Entrepreneurial Mindset Book Analysis

Focuses on the entrepreneurial mindset and practices, emphasizing the practical application of entrepreneurship as a life skill, not just for starting businesses.

Learning Objectives

Combine the two views of entrepreneurship for new ventures
Relate the start of entrepreneurship in the Philippines
Develop the skills important in entrepreneurship
Express the truths about entrepreneurship
Distinguish each type of entrepreneurship
Adapt entrepreneurship as a method
Contrast between managerial and entrepreneurial thinking
Justify deliberate practice of Entrepreneurship

Entrepreneurship Approaches

Traditionally related to launching new businesses; viewed now as a life skill applicable beyond venture creation.
Composed of mindsets and skill sets enabling individuals to create and act on opportunities, regardless of needing to start a business.
Two views: older (predictive approach) and newer (creation approach).
Predictive approach views entrepreneurship as a linear process with predictable steps/results.
Creation approach sees it as a mindset and method for unpredictable situations.
Predictive approach supported by traditional entrepreneurship, used to identify goals and search for resources, most helpful when information is abundant when needing basis for decisions..
Predictive approach allows analysis, problem identification, and solution provision, but doesn't guarantee success.
Creation approach uses available resources to define goals, with action prioritized despite resource scarcity.
Small businesses often start with creation, evolving into prediction as they mature.
Habi Footwear, starting as a thesis, highlights the creation approach's value.
Combining prediction and creation is best, balancing them for new ventures.

Entrepreneurship in the Philippines

The Philippines is challenged by a high poverty rate despite a 6% average economic growth, with over 20% of the population living in poverty.
Entrepreneurship is positioned to address poverty through job creation, wealth generation, and social empowerment, a key focus of the Philippine government.
Entrepreneurial ventures are encouraged.
The 1987 Philippine Constitution identifies entrepreneurship as an instrument of economic growth.
Emphasizing the significance of private enterprises in income/wealth distribution, goods/services production, and productivity.
Government's economic development with job creation is overseen by the Philippine Development Plan (PDP), promoting entrepreneurship through trade and investment.
Evolution influenced by economic integration and market globalization
Evolving to include the ability to identify opportunities, generate ideas, and organize resources for ventures, both locally and internationally.
Advocating entrepreneurship through the Philippine Chamber of Commerce and Industry, the agency formed the Philippine Center for Entrepreneurship (PCE).
Focus On forming "Go Negosyo Communities" supported by academic, business, and government collaboration.
Embedding entrepreneurship lessons in school curricula aims to cultivate a culture of enterprise from a young age.

Skills for Entrepreneurs

The country now regards entrepreneurship as a way of thinking beyond just an economic term, motivating innovative individuals to pursue opportunities despite risks.
Challenge for the Philippines: provide leadership to help social reforms through entrepreneurship.
In the creation approach, entrepreneurs learn through action, managing uncertainty by developing skills through eager action.
Key skills include play, experimentation, empathy, creativity, and reflection.
Skill of Play: Allows imagination to explore opportunities and potentials, enhancing innovation.
Fun and playfulness lead to attentiveness, involvement, and excitement.
Entrepreneurs can benefit from play, enhancing relationships, problem-solving, and innovative thinking.
Educational games, like simulations can boost creativity.
Skill of Experimentation: Requires acting to learn, trying new things, learning from attempts, and applying learnings.
Involves gathering real-time data in the field rather than relying on secondary sources.
New products/services undergo experimentation to assess viability and identify improvements.
Skill of Empathy: Being sympathetic to others' feelings, situations, and desires, relating as if in their shoes.
Vital for understanding entrepreneurship completely.
Determining stakeholder needs for new product/service creation.
Skill of Creativity: Being open-minded and fostering the ability to create, discover opportunities, and solve problems.
Focused on forming opportunities, demanding learning, interest, and investment of effort.
With creativity, and despite difficulty with courage, action can be taken, with fear dismissed.
Skill of Reflection: Organizes the other four skills.
Involves narrative, emotional, perceptive, analytical, evaluative, and critical evaluation of experiences.
Entrepreneurs consider and explain experiences, leading to insights and deeper learning.

Entrepreneurial Truths

No shortcuts exist for hard commitment to entrepreneurship
Startups aren't the only option. They can happen in companies, franchises, profit or nonprofit organizations, to family-owned businesses.
Entrepreneurial Success not based on personality types. Qualities are being an achiever, influencer, a risk-taker and open-minded for uncertainty, but these are not facts.
Academics today focus on entrepreneurs' actions and thought patterns. Entrepreneurs can be taught with practice continuously Entrepreneur Must embrace risk and calculate steps with measurements. More successful in collaboration and community, not focused only on competition. Share experiences and provide guidance for the best results Entrepreneurs are more on doing and experience then planning and theory. Action-oriented: they prioritize customer interaction, market awareness, and networking, gathering data for informed decisions.

Life Skills for Professionals

Adapt to new situations and govern goals and ambitions.
Resilience: Being able to deal with setbacks through bouncing back and refocusing after failure.
Agility: Quickly adjusting to changing environments, seizing opportunities, and remaining competitive.
Negotiating: Establishing boundaries to ensure strong relationships and rapport in business.
Problem-solving: Resolving issues from minor technical glitches to significant financial challenges.
Relationship building: Fostering give-and-take relationships with suppliers, investors, and employees.
Mindfulness: Disconnecting from stress and focusing on the present through techniques like meditation.

Types of Entrepreneurship

Intrapreneurship: Encouraging employees within large corporations to develop high-risk, high-reward concepts, exemplified by Google's 20% time for innovative projects.
Entrepreneurs Inside: Similar to intrapreneurs but function within diverse organizations, needing management support to overcome resistance.
Buying a Franchise: Acquiring a license to operate under an established brand, providing a ready business model and system.
Buying a Small Business: Purchasing an existing business, offering immediate cash flow and an established customer base.
Social Entrepreneurship: Developing innovative solutions for community problems, such as water shortages, education, aiming for both social impact and economic stability.
Family Business: Owned and managed by family members, requiring entrepreneurial innovation each generation for survival, avoiding tradition stagnation for entrepreneurship advancement.
Serial Entrepreneurs: Constantly creating new ventures, offering responsibility once established for high premiums.

Entrepreneurship as a Method not a Process

Saras Sarasvathi describes logic of successful entrepreneurs to form their ventures.
Sarasvathy believes that the focus of effectual entrepreneurs is to create a future instead of predicting it.
Bird in Hand Principle: Creating solutions using available resources, not preconceived goals, is a way to expose opportunities.
Affordable Loss: Defining acceptable losses limits risk to a controllable level in order to move forward.
Crazy Quilt: New markets are developed through the opportunity to cooperate with partnerships versus competition.
Lemonade: Treating surprises and mistakes as new opportunities, expecting contingencies.
Pilot in The Plane: Focus entrepreneurial activities, not simply trying to predict.
Identify Desired Impact: In forming a new venture, entrepreneurship achieve something beyond only the bounds of himself.
Begin with Means at Hand: Ready resources such as curiosity, motivation, and drive.
Describe the Idea Today: Desired impact and combining means at hand to start today.
Estimate Affordable Loss: Think about the willingness lose instead of risk assessing.
Reflect and Be Honest: Questions considerations when an no longer has impact to his venture.
Take Small Action: Calculated action where entrepreneur can control risk.
Network And Enjoin others in the Journey: Collaboration, not simply competition to find solutions in a vast network.
Build and Learn from what has been Learned: Evaluate performance for improvements and better ideas and collaboration.

Managerial vs Entrepreneurial Thinking

Managerial uses internal and external data as a basis when planning strategies.
Entrepreneurial is to identify opportunity and using the opportunity to create the solution. In short, solve problems with the market in the most timely way. Develop their roles with fresh learning.

Entrepreneurship With Deliberate Practice

Has methods as a mindset like other professional with many repetitions, usually in the form of experiences. Malcolm Gladwell says to succeed, one must put 10,000 hours of training with unique opportunities. Although many hours can help achieve, so does access. Deliberately practice to master.