Understanding Entrepreneurship: Neoclassical vs. Austrian Economics Perspectives, Quizzes of Entrepreneurship Development

Download Understanding Entrepreneurship: Neoclassical vs. Austrian Economics Perspectives and more Quizzes Entrepreneurship Development in PDF only on Docsity! TERM 1 Neoclassical DEFINITION 1 1. ______economics: a. Assumes markets move toward equilibrium b. In equilibrium everyone know what everyone else knows c. No one gains an entrepreneurial profit d. So, individual difference must explain entrepreneurship i. Some people have a taste for uncertainty TERM 2 Austrian DEFINITION 2 1. ______Economics: a. Markets never reach equilibrium b. People possess different information c. Different information leads to different people seeing opportunities for profit d. Entrepreneurial profits and losses come from the accuracy of peoples information regarding what others will pay e. Opportunity recognition does not depend on i. Ability ii. Willingness to take risks TERM 3 Psychological DEFINITION 3 1. ____________theories: describes the fundamental attributes of people that make some entrepreneurs and not others: a. need for achievement b. willingness to bear risk c. self-efficacy (believe in oneself) d. internal locus of control e. tolerance for ambiguity TERM 4 Neoclassical DEFINITION 4 ______economics:a.Assumes markets move toward equilibrium TERM 5 Neoclassical DEFINITION 5 ______economics:b.In equilibrium everyone know what everyone else knows TERM 6 Neoclassical DEFINITION 6 ______economics:c.No one gains an entrepreneurial profit TERM 7 Neoclassical DEFINITION 7 ______economics:d.So, individual difference must explain entrepreneurshipi.Some people have a taste for uncertainty TERM 8 Austrian DEFINITION 8 __ec _______ economics:a.Markets never reach equilibrium TERM 9 Austrian DEFINITION 9 eco _______econmics:b.People possess different information TERM 10 Austrian DEFINITION 10 _______econmics:c.Different information leads to different people seeing opportunitiesfor profit TERM 21 Entrepreneurial alertness DEFINITION 21 ______ ______: being aware of the entrepreneurial potential of things one encounters TERM 22 Baron & Ensley DEFINITION 22 what study: 1. --- Based on prototype theory - people compare proposed new products and services to their existing prototype of a business opportunity. 2. Matched set of 106 first-time and 88 experienced entrepreneurs were asked to: a. Describe the idea on which your new venture was based b. Why was this a good idea worth pursing 3. Conclusions: repeat entrepreneurs think more practically. Experience and patterns can be taught and learned. experience mattersThe repeat entrepreneurs had clear, richer and more focused key factors such as positive cash flow, manageable risk, solving customer problem. TERM 23 1. questioning 2. observing 3. an experimental mindset 4.idea networking DEFINITION 23 The four differences between Innovative Entrepreneurs and executives from Dyer et: TERM 24 questioning DEFINITION 24 A differencebetween Innovative Entrepreneurs and executives from Dyer et:1. Questioning: innovative entrepreneurs question the status quo whereas manager asked questions about to make existing process better a. ex: dell questioned why the parts were so much less than the price of the whole computer b. ex: Omidyar of EBay-playing devils advocate TERM 25 questioning DEFINITION 25 A differencebetween Innovative Entrepreneurs and executives from Dyer et:a.ex: dell questioned why the parts were so much less than the price of the whole computerb.ex: Omidyar of EBay-playing devils advocate TERM 26 observing DEFINITION 26 A differencebetween Innovative Entrepreneurs and executives from Dyer et:1. ______: compared to the executives, the innovative entrepreneurs have incredible observational skills that engage multiple sense a.Ex: Howard Schultz: in Italy observing espresso barsb.Ex: Scott cook- Intuit observing his spouse do the family books and matching that with computer abilities TERM 27 observing DEFINITION 27 A differencebetween Innovative Entrepreneurs and executives from Dyer et:a.Ex: Howard Schultz: in Italy espresso barsb.Ex: Scott cook- Intuit -watched his spouse do the family books and matching that with computer abilities TERM 28 an experimental mindset DEFINITION 28 A differencebetween Innovative Entrepreneurs and executives from Dyer et:1. : innovative entrepreneurs more frequently experiment and explore, and do so with a hypothesis testing mindset. a. ex: Steve Jobs taking apart the Walkman b. ex: Wattles-you can destroy a store but not the company TERM 29 an experimental mindset DEFINITION 29 A differencebetween Innovative Entrepreneurs and executives from Dyer et:a.ex: Steve Jobs taking apart the Walkmanb.ex: Wattles-you can destroy a store but not the company TERM 30 idea networking DEFINITION 30 A differencebetween Innovative Entrepreneurs and executives from Dyer et:1. : whereas executives network to further their careers and to sell, innovative entrepreneurs create networks of people with diverse ideas and perspectives that they could tap into for new ideas and insights. a. Ex: Elliot Jackson: Freeport.com, meets regularly with different folds he had never met b. Ex: Ingvar-IKEA meets with young folks TERM 31 idea networking DEFINITION 31 A differencebetween Innovative Entrepreneurs and executives from Dyer eta.Ex: Elliot Jackson: Freeport.com, meets regularly with different folds he had never metb.Ex: Ingvar-IKEA meets with young folks TERM 32 Active search;Entrepreneurial alertness DEFINITION 32 1. These four conclusions lead to associative thinking and pattern recognition. These four behaviors are essential to: a. _____ _____ : actively looking for entrepreneurial opportunities b. _______ ____: being aware of the entrepreneurial potential of things one encounters TERM 33 Probability of becoming self-employed, business survival, business growth, profitability DEFINITION 33 jeopardy game:What are things that are related to education level TERM 34 genetics DEFINITION 34 jeopardy game:White et al.s finding that men with more testosterone had started more businesses, and Nicolaou et al.s finding that identical twins engaged in similar levels of entrepreneurship while non-identical twins dont, provide evidence that this factor plays a role in who becomes an entrepreneur.r. TERM 35 Surveys, archival data, interviews, experiments DEFINITION 35 jeopardy game:How do we observe entrepreneurs in science?