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Part II – The Entrepreneurial

Perspective

Chapter 4 – Understanding the Entrepreneurial Perspectivein Individuals

Chapter 5 – Developing Creativity andUnderstanding Innovation

Chapter 6 – Ethical and Social Responsibility Challenges forEntrepreneurs

Copyright (c) 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Chapter 4 – Understanding the

Entrepreneurial

Perspective in

Individuals

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The Entrepreneurial

Perspective

Although certainly not an exact

science, this perspective provides an

interesting look at the

entrepreneurial potential within

every individual.

Who Are Entrepreneurs?

Entrepreneurs, driven by an intense

commitment and determined perseverance,

work very hard. They are optimists who see

the cup as half full rather than half empty.

They strive for integrity. They burn with the

competitive desire to excel.

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Sources of Research on

Entrepreneurs

1. Technical and professional journals

2. Textbooks on entrepreneurship

3. Books about entrepreneurship

4. Biographies or autobiographies of entrepreneurs

5. Compendiums about entrepreneurs

6. News periodicals

7. Venture periodicals

8. Newsletters

9. Proceedings of conferences

10. Government publications

Common Characteristics

Associated with

Entrepreneurs

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Twenty-First Century Characteristics of

EntrepreneursThe Top Ten Characteristics Today’s Entrepreneurs Share:

• Recognize and take advantage of opportunities

• Resourceful

• Creative

• Visionary

• Independent thinker

• Hard worker

• Optimistic

• Innovator

• Risk taker

• Leader

Common Characteristics Associated with

Entrepreneurs• Commitment,

Determination, and Perseverance

• Drive to Achieve

• Opportunity Orientation

• Initiative and Responsibility

• Persistent Problem Solving

• Seeking Feedback

• Internal Locus of Control

• Tolerance for Ambiguity

• Calculated Risk Taking

• Integrity and Reliability

• Tolerance for Failure

• High Energy Level

• Creativity and Innovativeness

• Self-confidence and Optimism

• Independence

• Team Building

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The Dark Side of

Entrepreneurship

1. Confrontation with Risk

2. Stress

3. Ego

1. The Entrepreneur’s

Confrontation with Risk

• Financial Risk

• Career Risk

• Family and Social Risk

• Psychic Risk

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2. Stress and the

Entrepreneur

What is Entrepreneurial Stress?

To the extent entrepreneurs’ work

demands and expectations exceed

their abilities to perform as venture

initiators, they are likely to

experience stress.

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Sources of Stress

• Loneliness

• Immersion in Business

• People Problems

• Need to Achieve

Dealing with Stress

• Networking

• Getting Away from It All

• Communicating with Employees

• Finding Satisfaction Outside the

Company

• Delegating

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3. The Entrepreneurial Ego

An Overbearing Need for Control

• Sense of Distrust

• Overriding Desire for Success

• Unrealistic Optimism

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Entrepreneurial

Motivation

PC PE PG

BE Idea

Expectation/

Outcome

Comparison

Decision

to Behave

Entrepre-

neurially

Implementation/

Outcome

Perception

Entrepreneurial

Strategy

Entrepreneurial

Management

Firm

Outcomes

Intrinsic/

Extrinsic

Rewards

PC = PersonalCharacteristics

PE = Personal

EnvironmentPG = Personal Goals

BE = Business Environment