chapter2.docx - CHAPTER 2 QUESTIONS 1 What is...

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CHAPTER 2 – QUESTIONS 1 – What is “entrepreneurial cognition” and how does it impact the mind-set of entrepreneurs? How does “metacognition” come into play here? Entrepreneurial cognition is defined as the knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth. It is referred to how entrepreneurs think, how they invent new things and why they do some of the things they do. Metacognition is to study the higher-order cognitive process that resulted in the entrepreneur framing a task effectually, and why and how a particular strategy was included in a set of alternative responses to the decision task. 2 – Entrepreneurs have a tolerance for ambiguity, are calculated risk takers, and exude passion. What do these characteristics mean for any potential entrepreneur? These characteristics mean that entrepreneurs can deal with setbacks and changes that happen constantly in their careers, and they can easily adapt to different situations (tolerance for ambiguity). They are also willing to take risks, however they do that in a calculated and carefully manner and they avoid taking unnecessary risks. Entrepreneurs are passionate about their jobs, which means they are engaged in activities they are really interested in, and they feel a intense emotion that enables them to achieve peak performance. 3 – Is it true that most successful entrepreneurs have failed at some point in their business careers? Explain. Yes, it is true, and that happens because ventures created to pursue new and unique opportunities fail due to the uncertain environment within which they develop. It is normal to entrepreneurs to fail at some point in their careers and there are a lot of other reasons why that happens, such as poor management, poor marketing, etc. 4 – How should failure be dealt with by entrepreneurs? How does “grief” play a role in this process? Entrepreneurs should use failure as a learning experience and try to do even better in the next steps of their careers. In this process, “grief” is important because the entrepreneur is able to think about why the loss occurred and what need to be improved. While understanding what went wrong, it is also relevant for the individual to distract from thinking about the failure. In other words, entrepreneurs should deal in a effective manner with grief in order to be confident and have courage to look for new opportunities. 5 – Entrepreneurship has a “dark side”. What is meant by this statement? Be complete in your answer. This statement means that the entrepreneurial personality has a dual-edged approach, since it has a positive aspect as well as a certain negative aspects that may dominate an entrepreneur’s behavior.

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