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Entrepreneurs - Who Are They and What Makes Them Tick? (Let Us Go Behind The Mind of An Entrepreneur and See How They Think)

This document discusses key aspects of entrepreneurship. It defines an entrepreneur as an individual who bundles resources innovatively and bears risk to act on opportunities. Being an entrepreneur involves creation, devotion of time and effort, rewards, and risk assumption. Entrepreneurs differ from employees in that they take their own risks and have ownership over their work. The document outlines factors that aid cognitive adaptability for entrepreneurs like comprehension, connection, and reflection tasks. It also examines how entrepreneurs can learn from failures through loss-orientation and restoration-orientation approaches. Ethics and innovation are presented as important considerations for entrepreneurship in economic development.

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Ahsan Anik
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41 views

Entrepreneurs - Who Are They and What Makes Them Tick? (Let Us Go Behind The Mind of An Entrepreneur and See How They Think)

This document discusses key aspects of entrepreneurship. It defines an entrepreneur as an individual who bundles resources innovatively and bears risk to act on opportunities. Being an entrepreneur involves creation, devotion of time and effort, rewards, and risk assumption. Entrepreneurs differ from employees in that they take their own risks and have ownership over their work. The document outlines factors that aid cognitive adaptability for entrepreneurs like comprehension, connection, and reflection tasks. It also examines how entrepreneurs can learn from failures through loss-orientation and restoration-orientation approaches. Ethics and innovation are presented as important considerations for entrepreneurship in economic development.

Uploaded by

Ahsan Anik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Lecture 1

Entrepreneurs – Who are they and what makes them tick?


(Let us go behind the mind of an entrepreneur and see how they think)
 An individual who takes initiative to bundle resources in
innovative ways and is willing to bear the risk and/or
uncertainty to act.

what is an  Being an entrepreneur today:

‘Entrepreneur’  Involves creation process.


 Requires devotion of time and effort.
 Involves rewards of being an entrepreneur.
 Requires assumption of necessary risks
an  Behavior in response to a judgmental decision under
uncertainty about a possible opportunity for profit.
entrepreneurial
action
 Employees
  people who work for someone else for a fixed income
 Additional earnings go to the business owner, not to the
employee.

vs employees  Entrepreneurs
  You take your own risk to do your own thing in your own time.
  Its not all fun!!
Table 1.1
- Aspects of the
Entrepreneurial
Process
WHERE TO START?

INTERNAL CAUSAL PROCESS


 Starts with a desired outcome.
 Focuses on the means to generate that outcome.
There are TWO
ways to go about EFFECTUATION PROCESS
it  Starts with what one has (who they are, what they know, and
whom they know) – Self assessment
 Selects among possible outcomes
 SELF ASSESSMENT

TASK  LOOK WITHIN YOU AND JOT DOWN ALL YOUR


STRENGHTS AND WEEKNESSES
WHERE TO START?

EXTERNAL
 The process by which an entrepreneur comes up with the
opportunity for a new venture.
 Market size and the length of the window of opportunity are the
Opportunity primary bases for determining risks and rewards.
 (Window of opportunity - The time period available for creating the new
identification venture)
AN ENTREPRENEUR’S JOB IS TO:

OPPORTUNITY
CAPABILITY
When faced with a decision
 Cognitive adaptability describes the extent to which
entrepreneurs are:

COGNITIVE  Dynamic, flexible, self-regulating and engaged in the process of


generating multiple decision frameworks focused on sensing and

ADAPTABILI processing changes in their environments and then acting on


them.
TY  It reflects in an entrepreneur’s metacognitive awareness.
 Achieving cognitive adaptability
 Comprehension questions – Aids understanding of the nature of the
environment before addressing an entrepreneurial challenge.
What aids your  Connection tasks – Stimulates thinking about the current situation

cognitive in terms of similarities and differences with situations previously


faced and solved.

adaptability?  Strategic tasks – Stimulates thoughts about which strategies are


appropriate for solving the problem (and why) or pursuing the
opportunity (and how).
 Reflection tasks – Stimulates thinking about their understanding
and feelings as they progress through the entrepreneurial process.
 Uncertainty, changing conditions, and insufficient experience can
contribute to failure among entrepreneurial firms.
 An entrepreneur’s motivation is not simply from personal profit
but from:
Learning from  Loyalty to a product.

failures  Loyalty to a market and customers.


 Personal growth.
 The need to prove oneself.
 Loss-Orientation
 Involves working through, and processing, some aspect of the loss
Learning from experience and, as a result of this process, breaking emotional bonds to the
object lost.

failures  This process gradually provides the loss with meaning and eventually
produces a changed viewpoint.
(Loss  Involves confrontation, which is physically and mentally exhausting.

orientation)  Characterized by feelings of relief and pain that wax and wane over time.
 Restoration-Orientation
Learning from  Based on both avoidance and a proactiveness toward secondary sources of

failures
stress arising from a major loss.
 Involves suppression, which requires mental effort and presents potentially

(Restoration adverse consequences for health.


 Provides an opportunity to address secondary causes of stress.
orientation)  May reduce emotional significance of the loss.
 Entrepreneurs usually develop an internal ethical code.
 Personal value systems tend to be influenced by:
 Peer pressure.
 General social norms in the community.
ETHICS  Pressures from their competitors.

 Business ethics - The study of behavior and morals in a


business situation.
 Innovation is depicted as a key to economic development.

Entrepreneurship  Product-evolution process - Process through which innovation is


developed and commercialized.

in economic  Iterative synthesis - The intersection of knowledge and social


need that starts the product development process.
development

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