Entrepreneurship Management

Chapter 1: ENTREPRENEURSHIP AND THE ENTREPRENEURIAL MIND-SET

ENTREPRENEUR - An individual who takes initiative to bundle resources in

innovative ways and is willing to bear the risk and/or uncertainty to act.

ENTREPRENEURSHIP – The process of creating something new with value by

devoting the necessary time and effort.

ENTREPRENEURIAL ACTION - The behavior in response to a judgemental

decision under uncertainty about a possible opportunity for profit.

ENTREPRENEURIAL PROCESS – The process of creating something new with

value by devoting the necessary time and effort assuming the accompanying

financial psychic and social risk and receiving the resulting rewards of

monetary and personal satisfaction.

OPPORTUNITY IDENTIFICATION – The process by which an entrepreneur

comes up with the opportunity for a new venture.

WINDOW OF OPPORTUNITY – The time period available for creating the new

ventures.

BUSINESS PLAN – The description of the future direction of the business

CAUSAL PROCESS A – A process that starts with a desired outcome and

focuses on the means to generate that outcome.

EFFECTUATION PROCESS A – A process that starts with what one has (who

they are, what they know, and whom they know) and select among possible

outcomes.

ENTREPRENEURIAL MINDSET – Involves the ability to rapidly sense, act and

mobilize, even under uncertain condition.

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.

COMPREHENSION QUESTIONS – Questions designed to increase

entrepreneurs understanding of the nature of the environment.

CONNECTION TASK – Tasks designed to stimulate entrepreneurs to think

about the current situation in terms of similarities to and differences from

situations previously faced and solved.

STRATEGIC TASKS – Tasks designed to stimulate entrepreneurs to think

about which strategies are appropriate for solving the problem (and why) or

pursuing the opportunity (and how).

REFLECTION TASKS – Tasks designed to stimulate entrepreneurs to think

about their understanding and feelings as they progress through the

entrepreneurial process.

LOSS-ORIENTATION – An approach to negative emotions that involves

working through, and processing, some aspect of the loss experience and, as a

result of this process, breaking emotional bonds to the object loss.

RESTORATION- ORIENTATION – An approach to negative emotions based on

both avoidance and a proactiveness toward secondary sources of stress arising

from a major loss.

DUAL PROCESS FOR COPING WITH NEGATIVE EMOTIONS – Involves

oscillation and restoration orientation.

BUSINESS ETHICS – The study of behavior and morals in a business

situation.

PRODUCT EVOLUTION PROCESS- The process for developing and

commercializing an innovation.

INTERATIVE SYNTHESIS – The intersection of knowledge and social need that

starts the product development process.

ORDINARY INNOVATION – New products with little technological change.

TECHNOLOGICAL INNOVATIONS – New products with significant

technological advancement.

BREAKTHROUGH INNOVATIONS – New products with significant

technological advancement.