Entrepreneurship

1. Entrepreneurship Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition 3

2. “People think that at the top, there isn’t much room. They tend to think of it as an Everest. My message is that there is tons of room at the top.” --Margaret Thatcher

3. Three Key Processes Idea Generation Creativity Opportunity Recognition Increasing Relevance to Founding Venture

4. Working memory—holds limited amount of information fro brief periods Long-term memory—retains vast amounts of information for long periods Procedural memory—automatic knowledge gained through practice Memory

5. Mental Frameworks Mental frameworks help us to interpret new information and relate it to information we already possess.

6. Idealized mental representations of the most typical member of a category. Prototypes

7. Heuristics—simple rules for making complex decisions or drawing inferences in a rapid and seemingly effortless manner Availability heuristic—the more easily we bring information to mind, the more importance we assign to it Mental Shortcuts

8. Optimistic bias—expect things to turn out well without basis Confirmation bias—notice, process, and remember information that confirms current beliefs Illusion of control—assume that our fate is under our control Thinking “Tilts”

9. Creativity Items or ideas produced are both • New (original, unexpected) • Useful or appropriate

10. Concepts • Building blocks of creativity • Internal mental structures developed to organize information • Categories for objects or events that are somehow similar to each other in certain respects

11. Concepts can be stretched in several different ways Combination Expansion Analogy Escaping Mental Ruts

12. “An old thing becomes new if you detach it from what usually surrounds it.” --Robert Bresson

13. Individuals’ abilities to Understand complex ideas Adapt effectively to the world Learn from experience Engage in various forms of reasoning Overcome a wide range of obstacles Human Intelligence

14. Analytic intelligence Creative intelligence Practical intelligence Social intelligence Successful intelligence Kinds of Intelligence

15. Successful Intelligence Practical Intelligence Analytic Intelligence Successful Intelligence Success Creative Intelligence

16. Creativity emerges from a confluence of Intellectual abilities Broad, rich knowledge base Appropriate style of thinking Personality attributes Intrinsic, task-focused motivation Environment supportive of creative ideas Confluence Approach

17. Broad, Rich Knowledge Base • Having varied work experience • Having lived in many different places • Having a broad social network

18. Some people are more likely to recognize opportunities because They have better access to certain kinds of information They are able to utilize the information once they have it Opportunity Recognition

19. Richer and better-integrated stores of knowledge Higher in intelligence Higher in practical intelligence Higher in creativity Superior Utilization of Information

20. Additional Aspects Active search Entrepreneurial alertness Prior knowledge Social networks Opportunity recognition

21. Seeing links between seemingly unconnected trends, changes, events Connections form an identifiable pattern Pattern Recognition

22. Exposure to broad range of business experience Learning to search in the best places Learning to search in the best ways Exposure to a broad range of business opportunities Enhancing Opportunity Recognition