Introductory description

This is an elective module available for WBS and non-WBS students.

This module focuses on providing an understanding of judgment and decision-making in
the entrepreneurial process. With an emphasis on learning from practice, the class
provides an overview of the main concepts and theories associated with decision-making
in the context of business opportunity identification and facilitates comprehension with
hands-on exercises. This is achieved by representing the entrepreneurship journey as a
journey of the mind, identifying the cognitive mechanisms that support or hinder
entrepreneurs’ ability to discover or create business opportunities. This module is not
intended to be a complete overview of entrepreneurship; it is an immersion experience for
identifying and creating opportunities.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

• Entrepreneurial Motivation
• Entrepreneurial Intentions
• Effectuation Logic
• Entrepreneurial Passion
• Entrepreneurial Intuition
• Heuristics and Cognitive Biases
• Entrepreneurial Alertness
• Creativity
• Entrepreneurial Emotions
• Empathy Accuracy
• Biology of Entrepreneurship

Learning outcomes

By the end of the module, students should be able to:

• Assess their entrepreneurial motivation and understand the difference between first person and third person opportunities.
• Differentiate between entrepreneurial and managerial thinking.
• Develop an entrepreneurial mindset through the development and self - leadership, creativity and improvisation.
• Develop empathy to better connect with stakeholders needs.
• Understand entrepreneurship as a process that requires judgment.
• Gain confidence to use entrepreneurial thinking to identify business opportunities.
• Understand the role of emotions in entrepreneurial decision-making and be prepared to deal with them.
• Understand the most common heuristics and cognitive biases that influence opportunity identification.
• Demonstrate the ability to think critically about decision-making and cognition in entrepreneurship.
• Develop judgement and decision-making skills.
• Develop self-leadership.
• Develop creativity skills.

Indicative reading list

Baldacchino, L., Ucbasaran, D., Cabantous, L. and Lockett, A. (2015) "Entrepreneurship research on intuition : a critical analysis and research agenda", International Journal of Management Reviews, 17, 2, 212-231.
Baron, R.A. (1998). Cognitive mechanisms in entrepreneurship: Why and when entrepreneurs think differently than other people. Journal of Business Venturing, 13, 275–294.
Busenitz, L.W. & Barney, J.B. (1997). Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making. Journal of Business Venturing, 12(1), 9–30.
Cacciotti, G., Hayton, J.C., 2015. Fear and entrepreneurship: a review and research agenda. Int. J. Manag. Rev. 17, 165–190. http://dx.doi.org/10.1111/ijmr.12052.
Cacciotti, G, Hayton, J. Mitchell, J.R., Giazizoglu A., 2016. A reconceptualization of fear of failure. Journal of Business Venturing.
Cardon, M., Foo M., Shepherd, DA, Wiklund J. 2012. Exploring the Heart: Entrepreneurial Emotion Is a Hot Topic Entrepreneurship Theory and Practice 36(1):1-10 DOI 10.1111/j.1540-6520.2011.00501.x.
Cardon, M.S., Wincent, J., Sing, J., Drnvosek, M., 2009. The nature and experience of entrepreneurial passion. Academy of Management Review 34, 511–532.
Dweck, C. 2007. Mindset: The New Psychology of Success
Ickes, W. & Tooke, W. (1988). "The observational method: Studying the interactions of minds and bodies". In S. Duck; D.F. Hay; S.E. Hobfoll; W. Ickes & B. Montgomery. Handbook of personal relationships: Theory, research, and interventions. Chichester: Wiley. pp. 79–97.
Kaufman, S.B., and Gregoire, C. 2015. Wired to create. Unrevealing the mysteries of the creative mind. PERIGEE.
McMullan, J.S. 2015.Entrepreneurial judgment as empathic accuracy: a sequential decision-making approach to entrepreneurial action Journal of Institutional Economics / Volume 11 / Issue 03, pp 651 - 681 DOI: 10.1017/S1744137413000386.
McMullen, J. S. and D. A. Shepherd (2006), ‘Entrepreneurial Action and the Role of Uncertainty in the Theory of the Entrepreneur’, Academy of Management Review, 31(1): 132–152.
McMullen, J. S., M. Wood, and L. Palich (2014), ‘Entrepreneurial Cognition and Social Cognitive Neuroscience’, in J. R. Mitchell, B. Randolph-Seng, and R. K. Mitchell (eds.), Handbook of Entrepreneurial Cognition, Northampton, MA: Edward Elgar.
Mitchell, R. K., Busenitz, L. W., Bird, B., Gaglio, C. M., McMullen, J. S., Morse, E. A., & Smith, J. B. 2007. The central question in entrepreneurial cognition research 2007. Entrepreneurship Theory and Practice, 31: 1-27.
Sarasvathy, S. D. 2001. Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26: 243-263.
Shane, S. and Nicolaou, N. (2015) "The biological basis of entrepreneurship", University of Chicago Press, Chicago.
Shepherd, D. A., J. S. McMullen, and P. D. Jennings (2007), ‘The Formation of Opportunity Beliefs: Overcoming Ignorance and Reducing Doubt’, Strategic Entrepreneurship Journal, 1(1–2): 75–95.
Shepherd, D.A., Williams, T. & Patzelt O. 2015. Thinking About Entrepreneurial Decision Making: Review and Research Agenda.
Journal of Management, Vol. 41 No. 1, 11–46 DOI: 10.1177/0149206314541153
Simon, M., Houghton, S.M., & Aquino, K. (2000). Cognitive biases, risk perception, and venture formation: How individuals decide to start companies. Journal of Business Venturing, 14(5), 113–134.
Ucbasaran, D., Shepherd, D.A., Lockett, A., Lyon, J., 2013. Life after business failure: the process and consequences of business failure for entrepreneurs. J. Manag. 39, 163–202.

Subject specific skills

Demonstrate the ability to recognize the cognitive mechanisms that are more relevant in the context of opportunity identification.
Demonstrate the ability to apply specific strategies to generate new ideas.
Experience the practical aspects of exercising judgement as critical element of the entrepreneurial mindset.

Transferable skills

Develop their ability to communicate, negotiate and advocate ideas.
Enhance research skills and the ability to effectively search, gather and utilize information and knowledge.