Transcript ENTREPRENEURSHIP A PROCESS PERSPECTIVE Robert A. Baron Scott A. Shane A. Rebecca Reuber Slides Prepared by: Sandra Malach, University of Calgary Copyright © 2008 by Nelson, a.

ENTREPRENEURSHIP
A PROCESS PERSPECTIVE
Robert A. Baron
Scott A. Shane
A. Rebecca Reuber
Slides Prepared by:
Sandra Malach, University of Calgary
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
1
4
Essential Skills for
Entrepreneurs
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Learning Objectives
1. Describe several social skills and explain how social
competence (which is composed of these skills) can
influence entrepreneurs’ success.
2. Describe the difference between calculus-based trust
and identification-based trust, and explain their roles
in the development of cooperative working
relationships.
3. Define conflict and describe its major causes.
4. Explain how entrepreneurs can effectively manage
conflict, especially affect-based conflict.
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Learning Objectives
5. Describe the techniques that individuals use most
frequently to influence others in work settings.
6. Describe various techniques that people use for
gaining compliance—for getting others to agree to
requests they have made—and the basic principles
on which these rest.
7. Define stress and describe its major causes.
8. Describe the adverse effects of stress, and explain
several techniques entrepreneurs can use to reduce
the level of stress they experience.
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Quotation
“Marvelous is the power which can be
exercised, almost unconsciously, over a
company, or an individual, or even upon
a crowd by one person gifted with good
temper, good digestion, good intellects,
and good looks.”
(Anthony Trollope, 1863)
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Social Skills
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Definition: A set of competencies
(discrete skills) that enable individuals
to interact effectively with others
Being able to get along with others is
an essential skill for entrepreneurs
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5 Social Skills for Entrepreneurs
1.
2.
3.
4.
5.
Social Perception
Expressiveness
Impression management
Persuasion and influence
Social adaptability
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Social Perception
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Accuracy in perceiving others accurately
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“Read People”
Important when:
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Choosing Partners
Hiring people
Negotiation
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Expressiveness
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Expressing one’s own reactions and
emotions clearly
Important when:
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Generating enthusiasm
Sales
Venture capitalists invest in people who
display passion
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Impression management
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Making a good first impression
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Important when:
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Acquiring capital
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Persuasion and influence.
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Changing others’ attitudes or behaviour
in desired directions
Important when:
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Making sales
Influencing Partners
Motivating Employees
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Social Adaptability
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Adapt to a wide range of social
situations and to feel comfortable with
individuals from a wide range of
backgrounds
Important when:
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Making “cold calls” to customers &
suppliers
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SOCIAL COMPETENCE
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Persons high in several social skills are
described as being high in social
competence
Socially competent entrepreneurs are
actually more successful, in terms of
profitability
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Working With Others
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Most new ventures are started by
teams
2 basic criteria for effective teams:
1.
2.
Must work together cooperatively
Conflicts must be handled effectively
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The Key Role of Trust
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Trust—one person’s degree of
confidence in the words and actions of
another.
Trust is perhaps the most important
factor in the development of
cooperative working relationships

When trust exists, people can be depended
upon.
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Kinds of Trust
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Conflict

Conflict is a process in which one party
perceives that another party has taken
or will soon take actions that are
incompatible with its interests
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Affective or Emotional Conflict

A strong element of anger or disliking is
introduced into the situation.
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They are upset with each other, do not
trust each other, and experience strong,
negative emotions
Generally produces negative results
“When emotions run high, reason flies out
the window.”
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Cognitive Conflict
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Individuals become aware of
contrasting perspectives or interests,
but focus on the issues and not on one
another.
Cognitive conflict can be constructive.
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Causes of Affective Conflict
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Basic distrust between individuals or
groups
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Pre-existing grudges
Faulty attributions – errors concerning
the reasons for poor outcomes
Perception of personal objectivity and
bias and irrationality in others
Personality traits or characteristics
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Conflict Resolution
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Negotiation
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If unsuccessful negotiations result in a
deadlock the conflict will intensify
Win-win solution
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Acceptable to both
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Guidelines for
Conflict Resolution
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Avoid tactics that reflect a win-lose
approach
Uncover the real issues
Broaden the scope of the issues
considered
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Tactics of Influence
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Rational persuasion—Using logical arguments
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Inspirational appeal—Appealing to the
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and facts
recipient’s values and ideals.
Consultation—Asking for participation in
decision making or in planning.
Ingratiation—Getting someone to do what
you want by putting that person in a good
mood or getting him or her to like you.
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Tactics of Influence
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Exchange—Promising some benefits in
exchange for complying with a request.
Coalition-building—Persuading by seeking the
assistance of others, or by noting the support
of others.
Legitimating—Pointing out one’s authority to
make a request, or consistency with
organizational policies and practices.
Pressure—Seeking compliance by using
demands, threats, or intimidation.
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Other Tactics of Influence
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Friendship/liking. The more other
persons like us, the more willing they
are to agree to our requests;
Commitment/consistency. Strong
pressure to comply with requests that
are consistent with initial commitments.
Scarcity.
Reciprocity.
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Stress

A pattern of emotional states and
physiological reactions occurring in
response to demands from many
different events in our lives
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The Basic Nature of Stress
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Stress & Entrepreneurs
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People said they gave up because they
were working too hard and wanted to
achieve more balance in their life.
Self-employed Canadians work an
average of 56 hours per week, and
24% work more than 70 hours per
week!
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Adverse Effects of Stress
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Stress plays an important role in from
50 to 70 percent of all forms of physical
illness.
Stress is a major cause of ‘burnout’
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Physical Exhaustion
Emotion Exhaustion
Attitudinal Exhaustion
Reduced sense of Accomplishment
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Stress Prevention
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Good physical condition
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Healthy diet & exercise
Worry only (or at least mainly) about
important things that are at least partly
under your control
Avoid incompatible reaction procedure
Stop awfulizing
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Magnifying adverse affects
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We can’t always change the world
(make it the way we wish),
but we can change our reactions to it.
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