Name the sources of entrepreneurial stress and discuss the ways of dealing with stress. ANS: Entrepreneurs experience four types of stress. The first is loneliness. Although there are many people around the entrepreneur, there are few in whom he can confide. Another stress is immersion in business. A successful entrepreneur may make enough money for vacations, but never have the time to go because the business would not allow it.
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Entrepreneurial Cognition A. Metacognitive Perspective B. Who Are Entrepreneurs? Characteristics Associated with Entrepreneurial Mind-Set 1. Dealing with Failure A. The Entrepreneurial Experience V. The Dark Side of Entrepreneurship A. Stress and the Entrepreneur 1.
Loneliness b. Immersion in Business c. People Problems d. Need to Achieve 3. Networking b. Getting Away from It All c. Communicating with Employees d. Finding Satisfaction Outside the Company e. Delegating f. Exercising Rigorously C. All Rights Reserved. May not be copied, scanned, or duplicated or posted to a publicly accessible website, in whole or in part. Entrepreneurial Ethics A. Ethical Dilemmas B.
Ethical Rationalizations C. The Matter of Morality D. Complexity of Decisions VII. Establishing a Strategy for Ethical Enterprise A. Ethical Codes of Conduct B. Ethical Leadership by Entrepreneurs X. It discusses topics that can be useful in becoming an entrepreneur.
Most of the topics have to do with personal and psychological traits that are hard to measure but are identifiable. Concepts from cognitive psychology are increasingly being found to be useful tools to help probe entrepreneurial-related phenomena, and, increasingly, the applicability of the cognitive sciences to the entrepreneurial experience are cited in the research literature. The next part of the chapter discusses possible characteristics of successful entrepreneurs.
This list is long and ever expanding and the characteristics are not exclusively the ones necessary to become a successful entrepreneur. Some characteristics are commitment, determination, and perseverance, which are all goal oriented. Also, the drive to achieve can be goal oriented. Other traits are correcting problems and seeking associates with feedback. These are only a few of the many that are there. Some of the traits involved in the risk area indicate that the entrepreneur must be a calculated risk taker instead of a high risk taker.
Also, the entrepreneur must have a tolerance for failure, otherwise there would be no risk. There are other traits that are personal, such as vision, self-confidence, and optimism. These traits can help with self-motivation and attitudes. An examination of failure and the grief recovery process is introduced, because failure is so often a learning experience for entrepreneurs.
The next part of the chapter focuses on the dark side of entrepreneurship, which encompasses the risks confronted by entrepreneurs, including financial, career, psychic, family, and social risk. These risks can lead to many types of stress caused by loneliness, immersion in business, people problems, and the need to achieve.
Possible solutions to ease stress are networking, getting away from it all, communicating with subordinates, finding satisfaction outside the company, and delegating. These, of course, are not sure bets for curing stress but they can help.
The chapter then discusses the entrepreneurial ego and its negative effects. This is brought about by a false sense of security and invincibility because the business is going well. The traits used to help diagnose this problem are the need for control, sense of distrust, the desire for success, and external optimism. The chapter continues with a full-featured exploration of the ethical side of entrepreneurship.
Ethics is a set of principles prescribing a behavioral code that explains right and wrong; it also may outline moral duty and obligations.
Because it is so difficult to define the term, it is helpful to look at ethics more as a process than as a static code. Entrepreneurs face many ethical decisions, especially during the early stages of their new ventures.
Decisions may be legal without being ethical, and vice versa. When making decisions that border on the unethical, entrepreneurs commonly rationalize their choices. Within this framework are four distinct types of managerial roles: nonrole, role failure, role distortion, and role assertion. Some of them may be overlooked, and some may be sidestepped because the economic cost is too high. Despite the ever-present lack of clarity and direction in ethics, however, ethics will continue to be a major issue for entrepreneurs during the new century.
To establish ethical strategies, some corporations create codes of conduct. A code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres. Codes are becoming more prevalent in organizations today, and they are proving to be more meaningful in their implementation. This chapter concludes with a model of entrepreneurial motivation, which depicts the important factors of expectation and outcome. The Entrepreneurial Mind-Set Every person has the potential and free choice to pursue a career as an entrepreneur.
What motivates people to make this choice is not fully understood. Entrepreneurial Cognition Cognition is used to refer to the mental functions, mental processes thoughts , and mental states of intelligent humans.
Entrepreneurial cognition is about understanding how entrepreneurs use simplifying mental models to piece together previously unconnected information that helps them to identify and invent new products or services, and to assemble the necessary resources to start and grow businesses.
Metacognitive Perspective Metacognitive model of the entrepreneurial mind-set integrates the combined effects of entrepreneurial motivation and context, toward the development of metacognitive strategies applied to information processing within an entrepreneurial environment. Starting a new business requires more than just an idea; it requires a special person, an entrepreneur, who combines sound judgment and planning with risk taking to ensure the success of his or her own business.
It can also compensate for personal shortcomings. Simple problems bore them, unsolvable ones do not warrant their time. They believe that their accomplishments and setbacks are within their own control and influence and that they can affect the outcome of their actions. When they decide to participate in a venture, they do so in a very calculated, carefully thought out manner.
In many cases this vision develops over time as the individual begins to learn what the firm is and what it can become. Most successful entrepreneurs have highly qualified, well-motivated teams that help handle the growth and development of the venture.
Dealing with Failure Entrepreneurs use failure as a learning experience. They have a tolerance for failure. The most effective entrepreneurs are realistic enough to expect difficulties and failures. In adverse and difficult times, they will continue to look for opportunity. The Grief Recovery Process Grief is a negative emotional response to the loss of something important triggering behavioral, psychological, and physiological symptoms.
The emotions generated by failure i. However, avoiding negative emotions is unlikely to be successful in the long-run Research indicates that entrepreneurs may recover more quickly from a failure if they oscillates between a loss and a restoration orientation. The Entrepreneurial Experience The prevalent view of entrepreneurship in the literature is that entrepreneurs create ventures.
Its narrow framing, however, neglects the complete process of entrepreneurship. The creation of sustainable enterprises involves three parallel, interactive phenomena: emergence of the opportunity, emergence of the venture, and emergence of the entrepreneur.
None are predetermined or fixed—they define and are defined by one another. The Dark Side of Entrepreneurship Certain negative factors that may envelop entrepreneurs and dominate their behavior. Although each of these factors has a positive aspect, it is important for entrepreneurs to understand their potential destructive side as well. A typology of entrepreneurial styles helps describe the risk-taking activity of entrepreneurs.
In this model, financial risk is measured against the level of profit motive the desire for monetary gain or return from the venture. Stress and the Entrepreneur To achieve their goals, entrepreneurs are willing to tolerate the effects of stress: back problems, indigestion, insomnia, or headaches.
Lacking the depth of resources, entrepreneurs must bear the cost of their mistakes while playing a multitude of roles, such as salesperson, recruiter, spokesperson, and negotiator. Simultaneous demands can lead to role overload. Entrepreneurs often work alone or with a small number of employees and therefore lack the support from colleagues.
A basic personality structure, common to entrepreneurs and referred to as type A personality structure , describes people who are impatient, demanding, and overstrung. Loneliness—Entrepreneurs are isolated from persons in whom they can confide.
They tend not to participate in social activities unless there is some business benefit. Immersion in Business—Most entrepreneurs are married to their business. They work long hours, leaving them with little or no time for civic recreation. People Problems—Most entrepreneurs experience frustration, disappointment, and aggravation in their experience with people.
Books by Donald F. Kuratko
Entrepreneurship Theory Process And Practice 10th Edition by Donald F. Kuratko – Test Bank
Entrepreneurship: Theory, Process, and Practice