Chapter 1
Entrepreneurship
and the
Entrepreneurial Mind-Set
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document
McGraw-Hill/Irwin
Copyright
© 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or
part.
The Nature of Entrepreneurship
• Entrepreneurial opportunities
• Situations in which new goods, services, raw
materials, and organizing methods:
• Can be introduced
• Sold at greater than their cost of production
• What about triple bottom line?
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The Nature of Entrepreneurship
• Entrepreneurial opportunities
• Situations in which new goods, services, raw
materials, and organizing methods:
• Can be introduced
• Sold at greater than their cost of production
• Can generate great value than costs
• Profit. Planet. People.
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The Nature of Entrepreneurship
• Entrepreneurial action:
• Involves creation of new products or processes
• Involves entry into new markets
•
•
•
•
What are new products/services?
What are new processes?
What are new markets?
Who are entrepreneurs?
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Role Models and Support Systems
• Role models: Individuals whose example an
entrepreneur can aspire to and copy
• Moral-support network: Individuals who give
psychological support to an entrepreneur
• Professional-support network: Individuals
who help the entrepreneur in business
activities
 Assignment 1
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document
may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Figure 1.1 - Entrepreneurial Action
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How Entrepreneurs Think
• Entrepreneurs should:
•
•
•
•
•
Think structurally
Engage in bricolage
Effectuate
Cognitively adapt
Learn from failures
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How Entrepreneurs Think
• Think structurally
• Superficial similarities:
• Basic elements of the technology resemble the basic
elements of the market
• Structural similarities:
• Underlying mechanisms of the technology resemble
the underlying mechanisms of the market
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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
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How Entrepreneurs Think
• Effectuation
• Causal process
• Starts with a desired outcome
• Focuses on achieving that outcome
• Effectuation process
• What I have (who I am, what I know, whom I know)
• What I can do about these
• Select among possible outcomes OR generate new
goals
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How Entrepreneurs Think
• Cognitive adaptability
• Sense and process changes in environments
• Generate multiple decision frameworks
• Act!
• Achieving cognitive adaptability
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•
•
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Comprehension questions
Connection tasks
Strategic tasks
Reflection tasks
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Adaptive Entrepreneurial Mind-Set
• Ability to
• rapidly sense, act, and mobilize, even under
uncertain conditions
• adapt to new situations
• be creative
• communicate one’s reasoning behind a particular
response
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Birchbox
• Background: Two Harvard grad students in
their last semester
• Opportunity ID: Beauty editor tries new
products on the market. Wow, “every woman
wanted that experience”.
• Process: If it were you, what would you have
done differently?
A. Structural thinking: structural similarities
B. Effectuation
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