Entrepreneurial Mindset Quiz

Lesson 2: Entrepreneurial Mindset

• Entrepreneurial Mindset is a state of mind focused on opportunity, even with limited resources. It aims to create user-defined value by innovating on existing offerings.

What is Mindset?

• Mindset is a set of attitudes. It represents a person's way of thinking, including their opinions (Cambridge Dictionary).

2 Types of Mindset

• Fixed Mindset
• Growth Mindset

Fixed Mindset

• People with a fixed mindset view their talents and abilities as inherent traits.
• They believe inborn qualities (talent and brains) are crucial for success, and focus on looking smart.
• They often react personally to criticism. They tend to attribute success in others to luck or unfair advantages.
• Individuals with a fixed mindset might avoid challenge, failure, or looking foolish by telling themselves they are not good at something.

Growth Mindset

• Those with a growth mindset see abilities as things they can develop through hardwork, dedication, and effort.
• They believe that intelligence and talent are starting places, not defining factors for success.
• They embrace opportunities to improve qualities by studying, training, and practicing.
• They view failure as a chance to learn and improve their performance.

Entrepreneurial Mindset

• The ability to sense opportunities, take action, and organize effectively under specific circumstances.
• This includes perseverance in the face of difficulties, the acceptance of failure as a learning opportunity, and comfort with a certain level of discomfort.

8 P's of Entrepreneurial Mindset (ENT Mix 8Ps)

• Passion
• Perception
• Potential
• People
• Persistent Learning
• Permanent Change
• Perseverance
• Proactiveness

1. Passion

• Passion is the driving force behind entrepreneurs' motivation and hard work.

2. Perception

• Perception involves organizing, identifying, and interpreting sensory information to understand one's surroundings.

3. Potential

• Potential represents currently unrealized abilities that can evolve. It encompasses latent qualities one can cultivate in the future.

4. People

• A vision requires a supportive team. Entrepreneurs are responsible for finding the right team members, communicating effectively, attracting talent, and fostering their skills, energy, positive attitudes, and motivation.

5. Persistent Learning

• Continuous learning is key, encompassing information gleaned from various sources anytime and anywhere.

6. Permanent Change

• Accepting constant adjustment and readiness to change enables success.

7. Perseverance

• Unwavering effort despite obstacles and setbacks leads to achievement.

8. Proactiveness

• By proactively anticipating and initiating change, rather than reacting to events, successful entrepreneurs play offense and see the bigger picture.

Critical Thinking Skills

• Applying logic and reasoning to new or unfamiliar ideas, opinions, situations.
• Objectively analyzing and evaluating issues to draw sound judgments.

Skills Involved

• Open-minded approach
• Rational consideration
• Empathy

Negative Impacts of Passion

• Founder Misalignment: Conflicts in vision, goals, values, or strategies amongst founders hinders company operation and objectives.
• Missing the Market: A product or service failing to meet the target market's needs resulting in poor sales or limited market penetration.
• Rose-colored Planning: Overly optimistic business plans with unrealistically optimistic assumptions, ignoring risks and challenges.
• Unforgiving Strategies: Unflexibly placing all resources in one single strategy, neglecting experimentation, and potential paths to profitability.
• Reality Distortion: Optimistic, often exaggerated perception of a venture's success, and diverging from objective facts.
• Evaporating Runway: Rapid depletion of resources by a startup before attaining profitability.