Topic 3

Review questions

1. Drawing on the individual opportunity relationship (or dialogic), what are the four
different types of entrepreneurial outcome possible?
Entrepreneurial reproduction- this outcome implies little new value creation and few
changes for the individual. Eg, a chef opening his own restaurant.

Entrepreneurial imitation- this outcome, entrepreneurers make great changes in their

knowledge, relationships and habits, skills, but there is little new value creation. Eg, a
lawyer or engineer venturing into a totally new industry for which theu have to learn new
skills.
Entrepreneurial valorisation- the entrepreneurer sets up an innovative business in his or
her field of expertise hence captiliazing on in-depth and several years of industry
experience.
Entrepreneurial venture- this outcome are less common but if successful, they create
major changes in the environment and sometimes create new industries,eg, google and
Microsoft.

2. Why are existing entrepreneurial opportunities discovered and exploited by certain

individuals and not by others?
Psychological characteristics such as a need for achievement, ability to control events in
one’s life, and risk taking

Information and knowledge availability helps motivating in the search for opportunities.

Creative processing- ability to make connections between specific knowledge and a

commercial opportunity requires skills, aptitude, insight and circumstances that are neither
uniformly no widely distributed.

Cognitive heuristics- simplifying strategies that can be used to make judgements quickly
and efficiently. E.g., trial and error method

3. Which entrepreneurial traits suggested from the behaviourist approach have received
wide attention in the literature and show a high level of validity?

The need for achievement

The internal locus of control
The risk-taking propensity

4. What types of risks should be considered before embracing a career in entrepreneurship?

Career risks- questions regarding re-employment after business failure must be considered-
risks can be minimized by launching a business or a part-time basis.
Social risks- starting a business venture requires much energy and time, another risk is linked
to the negative image of a failed entrepreneur, decisions should include family to reduce
conflicts.
 Chapter 2: The personality of entrepreneurs

Health risks- evidence that entrepreneurs experience higher job stress and health problems
that other people, would be entrepreneurs should make sure that their health can cope
with the demands and challenges involved in making a successful business venture.

5. To what extent does the social context play a role in entrepreneurship? What are the key
features of a person’s social context to consider?

The stage of life

The position in social networks
And ethnicity

Avishek Anish Chand

A00210446
Namaka Campus

© John Wiley & Sons Australia, Ltd 2011

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