Buy or Rent Introduction to Entrepreneurship, International Edition as an #PDF Info. Fixed Layout. Read Anywhere Info. Read Anywhere % Offline to Entrepreneurship, International Edition 9th Edition by Donald F. Kuratko and. Donald F. Kuratko's most popular book is Entrepreneurship: Entrepreneurship: Theory/Process/Practice [With CDROM] by Introduction to Entrepreneurship. Entrepreneurship-Theory-Process-and-Practice-9th-Edition-Kuratko- Delegating f. An examination of failure and the grief recovery process is introduced.
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Introduction to Entrepreneurship by Donald F. Kuratko, , available at Book Depository with free delivery worldwide. Introduction To Entrepreneurship Donald F Kuratko Pdf Download. 1 CHAPTER # 1 Introduction to Entrepreneurship, 8e Donald F CHAPTER # 1 Introduction to Entrepreneurship, 8e Donald F. Kuratko The Revolutionary Impact .
Entrepreneurial Cognition A. Metacognitive Perspective B. Who Are Entrepreneurs? Characteristics Associated with Entrepreneurial Mind-Set 1. Dealing with Failure A. The Entrepreneurial Experience V.
Immersion in Business c. People Problems d. Need to Achieve 3. Networking b. Getting Away from It All c. Communicating with Employees d. Finding Satisfaction Outside the Company e. Delegating f. Exercising Rigorously C. All Rights Reserved. May not be copied, scanned, or duplicated or posted to a publicly accessible website, in whole or in part.
Entrepreneurial Ethics A. Ethical Dilemmas B. Ethical Rationalizations C. The Matter of Morality D. Complexity of Decisions VII. Establishing a Strategy for Ethical Enterprise A.
Ethical Codes of Conduct B. Ethical Leadership by Entrepreneurs X. It discusses topics that can be useful in becoming an entrepreneur. Most of the topics have to do with personal and psychological traits that are hard to measure but are identifiable.
Concepts from cognitive psychology are increasingly being found to be useful tools to help probe entrepreneurial-related phenomena, and, increasingly, the applicability of the cognitive sciences to the entrepreneurial experience are cited in the research literature.
The next part of the chapter discusses possible characteristics of successful entrepreneurs. This list is long and ever expanding and the characteristics are not exclusively the ones necessary to become a successful entrepreneur.
Some characteristics are commitment, determination, and perseverance, which are all goal oriented. Also, the drive to achieve can be goal oriented. Other traits are correcting problems and seeking associates with feedback. These are only a few of the many that are there. Some of the traits involved in the risk area indicate that the entrepreneur must be a calculated risk taker instead of a high risk taker.
Also, the entrepreneur must have a tolerance for failure, otherwise there would be no risk. There are other traits that are personal, such as vision, self-confidence, and optimism. These traits can help with self-motivation and attitudes.
An examination of failure and the grief recovery process is introduced, because failure is so often a learning experience for entrepreneurs. The next part of the chapter focuses on the dark side of entrepreneurship, which encompasses the risks confronted by entrepreneurs, including financial, career, psychic, family, and social risk.
These risks can lead to many types of stress caused by loneliness, immersion in business, people problems, and the need to achieve. Possible solutions to ease stress are networking, getting away from it all, communicating with subordinates, finding satisfaction outside the company, and delegating. These, of course, are not sure bets for curing stress but they can help. The chapter then discusses the entrepreneurial ego and its negative effects.
This is brought about by a false sense of security and invincibility because the business is going well. The traits used to help diagnose this problem are the need for control, sense of distrust, the desire for success, and external optimism. The chapter continues with a full-featured exploration of the ethical side of entrepreneurship. Ethics is a set of principles prescribing a behavioral code that explains right and wrong; it also may outline moral duty and obligations. Because it is so difficult to define the term, it is helpful to look at ethics more as a process than as a static code.
Entrepreneurs face many ethical decisions, especially during the early stages of their new ventures. Decisions may be legal without being ethical, and vice versa. When making decisions that border on the unethical, entrepreneurs commonly rationalize their choices. Within this framework are four distinct types of managerial roles: nonrole, role failure, role distortion, and role assertion.
Some of them may be overlooked, and some may be sidestepped because the economic cost is too high. Despite the ever-present lack of clarity and direction in ethics, however, ethics will continue to be a major issue for entrepreneurs during the new century. To establish ethical strategies, some corporations create codes of conduct.
A code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres. Codes are becoming more prevalent in organizations today, and they are proving to be more meaningful in their implementation.
This chapter concludes with a model of entrepreneurial motivation, which depicts the important factors of expectation and outcome. The Entrepreneurial Mind-Set Every person has the potential and free choice to pursue a career as an entrepreneur. What motivates people to make this choice is not fully understood.
Entrepreneurial Cognition Cognition is used to refer to the mental functions, mental processes thoughts , and mental states of intelligent humans. Entrepreneurial cognition is about understanding how entrepreneurs use simplifying mental models to piece together previously unconnected information that helps them to identify and invent new products or services, and to assemble the necessary resources to start and grow businesses.
Metacognitive Perspective Metacognitive model of the entrepreneurial mind-set integrates the combined effects of entrepreneurial motivation and context, toward the development of metacognitive strategies applied to information processing within an entrepreneurial environment.
Starting a new business requires more than just an idea; it requires a special person, an entrepreneur, who combines sound judgment and planning with risk taking to ensure the success of his or her own business. It can also compensate for personal shortcomings. Simple problems bore them, unsolvable ones do not warrant their time.
They believe that their accomplishments and setbacks are within their own control and influence and that they can affect the outcome of their actions.
When they decide to participate in a venture, they do so in a very calculated, carefully thought out manner. In many cases this vision develops over time as the individual begins to learn what the firm is and what it can become. Most successful entrepreneurs have highly qualified, well-motivated teams that help handle the growth and development of the venture.
Dealing with Failure Entrepreneurs use failure as a learning experience. They have a tolerance for failure. The most effective entrepreneurs are realistic enough to expect difficulties and failures. In adverse and difficult times, they will continue to look for opportunity. The Grief Recovery Process Grief is a negative emotional response to the loss of something important triggering behavioral, psychological, and physiological symptoms. The emotions generated by failure i. However, avoiding negative emotions is unlikely to be successful in the long-run Research indicates that entrepreneurs may recover more quickly from a failure if they oscillates between a loss and a restoration orientation.
The Entrepreneurial Experience The prevalent view of entrepreneurship in the literature is that entrepreneurs create ventures.
Its narrow framing, however, neglects the complete process of entrepreneurship. The creation of sustainable enterprises involves three parallel, interactive phenomena: emergence of the opportunity, emergence of the venture, and emergence of the entrepreneur.
None are predetermined or fixed—they define and are defined by one another. The Dark Side of Entrepreneurship Certain negative factors that may envelop entrepreneurs and dominate their behavior. Although each of these factors has a positive aspect, it is important for entrepreneurs to understand their potential destructive side as well. A typology of entrepreneurial styles helps describe the risk-taking activity of entrepreneurs.
In this model, financial risk is measured against the level of profit motive the desire for monetary gain or return from the venture. Stress and the Entrepreneur To achieve their goals, entrepreneurs are willing to tolerate the effects of stress: back problems, indigestion, insomnia, or headaches. Lacking the depth of resources, entrepreneurs must bear the cost of their mistakes while playing a multitude of roles, such as salesperson, recruiter, spokesperson, and negotiator.
Simultaneous demands can lead to role overload.
Entrepreneurs often work alone or with a small number of employees and therefore lack the support from colleagues. A basic personality structure, common to entrepreneurs and referred to as type A personality structure , describes people who are impatient, demanding, and overstrung. Loneliness—Entrepreneurs are isolated from persons in whom they can confide. They tend not to participate in social activities unless there is some business benefit.
Immersion in Business—Most entrepreneurs are married to their business. They work long hours, leaving them with little or no time for civic recreation.
People Problems—Most entrepreneurs experience frustration, disappointment, and aggravation in their experience with people. However, many entrepreneurs are never satisfied with their work no matter how well it is done. Networking—One way to relieve the loneliness of running a business is to share experiences by networking with other business owners. Getting Away from It All—The best antidote could be a well-planned vacation. Communicating with Employees—Entrepreneurs are in close contact with employees and can readily assess the concerns of their staff.
Finding Satisfaction Outside the Company—Entrepreneurs need to get away from the business occasionally and become more passionate about life itself; they need to gain some new perspectives. Some individuals have a greater aptitude for creativity than others.
Cant said with a shake of the head and an air of finality. Thats the dumbest thing Ive ever heard. Yeah, but if you did that. We already tried thatyears ago.
I dont see anything wrong with the way were doing it now. Weve never done anything like that before. Weve got deadlines to meetwe dont have time to consider that. Its not in the budget. Where do you get these weird ideas?
Source: Adapted from The Creative Process, ed. Although not always articulated Please send correspondence to: Donald F. Kuratko, tel. Audretsch at daudrets indiana. January, 1 formally, strategic thinking synthesizes the intuition and creativity of an entrepreneur into a vision for the future Mintzberg, The ability to navigate through this challenging environment and the nuances of combining entrepreneurship and strategic management has become the focus of scholars in strategic management, entrepreneurship, and economics.
However, the exact nature of this concept remains elusive. In order to investigate the different perspectives that this term represents we provide an overview of the specific domains that constitute the concept.
Dynamic in nature, the strategic management process is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns. Relevant strategic inputs derived from analyses of the internal and external environments are necessary for effective strategy formulation and implementa- tion. In turn, effective strategic actions are a prerequisite to achieving the desired out- comes of strategic competitiveness and above-average returns.
Effective strategic actions that take place in the context of carefully integrated strategy formulation and implementation actions result in desired strategic outcomes. Thus, strategic planning is the primary step in determining the future direction of a business. Yet, whatever the specific situation, five basic steps Hitt et al. Examine the internal and external environments of the venture strengths, weaknesses, opportunities, threats.
Implement the strategic plan programs, budgets, procedures. Evaluate the performance of the strategy. Take follow-up action through continuous feedback.
Yet, strategic management is more than writing a plan or developing a strategy. It should be a way of thinking. Strategic thinking requires more of an external than internal focus. It implies a continuous search for new sources of competitive advantage. It entails an ability to envision all of the resources and core capabilities of the firm in terms of how they might be uniquely combined to create new sources of value.
Coupled with strategic management is the concept of strategy, which is a statement regarding what the company wants to be and how it plans to get there. Strategy creates a sense of unity, or consistency of action, throughout an organization. In order for people to work toward common objectives, they must know what the objectives are. As they make choices in their jobs, strategy can provide direction to those choices.
Entrepreneurship, both in considering independent firms and corporate entrepreneurship, has emphasized processes which lead to venture creation. After reviewing the evolution of entrepreneurship and examining its varying definitions, Ronstadt put together a summary description: Entrepreneurship is the dynamic process of creating incremental wealth.
The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources. In that same vein, Ireland, Hitt, Camp, and Sexton argue that entrepreneurial and strategic actions are often intended to find new market or competitive space for the firm to create wealth. The degree to which the firm acts entrepreneurially in terms of innovativeness, risk-taking, and proactivity is related to dimensions of strategic management.
From these commonalties between entrepreneurship and strategic management are specific domains of innovation, networks, internationaliza- tion, organizational learning, top management teams and governance, and growth.
Under- standing the critical intersections of these specific domains allow entrepreneurs to increase their knowledge that, in turn, leads to higher quality entrepreneurial and strategic actions.
In recognizing the importance of the evolution of entrepreneurship into the twenty- first century, Kuratko developed an integrated definition that acknowledges the critical factors needed for this phenomenon.
Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy and passion towards the creation and implementation of new January, 3 ideas and creative solutions.
Essential ingredients include the willingness to take calculated risks, formulate an effective venture team, marshal the needed resources, build a solid business plan, and, finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion Kuratko, , p.
A Perspective From Economic Policy The link between entrepreneurship and economic growth has a long tradition in economics. For example, Jean Baptiste Say, the renowned French economist; and Joseph Schumpeter, a twentieth-century economic genius, all focused on the impact of entrepre- neurship on economic development Ronstadt, Over the decades scholars have continued to try to describe or define what entrepreneurship is all about.
Here are some examples: Entrepreneurship. Entrepreneurship, at least in all nonauthoritarian societies, constitutes a bridge between society as a whole, especially the noneconomic aspects of that society, and the profit-oriented institutions established to take advantage of its economic endow- ments and to satisfy, as best they can, its economic desires Cole, Entrepreneurship as a topic for discussion and analysis was introduced by the econo- mists of the eighteenth century, and it continued to attract the interest of economists in the nineteenth century.
In the twentieth century, the word became synonymous or at least closely linked with free enterprise and capitalism. Also, it was generally recognized that entrepreneurs serve as agents of change; provide creative, innovative ideas for business enterprises; and help businesses grow and become profitable. Entrepreneurship has more recently reemerged as a focal point for economic policy as an instrument for generating growth, jobs, and economic development.
Growth theory in econom- ics has generally reflected, if not directed, the policy debate revolving around growth, competitiveness, and economic development.
As it has evolved over the past half century, growth theory has reshifted its focus from physical capital to knowledge capital, as innovation has emerged as the source of growth and competitive advantage. Knowledge was identified as being particularly potent for economic development, because of its propensity to spill over for commercialization, from the organization investing in and creating that knowledge, to the venture actually commercializing that knowledge through innovative activity Baumol, Rather, entrepreneurship is needed to serve as a conduit of knowledge spillovers.
Integrating Entrepreneurship With Strategy Entrepreneurship and strategic management are both dynamic processes concerned with firm performance. Strategic management calls for firms to establish and exploit competitive advantages within a particular environmental context while entrepreneurship promotes the search for competitive advantages through product, process, and market innovations.
The dominant logic of a company attempts to capture the prevailing mindset, and it drives the overall focus of the systems and routines in the company. Further, it filters and interprets information from the environment; attenuates complexity; and guides the strategies, systems, and behavior of the organization.
Morris, Kuratko, and Covin suggest creating a dynamic dominant logic in order to make entrepreneurship the basis upon which the organization is conceptualized and resources are allocated. As a dominant logic, entrepreneurship promotes strategic agility, flexibility, creativity, and continuous innovation throughout the firm. Further, the overriding focus of the firm is opportunity identification, discovery of new sources of value, and product and process innovation that will lead to greater profitability.
And finally, an emphasis on entrepreneurial activity is translated into the objectives, strategies, reward systems, control systems, planning approaches, structure, and so forth of the firm.
Entrepreneurship is more than a course of action one pursues; rather it is more than a mindset. A strategy, at its essence, attempts to capture where the firm wants to go and how it plans to get there. When entrepreneurship is introduced to strategy, the possibilities regarding where the firm can go, how fast, and how it gets there are greatly enhanced. The integration of entrepreneurship with strategy has two aspects, both of which are critical.
Morris et al. The first of these is concerned with applying creativity and entrepreneurial thinking to the development of a core strategy for the firm. A highly entrepreneurial strategy is not an obvious one. Discovering unique positions in the marketplace is difficult, as is breaking away from established ways of January, 5 doing things.
Such a strategy implies a higher level of risk, especially when first implemented. Based upon the structure of traditional strategy matrices that have been used for portfolio analysis, Sonfield and Lussier developed an entrepreneurial strategy matrix that measures risk and innovation. For the purpose of this matrix, innovation is defined as the creation of something new and different.
In terms of measurement, the newer and more different the proposed product or service is, the higher it would be scored on a measurement scale. Risk is defined as the probability of major financial loss. What are the chances of the entrepreneurial venture failing? How serious would be the resulting financial loss? Whereas many ways exist to increase innovation, reducing risk largely focuses on financial factors, with a secondary consideration of self-image and ego.
The model allows even the most inexperienced entrepreneurs to characterize their new or existing venture situations and identify appropriate strategies.
The value of the entrepre- neurial strategy matrix is that it suggests appropriate avenues for different entrepreneurs. When the entrepreneur identifies the cell that best describes the new or existing venture being contemplated, then certain strategies are indicated as more likely to be effective. Covin and Miles hypothesized that firms that embrace entrepreneurship as core to their strategies will outperform those that do not over the long run.
Thus, the second aspect when integrating entrepreneurship and strategy concerns the need to develop a strategy to guide the particular entrepreneurial activities taking place within the firm. At its essence, this is a strategy for determining how entrepreneurial the firm really strives to be and how it will achieve that level of entrepreneurship.
Which business units or product areas are expected to innovate the most? Which departments are expected to be the real home for entrepreneurship, setting direction and providing leadership for the rest of the firm? Is there clear direction in terms of the types of innovation expected at each level?
Integrating Entrepreneurship With Leadership Entrepreneurial leadership is one of the newest terms combining the elements of strategy, leadership, and entrepreneurship in the management of high-growth ventures. Rowe provides a comprehensive description of strategic leaders, vision- ary leaders, and managerial leaders.
It is the concept behind strategic leadership that research has demonstrated to be the most effective in growing organizations. Ireland and Hitt identified some of the most important concepts in effective strategic leadership. If these leadership processes are difficult for competi- tors to understand and hence to imitate then the firm will create a competitive advantage.
These changes are revolutionary in nature— that is, they happen swiftly and are relentless in their frequency, affecting virtually all parts of an organization simultaneously. The ambiguity resulting from revolutionary changes challenges firms and their strategic abilities to increase the speed of the decision- making processes through which strategies are formulated and implemented.
Growth-oriented firms need to adopt a new competitive mindset—one in which flexibility, speed, innovation, and strategic leadership are valued highly. With this mindset, firms can identify and completely exploit opportunities that emerge in the new competitive landscape.
These opportunities surface primarily because of the disequilibrium that is created by continuous changes especially technological changes. More specifically, although uncertainty and disequilibrium often result in seemingly hostile and intensely rivalrous conditions, these conditions may simultaneously yield significant product-driven growth opportunities.
Through the effective application of entrepreneurship and strategic leadership growth firms can adapt their behaviors and exploit such opportunities. Thus, the concept of strategic entrepreneurship. The Concept of Strategic Entrepreneurship With all of these perspectives in mind, can we begin to find the combination of concepts that create strategic entrepreneurship?
Covin and Kuratko discuss stra- tegic entrepreneurship within the realm of corporate entrepreneurship. In their analysis, strategic entrepreneurship refers to a broader array of entrepreneurial phenomena, which may or may not result in new businesses being added to the corporation. However, they all involve in which large scale or otherwise organizationally consequential innovations that are adopted in the pursuit of competitive advantage.
While corporate venturing involves January, 7 company involvement in the creation of new businesses, strategic entrepreneurship cor- responds to a broader array of entrepreneurial initiatives, which do not necessarily involve new businesses being added to the firm.
All forms of strategic entrepreneurship have one thing in common: they all involve the exhibition of organizationally consequential inno- vations that are adopted in the pursuit of competitive advantage. The innovations that are the focal points of strategic entrepreneurship initiatives represent the means through which oppor- tunity is capitalized upon. These are innovations that can happen anywhere and every- where in the company.
By emphasizing an opportunity-driven mindset, management seeks to achieve and maintain a competitively advantageous position for the firm. Or, these innovations can represent fundamental bases on which the firm is fundamentally differ- entiated from its industry rivals.