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E-book Entrepreneurial Cognition : Exploring the Mindset of Entrepreneurs
How do people think? By understanding how people think, we can do a better job of explaining their actions. Both of us (the authors) were drawn to this topic in the extreme context of entrepreneurship. This context is extreme because the actions associated with entrepreneurship can have a substantial impact on the individual taking the actions, the economy, com-munities, the environment, and society as a whole. For example, to explain why one individual creates a venture to benefit the community (Shepherd and Williams 2014) whereas another individual creates a venture that harms the natural environment for personal gain (Shepherd et al. 2013), we need to understand people’s cognitions—what happens in their minds. Not only are the outcomes of entrepreneurial actions extreme (in their impact), but the associated decision making is also extreme—extreme in uncertainty, complexity, time pressure, emotionality, and identity invest-ment. We felt that investigating cognition under such extreme conditions afforded us the opportunity to work—and push forward—the knowledge frontier. That is, we were able to take the existing body of knowledge (from relevant literatures on cognitive science, decision making, and other aspects of psychology) and adapt it, twist it, and blend it to make a new form that would explain entrepreneurial cognition.
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