theories, typologies, or frameworks could be an important and distinguishing approach to grow the knowledge base of the field.
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How has entrepreneurship affected GEM?
For example, starting with just 10 developed countries in 1999, the Global Entrepreneurship Monitor (GEM) grew to include over 70 economies and 100 countries in 2017. In 2016 people were surveyed in 70 economies that account for over 75 percent of the world’s population and 90 percent of the world’s GDP.
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The GEM data showed that 250 million people were involved in early-stage entrepreneurial activity. Of these individuals, an estimated 63 million people expected to hire at least 5 employees over the next 5 years, and 27 million of these individuals anticipated hiring 20 or more employees in that time. The latest GEM analysis shows that growth expectations and aspirations of early-stage entrepreneurs represent a key dimension of potential entrepreneurial impact and may be linked directly to many first-priority policy objectives around the world: to create more jobs. All of this illustrates the contribution of entrepreneurship and the entrepreneurial mind-set to job growth across the globe.
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The GEM data showed that 250 million people were involved in early-stage entrepreneurial activity. Of these individuals, an estimated 63 million people expected to hire at least 5 employees over the next 5 years, and 27 million of these individuals anticipated hiring 20 or more employees in that time. The latest GEM analysis shows that growth expectations and aspirations of early-stage entrepreneurs represent a key dimension of potential entrepreneurial impact and may be linked directly to many first-priority policy objectives around the world: to create more jobs. All of this illustrates the contribution of entrepreneurship and the entrepreneurial mind-set to job growth across the globe.
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What are the three levels participating economies GEM groups are divided into? What are they based on?
* factor-driven
* efficiency-driven
* innovation-driven
These are based on the World Economic Forum’s (WEF) Global Competitiveness Report, which identifies three phases of economic development based on GDP per capita and the share of exports comprising primary goods. According to the WEF classification, the factor-driven phase is dominated by subsistence agriculture and extraction businesses, with a heavy reliance on labor and natural resources. In the efficiency-driven phase, further development is accompanied by industrialization and an increased reliance on economies of scale, with capital-intensive large organizations more dominant. As development advances into the innovation-driven phase, businesses are more knowledge-intensive, and the service sector expands.
* efficiency-driven
* innovation-driven
These are based on the World Economic Forum’s (WEF) Global Competitiveness Report, which identifies three phases of economic development based on GDP per capita and the share of exports comprising primary goods. According to the WEF classification, the factor-driven phase is dominated by subsistence agriculture and extraction businesses, with a heavy reliance on labor and natural resources. In the efficiency-driven phase, further development is accompanied by industrialization and an increased reliance on economies of scale, with capital-intensive large organizations more dominant. As development advances into the innovation-driven phase, businesses are more knowledge-intensive, and the service sector expands.
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What are the lessons gleaned from the various GEM studies?
* Entrepreneurship does not impact an economy simply through higher numbers of entrepreneurs. It is important to consider quality measures such as growth, innovation, and internationalization.
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* Entrepreneurship requires a will and a way. Entrepreneurs are fuelled by their abilities and confidence but also by their inclinations and determination. Compared to 2009, twice as many Americans believed there were good opportunities around them in 2016, and a persistently high proportion believed they had the ability to start a business.
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* Entrepreneurship needs dynamism and stability. Dynamism occurs through the creation of new businesses and the exit of nonviable ones. Stability comes from providing new businesses with the best chance to test and reach their potential.
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* Entrepreneurship in a society should contain a variety of business phases and types, led by different types of entrepreneurs, including women and underrepresented age groups.
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* Initiatives aimed toward improving entrepreneurship should consider the development level of the economy. With a strong set of basic requirements in place, efforts can turn toward reinforcing efficiency enhancers and then building entrepreneurship framework conditions.
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* An entrepreneurial mind-set is not just for entrepreneurs. It must include a variety of stakeholders that are willing to support and cooperate with these dynamic efforts. In addition, nonentrepreneurs with entrepreneurial mind-sets may indirectly stimulate others to start businesses. This indicates the value of broader societal acceptance of entrepreneurship.
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* Entrepreneurship requires a will and a way. Entrepreneurs are fuelled by their abilities and confidence but also by their inclinations and determination. Compared to 2009, twice as many Americans believed there were good opportunities around them in 2016, and a persistently high proportion believed they had the ability to start a business.
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* Entrepreneurship needs dynamism and stability. Dynamism occurs through the creation of new businesses and the exit of nonviable ones. Stability comes from providing new businesses with the best chance to test and reach their potential.
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* Entrepreneurship in a society should contain a variety of business phases and types, led by different types of entrepreneurs, including women and underrepresented age groups.
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* Initiatives aimed toward improving entrepreneurship should consider the development level of the economy. With a strong set of basic requirements in place, efforts can turn toward reinforcing efficiency enhancers and then building entrepreneurship framework conditions.
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* An entrepreneurial mind-set is not just for entrepreneurs. It must include a variety of stakeholders that are willing to support and cooperate with these dynamic efforts. In addition, nonentrepreneurs with entrepreneurial mind-sets may indirectly stimulate others to start businesses. This indicates the value of broader societal acceptance of entrepreneurship.
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What are the specific types of entrepreneurs?
What are the specific types of entrepreneurs?
The BNP Paribas Entrepreneur Report, conducted among 2700 entrepreneurs based in 18 countries in Asia, Europe, and the United States, revealed the emergence of a new generation of entrepreneur types.
* The first are referred to as “Millennipreneurs.” They are under the age of 35 and define their professional success in terms of the positive social or environmental impact generated by their business.
* Other types include “Ultrapreneurs,” who focus on environmental and social concerns
* “Serialpreneurs,” who have established four or more operating companies
* “Boomerpreneurs,” who are 55 years or older and are even more convinced than younger generations that their business has generated a positive social impact since its inception.
* The first are referred to as “Millennipreneurs.” They are under the age of 35 and define their professional success in terms of the positive social or environmental impact generated by their business.
* Other types include “Ultrapreneurs,” who focus on environmental and social concerns
* “Serialpreneurs,” who have established four or more operating companies
* “Boomerpreneurs,” who are 55 years or older and are even more convinced than younger generations that their business has generated a positive social impact since its inception.
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What are we experiencing in the 21st century and what does it mean?
Entrepreneurial Revolution
* The tremendous increase in entrepreneurial business and entrepreneurial thinking that has developed during the last 20 years. This revolution will be as powerful to the twenty-first century as the Industrial Revolution was to the twentieth century (if not more!).
Entrepreneurs will continue to be critical contributors to economic growth through their leadership, management, innovation, research and development effectiveness, job creation, competitiveness, productivity, and formation of new industry.
* The tremendous increase in entrepreneurial business and entrepreneurial thinking that has developed during the last 20 years. This revolution will be as powerful to the twenty-first century as the Industrial Revolution was to the twentieth century (if not more!).
Entrepreneurs will continue to be critical contributors to economic growth through their leadership, management, innovation, research and development effectiveness, job creation, competitiveness, productivity, and formation of new industry.
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What are the statistics of the US for entrepreneurship?
The past 20 years have witnessed the powerful emergence of entrepreneurial activity in the United States. Many statistics illustrate this fact. For example, the U.S. Small Business Administration reported that, during the past 10 years, new business start-ups numbered over 400,000 per year. Although many of these incorporations may have previously been sole proprietorships or partnerships, the trend still demonstrates the popularity of venture activity, whether through start-ups, expansions, or development. More specifically, in the second decade of the new millennium, we have witnessed the number of businesses in the United States soar to more than 28 million, and that number is still growing at a rate of 2 percent annually. Let us examine some of the historical numbers supporting this phenomenon.
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What country consistently exhibits one of the highest entrepreneurship rates in the developed world?
The US
* Entrepreneurship provides job options for those who see opportunities and those who need a source of income. Entrepreneurs affect the U.S. economy as both current and future employers and additionally play key roles as suppliers, customers, and service providers for other businesses, creating value and employment beyond their specific organizations. According to GEM data, an estimated 25 million Americans were starting or running new ventures in 2016, and 42 percent projected that they would employ 6 or more people in the next 5 years. Thirty-seven percent of all entrepreneurs in the United States are developing and delivering innovative products or services, representing the highest level for this indicator in 15 years and a higher-than-average level for all other innovation economies (31 percent).
* Entrepreneurship provides job options for those who see opportunities and those who need a source of income. Entrepreneurs affect the U.S. economy as both current and future employers and additionally play key roles as suppliers, customers, and service providers for other businesses, creating value and employment beyond their specific organizations. According to GEM data, an estimated 25 million Americans were starting or running new ventures in 2016, and 42 percent projected that they would employ 6 or more people in the next 5 years. Thirty-seven percent of all entrepreneurs in the United States are developing and delivering innovative products or services, representing the highest level for this indicator in 15 years and a higher-than-average level for all other innovation economies (31 percent).
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How many Americans were running established ventures? Why do they do it?
In addition, an estimated 14 million Americans were running established ventures in 2016, with 3.2 million planning to employ six or more employees in the years ahead. Thirteen percent of the U.S. working-age population was in the process of starting or running a new business—the highest entrepreneurship rate reported among the 25 developed economies from North America, Europe, and Asia that participated in GEM Global Study.
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* The majority of entrepreneurs in the United States start businesses to pursue an opportunity; however, necessity motives remain persistently higher than before the recession.
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* The majority of entrepreneurs in the United States start businesses to pursue an opportunity; however, necessity motives remain persistently higher than before the recession.
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What age has the highest rate of entrepreneurship?
The United States has the highest rate of entrepreneurship among 55–64-year-olds in the 25 developed economies studied, as they are more confident in their abilities to start businesses than people 18–44 years of age. Compared to the older population, younger age groups in the United States are more likely to see opportunities but less likely to believe they have the needed capabilities for entrepreneurship, and their fear of failure is high. The older age groups, in contrast, don’t see as many opportunities but express more confidence in their capabilities. They are less afraid of failing.
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What is a leading indicator of new business creation in the US?
0\.48 percent of American adults created a business in 2016, representing the highest level of entrepreneurship over the past two decades
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What-owned business people group increased?
Further, women- and minority-owned businesses increased. Minority-owned businesses numbered 5.8 million, a 45.6 percent increase over the last 5 years; women-owned businesses totaled 7.8 million, a 20.1 percent increase over the same five-year span.
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How do entrepenuers affect the market?
Entrepreneurs also create entirely new markets by offering innovative products. These new markets present profit opportunities to others, further spurring economic growth. Additionally, a full 14 percent of entrepreneurs who started a business claimed their product had no direct competitor—a clear indication of new markets being created by entrepreneurs.
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What are some of the reasons cited for the exceptional entrepreneurial activity in the US?
* The United States is a culture that supports risk taking and seeking opportunities.
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* Americans are relatively alert to unexploited economic opportunity and have a relatively low fear of failure.
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* The United States is a leader in entrepreneurship education at both the undergraduate and graduate levels.
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* The United States is home to a high percentage of individuals with professional, technological, or business degrees, a group that registers at the highest entrepreneurial activity rate.
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* Americans are relatively alert to unexploited economic opportunity and have a relatively low fear of failure.
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* The United States is a leader in entrepreneurship education at both the undergraduate and graduate levels.
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* The United States is home to a high percentage of individuals with professional, technological, or business degrees, a group that registers at the highest entrepreneurial activity rate.
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What are gazelles?
What are gazelles?
A business establishment with at least 20 percent sales growth every year, starting with a base of at least $100,000. New and smaller firms create the most jobs in the U.S. economy (and across the globe, for that matter). The vast majority of these job-creating companies are fast-growing businesses called gazelles.
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What is the “gazelle factor”?
Consider that, despite the continual downsizing in major corporations over the last decade, gazelles produced 5 million jobs and brought net employment growth to 4.2 million jobs. More recently, gazelles (which currently number about 358,000 or 4 percent of all ongoing companies) generated practically as many jobs (10.7 million) as the entire U.S. economy (11.1 million) during the same period.
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How are gazelles leaders in innovation?
New and smaller firms have been responsible for 55 percent of the innovations in 362 different industries and for 95 percent of all radical innovations. Gazelles produce twice as many product innovations per employee as do larger firms. New and smaller firms obtain more patents per sales dollar than do larger firms.
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What are the 4 myths about gazelles and how do you debunk them?
* Gazelles are the goal of all entrepreneurs.
* Creating a gazelle can be rewarding not only financially but also professionally; however, not all entrepreneurs are suited to the high-stress environment that running a gazelle induces. The more successful a firm becomes, the more society scrutinizes the actions of the management. Once the world is watching, keeping a gazelle growing takes not only tenacity but also composure under extreme pressure.
* Gazelles receive venture capital (capital invested in a project in which there is a substantial element of risk, typically a new or expanding business).
* Although venture capital (VC) firms prefer to invest in gazelles, many gazelles have never received VC funding. With gazelles numbering close to 400,000, less than 2 percent of these companies have received funding, even in boom times.
* Gazelles were never mice.
* By definition, gazelles are companies created with the intent of high growth and wealth creation, whereas mice are companies created with the goal of merely generating income and no intention of growth. Companies can be gazelles at birth; however, many businesses become gazelles later in life. As many as 20 percent of gazelles have been in operation for more than 30 years.
* Gazelles are high tech.
* To be classified as a gazelle, a company must have grown sales by 20 percent for at least a five-year period, starting with a base of at least $100,000—which can include firms in any industry. This myth most likely stems from the high margins enjoyed by most technology-based companies; however, gazelles are commonly found in low-tech sectors. Two prevalent examples are Best Buy and Starbucks.
* Gazelles are global.
* The scope of a business has no role in its distinction as a gazelle, so even though some gazelles are operating on a global scale, it is not a necessary characteristic. Making the decision to expand overseas prematurely can just as quickly lead to the death of a business as it can lead to its success. Beyond the risks, international trade accounts for more than $800 billion annually in economic activity—but without careful planning, going global could lead to going out of business.
* Creating a gazelle can be rewarding not only financially but also professionally; however, not all entrepreneurs are suited to the high-stress environment that running a gazelle induces. The more successful a firm becomes, the more society scrutinizes the actions of the management. Once the world is watching, keeping a gazelle growing takes not only tenacity but also composure under extreme pressure.
* Gazelles receive venture capital (capital invested in a project in which there is a substantial element of risk, typically a new or expanding business).
* Although venture capital (VC) firms prefer to invest in gazelles, many gazelles have never received VC funding. With gazelles numbering close to 400,000, less than 2 percent of these companies have received funding, even in boom times.
* Gazelles were never mice.
* By definition, gazelles are companies created with the intent of high growth and wealth creation, whereas mice are companies created with the goal of merely generating income and no intention of growth. Companies can be gazelles at birth; however, many businesses become gazelles later in life. As many as 20 percent of gazelles have been in operation for more than 30 years.
* Gazelles are high tech.
* To be classified as a gazelle, a company must have grown sales by 20 percent for at least a five-year period, starting with a base of at least $100,000—which can include firms in any industry. This myth most likely stems from the high margins enjoyed by most technology-based companies; however, gazelles are commonly found in low-tech sectors. Two prevalent examples are Best Buy and Starbucks.
* Gazelles are global.
* The scope of a business has no role in its distinction as a gazelle, so even though some gazelles are operating on a global scale, it is not a necessary characteristic. Making the decision to expand overseas prematurely can just as quickly lead to the death of a business as it can lead to its success. Beyond the risks, international trade accounts for more than $800 billion annually in economic activity—but without careful planning, going global could lead to going out of business.
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What does unicorn mean?
The term unicorn was introduced as a label for such corporate ventures. Smartphones, inexpensive sensors, and cloud computing are examples of new technologies that have enabled Internet-connected services to be introduced into traditionally nontech industries. For example, Uber has disrupted the taxi industry, and Airbnb is busy disrupting the hotel industry. As they grow, many start-ups are surpassing the $1 billion level and achieving $10 billion valuations. These firms, such as Facebook, Uber, and Airbnb, are now referred to as decacorns.
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What is a viable strategy for larger firms to gain access to new innovations and for new innovative start-ups to find a valuable exit strategy?
The acquisition trend
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What are the three entrepreneurial components that foster or promote entrepreneurial activity?
* First, large existing firms in mature industries that adapted, downsized, restructured, and reinvented themselves in the early 2000s are now thriving, having learned to become more entrepreneurial. As large firms have become leaner, their sales and profits have increased sharply. For example, General Electric, which cut its workforce by 40 percent over the same period, saw its sales increase fourfold, from less than $20 billion to nearly $80 billion. This goal was accomplished, in many cases, by returning to the firm’s “core competencies” and by contracting out functions formerly done in-house to small firms.
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* Second, while large existing companies have been transforming themselves, new entrepreneurial companies have been blossoming. Thirty years ago, Nucor Steel was a small manufacturer with a few hundred employees. It embraced a new technology called thin-slab casting that allowed it to thrive, while other steel companies stumbled. Nucor grew to 59,000 employees, with sales of $3.4 billion and a net income of $274 million. Newer entrepreneurial companies—some of which did not exist 20 years ago—have collectively created millions of new jobs during the past decade. Among many notable examples, consider Facebook, Twitter, Google, LinkedIn, and YouTube.
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* Third, thousands of entrepreneurial firms have been founded, including many established by women, minorities, and immigrants. These new companies have footholds in every sector of the economy and can be found in every part of the country. Together they make a formidable contribution to the economy, as many, by hiring on one or two employees, have created most of the net new jobs in the last few years.
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* Second, while large existing companies have been transforming themselves, new entrepreneurial companies have been blossoming. Thirty years ago, Nucor Steel was a small manufacturer with a few hundred employees. It embraced a new technology called thin-slab casting that allowed it to thrive, while other steel companies stumbled. Nucor grew to 59,000 employees, with sales of $3.4 billion and a net income of $274 million. Newer entrepreneurial companies—some of which did not exist 20 years ago—have collectively created millions of new jobs during the past decade. Among many notable examples, consider Facebook, Twitter, Google, LinkedIn, and YouTube.
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* Third, thousands of entrepreneurial firms have been founded, including many established by women, minorities, and immigrants. These new companies have footholds in every sector of the economy and can be found in every part of the country. Together they make a formidable contribution to the economy, as many, by hiring on one or two employees, have created most of the net new jobs in the last few years.
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What are the two indispensable contributions entrepreneurial firms make?
* First, they are an integral part of the renewal process that pervades and defines market economies. They also play a crucial role in championing innovations that lead to technological change and productivity growth. In short, they are about change and competition because they change market structure. The U.S. economy is a dynamic, organic entity, always in the process of “becoming,” rather than having already arrived. It is about prospects for the future, not the inheritance of the past.
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* Second, entrepreneurial firms are the essential mechanism by which millions enter the economic and social mainstream of American society. Small businesses enable millions of people—including women, minorities, and immigrants—to access the American dream. The greatest source of U.S. strength has always been the dream of economic growth, equal opportunity, and upward mobility. In this evolutionary process, entrepreneurship plays the crucial and indispensable role of providing the “social glue” that binds together both high-tech and “Main Street” activities.
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* Second, entrepreneurial firms are the essential mechanism by which millions enter the economic and social mainstream of American society. Small businesses enable millions of people—including women, minorities, and immigrants—to access the American dream. The greatest source of U.S. strength has always been the dream of economic growth, equal opportunity, and upward mobility. In this evolutionary process, entrepreneurship plays the crucial and indispensable role of providing the “social glue” that binds together both high-tech and “Main Street” activities.
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What are the major themes that characterize recent research about entrepreneurs and new-venture creation?
1. Venture financing, including both venture capital and angel capital financing as well as other innovative financing techniques, emerged in the twenty-first century with unprecedented strength, fueling entrepreneurship throughout the world.
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2. Corporate entrepreneurship (entrepreneurial actions within large organizations) and the need for the entrepreneurial mind-set among employees have gained greater acceptance during the past few decades.
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3. Social entrepreneurship has emerged with unprecedented popularity among the new generation of entrepreneurs seeking innovative solutions to world problems.
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4. Entrepreneurial cognition (examining the ways that entrepreneurs think and act) is a wave of research on the psychological aspects of the entrepreneurial process.
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5. Women and minority entrepreneurs have emerged in greater numbers over the last two decades. They appear to face obstacles and difficulties different from those that other entrepreneurs face.
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6. The global entrepreneurial movement is increasing, judging by the enormous growth of interest in entrepreneurship around the world in the past few years.
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7. Family businesses have become a stronger focus of research. The economic and social contributions of entrepreneurs with family businesses have been shown to make immensely disproportionate contributions to job creation, innovation, and economic renewal.
8. Entrepreneurial education has become one of the hottest topics in business and engineering schools throughout the world. It has even expanded across campuses to include almost every major discipline. The number of schools teaching entrepreneurship courses has grown from as few as a dozen 40 years ago to more than 3000 schools offering majors or minors in entrepreneurship at this time.
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What are the six trajectories of entrepreneurship?
Trajectory 1: Why Teach Entrepreneurship—A Clear Purpose
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Building on a shared conceptualization can establish a clear purpose for the effort, enhance communication and collaboration across disciplines, and reduce any confusion experienced by stakeholders.
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Trajectory 2: What Is Taught in Entrepreneurship—The Content
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In modern entrepreneurship programs, the emphasis might take three forms or some combination of these forms:
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1. business basics in a new venture management context,
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2. core entrepreneurial content, and
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3. the entrepreneurial mind-set.
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Trajectory 3: How Entrepreneurship Is Taught—The Delivery Mechanism
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For their part, students will increasingly be expected to build experience portfolios as they progress through their studies in entrepreneurship. Upon completion of a minor, major, certificate, or other program in entrepreneurship, the student might submit a portfolio summary that includes their work on idea diaries, elevator pitches, business models, small business consulting reports, interviews with entrepreneurs, entrepreneurial audits, study abroad experiences, and so forth.
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Trajectory 4: Organizing Entrepreneurship—The Structure
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As researchers Michael H. Morris, Donald F. Kuratko, and Jeffrey Cornwall explain, “While structure covers a wide range of organizational issues, the most fundamental include determining where the entrepreneurship program should be housed, how it will be led, to whom it will report, how it is staffed, and how it operates from a budgetary standpoint.” So whether more centralized or decentralized, and whether based in a business school or elsewhere, the program needs a structural base with consistent leadership and authority.
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Trajectory 5: Outcomes of Teaching Entrepreneurship—The Metrics
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If programs attempt to prepare students for a life of entrepreneurship and seek to instill an entrepreneurial mind-set, the future will find more emphasis on competency mastery. As priority is placed on cross-campus entrepreneurship, basic metrics might be extended to include numbers of students involved with elements of the university-wide effort within each college or discipline; inter-disciplinary collaborations that result in publications, new courses, and course modules developed; and measures of student and faculty innovations that are traceable to involvement in the program.
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Trajectory 6: Leadership of Entrepreneurship Programs—Academic Entrepreneurs
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How an educators view themselves may be critical to the development of champions. For entrepreneurship programs to realize their full potential, those who lead them must self-identify as academic entrepreneurs so that the entrepreneurial mind-set conveyed to students becomes ingrained in how faculty and staff approach the academic environment. As an academic entrepreneur, the faculty member becomes an agent of social and economic change, leveraging the university context to empower students and facilitate disruptive approaches to problem solving.
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Building on a shared conceptualization can establish a clear purpose for the effort, enhance communication and collaboration across disciplines, and reduce any confusion experienced by stakeholders.
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Trajectory 2: What Is Taught in Entrepreneurship—The Content
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In modern entrepreneurship programs, the emphasis might take three forms or some combination of these forms:
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1. business basics in a new venture management context,
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2. core entrepreneurial content, and
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3. the entrepreneurial mind-set.
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Trajectory 3: How Entrepreneurship Is Taught—The Delivery Mechanism
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For their part, students will increasingly be expected to build experience portfolios as they progress through their studies in entrepreneurship. Upon completion of a minor, major, certificate, or other program in entrepreneurship, the student might submit a portfolio summary that includes their work on idea diaries, elevator pitches, business models, small business consulting reports, interviews with entrepreneurs, entrepreneurial audits, study abroad experiences, and so forth.
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Trajectory 4: Organizing Entrepreneurship—The Structure
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As researchers Michael H. Morris, Donald F. Kuratko, and Jeffrey Cornwall explain, “While structure covers a wide range of organizational issues, the most fundamental include determining where the entrepreneurship program should be housed, how it will be led, to whom it will report, how it is staffed, and how it operates from a budgetary standpoint.” So whether more centralized or decentralized, and whether based in a business school or elsewhere, the program needs a structural base with consistent leadership and authority.
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Trajectory 5: Outcomes of Teaching Entrepreneurship—The Metrics
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If programs attempt to prepare students for a life of entrepreneurship and seek to instill an entrepreneurial mind-set, the future will find more emphasis on competency mastery. As priority is placed on cross-campus entrepreneurship, basic metrics might be extended to include numbers of students involved with elements of the university-wide effort within each college or discipline; inter-disciplinary collaborations that result in publications, new courses, and course modules developed; and measures of student and faculty innovations that are traceable to involvement in the program.
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Trajectory 6: Leadership of Entrepreneurship Programs—Academic Entrepreneurs
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How an educators view themselves may be critical to the development of champions. For entrepreneurship programs to realize their full potential, those who lead them must self-identify as academic entrepreneurs so that the entrepreneurial mind-set conveyed to students becomes ingrained in how faculty and staff approach the academic environment. As an academic entrepreneur, the faculty member becomes an agent of social and economic change, leveraging the university context to empower students and facilitate disruptive approaches to problem solving.
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What is entrepreneurship?
Entrepreneurship is a dynamic process of vision, change, and creation that requires an application of energy and passion toward the creation and implementation of new ideas and creative solutions. This process of innovation and new-venture creation is accomplished through four major dimensions—individual, organizational, environmental, and process—and is aided by collaborative networks in government, education, and institutions. All of the macro and micro positions of entrepreneurial thought must be considered while recognizing and seizing opportunities that can be converted into marketable ideas capable of competing for implementation in today’s economy.
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What is an entrepreneur?
As we demonstrated earlier in the chapter, the entrepreneur is an innovator or developer who recognizes and seizes opportunities; converts those opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; and assumes the risks of the competitive marketplace to implement these ideas. The entrepreneur is a catalyst for economic change who uses purposeful searching, careful planning, and sound judgment when carrying out the entrepreneurial process. The entrepreneur—uniquely optimistic and committed—works creatively to establish new resources or endow old ones with a new capacity, all for the purpose of creating wealth.
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What is entrepreneurial discipline?
Entrepreneurship is based upon the same principles, whether the entrepreneur is an existing large institution or an individual starting his or her new venture singlehanded.
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What is entrepreneurial leadership?
An entrepreneur’s ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.
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What is the entrepreneurial behaviour?
An entrepreneur’s decision to initiate the new venture formation process.
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What is the entrepreneurial mindset?
All the characteristics and elements that compose the entrepreneurial potential in every individual.
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What does the word cognition (mental processes) mean? What does it mean by mental processes?
The term comes from the Latin cognoscere, which means “to know,” “to conceptualize,” or “to recognize,” and refers to a faculty for the processing of information, applying knowledge, and changing preferences.
* The term comes from the Latin cognoscere, which means “to know,” “to conceptualize,” or “to recognize,” and refers to a faculty for the processing of information, applying knowledge, and changing preferences.
* The term comes from the Latin cognoscere, which means “to know,” “to conceptualize,” or “to recognize,” and refers to a faculty for the processing of information, applying knowledge, and changing preferences.
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What is social cognition theory?
Cognition is used to refer to the mental functions, mental processes (thoughts), and mental states of intelligent humans. 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.
* Concepts from cognitive psychology are increasingly being found to be useful tools to help probe entrepreneurial-related phenomena, and, increasingly, the applicability of the cognitive sciences to the entrepreneurial experience are cited in the research literature.
* Concepts from cognitive psychology are increasingly being found to be useful tools to help probe entrepreneurial-related phenomena, and, increasingly, the applicability of the cognitive sciences to the entrepreneurial experience are cited in the research literature.
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What is the 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.
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What is entrepreneurial cognition?
The knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth. In other words, entrepreneurial cognition is about understanding how entrepreneurs use simplifying mental models to piece together previously unconnected information that helps them to identify and invent new products or services, and to assemble the necessary resources to start and grow businesses. Specifically, then, the entrepreneurial cognitions view offers an understanding as to how entrepreneurs think and “why” they do some of the things they do.
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What does a new stream of thinking link the foundation of the entrepreneurial mindset to and what does it mean?
Cognitive adaptability, which can be defined as a person’s ability to be dynamic, flexible, and self-regulating in cognitions given dynamic and uncertain task environments. Adaptable cognitions are important in achieving desirable outcomes from entrepreneurial actions.
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What is the megacognitive model?
Integrates the combined effects of entrepreneurial motivation and context, toward the development of metacognitive strategies applied to information processing within an entrepreneurial environment.
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What is entrepreneurial motivation?
The willingness of an entrepreneur to sustain his or her entrepreneurial behavior.
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Give an example of the megacognitive model.
Consider an entrepreneur faced with the entrepreneurial task of developing a sound explanation for a new venture in preparation for an important meeting with a venture capitalist. Before the entrepreneur is prepared to evaluate alternative strategies, the entrepreneur must first formulate a strategy to frame how to “think” about this task. This process is metacognitive. The process responsible for ultimately selecting a response (i.e., a particular venture strategy) is cognitive—the process responsible for ultimately selecting how the entrepreneur will frame the entrepreneurial task is metacognitive. Thus, metacognition is not to study why the entrepreneur selected a particular strategy for a set of alternative strategies (cognition) but instead to study the higher-order cognitive process that resulted in the entrepreneur framing the task effectually, and thus why and how the particular strategy was included in a set of alternative responses to the decision task (metacognition).
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