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. Delegating—Entrepreneurs find delegation difficult because they think they have to be at the business all the time and be involved in all aspects of the operation.
Exercising Rigorously—Research demonstrates the value of exercise regimens on relieving the stress associated with entrepreneurs.
The Entrepreneurial Ego Certain characteristics that usually propel entrepreneurs into success also, if exhibited in the extreme have destructive implications for entrepreneurs. As there is no simple universal formula for solving ethical problems, entrepreneurs have to choose their own codes of conduct; the outcome of their choices makes them who they are.
Ethics represents a set of principles prescribing a behavioral code that explains what is good and right or bad and wrong. Ethics may outline moral duty and obligations. Legality provides societal standards but not definitive answers to ethical questions. Because deciding what is good or right or bad and wrong is situational, instead of relying on a set of fixed ethical principles, entrepreneurs should an ethical process for making decisions.
The Matter of Morality Requirements of law may overlap at times but do not duplicate the moral standards of society. Some laws have no moral content whatsoever. Some laws are morally unjust. Some moral standards have no legal basis. Legal requirements tend to be negative, morality tends to be positive. Business decisions, in the context of entrepreneurial ethics are complex.
Most ethical business decisions have personal implications. Establishing a Strategy for Ethical Enterprise Entrepreneurs need to commit to an established strategy for ethical enterprise. Ethical Codes of Conduct A code of content is a statement of ethical practices or guidelines to which an enterprise adheres. Ethical Responsibility A strategy for ethical responsibility should encompass three major elements: ethical consciousness, ethical process and structure, and institutionalization.
Ethical Considerations of Corporate Entrepreneurs Recognize the fine line between resourcefulness and rule breaking. Recognize that unethical consequences that can result in organizations where there are barriers to innovation.
Caring is a feminine alternative to the more traditional and masculine ethics based on rules and regulations. In attempting better to understand the driving forces within entrepreneurs, we can gain a more complete perspective if we take a psychological look at entrepreneurs and consider the entrepreneurial mind-set.
Part of that mind-set includes the package of mental processes that entrepreneurs possess, which include attention, remembering, producing and understanding language, solving problems, and making decisions. Entrepreneurial cognition refers to the knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth. This process is metacognitive. The process responsible for ultimately selecting a response i.
Entrepreneurs have a tolerance for ambiguity, are calculated risk takers. What do these characteristics mean for any potential entrepreneur?
Entrepreneurs face uncertainty compounded by constant changes that introduce ambiguity and stress into every aspect of the enterprise. A tolerance for ambiguity exists when the entrepreneur can deal with the various setbacks and changes that constantly confront him or her. Successful entrepreneurs are not gamblers—they are calculated risk takers.
They do everything possible to get the odds in their favor, and they often avoid taking unnecessary risks. These strategies include getting others to share inherent financial and business risks with them—for example, by persuading partners and investors to put up money, creditors to offer special terms, and suppliers to advance merchandise.
Entrepreneurial passion is a fundamental emotional experience for entrepreneurs. It is a discrete emotion that is quite intense being described as an underlying force that fuels our strongest emotions, or the intensity felt when engaging in activities that are of deep interest, or the energy that enables entrepreneurs to achieve peak performance. Is it true that most successful entrepreneurs have failed at some point in their business careers?
Entrepreneurs use failure as a learning experience; hence, they have a tolerance for failure. How should failure be dealt with by entrepreneurs? As noted above, the most effective entrepreneurs are realistic enough to expect difficulties and failures.
If they can deal effectively with any grief that emanates from the failure then they will not become disappointed, discouraged, or depressed by a setback or failure. In this way entrepreneurs will believe that they learn more from their early failures to form the foundation of later successes. Research shows that an entrepreneur recovers more quickly from a failure if he or she oscillates between a loss and a restoration orientation.
This oscillation means that the entrepreneur can gain the benefits of both orientations while minimize the costs of maintaining either for an extended period.
Be complete in your answer. The dark side of entrepreneurship is a destructive course that exists within the energetic drive of a successful entrepreneur. There are three major traits that are associated with the dark side of entrepreneurship: risk, stress, and the entrepreneurial ego. All potential entrepreneurs need to be aware that the dark side of entrepreneurship exists.
What are the four specific areas of risk that entrepreneurs face. Describe each. The four specific areas of risk are as follows: 1. Financial risk—In most new ventures the individual puts a significant portion of his savings or other resources at stake.
Career risk—A question frequently raised by would-be entrepreneurs is whether they will be able to find a job or go back to their old jobs if their venture should fail.
Family and social risk—Entrepreneurs expose their families to the risk of an incomplete family experience and the possibility of permanent scars. Psychic risk—The greatest risk may be to the well-being of the entrepreneur. What are the four causes of stress among entrepreneurs? How can an entrepreneur deal with each of them? There are four causes of stress: loneliness, immersion in business, people problems, and need to achieve.
To reduce stress, entrepreneurs must define the cause of the stress. After clarifying the cause of stress, the entrepreneur can combat excessive stress by acknowledging its existence, developing coping mechanisms, and probing personal unacknowledged needs. Describe the factors associated with the entrepreneurial ego.
The factors associated with the entrepreneurial ego include: an overbearing need for control; a sense of distrust; an overriding desire for success; and unrealistic optimism. Ethics must be based more on a process than on a static code. What does this statement mean? Do you agree? Why or why not? Yes, I agree, because we live in an ever-changing environment where each day is different and each decision has differing alternatives and circumstances. A small pharmaceutical firm has just received permission from the Food and Drug Administration FDA to market its new anticholesterol drug.
Although the product has been tested for five years, management believes that serious side effects may still result from its use, and a warning to this effect is being printed on the label. If the company markets this FDA-approved drug, how would you describe its actions from an ethical and legal standpoint?
Use Figure 2. There is nothing illegal about marketing the product, because all necessary actions were taken to get the drug approved by the FDA and the benefits must have outweighed the side effects. On the other side, however, marketing the product may not be unethical, because the company is providing information concerning the side effects on the product for the consumer, and therefore, the consumer must make the choice.
Management may continue to put more money into the research and development of the product. The four distinct roles are non-role, role failure, role distortion, and role assertion. Role failure includes superficial performance appraisals and not confronting expense account cheating by employees.
Role assertion refers to socially questionable acts such as not withdrawing a product in the face of product safety allegations. Why do complex decisions often raise ethical considerations for the entrepreneur?
The reasons why business decisions of entrepreneurs are so complex are as follows: l ethical decisions have extended consequences, 2 business decisions involving ethical questions have multiple alternatives, 3 ethical business decisions often have mixed outcomes, 4 most business decisions have uncertain ethical consequences, and 5 there are personal implications in most ethical business decisions.
Cal Whiting believes entrepreneurs need to address the importance of ethics in their organizations. However, in his own company he is unsure of where to begin because the entire area is unclear to him. What would you suggest? Where can he begin? What should he do? Be as practical as you can in your suggestion. Cal Whiting needs to carefully examine his organization in order to determine actions that might be considered morally questionable. From there he can develop a code of conduct that would represent the ethical positions expected of all employees.
Finally, he can follow the four principles for ethical management involved in the holistic approach. These include: 1 Hire the right people. What is the concept of entrepreneurial motivation? Because motivation plays an important part in the creation of new organizations, theories of organization creation that fail to address this notion are incomplete.
Therefore, one research approach is the motivational process that an entrepreneur experiences. Explain the concept of entrepreneurial persistence and how it is being examined. Entrepreneurs are not intimidated by difficult situations. Getting Entrepreneurship Theory Process And Practice 10th Edition pdf free download is not supposed to be a major problem for any student taking a course with Stuvera.
So head over to Stuvera now! Using exercises and case presentations, you can apply your own ideas and develop useful analytical skills. Cases found throughout the text present the venture creations or managerial ideas confronted by real-world companies.
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