Ch1 Entrepreneurship and the Entrepreneurial Mind-Set Chapter 1 Entrepreneurship and the Entrepreneurial Mind-Set McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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?

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.

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?

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

Figure 1.1 - Entrepreneurial Action

How Entrepreneurs Think Entrepreneurs should: Think structurally Engage in bricolage Effectuate Cognitively adapt Learn from failures

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

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

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

How Entrepreneurs Think Cognitive adaptability Sense and process changes in environments Generate multiple decision frameworks Act! Achieving cognitive adaptability Comprehension questions Connection tasks Strategic tasks Reflection tasks

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

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? Structural thinking: structural similarities Effectuation