Lecture 5: Entrepreneuring

Question 1

What is entrepreneuring?

Answer 1

Entrepreneuring: process and practice of creating new valuable realities.

Question 2

What are the four pillars of entrepreneuring?

Answer 2

1. Addressing needs and challenges as opportunities
2. Expanding novel economic relationships
3. Bringing together resources
4. Creating value over space and time

Question 3

What are five common personality traits of entrepreneurs?

Answer 3

1. High need for achievement
2. High risk-taking propensity
3. Internal locus of control
4. High self-efficacy
5. High extraversion.

Question 4

What is value creation?

Answer 4

initiated by desiring a meaningful work such as delivering innovation to generate value for stakeholders

Question 5

Waht is value capture?

Answer 5

value-extracting behavior to appropriate existing value and externalize costs, potentially reducing others’ overall welfare in the process or even destroying positive value.

Question 6

What is embedded agency?

Answer 6

you are trying to change rules of the game you are playing, while being bound by the same rules you are trying to change.

Question 6

What are the four lessons from (social) issue selling?

Answer 6

1. Invest in relationships: appeal to individual concern in a more humanistic way
2. Identify and support issue champions
3. Change requires patience and incrementality
4. Frames and framing that offers perspective for action

Question 7

What is institutional entrepreneurship and which three pillars does it consist of?

Answer 7

entrepreneuring to create or change taken-for-granted practices:
1. Positioning: institutional entrepreneurs require to be seen as legitimate among a diverse set of stakeholders
2. Theorizing: requires creation of alternatives, to theorize new practices that could become the new normal, through both discourse and political means.
3. Institutionalizing: new practices that are made the new normal by connecting them to stakeholders’ routines and values.

Question 8

What are the two main challenges for hybrid ventures?

Answer 8

1. Tensions and trade-offs: two logics can go together but also evoke paradoxes
2. Mission drift: overplaying one logic disproportionally more than the other logic over time and space.

Question 9

What is social value?

Answer 9

quantification of relative importance that people place on the changes they experience in their lives not captured in market prices.

Question 10

What are the three schools of thought on social entrepreneuring?

Answer 10

1. Social innovation school: social entrepreneurship as innovative activities applied for creation of social value
2. Earned income school: Social entrepreneurship as utilization of commercial activities to earn income to support social oriented activities
3. Positive externalities school: social entrepreneurship is the pursuit of sustainable solutions to neglected problems with positive externalities.

Question 10

What is a venture life cycle?

Answer 10

different phases ventures typically run through: starting up, setting up, and settling down.

Question 11

Name three characteristics of a leadership crisis?

Answer 11

1. Only a 25% of founding CEOs make it to IPO in VC-backed companies
2. Great ideas and commitment; growing pains
3. Losing control vs adding expertise

Question 12

What are the two characteristics of an autonomy crisis?

Answer 12

1. Managers become more interested in own unit rather than business as a whole
2. Usually, delegation, but centralized methods may disenchant employees to leave.

Question 13

What are the two characteristics of a control crisis?

Answer 13

1. More authority and incentives to delegate managers, who take initiative and penetrate larger markets
2. Losing control over a highly diversified field operation. Autonomy makes coordination and communication difficult.

Question 14

What is a red tape crisis?

Answer 14

bureaucracy makes running a business harder. Slows down decision making, resulting in less agility