(Entrepreneurship and the Entrepreneurial Mindset) ENTR 452D: Chapter 1 (Entrepreneurship and the Entrepreneurial Mindset)

NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP Entrepreneur – An individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and/or uncertainty to act. Entrepreneurial action - Behavior in response to a judgmental decision under uncertainty about a possible opportunity for profit.

THE ENTREPRENEURIAL PROCESS Opportunity identification/recognition – make sure you pull down the other class slides Market size and the length of the window of opportunity are the primary bases for determining risks and rewards. Window of opportunity - The time period available for creating the new venture. Business plan - The description of the future direction of the business.

HOW ENTREPRENEURS THINK Bricolage Applying combinations of the resources at hand to new problems and opportunities Taking existing resources and tinkering and/or reframing them so they can be used in new ways

HOW ENTREPRENEURS THINK Causal process Starts with a desired outcome. Focuses on the means to generate that outcome. Effectuation process Starts with what one has (who they are, what they know, and whom they know). Selects among possible outcomes. Entrepreneurial mind-set involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions.

HOW ENTREPRENEURS THINK Cognitive adaptability describes the extent to which entrepreneurs are: Dynamic, flexible, self-regulating and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them. Entrepreneurs who are able to increase cognitive adaptability have an improved ability to adapt to new situations, be creative, and communicate one’s reasoning behind a particular response.

THE INTENTION TO ACT ENTREPRENEURIALLY Intention is stronger when an action is perceived to be feasible and desirable. Entrepreneurial self-efficacy - Conviction that one can successfully execute the entrepreneurial process. Perceived desirability - The degree to which an individual has a favorable or unfavorable evaluation of the potential outcomes.

ENTREPRENEUR BACKGROUND AND CHARACTERISTICS Experience and formal education have been found to be related to successful new venture creation. Most entrepreneurs initiate their entrepreneurial careers between the ages of 22 and 45. Male entrepreneurs tend to start their ventures in their early 30s, while women entrepreneurs do so in their middle 30s.

SOCIAL NETWORKS AND SUPPORT SYSTEMS Entrepreneurial activity is embedded in social networks of interpersonal relationships: Role models - Individuals influencing an entrepreneur’s career choice and style Moral-Support Network Professional-Support Network Consider strong and weak ties and structural holes

SUSTAINABLE ENTREPRENEURSHIP Preserving nature, life support, and community in the pursuit of perceived opportunities to: Bring future products, processes, and services into existence for gain Can generate: Economic gains Environmental gains Social gains