Business Foundations Exam 1

Starting w chapter 3 leaving this in here so i remeeber

fixed mindset

fear failure, avoid challenges, get defensive when presented w constructive feedback, will limit you in business, not permanent, can change it to a growth mindset.

growth mindset

embrace challenges, persevere rather than give up, perceive failure as a learning opportunity, are happier and more successful than those w a fixed mindset. research shows that achievement and motivation increase w a growth mindset, necessary foundation to developing and entrepreneurial mindset.

entrepreneurial mindset

a way of thinking, acting, and being that combines the ability to find or create new opportunities with the courage to act on them. non-conformist, risk acceptance, passionate, independent, execution, optimist, future focus, action-oriented, idea generation, persistent.

tolerance of failure

Most entrepreneurs have an expectation of failure, but they see it as a learning opportunity on the path to success (growth mindset). Fear of failure = disposition to avoid failure and/or the capacity to experience shame or humiliation as a result of failure. Fear of failure leads to performance anxiety and goal avoidance. For entrepreneurs, fear of failure is a double-edged sword: Fear of failure may prevent entrepreneurial action . . . OR Fear of failure can motivate them to succeed!

Grit: the ability to persevere

is related to resilience, to get back up and try again. is the ability to stick to long-term goals and commitments. includes the ability to overcome hardship and difficulties, the determination to overcome obstacles. is connected to higher levels of achievement. People with a growth mindset tend to have higher levels of grit. You need high levels of grit + a high tolerance for failure + a growth mindset to succeed.

Building blocks for building grit:

Courage: seeing failure as a learning experience takes courage.

Conscientiousness: working tirelessly in the face of challenges to achieve a

long-term goal.

Perseverance: committing to long term goals through practice and learning

from mistakes.

Resilience: the ability to recover from failure, grow and keep going.

Excellence: prioritizing improvement over perfection.

Four Principles of Effectuation Theory:

Bird in the hand, lemonade, crazy quilt, affordable loss

Theory of effectuation: Bird in the hand

use the resources that are available here and now to create solutions.

Theory of effectuation: lemonade

mistakes are inevitable and can be used to create new opportunities.

Theory of effectuation: crazy quilt

Entering new partnerships and connecting to new people can bring new opportunities, new resources and new directions.

Theory of effectuation: affordable loss

Only invest as much as you are willing to lose