Chapter 1: The Entrepreneurial Mindset ➔​ Entrepreneurs often lack resources.

◆​ They sometimes seek resources

The Nature of Entrepreneurship from others to provide the slack
➔​ Entrepreneurial actions begin at the necessary to experiment and
nexus of a lucrative opportunity and an generate entrepreneurial
enterprising individual. opportunities or engage in
➔​ An entrepreneurial opportunity could bricolage.
stem from: ➔​ Bricolage
◆​ A new market ◆​ Refers to taking existing
◆​ A new product for an existing resources and experimenting,
market tinkering, repackaging, and/or
◆​ A new product for a new market reframing them to be used in a
way they were not originally
Entrepreneurial Action and Thinking designed or conceived.
➔​ The McMullen-Shepherd model explains ◆​ From this process of “making
how knowledge and motivation do”, entrepreneurs can create
influences the two stages of opportunities.
entrepreneurial action.
◆​ Stage 1: Realization an Effectuation
opportunity exists for someone. ➔​ A Causal Process
◆​ Stage 2: Determining whether it ◆​ Involves thinking of a desired
is an opportunity for themselves. outcome and then coming up
➔​ Acting on and pursuing the identified with a plan to achieve that
opportunity involves entrepreneurial outcome.
thinking. ➔​ The Effectuation Process
◆​ Look at what a person has and
How Entrepreneurs Think then select from several
➔​ Entrepreneurs sometimes make possible outcomes.
decisions in highly uncertain ●​ Allows entrepreneurs to
environments, with high stakes and think in a highly
immense time pressures. uncertain environment.
◆​ They need to think structurally, ➔​ Most managers need to take an
engage in bricolage, effectuate, entrepreneurial mind-set.
and cognitively adapt. ◆​ To develop this mindset,
➔​ Forming opportunity beliefs often managers must:
requires creative mental leaps launched ●​ Attempt to make sense
from the entrepreneur’s existing of opportunities
knowledge. ●​ Constantly question
◆​ Superficial similarities and their dominant logic
structural similarities between ●​ Revisit what they think
the source (e.g. the market) and true about markets and
the destination (e.g. technology) firms
help the entrepreneur make
these creative mental leap. Cognitive Adaptability
◆​ The challenge often lies in ➔​ To be good at effectuation, you must
making creative leaps based on have cognitive adaptability.
structural similarities - when ◆​ The extent entrepreneurs are
technology matches the market. dynamic, flexible,
Bricolage self-regulating, and engaged in
 sensing and acting on changes ➔​ Age
in their environments. ◆​ Entrepreneurial age reflects the
◆​ Reflected in an entrepreneur’s entrepreneur’s experience
ability to reflect upon, ◆​ Most entrepreneurs are
understand, and control their between 22 and 45 when
thinking and learning. starting their career.
➔​ Learn to be more cognitive by asking ➔​ Work History
questions in four areas: ◆​ Work history plays a role in the
◆​ Comprehension questions growth and success of new
◆​ Connection tasks ventures.
◆​ Strategic tasks ◆​ Experience in financing, product
◆​ Strategic tasks development, manufacturing,
◆​ Reflection tasks distribution, and marketing are
➔​ Those able to increase cognitive particularly important.
adaptability can adapt to new situations,
be creative, and communicate their Role Model and Support Systems
reasoning. ➔​ A role model is an important factor
influencing an entrepreneur’s career
The Intention to Act Entrepreneurially path.
➔​ Entrepreneurial action is most often ◆​ Can be relatives or successful
intentional. community entrepreneurs.
➔​ When actions are feasible and ◆​ Can serve as mentors before
desirable, there are stronger intentions and after launch of the venture.
to act. ➔​ As contracts expand, they form a
◆​ Entrepreneurial intentions can network with density and centrality.
be explained the same way. ◆​ The entrepreneur should
➔​ Entrepreneurial self-efficacy establish a moral-support
◆​ refers to the conviction that one network of family and friends.
can successfully execute the ◆​ The entrepreneur also needs
behaviour required. advice and counsel obtained
➔​ Perceived desirability from members of a
◆​ Refers to an individual’s attitude professional-support network.
toward entrepreneurial action.
●​ The degree to which the Networks
entrepreneur has a ➔​ Entrepreneurial activity is embedded in
favorable or unfavorable networks of interpersonal relationships.
evaluation of the ➔​ These networks ofer:
potential entrepreneurial ◆​ Access to resources.
outcomes. ◆​ Assistance in discovering and
exploiting new opportunities.
Entrepreneur Background and Characteristics ◆​ Opportunities to exchange
➔​ Education goods and services.
◆​ A broad knowledge allows for ◆​ Perceived feasibility that
the discovery of potential strengthens entrepreneurial
opportunities and assists intentions.
adaptability.
◆​ Provides transferable Sustainable Entrepreneurship
knowledge, skills, and problem ➔​ Entrepreneurial action can both sustain
solving abilities. and develop.
 ➔​ Sustainable entrepreneurship
◆​ Focused on preserving nature,
supporting life and community in
the pursuit of opportunities to
bring future products and
services into existence for gain.
●​ Those with greater
knowledge of the
natural environment are
more likely to notice
changes in the
environment that form
opportunities.

Entrepreneurial Impact
➔​ Entrepreneurs can generate economic
wealth for themselves, but their impact
on development can be far greater.
◆​ They can generate economic,
environmental, and social gains
for others including job
opportunities or revenues for the
government.
◆​ Environmental gains could be
reduced air pollution, increased
drinking water quality, and other
improved living conditions.
◆​ Social gains include improved
child survival rates, longer life
expectancy, superior education,
equal opportunity, and so on.