1. Perceptions – Looking at the World Through Entrepreneurial Lenses

In this chapter we consider how the perceptions of entrepreneurs might differ from those of non-entrepreneurs and how this might lead individuals to act entrepreneurially when others would not. Perceptions are reality for nascent entrepreneurs who must make business decisions in an uncertain world, based on what they see or what they think they see. We use the analogy of “entrepreneurial lenses” and discuss clear lenses (self-efficacy), rose-colored lenses (cognitive biases), blue lenses (simplistic decision rules), yellow lenses (preference for monetary gains), purple lenses (preference for intrinsic benefits), and telescopic lenses (overestimation of profits and underestimation of risks). We also consider the frames that hold the lenses (framing effects).