1 Flashcards
Definition of Entrepreneur
Entrepreneurship is an activity that involves the discovery, evaluation, and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, process and raw materials through organizing effort that previously had not existed (Venkataraman, 1997)
- discovery, evaluation, exploitation
- of new goods and services, ways of organizing,markets, process, raw materials
- that previously had NOT existed
Why is Entrepreneurship important?
1-4
- disrupt markets (CD, smartphones)
- create industries (facebook, instagram)
- creates products (model, adhesys)
- contributes to the wealth of nations
Entrepreneurial Character Traits
1-5
OCEAN’s 5:
O Openness: Being curious, intellectual, creative, open to new ideas
C Conscientiousness: being organized, systematic, achievement oriented
E Extraversion: outgoing, talkative, sociable, enjoying social situations
A Agreeableness: being affable, tolerant, trusting, warm
N Neuroticism: anxious, irritable, temperamental, moody
Effects of OCEAN’s 5 on Start-up performance
Entrepreneur vs. manager; effects on performance
Openness: E > M; +
Conscientiousness: E > M; +
Extraversion: E = M; +
Agreeableness: E < M; =
Neuroticsm: E < M; -
Development of Entrepreneurial Character Traits
1-4
personality can be developed through
- Education
- social networks
- cultural influence
- coaching
Action-Characteristics model of Entrepreneurship
Dualistic Model of Passion, Vallerand
1
2
1 Harmonious passion
- person controls passion
- Role or activity does overpower individuals lives but rather remains in balance with other activities and aspects.
2 Obsessive Passion
- passion controls person
- normally negative associated, but can be positive for companies
Definition Passion
A strong inclination toward an activity that people like, find important, and in which they invest significant time and energy.
- inclination toward activity
- that people like/find important
- invest significant time/energy
Kinds of Passion
1-3
1 Passion for inventing
- „problem-solver“
- seek new opportunity and solutions to various needs/problems
- new ideas
- Steve Jobs
2 passion for founding
- founding organizations
- process of founding a new venture
- Sir Richard Branson
3 passion for developing
- growing and scaling businesses into large companies
- organizing, financing, hiring employees
- Ray Kroc
Entrepreneurial Biases
1-11
1 overconfidence
2 overoptimism
3 self-serving attribution
4 illusion of control
5 the law of small numbers
6 similarity
7 availability
8 representatives
9 status quo
10 planning fallacy
11 escalation of commitment
Entrepreneurial Biases
Overconfidence
perceive a subjective certainty higher than the objective accuracy
Entrepreneurial Biases
Overoptimism
overestimate the likelihood of positive events and underestimate the likelihood of negative events
Entrepreneurial Biases
Self-serving attribution
take credit for success while deny responsibility for failure
Entrepreneurial Biases
illusion of control
overemphasize how much skills, instead of chance improve performance
Entrepreneurial Biases
the law of small numbers
reach conclusion about a larger population using a limited sample
Entrepreneurial Biases
similarity
tend to evaluate more positively those who are more similar to themselves
Entrepreneurial Biases
availability
make judgements about the probability of events based on how easy it is to think of examples
Entrepreneurial Biases
representativeness
use a familiar situation as a cognitive shortcut for making decisions
Entrepreneurial Biases
status quo
repeat a previous choice overly often
Entrepreneurial Biases
Planning fallacy
underestimate the time needed for future tasks
Entrepreneurial Biases
escalation of commitment
persist unduly with unsuccessful initiatives or courses of action
Founders Personality
1-3
1 founders are not born but made
- personality factors trained & developed
- e.g.: openness towards experience, conscientiousness, resilience
2 motivated by ownership
- owner-manager dominance lead to high motivation
- application of cognition to cope with uncertainty
- e.g.: passion, entrepreneurial orientation
3 key to start-up performance
- success depends on initiative, leveraging means/partnerships
- actions driven by personality and owner-manager dominance
Entreprenurial mindset
1-6
1 idea (own business idea)
2 Approach (apply process of successful entrepreneurs)
3 Team (build own team, establish relevant partners)
4 Get yourself started
5 Lean Start-up
6 Pitfalls (watch for critical obstacles)
Social issues
1-9
1 Poverty
2 Healthcare
3 Covid-19 Impact
4 Climate change
5 LGBTQ+ discrimination
6 Racial discrimination
7 Aging society
The Social Entrepreneurial Process
1-5
1 Recognizing social problem
2 recognizing social opportunity
3 developing double line solution
4 funding and forming social enterprise
5 creating and entering social market
Approch of Problem Recognition
1-5
1 Observation
2 Hypothesis
3 Iceberg
4 Problem one-pager
5 Prioritization
