Entrepreneurship: Mindset and Key Aspects

• Entrepreneurship is a process involving vision, change, and creation.
• "Entrepreneur" comes from the French word "entreprendre," meaning to undertake.
• Entrepreneurs organize, manage, and assume business risks.

Aspects of the Entrepreneurial Mindset

• Risk-Taking is a key aspect
• Innovation and Creativity is a factor
• Adaptability and Resilience is important
• Vision and Goal Orientation is required
• Proactiveness is necessary
• Customer-Centric Focus is needed
• Resourcefulness is fundamental
• Continuous Learning is essential
• Being Results-Oriented is necessary
• Having Passion and Persistence is recommended

Small Business Owner vs Entrepreneur

• Small Business Owners manage businesses.
• Entrepreneurs focus on innovation and invention.

Entrepreneurial School of Thought

• Macro includes: Environmental, Financial/Capital, and Displacement Schools of Thought
• Micro includes: Entrepreneurial Trait, Venture Opportunity, and Strategic Formulation Schools of Thought.

Chapter 2

• Entrepreneurial Mind Set refers to common characteristics of successful entrepreneurs.

Reasons to Become Entrepreneurs:

• Job Satisfaction
• Achievement
• Opportunity
• Money

Types of Entrepreneurs:

• Necessity Driven
• Opportunity Driven

Entrepreneurial Cognition

• Cognition: Mental functions, processes, and states of intelligent humans - attention, remembering, problem-solving, decision-making, etc.
• Social Cognition Theory: Knowledge structures (mental models) can optimize personal effectiveness.
• Entrepreneurial Cognition: Knowledge structures used for opportunity evaluation, venture creation, and growth.

Grief Recovery Process

• Loss Orientation helps in assessing why losses occur.
• Restoration Orientation helps to focus on solutions.

Entrepreneurial Confrontation with Risk includes:

• Financial Risk
• Career Risk
• Family and Social Risk
• Psychic Risk

Risks relating to Entrepreneurial Stress

• Source of stress can be Loneliness.
• Immersion in business is stressful
• People Problems
• The Need to Achieve

Dealing with Stress

• Getting away from it all is necessary
• Communicating with Employees is important
• Networking is beneficial
• Finding satisfaction outside the company is helpful

Additional Ways of Dealing with Stress

• Exercise rigorously
• Delegate tasks

Self-Destructing Characteristics

• Overbearing need for control

• Sense of Distrust

• Entrepreneurial Ethics is about doing the right thing.

• Ethical Rationalization justifies questionable conduct.

  • "It's not really illegal or immoral."
  • "It is in the firm's best interest."
  • "It will never be found out."
  • "It helps the firm, so I will ignore it."

• Entrepreneurial Motivation is the quest for new ventures and willingness to sustain them.

• Entrepreneurial Persistence is the ability to continue no matter what.

Chapter 3

• Corporate Entrepreneurship: Activities with organizational approval and resource commitments for innovative results.
• This is a process of individuals creating or renewing organizations within existing ones.

Corporate Entrepreneurship Process

• Corporate Venturing is creating new business inside a company
• Internal Corporate Venturing uses company resources for new ideas.
• Cooperative Corporate Venturing involves joint ventures.
• External Corporate Venturing partners with external companies to acquire ideas not in-house.
• Resources include human resources, ideas, and technology.
• Strategic Entrepreneurship is strategy change for effective marketing
• Strategic Renewal is changing strategy to market products effectively
• Sustained Regeneration includes creating long-term environmental impact
• Domain Redefinition means creating new products aside from trademarks for potential markets
• Organizational Rejuvenation leads to changes in organizational structure.
• Business Model Reconstruction is changing business models to adapt to market competitions.

Steps of a Corporate Entrepreneurial Strategy

• Developing the vision
• Encouraging innovation
• Structuring for an entrepreneurial climate
• Developing individual managers for corporate entrepreneurship
• Developing venture teams

The Need for Corporate Entrepreneurship and Innovation

• Rapid growth in the number of new competitors
• Distrust of traditional corporate management
• Exodus of talented people to small businesses
• International competition
• Downsizing of major corporations
• Overall desire to improve efficiency and productivity

Types of Innovation

• Radical Innovation launches inaugural breakthroughs.
• Incremental Innovation systematically evolves products or services into newer or larger markets