1. 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.

2. 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?

3. 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.

4. 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?

5. 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

7. Figure 1.1 - Entrepreneurial Action

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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