Nature and Development of Entrepreneurship.

Entrepreneurship

An individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and/or uncertainty to act.

Being an entrepreneur today: Involves creation process. Requires devotion of time and effort. Involves rewards of being an entrepreneur. Requires assumption of necessary risks

Entrepreneurial action .

Behavior in response to a judgmental decision under uncertainty about a possible opportunity for profit.

Table 1.1 - Aspects of the Entrepreneurial Process

The Entrepreneurial Process .

• Opportunity identification - The process by which an entrepreneur comes up with the opportunity for a new venture.
• Market size and the length of the window of opportunity are the primary bases for determining risks and rewards.
• Window of opportunity - The time period available for creating the new venture.
• Business plan - The description of the future direction of the business.

How Entrepreneurs Think ?

• Entrepreneurs in particular situations may think differently when faced with a different task or decision environment.
• Given the nature of their decision-making environment, entrepreneurs need to sometimes: Effectuate. Be cognitively adaptable. Learn from failure.
• Causal process Starts with a desired outcome. Focuses on the means to generate that outcome. .
• Effectuation process Starts with what one has (who they are, what they know, and whom they know). Selects among possible outcomes.
• Entrepreneurial mind-set involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions
• 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.