Entrepreneurial behavior is a preference for innovation and a change in existing institutions and the status quo. It can be as simple as the willingness to buy a new electronic gadget or as involved as rebelling against the existing political regime and starting a new nation. It often surfaces in the form of an entrepreneur undertaking the risk of organizing production and launching a new business venture.

Managerial behavior is a preference for maintaining and promoting existing institutions and the status quo. It might be seen as following the same familiar routine day in and day out. A bagel for breakfast, a coffee break at exactly 10:05, chicken salad sandwich for lunch, leave for home at 5:00 taking Elm Street to Main and Main to 14th, in bed by 9:30. It can also be seen as administrative efficiency, making sure all i's are dotted and all t's are crossed.

Differences between entrepreneurial and managerial behavior can be traced to differences in novel and redundant information, which is part of the basic fight or flight motive response to a threat. Those with a relative preference for novel information tend to be entrepreneurially inclined. And those with a relative preference for redundant information tend to be managerially inclined.

Innovation

Innovation is related to, but different from invention. Invention is the act of creation. Innovation is the process of making the invention available for use. An invention provides no benefit to society if it's locked away in a closet unaccessible to anyone. Innovation takes the invention out of the closet and begins the process of distributing it throughout society.

Entrepreneurial behavior is usually behind the act of invention, as well as the process of innovation. It is important not only for those who launch the innovation, but also those who most inclined to adopt the innovation. Managerial behavior emerges once an innovation has been around long enough to become the new status quo.

Fight or Flight

The key to this automatic response is achieved by distinguishing between what's new and different and what's old and familiar. The old and familiar is less threatening that the new and different. The human brain sorts between two different types of information that comes through the five senses (sight, hearing, touch, taste, and smell), attempting to discern the potential for danger -- novel information and redundant information.

• Novel: This is new information. An unusual sight. A strange sound. An unexpected touch. A bizarre taste. An uncommon smell. The human brain takes immediate note of this information. Because it is unfamiliar, it might be threatening. This is information that needs to be identified quickly. It needs to stand out from the ordinary and familiar. A self-preservation reaction (fight or flight) might be needed.


• Redundant: This is familiar information. A common sight. A routine sound. A ordinary touch. A recognized taste. An everyday smell. The human brain is wired to largely ignore this information. Because it is familiar, it is not threatening. It is the background canvas upon which novel information is displayed.

However, different people have different preferences over the proper mix of novel and redundant information. Some prefer relatively more new and less old. Others prefer relatively more old and less new.

These individual differences give rise to entrepreneurial and managerial behavior. Those who prefer relatively more redundant information and relatively less novel information tend to pursue managerial behavior. Others who prefer relatively more novel information and relatively less redundant information tend to pursue entrepreneurial (and innovative) behavior.

Managerial Behavior

This behavioral alternative is well suited for keeping an existing business running smoothly and efficiently. As the name suggests, managerial types are inclined to manage, to administer, to apply existing rules and procedures. They are not absolutely opposed to change, but the change needs to be orderly and within the rules.

While managerial behavior is not conducive to creating an invention or launching an innovation throughout society, once the innovation has taken hold and becomes part of the fabric of society, it takes hold. It promotes the now "old" innovation, getting the most benefit possible. Those who are managerial inclined might not favor product innovations (new products), but process innovations (new ways of making existing products) are acceptable.

Entrepreneurial Behavior

This behavior alternative surfaces throughout society. The most noted is entrepreneurship, which launches a new business and undertakes the risk of organizing production. Another common example of entrepreneurial behavior is a consumer who likes to buy the newest and latest products, fashions, or electronic equipment. The desire to take a new route to work or school periodically is also an example. At the extreme are those who rebel against existing social orders, including political revolutionaries.

Entrepreneurial behavior is reflected in those who invent new products, ideas, technologies, and organizations. The desire to create something new is fundamental to entrepreneurial types. It is also reflect in those who seek to innovate, to apply and make use of the new products, ideas, technologies, and organizations. This behavior also affects those most willing to adopt the innovations developed by others.

However, once the newness wears off of an innovation, once the "new" innovation becomes the status quo, once it is institutionalized, then entrepreneurial types want little further involvement. The excitement of the new and different has passed.

A Continuum