What is your tolerance for ambiguity Objectives Examine

What is your tolerance for ambiguity?

Objectives • Examine tolerance for ambiguity in the context of entrepreneurial mindset • Explore the impact of tolerance for ambiguity on success as an entrepreneur • Assess your personal tolerance for ambiguity

Entrepreneurial motivation • For entrepreneurial strategic decision-making, three factors are emphasized: Entrepreneurial Motivation Self-efficacy Cognitive motivation Tolerance for ambiguity

Defining tolerance for ambiguity “the tendency to perceive ambiguous situations as acceptable (or desirable) rather than threatening”

Need for tolerance for ambiguity • Necessary factor for entrepreneurs based on the dynamic nature of markets and competition • Asset for entrepreneurs to make complex decisions – quickly and with – limited information

In February 2008, Starbucks closed 7, 100 U. S. stores for 3 1/2 hours to retrain its baristas Starbucks rolled out a new design for all of its stores Starbucks overhauled the entertainment division, scaling back on all the CDs and books that had started to overpower the stores For the first time ever, Starbucks invested in a major national advertising campaign Schultz decided to continue offering health insurance to his employees, in order to stay aligned with the company's guiding principles

Insights from the evaluation • Assist you in measuring your comfort with – uncertainty, – change, and – unfamiliar situations. • These are common characteristics of the situations and decisions that entrepreneurs face in the launch and growth of their ventures.

Improving tolerance for ambiguity • Do new things – Go beyond your comfort zone • Talk with fellow aspiring and active entrepreneurs – Understand that you are not alone in the new challenges that you are facing, and the emotions therein

Summary • Tolerance for ambiguity, and even a preference for ambiguity, is an asset – Entrepreneurs make complex decisions quickly and with limited information • Uncertainty, change, and unfamiliar situations are common in new venturing • Trying new things and share with fellow entrepreneurs