Entrepreneurial Mindset and Habits

Study Notes

Entrepreneurial Mindset

Entrepreneurs are grateful for their accomplishments, present experiences and challenges.
They see challenges as opportunities for growth.
They focus on their present and believe that they can't change the past or predict the future.
Entrepreneurs value connecting with others on emotional and financial levels.
They are self-respectful and take care of their body, mind, and spirit.

Creating Entrepreneurial Habits

Good habits are formed through a "habit loop" where the brain decides whether to repeat a behavior.
Reward and punishment are used to reinforce desired behaviors.

Recognizing Opportunities with a Mindset

Entrepreneurs are able to see problems, frustration, and unmet needs as opportunities for innovation.
They utilize analytical, search, imagination-based and habit-breaking thinking to identify new opportunities.
Opportunity recognition involves seeing the problem, making connections between seemingly things, and finding solutions to problems.
Entrepreneurs are able to recognize opportunities through relationship-seeking, development, and interpersonal interaction.

Four Pathways to Opportunity Identification

Find pathway: Assumes opportunities already exist, waiting to be discovered by entrepreneurs.
- Socorro Ramos (National Bookstore) - Identified a need for books and school supplies for students.
- Level Up! (Online gaming) - Recognized the growing popularity of online gaming, acquiring the rights to several games.
Create pathway: Entrepreneurs develop opportunities based on their skills, experiences, networks and confidence.
- Goldilocks - Milagros, Clarita, and Doris recognized the growing demand for Western-style food in the Philippines and developed a bakery.
- Potato Corner - Jose Magsaysay Jr. developed an idea for a unique product (Potato Corner) after seeing the popularity of other fast-food chains and identified the opportunity to offer a unique selling proposition (low cost, high efficiency).
Effectuate pathway: Entrepreneurs use their existing skills, networks, and resources to identify opportunities that fit their abilities.
Pattern recognition pathway: Entrepreneurs utilize pre-existing knowledge, experience, and networks to identify opportunities.
- Victoria Belo - Used experiences with bullying to create a business dedicated to beauty and self-esteem.
- Aisa Mijeno - Identified an opportunity to create a sustainable and affordable lighting source for remote communities while volunteering with Greenpeace.
"Connecting the dots" is a key part of pattern recognition. - Entrepreneurs are able to see the connections between seemingly unrelated things. - They are able to find opportunities in the details. - They are often able to identify opportunities in the face of constraints.

Opportunity Identification Steps

Identify: Identifying the problems customers are trying to solve, money is being spent on, and solutions still not found.
Discover: Researching the market, understanding customer needs and wants.
Enhance: Improving existing products and services to meet the needs of the market.
Anticipate: Identifying future trends and needs in the market.
Target: Defining the specific customer segments and markets for the product or service.
Evaluate: Assessing the feasibility of the opportunity, its profitability and potential risks.