Chapter 2 Flashcards
What means by cognition?
Cognition refers to mental processes, that includes attention, remembering, producing and understanding language, solving problems, and making decisions.
What is 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.
What is Entrepreneurial cognition?
about understanding how entrepreneurs use simplifying mental models to piece together previously unconnected information that helps to identify and incent new products or services, and to assemble the necessary resources to start and grow businesses.
Offers an understanding as to how entrepreneurs think and “why” they do some of the things they do.
What is Cognitive adaptability?
Defined as the ability to be dynamic, flexible, and self-regulating in one’s cognitions given dynamic and uncertain task environments.
Important in achieving desirable outcomes from entrepreneurial actions.
Who are entrepreneurs?
- Often defined as “risk takers”
- Are uniquely optimistic and hard-driving
- Committed individuals who derive great satisfaction
from being independent - Requires combining sound judgement and planning
with risk taking to ensure the success of his or her
own business - Driven by intense commitment and determined
perseverance - Optimists who see the cup as half full rather than
half empty - Strive for integrity
- Have enough confidence in themselves to believe
that they personally can make a major difference in
the final outcome of their ventures
Name Some of the most often cited entrepreneurial characteristics (13)
- Determination and perspective
- Drive to achieve
- Opportunity orientation
- Persistent problem solving
- Seeking feedback
- Internal focus of control
- Tolerance for ambiguity
- Calculated risk taking
- High energy level
- Creativity and innovativeness
- Vision
- Passion
- Team building
why do entrepreneurs tend to evaluate risk very carefully
- Starting or buying a new business involves risk
- The higher the rewards, the greater the risks
entrepreneurs usually face
4 common entrepreneurial risks
- financial risk
- career risk
- family and social risk
- psychic risk
explain financial risk
In most new ventures, the individual puts a significant portion of his or her savings in other resources at stake, which creates a serious financial risk.
This money or these resources will, in all likelihood, be lost if the venture fails
Explain career risk
If you fall off, it’s hard to come back on.
Will they be able to find a job or go back to their old job, if their venture fail?
Major concern to managers who have a secure organizational job with a high salary and a good benefit package.
what is Entrepreneurial Ethics
Ethics provides the basic rules or parameters for conducting any activity in an “acceptable” manner.
Represents a set of principles prescribing a behavioral code that explains what is good and right or bad and wrong
what is Ethical codes of conduct
Is a statement of ethical practices or guidelines to which an enterprise adheres
Many such codes exist – some related to industry at large and other related directly to corporate conduct
what is Ethical responsibility
Entrepreneurs need to analyze the ethical consciousness of their organization, the process and structure devised to enhance ethical activity, and, finally, their own commitment to institutionalize ethical objectives within the company.
what is Entrepreneurial Motivation
A resource framework that recognizes the contribution of psychological factors to the process of entrepreneurship
Demonstrates the importance of entrepreneurs perceived expectations and actual outcomes in the motivation to start and sustain a venture was considered
