LESSON 2:

THE ENTREPRENEURIAL MINDSET:

Cognition and Ethics

ENTREPRENEURIAL COGNITION

 In science, it refers to mental processes. These processes include attention, remembering,

producing and understanding language, solving problems, and making decisions.
 To be précised, Entrepreneurial Cognition is about understanding how entrepreneurs use
simplifying mental model to piece together previously unconnected information that would help
them to identify and invent new products and service.

 But, who are the Entrepreneurs?
 Entrepreneurs are defined as “risk-taker” they are uniquely optimistic, hard- driving,
committed to individuals who derived great satisfaction from being independent.

Characteristics of an Entrepreneur

 DETERMINATION AND PERSEVERANCE

 DRIVE TO ACHIEVE
 OPPORTUNITY ORIENTATION
 PERSISTENT PROBLEM SOLVING
 SEEKING FEEDBACK
 INTERNAL LOCUS OF CONTROL
 TOLERANCE FOR AMBIQUITY
 CALCULATED RISK TAKING
 HIGH ENERGY LEVEL
 CREATIVITY AND INNOVATIVENESS
 VISION
 PASSION TEAM BUILDING

THE ENTREPRENEURIAL PROCESS: PERSISTENCE PAYS OFF FOR ENTREPRENEURS

It is the constant optimism of entrepreneurs that made them successful. Always keeping an eye for
opportunity and positive change is the earn mark of successful entrepreneurs.

DEALING WITH FAILURE

Entrepreneurs use failure as a learning experience; hence, they have tolerance for failure. The iterative,
trial-and-error nature of becoming a successful entrepreneurs makes serious setbacks and
disappointments an integral art of the learning process.
THE ENTREPRENEURIAL EXPERIENCE

Venture creation is a lived experience that, as it unfolds, forms the entrepreneur. In fact, the creation of a
sustainable enterprise involves three, parallel, interactive phenomena: emergence of the opportunity,
emergence of the venture and the emergence of the entrepreneur.

THE DARKSIDE OF ENTREPRENEURSHIP

The darkside of the entrepreneurship is destructive its source can be found within the energetic drive of
successful entrepreneurs. The following are the darkside of entrepreneurship

-ENTREPRENEURS CONFORNTATION WITH RISK

-FINANCIAL RISK

-CAREER RISK

-FAMILY AND SOCIAL RISK

-PSYCHIC RISK

STRESS AND THE ENTREPRENEUR

Some of the most common entrepreneurial gols are independence, wealth, and work satifaction. Studies
shown that those who achieve these goals often pay a price. Majority of the entrepreneur surveyed had
back problems, indisgestion, insomnia, or headaches.

WHAT IS ENTREPRENEURIAL STRESS?

The roles and environment experienced by entrepreneurs, stress can result from a basic personality
structures. Refereed to as TYPE A behaviour, this personality structures describes people who are
impatient, demanding, and overstrung. These individual gravitate towards a heavy workloads and find
themselves completely immersed in their business demands. Some of the distinguishing characteristics
associated with Type A personalities are:

-Chronic and severe sense of time urgency

-Constant involvement in multiple projects to deadlines

-Neglect of all aspect of life except work

-A tendency to take on excessive responsibility

-Explosiveness of speech and a tendency to speak faster than most people.

SOURCES OF STRESS

 LONELINESS
 IMMERSION IN BUSINESS
 PEOPLE PROBLEMS
 NEED TO ACHIEVE
 DEALING WITH STRESS

THE FOLLOWING ARE THE SIX WAYS ENTREPRENEURS CAN COPE WITH STRESS:

1.NETWORKING

2.GETTING AWAY FROM IT ALL

3.COMMUNICATING WITH EMPLOYEES

4.FINDING SATISFACTION OUTSIDE THE COMPANY

5.DELEGATING

6.EXERCISING RIGOROUSLY

THE ENTREPRENEURIAL EGO

Four characteristic that may hold destructive implications for entrepreneurs:

-OVERBEARING NEED FOR CONTROL

-SENSE OF DISTRUST

-OVERRIDIG DESIRE FOR SUCCESS

-UNREALISTIC OPTIMISM

ENTREPRENEURIAL ETHICS

Ethical issues in business are of great importance today, and with good reason. The prevalence of
scandals, fraud, and various forms of executive misconduct in corporation has spurred the watchful eye of
the public.

ETHICAL DILEMMAS

Ethics provides the basic rules of parameter for conducting any activity in an acceptable manner. More
specifically, ethics represent a set of principles prescribing a behaviour code that explains what a good
and right or bad or wrong. The problem with most of definitions of the term “ethics” is not the description
itself but the implication for implementations.
Ethical Dilemmas confronting Entrepreneurs:

-Ethical Rationalizations

-The Matter of Morality

-Complexity of Decisions

-Online Dilemmas in e- commerce

Establishing a strategy for and Ethical Venture

1.ETHICAL CODE OF CONDUCT

2. ETHICAL RESPONSIBILTY

a) Ethical consciousness
b) Ethical process and structure
c) Institutionalizations

ETHICAL CONSIDERATIONS OF CORPORATE ENTREPRENEURS

Corporate entrepreneurs described in the academic literature as those managers or employees who do
not follows the status quo of their co- workers are depicted as visionaries who dream of taking the
company in new directions.

Ethical Leadership by Entrepreneurs

An owners has the unique opportunity to display honesty, integrity, and ethics in all key decisions. The
owner’s actions serves as a model for all other employees to follow.

ENTREPRENEURIAL MOTIVATIONS

Motivation plays an important part in the creations of new organizations, theories of organization creation,
that fails to address this notions are incomplete.