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Chapter 1 Contextualising entrepreneurial thinking and mindset The word 'entrepreneurship' is often part of our everyday lives. We may hear it as we read or listen to the news, as we watch television or films, even as we engage in discussions with our friends, families, fellow students at school or...

Chapter 1 Contextualising entrepreneurial thinking and mindset The word 'entrepreneurship' is often part of our everyday lives. We may hear it as we read or listen to the news, as we watch television or films, even as we engage in discussions with our friends, families, fellow students at school or University, or with our colleagues at work. It seems that entrepreneurship is, more than ever, visible all around us. Yet how often have you thought about this word and what it actually means, particularly in relation to you and your life? Whether we are aware of it or not, we all have perceptions and make assumptions about entrepreneurship and entrepreneurs. Some of these may be positive, some may be negative, but most importantly these perceptions and assumptions may influence our own behaviour in relation to entrepreneurship. For example, they may lead us to want to either embrace or reject entrepreneurship as a way of thinking and behaving in our own lives, or they may lead us to compare ourselves positively or negatively with public images of famous entrepreneurs. It is for these reasons that tackling these perceptions and assumptions openly is important as you embark on your journey of self-discovery in relation to your own entrepreneurial potential. This chapter will start by considering some of the common perceptions of what entrepreneurship is and, by extension, who an entrepreneur is. We will review and address the two 'pervasive myths' of entrepreneurship before inviting you to reflect on your own views on these common perceptions: the 'hero' entrepreneur and the 'born' entrepreneur. Then, we will consider and explore entrepreneurial thinking and mindset as a set of skills, competencies and linked behaviours that can be developed through sustained effort and practice. These skills and competencies are intended to support you behaving entrepreneurially, as you create value for yourself and for others in a range of possible settings and activities. Once again, we will invite your own reflections on this more recent competences-based view of entrepreneurship. It is important that you do not skip the in-text exercises and activities, however trivial they may seem or uncomfortable they may feel. These are designed to get you thinking about your own attitudes towards entrepreneurship, whether this world is new to you or very familiar. After working through this chapter, you should be able to: Query and challenge stereotypical depictions of entrepreneurs and, relatedly, entrepreneurial activity; Articulate the role that thinking (cognition) and emotion play in shaping in shaping an entrepreneurial mindset and, in turn, entrepreneurial behaviour; Identify and discuss how entrepreneurial thinking and mindset links to value creation in your own personal and professional lives. 2\. Entrepreneurship in your context The word 'entrepreneurship' has become commonplace globally. The English term 'entrepreneurship' was originally adapted from the French verb 'entreprendre' or to undertake. Yet different cultures (and their languages) have a number of other words or terms to describe 'entrepreneurship' or an 'entrepreneur'. Importantly, these different words or terms often have a different underlying meaning than the English words. For example, the term 'entrepreneurship' in Arabic is ريادة الأعمال, comprising the words leadership ("riyada") and business ("aamal"). Yet in Mandarin, 'entrepreneurship' can be 创业, 创业精神 or 创业能力, which cover the concepts of "set up" and "building from nothing". An 'entrepreneur' is usually 企业家, which refers to the boss who runs their own business 'Entrepreneurship' is also understood differently in different sectors and industries. Some sectors have embraced the notion, while others struggle to identify with it in its current form. Fast pace, fast growth industries such as digital and information technology tend to find themselves at home with the word and the associated business incubators and support infrastructure. Other industries, such as the arts, may struggle to identify themselves with 'entrepreneurship'. Amongst other reasons, this may be because of the perceptions that artists may have of entrepreneurship (i.e. profits-focused, individualistic, etc.). Other sectors have adapted the notion of entrepreneurship based on their specific contextual arrangements. For example, sectors such as engineering and chemistry use the word 'entrepreneurship' as synonymous with the commercialisation of innovations and discoveries. 3\. The 'hero' entrepreneur? When we hear 'entrepreneurship', very often the term conjures up mental images of gifted, infallible individuals who single-handedly build hugely successful business empires seemingly overnight and from next to nothing. You may think of, for example, Jeff Bezos, Richard Branson or Elon Musk. This 'hero' entrepreneur is certainly the image celebrated and reinforced by the global media as well as Western popular culture, where an individual is seen to be endowed with special skills and abilities that others do not have. These individuals are also often seen as visionaries and creators; people with drive, ambition and a strong sense of personal direction and purpose who are able to come up with brilliant -- seemingly 'world changing' -- ideas. For some of us, these individuals may be a source of great inspiration. Indeed, it can be motivating to witness people that seem so dedicated and driven every single day, when in fact our own drive can fluctuate and dip at points. However, for others amongst us, these idealised examples may be problematic for a number of reasons. Firstly, it can be hard for us to personally relate in a meaningful way to these individuals, particularly if they do not reflect our own culture, gender, language, or background. Secondly, when we compare ourselves to the perceptions we have of these 'heroic' individuals, we may end up consciously or unconsciously making a number of unrealistic (or perhaps even unfair) assumptions about ourselves and our own abilities: We may think that we just need to have a brilliant world-shifting idea as these individuals have (apparently) had and that everything else will fall into place; We may think that success should come as easily to us as it seemingly does to these individuals; We may think that if we have to try hard and encounter difficulty we are not entrepreneurial after all; We may think that we should be able to pursue our goals without ever seeking anyone's input or help and that needing others is a sign of personal weakness or inability; We may think that, if we have a dip in motivation or energy, we are not the real deal, we are lazy or not that dedicated to our goals. Would we be justified in thinking the above? We would argue that the answer is NO! As it turns out, on closer inspection the figure of the 'hero' entrepreneur becomes a lot less heroic and much lonelier. When we start to dig into the lives, decisions and actions of these individuals we often see that their stories are told in a biased and selective way, overemphasising achievement and success, whilst underreporting effort, struggle and even failure. If failures are reported, those are usually told from the vantage point of the success that eventually followed, thus glamorising failure. Yet, the many non-glamourous failed attempts that precede ultimate successes do not always appear in media stories and representations. Similarly, we usually find that behind the face of the 'heroes' who make it to the cover pages of newspapers and magazines there are armies of co-founders, mentors, investors, skilled and knowledgeable employees, family members and other supporters and contributors who have helped that individual along the way. The latter are often the unsung heroes behind the visible hero. 4\. The 'born' entrepreneur? Why then do we hold this 'hero' entrepreneur stereotype? Many of our assumptions about entrepreneurs generally stem from research conducted during the 1960s to the 1980s that assumed that entrepreneurs could be profiled and separated out from 'non-entrepreneurs' through a range of distinguishing entrepreneurial traits. Such traits are often considered a central part of each individual's neuropsychic system , or the way in which we are 'wired', and are thus stable and cannot be easily changed. Psychological research recognises five universal personality traits in humans - openness, conscientiousness, extraversion, agreeableness and emotional stability (or, conversely, neuroticism) -- and entrepreneurs are usually identified as scoring highly on these. Additionally, the 'hero' entrepreneur is also considered to have a number of traits specifically conducive to entrepreneurial action including self-efficacy, achievement motivation, proactive personality, and innovativeness. Does this then mean that entrepreneurs are born with something 'special'? Whilst some work continues to explore entrepreneurial genetics , the notion that we can profile who an entrepreneur is based on 'entrepreneurial traits' or genes has largely proved inconclusive. This is not to say that our neurological wiring or biology may not endow some of us with features that are helpful in entrepreneurship, but rather it means that we cannot separate entrepreneurs from non-entrepreneurs purely on the grounds of genetic characteristics. Another issue with the belief in inborn traits is that, in fact, it is difficult to tell if they are inborn at all. Whilst our characteristics may be stable over time, this does not necessarily mean that we are born with them. From a scientific point of view, it is extremely difficult to disentangle whether characteristics are determined by our DNA or through the environment in which we develop and our life experiences (the so-called 'nature-nurture' dilemma). The main mechanism scientists currently have to determine whether certain human traits are inborn is to study identical twins who are raised separately. These individuals will have the exact same genetic endowment, but will have been exposed to -- and shaped by - different developmental learning experiences as they grow up. Thus, any traits that remain the same in identical twins raised apart can be attributed to genetics. Given the difficulty in identifying subjects for twin studies, research in this area is perhaps unsurprisingly extremely limited. We also now know that an individual could exhibit all the traits listed above and yet not be involved in entrepreneurial activity. Equally, someone could demonstrate none of these traits and could be highly entrepreneurial. As a result, we now generally recognise that people engaged in entrepreneurial activity are not born with something 'special'. Although there is some limited evidence that being hardwired with specific traits can give individuals an advantage on some entrepreneurial tasks , not having these attributes does not in any way prevent others from taking entrepreneurial action -- and succeeding. Despite this understanding, the narrative of the 'hero' entrepreneur persists and, in many instances, may continue to shape your own thinking of what it takes to be entrepreneurial - and whether or not you yourself 'have what it takes". 5\. From entrepreneur to entrepreneurial thinking In our increasingly complex world, any entrepreneurial activity relies on a wide range of skills and competencies -- beyond what can reside in one individual. It is for this reason that entrepreneurial activity requires multiple people with complementary characteristics that enable them to add value on different tasks, ultimately leading to collective value creation. When considering these more complex, contextualised requirements for entrepreneurial activity, the idea that a single person can be born fully equipped with 'what it takes' becomes even more questionable. As a result, the notion of 'who an entrepreneur is' has been replaced by a focus on the processes that entrepreneurial activity encompasses. That is, what entrepreneurs and entrepreneurial teams do and the behaviours that they engage in to successfully pursue their ambitions. Because we generally think before engaging in behaviour , a big part of the entrepreneurial process now focuses on how entrepreneurs think and, by extension, how we can all think entrepreneurially. Thinking, or technically cognition, is how humans make sense of and process information including perception, memory, learning, judgement and decision-making. Entrepreneurial cognition considers how our thinking leads to the identification and enactment of opportunities through creative ideas, in doing so learning from setbacks, failures and feedback from the environment in order to create solutions to problems. A simple way to think about how this works is if we think about your brain as a computer. Within this, you have a number of cognitive schemas -- your knowledge, beliefs, experiences etc. -- which are the 'files' within your computer's memory. To make use of these, you engage in thinking processes (reasoning, judgement, decision making etc.) which act like computer software programmes, opening files, using the data and then saving any new versions of the files. Given the sophistication of our cognitive abilities, and how much 'thinking' we do on a daily basis, we do not always take the time (or put in the effort) to understand how our own 'computers' (brains) work, what 'files' (cognitive schema) our computer is working with, and what 'software' (thinking processes) are working well or in need of updating. Yet, an understanding of both our thinking processes and the set of information, knowledge and beliefs that our thinking draws on is more important than ever in today's changing world, particularly as we seek to create value for others and for ourselves. 6\. Entrepreneurial thinking and mindset When we speak about our thinking, or cognition, we also want to consider the concept of mindset. Whilst the terms 'thinking' and 'mindset' are often used interchangeably, they are two different (but interlinked) concepts. Generally, our mindset is how we become aware of (and make sense of) what we think, how we think and how we leverage that thinking (or not) to pursue our ambitions and goals through our behaviours. Our mindset reflects our views and beliefs and how we frame ourselves and the world that we inhabit. It is therefore just as important as our thinking, since our mindset underpins our behaviour -- what we chose to do or equally what we choose not to do. Many people now speak of an entrepreneurial mindset and this is increasingly considered to be critical if people want to engage in entrepreneurial activity. However, it is not always clear what exactly this term means and how it is meaningful for us as individuals. We often hear the term entrepreneurial mindset as a soundbite, frequently attached to the narratives of 'hero' or 'born' entrepreneurs that we discussed earlier. This is problematic for a number of reasons. To start, it implies that there is a single entrepreneurial mindset that we all need to go out and 'get'. Linked to this, when people talk about an entrepreneurial mindset they seldom talk about how we can actively shape and develop our mindset. In reality, mindsets are constructed (and reconstructed) over time through sustained effort and practice. Finally, little attention is paid to differentiating between thinking and mindset. If we want to change our mindset, we need to start by understanding how we currently think (our metacognition). So, what do we need to know about entrepreneurial thinking and entrepreneurial mindset? Where can we start? There is no universally accepted definition of an entrepreneurial mindset and the term may well mean different things to each of us. A useful way to think of an entrepreneurial mindset is to consider it composed of three interlinked elements: cognitions; emotions; and behaviours. As we discussed earlier, cognition refers to our thinking -- how we process information, acquire knowledge and build understanding. Our cognition is influenced by (and in turn influences) our emotions. Humans are emotional creatures and the emotions we feel shape how we think about the world and ourselves and how we make decisions, even if we think we are acting completely rationally and without emotion. Our emotions can be positive or negative, as well as strong or weak. Combined, our thinking and our emotions influence how we behave in different circumstances or activities. Assuming that our actions are intentional (i.e. not a result of impulsive drives ), they are probably planned through thinking (cognition) and moderated (to varying degrees) by emotion. From an entrepreneurial perspective, our thinking and emotions shape how we see opportunities to create value and how we then develop and implement our ideas and solutions. One of the most influential schools of thought on entrepreneurial action is the Theory of Planned Behaviour , which observes that a person's intentions shape their behaviour. Intention only exists in our thinking - it is an intangible product of our reasoning. For example, we reason that we'd like to do something (e.g. to run a marathon) and we mentally prepare ourselves for that action (e.g. to train, to eat healthily etc.), developing the intention to act to achieve our outcome. Our cognitions, emotions and, ultimately behaviours, are all fluid and can be shaped and developed over time. Critically, we have the power to shape and refine our own entrepreneurial thinking and entrepreneurial mindset. Thus, for the purposes of this book we define entrepreneurial mindset as "a set of learnable cognitive and emotional competences conducive to developing and enacting behaviours to support value creation activity". We'll delve into this further in Chapter 2, but in essence an entrepreneurial mindset enables us to think in a way that has the potential to create value, shaping our behaviours so we can best engage in purposeful entrepreneurial practice by taking action. Over the remainder of this book, we will introduce a range of entrepreneurial concepts, skills and competencies for you to reflect on in the context of your own personal and professional lives. As we discussed in the Introduction to this book, many of these can be considered life skills which will help you regardless of the paths you choose in life. We will encourage you to consider what these concepts, skills and competencies mean for you now and in the future, to identify areas for further development and to consider specific actions you can (and will) take to shape your entrepreneurial thinking and mindset. 7\. Entrepreneurial thinking and mindset for value creation Just as we challenged the myth of the 'born' or 'hero' entrepreneur, we also need to consider what entrepreneurial activity looks like. So often we equate entrepreneurship with the creation of a new business venture. We assume that someone has an idea, they develop a scalable business model, write a plan and then they go and start the business. That is certainly one kind of entrepreneurial journey, but not all people who act entrepreneurially will necessarily create -- or will even want to create -- a new business. Entrepreneurial activity can and does occur in a range of situations and covers many different types of journey. You may, for example, want to think and act entrepreneurially within an existing company or your current employer. Often called 'corporate entrepreneurship' or 'intrapreneurship', this entrepreneurial activity could involve a range of activities such as developing a new product, refining an existing process (for example, refining how you communicate with your customers), or even changing the culture within your organisation (for example, encouraging and rewarding creative thinking and the development of new ideas). Perhaps you want to behave entrepreneurially in a non-commercial context or outside of an organisation. Such 'social enterprise' or 'social impact' activity might involve you tackling issues or problems within your community (for example, anti-social behaviour or environmental pollution), working either loosely or formally with other individuals or organisations (e.g. charities) to make a difference. You may also want to make your own life better, perhaps by turning a hobby into an activity that generates income and thus frees up your time to more of what you love and less of what you don't (often called 'lifestyle entrepreneurship'). Ultimately, no matter where and how we engage in entrepreneurial activity, our entrepreneurial thinking, mindset and behaviour allow us to create value, for others or for ourselves. Value is a bit of a tricky word. We hear discussion of it everywhere yet, like many of the terms we have introduced in this chapter, there is usually a lack of clarity in terms of what it means. When talking about entrepreneurial value creation, many people instantly think of economic value. This generally consists of three elements: perceived value (i.e. the benefit I think I will have from something), exchange value (i.e. what I am willing to give up in order to obtain that something, usually measured in terms of money) and value in use (i.e. the benefits I get from using/consuming, which may or not be what I had originally perceived). We are often very comfortable with the concept of economic value as are used to the idea of quantifying the benefit of something in monetary terms. However, value can take a much wider range of forms than just economic value and can include, for example: Social value, where we seek to help others to reduce their suffering or to make their lives better or happier; Mental value, where we derive enjoyment, happiness or a sense of accomplishment from our own entrepreneurial thinking and action; Environmental / ecological value, where we address or solve problems occurring within natural ecosystems or spaces; Aesthetic value, where we identify or cultivate feelings of pleasure when looking at or experiencing something that we consider to have beauty or attractiveness. Cultural value, where we seek to preserve or support cultural heritage. We can create such value for ourselves, for others, or in tandem - they are arguably "two sides of the same coin". As with economic value, these forms of value may also comprise perceived value, exchange value and value in use, although these might look different. For example, if you were creating social value within marginalised communities by providing free access to computers for school children, exchange value might not necessarily be measured in monetary terms but perhaps in less 'tangible' elements such as time or effort. Whilst we all have different views on value (and we'll discuss this further in Chapters 10 and 11), for the purpose of this book, we define value as: The creation of something new, improved, or in a novel space, that an individual or group of individuals considers to have worth. Ultimately, there is no right or wrong when it comes to thinking about value, so long as your thoughts are meaningful for you and for the people you are looking to create value for. 8\. Self-awareness as the foundation for an entrepreneurial mindset We hope that, by now, we are all in agreement that an entrepreneurial mindset is within reach of everyone. You don't need 'special' genetics or traits -- just a willingness to engage with your own abilities and to see opportunities for development through sustained effort and practice. It is a basic principle of this book that fostering an entrepreneurial mindset requires self-awareness. The Oxford Dictionary defines self-awareness as knowledge and understanding of one's own character. For the purpose of developing an entrepreneurial mindset, we refer to self-awareness as one's ability to know and understand one's thinking and feelings and appreciate how they impact - and are impacted by - behaviour. Being aware of the mechanisms that regulate our thoughts and behaviours allows us to be in the "driving seat" as we journey towards fulfilling our entrepreneurial potential. It allows us to become aware of our strengths as well as our areas for improvement so that we can plan what to focus on and how to go about practising for the purpose of improving. Conversely, a lack of self-awareness equates to us trying to drive with our eyes closed - we have no way of knowing where we are and, more importantly, which way we are going. Many of us believe we are already self-aware because we each hold a sense of who we are - a mental image of ourselves. However, our self-perception can potentially be skewed or inaccurate. Therefore, in order for self-awareness to be truly helpful in guiding our entrepreneurial development, it has to be based on a view that is as objective as possible. One way to accomplish this is to take a balanced perspective of how we see ourselves (our so called "internal self-awareness") and how others see us ("external self-awareness") , drawing on tools that help us evaluate ourselves impartially. We will use, and build on, these throughout this book and will look at this in further detail in Chapter 3. 9\. Summary and next steps This chapter has identified and explored the narratives we often hear and see about entrepreneurs and their activity. We have critiqued a number of the key 'myths' of entrepreneurship -- that entrepreneurs are born with special traits or abilities which allow them to behave in superior ways (e.g. the hero entrepreneur). We have also questioned the implicit assumption that entrepreneurial activity is all about creating new businesses and instead discussed value creation as the outcome of entrepreneurial activity, whether this is value for yourself or value for others (or both). This entrepreneurial activity (behaviour, action) is shaped by how we think and feel -- our mindset. Our mindset is not something we are born with, but rather something that we can shape and develop as we build and refine our skills and competencies over a period of time. We will build on these concepts over the coming chapters, starting with a deeper discussion of 'mindset' in Chapter 2.   10\. Continue your learning The following activities are designed to support you on your learning journey, building on ideas introduced in this chapter. These can be completed at any time and in any order, although you may find it helpful to begin with the 'Check your understanding' activity before moving on.