Part II The Entrepreneurial Perspective Chapter 4 Understanding

Part II – The Entrepreneurial Perspective Chapter 4 – Understanding the Entrepreneurial Perspective in Individuals Chapter 5 – Developing Creativity and Understanding Innovation Chapter 6 – Ethical and Social Responsibility Challenges for Entrepreneurs Copyright (c) 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Chapter 4 – Understanding the Entrepreneurial Perspective in Individuals

The Entrepreneurial Perspective Although certainly not an exact science, this perspective provides an interesting look at the entrepreneurial potential within every individual.

Who Are Entrepreneurs? Entrepreneurs, driven by an intense commitment and determined perseverance, work very hard. They are optimists who see the cup as half full rather than half empty. They strive for integrity. They burn with the competitive desire to excel.

Sources of Research on Entrepreneurs 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Technical and professional journals Textbooks on entrepreneurship Books about entrepreneurship Biographies or autobiographies of entrepreneurs Compendiums about entrepreneurs News periodicals Venture periodicals Newsletters Proceedings of conferences Government publications

Common Characteristics Associated with Entrepreneurs

Twenty-First Century Characteristics of Entrepreneurs The Top Ten Characteristics Today’s Entrepreneurs Share: • Recognize and take advantage of opportunities • Resourceful • Creative • Visionary • Independent thinker • Hard worker • Optimistic • Innovator • Risk taker • Leader

Common Characteristics Associated with Entrepreneurs • Commitment, Determination, and Perseverance • Drive to Achieve • Opportunity Orientation • Initiative and Responsibility • Persistent Problem Solving • Seeking Feedback • Internal Locus of Control • • • Tolerance for Ambiguity Calculated Risk Taking Integrity and Reliability Tolerance for Failure High Energy Level Creativity and Innovativeness Self-confidence and Optimism Independence Team Building

The Dark Side of Entrepreneurship 1. Confrontation with Risk 2. Stress 3. Ego

1. The Entrepreneur’s Confrontation with Risk • Financial Risk • Career Risk • Family and Social Risk • Psychic Risk

2. Stress and the Entrepreneur

What is Entrepreneurial Stress? To the extent entrepreneurs’ work demands and expectations exceed their abilities to perform as venture initiators, they are likely to experience stress.

Sources of Stress • Loneliness • Immersion in Business • People Problems • Need to Achieve

Dealing with Stress • • Networking Getting Away from It All Communicating with Employees Finding Satisfaction Outside the Company • Delegating

3. The Entrepreneurial Ego

An Overbearing Need for Control • Sense of Distrust • Overriding Desire for Success • Unrealistic Optimism

Entrepreneurial Motivation

Intrinsic/ Extrinsic Rewards Expectation/ Outcome Comparison PC PE PG Decision to Behave Entrepreneurially BE Idea Implementation/ PC = Personal Outcome Characteristics Perception PE = Personal Environment PG = Personal Goals BE = Business Environment Entrepreneurial Strategy Entrepreneurial Management Firm Outcomes