EARTH

• Start up: '‘An organisation in search of a viable business model’'
• Entrepreneurs are defined as people who are creative in the maximisation of their utility (wealth, power, prestige, etc.)
• Entrepreneurship: '‘The pursuit of opportunity beyond the resources you currently control’'
• The rules of the game define the structure of payoffs in a society and the rewards accruing to different types of behaviour vary dramatically
• Entrepreneurs are always with us
• Elements of entrepreneurship

  • Opportunity
  • Resources
  • Entrepreneur
• Entrepreneurial activity can be productive, unproductive, or destructive
• The allocation of entrepreneurial effort is determined by ‘the rules of the game’
• The rules of the game are a reflection of a society’s underlying value system
• Internal vs. External Locus of Control

  • Internal- believe they are in control and take responsibility for their own actions
  • External- blame external forces for their own circumstances
• Traits approach

  • High need for achievement
  • Goal seeking
  • Decisive
  • Objective
  • Internal locus of control
  • Need for autonomy
  • Tolerate ambiguity
  • Deviant/outcast/maverick
  • Judgmental
  • Action oriented
  • Positive mental attitude
  • Confident
  • Extrovert
  • Charismatic
  • Tough minded/resilient
• Demographic approach - On average, entrepreneurs are

  • Well educated
  • First born
  • The product of self-employed parents
  • Male
  • 30-40 years old
  • Beard wearers
• Personality affects your choice of functional role and industry domain
• Entrepreneurship is a ‘team sport’ – all personality types have a role
• Desirable attitudes & characteristics

  • Opportunity obsession
  • Creativity and innovativeness
  • Commitment and determination
  • Flexibility
  • Self reliance
  • Ability to listen
  • Energy, health and emotional stability
  • Leadership qualities
  • Raw intelligence
  • Passion and a capacity to inspire
  • Sound ethical values
  • Not being an “A…hole”
• The Milgram Experiment: “more hideous crimes have been committed in the name of obedience than have been committed in the name of rebellion” (C P Snow)
• Social-cognitive precursors of entrepreneurial behaviour

  1. Self concept - ‘I see myself as an entrepreneurial person’

  2. Belief system - Entrepreneurship is a ‘good thing’

  3. Perceived societal norms - People within my environment approve of entrepreneurial behaviour

  4. Perceived instrumentality - Displaying entrepreneurial behaviour will help me to achieve my life’s purpose
• There is no single ‘entrepreneurial personality’
• Perceived instrumentality


  The belief that a particular course of action or behaviour is instrumental in achieving desirable outcomes
• Intrinsic motivation


  Interest and enjoyment (pull) and/or need (push)
• Factors shaping perceived instrumentality

  • Prior evidence of instrumentality
  • Vicarious experience
• Self efficacy


  A context-specific assessment of confidence to perform a range of tasks in a given domain
• Entrepreneur is a person who recognizes an opportunity, organizes and manages a business, assuming the risk for the sake of potential return
• Factors shaping intrinsic motivation

  • Self efficacy (means)
  • Perceptions of pleasure and fun
  • Desire for ends
  • Economic or psychological necessity
• Skillful entrepreneurs shape and create opportunities when others see little or nothing, or see it early or too late
• Shifts economic resources into higher productivity and greater yield, adding value to scarce resources
• Cindy Boyd: 'Entrepreneurs are the new rock stars'
• Self efficacy: I believe that I can succeed as an entrepreneur
• Intrinsic motivation depends heavily on


  The perceived opportunity and specific life circumstances
• Factors shaping self efficacy


  • Perceptions of prior successes and failures (mastery experience)
  • Observing the behavior in those we admire and 'model'
  • Social persuasion
  • Somatic and emotional states
• Perceived instrumentality: Displaying entrepreneurial behaviour will help achieve life's purpose
• Jean-baptiste: 'Entrepreneur is an economic agent who unites all means of production and produces a product, paying rent on land, wages to labor, interest on capital, and keeping the profit'
• Niccolo Machiavelli: 'Entrepreneurs understand that there is little difference between obstacle and opportunity and can turn both to their advantage'
• Entrepreneurship vs. Intrapreneurship

  • Entrepreneurship: Entrepreneurial activity by entrepreneur, rewards go to entrepreneur, risk taken by entrepreneur
  • Intrapreneurship: Entrepreneurial activity by employees and managers, rewards (most) go to company, risk taken by company
• Points for being a successful entrepreneur: Natural risk-taker, can handle stress, willing to work hard, tendency to throw caution to the wind, evaluates opportunity costs, balance between risk-taking and careful decision-making, not overly motivated by money, understands hard work and sacrifice, applies drive and discipline, uses benefit-cost analysis
• Perceived instrumentality depends crucially on

  1. Clarity about life's purpose and attendant goals

  2. Self-awareness
• Product vs. service: Employees earn a living by working directly for someone else's business, while entrepreneurs work for themselves
• Entrepreneurship


  Life skill that readies a person to manage the vague undefined future, particularly in a business environment
• Entrepreneurship has been traditionally related to launching a new business
• There is no need to build a business in order to think and act like an entrepreneur