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Perceptual Approach of Entrepreneurial Decision-making

Author: ZhangLei
Tutor: FangShiJian
School: University of Science and Technology of China
Course: Business management
Keywords: Entrepreneurial decision-making Perceptual choice entrepreneurial process intuition improvisation
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 74
Quote: 0
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Abstract


Entrepreneurial decision-making as the key to entrepreneurial process is related to the identification and development of opportunity in entrepreneurial process. And it determines the survival and development of start-ups. Entrepreneurial decision-making theory has been the hot topic of scholars’study. The most important factors in entrepreneurial decision-making are environment and the entrepreneurs’characteristics .The environment in which entrepreneurial decision-making faced of is rapid and competitive, making the situation more and more complex. So entrepreneurs need to integrate a variety of ways of decision-making to deal with this rapid change. The traditional way of rational decision-making is no longer the only choice for entrepreneurs, perceptual approach of entrepreneurial decision-making are often more effective in the complex and changing environment. In the condition of lack of resources, perceptual choice may even be the only way.Perceptual decision-making is between instinctive and rational behavior. This concept describes the Perceptual decision-making is a conscious process, even those made in the subconscious decision-making process (such as the intuitive decision-making) is also conscious. In face of relatively stable environment, reliable data and higher levels of structured situations, decision-makers tend to use rational decision making. And when enterprises are faced with limited resources, time pressure, or need to develop new technology, decision-makers could use Perceptual decision making. It should be noted that different decision-makers may have different preferences, but the two approaches are not mutually exclusive, and should be complementary.In this paper, we use economics and cognitive psychology as the basic theories to explain the two different modes of perceptual approach of entrepreneurial decision-making. Then, we find the main influence factor about intuitive and improvisational approaches through empirical and theoretical methods. Finally, in order to have a clearly understanding about the perceptual approach of entrepreneurial decision-making, the study will compare the perceptual mode with rational mode, and give out a comprehensive analysis.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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