Entrepreneurship

-       13% ( Norway lowest, Greece highest), Germany 8.5%

-       Women sign lower

-       Most Farm and managers (also some trades workers)

-       Opportunitys

o   Sources

o   Processes of discovery, evaluation and exploitation

§  Ppl that do these things

-       Nature and Nurture

-       Individual characteristics

-       Action characteristics (strategies, info search help with uncertainty)  

-       Entepreneurial process (Opportunity stuff)

-       General context (Environment, Uncertainty!)

: identificarion of opportunitys, acquisition of resources, venture growth, survival

o   Prior knowledge can hinder and improve

§  Escape knowledge corridor

·       Prior experience

·       Creativity

·       Information seeking behavior

·       (external knowledge sourcing breadth)

o   Successful information seeking behaviors:

§  Asking questions

§  Observing

§  Experimenting

§  Discussing Ideas with different ppl

·       Can make up for lack of prior experience

o   Viable and feasible ?

o   Entrepreneurship = new fields   ROI potential, competitors difficult to use

§  Develop new opportunitys instead of evaluation

§  Iterative process (Idea -feedback-recflect cycle)

o   Activities to start new venture  Accquire financial capital, promote product, establish operational procedures

o   What do the successful ppl do differently?

§   Less talk more actions

§  Lot of activity with great intensity

§  Really get into day to day process

§  Understand when venture is not working

o   Different types of uncertainty (options what resource/strategie available? , Outcomes  what results/new product do I want? )

·       Causation/business planning  close set of outcomes (creative uncertainty)

o   Take specific effect as given (then acquire necessary means)

o   Predicting future: Company/product description, customer/competitor analysis

§  Why: symbolism, Learning, Efficiency

·       Effectuation  close set of options (environmental uncertainty)  

o   Take available resources (then identify effects)

o   Controlling future:

§  opportunistic and leveraging contingency into opportunity,

§  build alliances,

§  principle of affordable loss (only invest what you can loose)

·       Similar to effectuation

o   Bricolage: recombining resources for new purpose

o   Financial boot strapping: acquire resource without external funding/bank

§  Owner financing (withholding own salary)

§  Minimization of accounts receivable (speed up invoicing)

§  Joint utilization (owners share)

§  Delayed payment/leasing

§  Minimization of capital in stock investment

§  Subsidies

§  General strategy: Action planning

·       Forms: complete planning, critical point, opportunistic, no planning/reactive

o   Alles besser als no planning/reactive

Gender gap

-       Men more likely than women

o   Individual level: lower entrepreneurial self efficacy, business opportunies and higher fear of failure

o   Institutional: less capital access

-       Pitch: investment decisions are driven by business proposition and experience (but also serious biases about attributes of entrepreneur)

o   Promotion vs prevention coded questions

§  Men and women use similar amount in pitch

§  Questions for Men 67% promotion focused, Women 66% prevention focused

·       Female and Male Venture capitals/Investors show this behavior

§  Responding to prevention questions with promotion answers raise 14 times more

-       Personal Initiative

o   Self starting (setting goals, actions new things)

o   Proactivity (planning future)

o   Persistence

-       Passion (Theory of entrepreneurial passion: passion drives success

o   Self regulation theory; Effort  progress  positive emotions

-       Overconfidence

o   Confidence vs Overoptimism

§  Confidence in ability , optimism about postitive outcomes

·       Facilitates action but also increases failure likelihood (curvelinear)

o   Survival rate of new ventures 50% in 5 Years

§  But more than 81% estimate their chanches as at least 70%

-       Fear of Failure ?

o   Reduces rate of entry /but can also be exciting for sensation seekers

§   can inhibit or motivate

-       Personality

o   Higher conscientiousness and openness lower neuroticism

o   Need for achievement

o   Innovativeness

o   Proactive personality

o   Generalized self efficacy (esp females for all phases )

o   Need for autonomy (females  pre launch and launch)

o   Women: Locus of control (pre and post launch

o   Risk propensity only small effect on success (not even women)

§  Curvelinear effect on survival

-       Automatisierte Analysen, pricing

-       Generieren designs, codes und prototype, businesspläne, pitch decks

-       Customer targeting, engage customers through chat bots

-       Niedrige Eintrittsbarriere