GE 11 Entrepreneurial Mind PDF

College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao...

College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 Area of Concerns Details Help Desk Contact Reil S. Romero Email: [email protected] Phone: 09090618789 (Calls only) Library Contact Ms. Christina Perocho Phone Number: 0951-376-6681 [email protected] Well-being Welfare Support Help Ms. Rhoda Lauyon Desk Contact Details Phone: 09190011887 Course Information – see/download course syllabus in the BlackBoard LMS. Unit Learning Outcomes (ULO): At the end of the unit you are expected to: 1. Discuss how the entrepreneurship evolve, including the myths, those who are involved, and its importance to the society, economy and development. 2. Learn and know the qualities, characteristics and behaviors of successful entrepreneurs and utilize it for the pursuit of higher learning and knowledge. 3. Comprehend the entrepreneurial process to participate in every available opportunity in the market or in selected professions. 4. Adopt the characteristics, behavior, attitudes and mindset of an entrepreneur for successful journey as a prospective entrepreneur. Big Picture! Hello future Entrepreneurs/Leaders! Welcome to this course GE 11: The Entrepreneurial Mind. By possessing this kind of mindset, it will define your journey to success. Additionally, this lesson will provide an opportunity for you to determine your strengths and weaknesses and how to utilize them in developing yourself as a future leader that impart change, innovation and creativity to the country. It is not surprising that opportunities are everywhere; it only waits for somebody who has the character, enough knowledge and skills to develop and harness it. Opportunities are available in any corner of every profession. The leaders in the 21st century are persons who are capable of doing something different. A person who is willing to give the best out of him/her. A person who wants to lead his or her profession in the pursuit of new knowledge, innovation, and new technology which will transform the society to harness its fullest potentials. Are you that leader? Will you take the challenge of becoming that leader? If YES, let us begin! Module for GE 11: Entrepreneurial Mind Page | 7 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 Metalanguage In this section, the most essential terms relevant to the study of entrepreneurial mind and to demonstrate ULOa are operationally defined to establish a common frame of refence as to how the texts work in this career. You will encounter these terms as we go through the study of entrepreneurial mind. Please refer to these definitions in case you will encounter difficulty in the in understanding entrepreneurial concepts. Entrepreneurship is a scholarly term which refers to any activity undertaking the risk of utilizing the available opportunity and resources to start a new or revive an existing venture. Hebert and Link (1988) define it as any activity which involved in the specialization of taking responsibility for and making judgmental decisions that contribute change to a certain location, the form and use of goods, resources or institution Intrapreneurship is a product of modernization. As companies threatened with new ideas and competition, they tend to look for a person who possess a skill of wielding this challenge into something that can brought success. The activity of doing so is called “intrapreneurship” and the person who can do that is called “intrapreneur” (Daykin, 2019). Entrepreneur is a concept which refers to a person who “undertakes” (from French word “entreprendre”) risk by utilizing every available opportunity and resources to start a new or revive an existing venture. Entrepreneur also refers to a person who take responsibility in creating a sound decision that would provide transformation in a certain kind such as profession, ideas and opportunity (Hebert and Link, 1988). Entrepreneurial Behavior refers to a set of behaviors “willingly” performed in seeking new knowledge and innovative ideas that can change the status quo. This behavior is one of the contributors to the principle of “only change is constant” (Kappel, 2016) Entrepreneurial Process is a familiar concept for every aspiring entrepreneur. This refers to a process or steps available for every entrepreneurs’ consumption in their search for available opportunity that eventually led them in pursuit of new venture creation (University of Pretoria, n.d.). Social Entrepreneurship it is a growing field of entrepreneurship, thanks to the growing study of impact evaluation of every new venture in the society, environment or economy. This concept refers to the activity of undertaking the responsibility of creating societal driven ventures or any business that provides inclusivity to a certain location or individuals (Martin and Osberg, 2007). People are the individuals who will have an important impact on a venture, whether or not, they are actual employees. The category includes founders and employees and as well as mentors/advisors, investors, and suppliers. In some instances, even customers can be considered as part of the team/organization. Opportunity is an intended product or service for which customers will pay more than cost the venture it provided. In economic terms, an opportunity is a positive net present value project where the value of customer inflows exceeds the value of outflows to all resource providers. To create and capture value, a company must have a differentiated product or service and/or sustainable cost advantage. They must have benefits of scale including scale economies Module for GE 11: Entrepreneurial Mind Page | 8 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 and/or network effects. Also, they must build mechanisms to which competition is managed. Context refers to the factors that influence the possible outcome of the opportunity but generally it is an exogeneous factors which means outside of management’s control. This includes, interest rates, regulations, macroeconomic activity, technology, and some industry variables like competition. Deals are the direct and indirect contractual relationships between ventures and resource providers. Deals allocate cash and risk and therefore affect the value of ventures. Example of these deals range from contract of employment to investment contracts. Are the people of capable, experienced, and trustworthy? Is the opportunity attractive? Is the context favorable? Are the deals legal, comprehensive and coherent? These are the great questions we must answer as we go through with this learning experience. The real insight is to understand the relationships of people, opportunity, context and deals. Essential Knowledge (For 1st Exam) To perform the aforementioned ULO’s, you need to understand first the introduction and basic concepts of Entrepreneurial Mind/Entrepreneurial Behavior. Please take note that you are not limited to review this section only. You can utilize books (also available from Library and Information Center), internet search engines, research articles and journals. Overview of Entrepreneurship Outline: 1. Evolution and definition of Entrepreneurship 2. Importance of Entrepreneurship 3. Common myths about entrepreneurship 4. What/who is an entrepreneur? 5. How do entrepreneurs think? 6. How to become an Entrepreneur? 7. Entrepreneurial Mind Process 8. Entrepreneurial Ecosystem 9. Characteristics of Entrepreneurial Ecosystem 10. Intrapreneurship 11. Intrapreneur 12. tools 1. Evolution of Entrepreneurship In the beginning of the human history, entrepreneurship is not as complex as what it is now. This type of concept is within the silhouette of economics since the character of the concept and its contributions are also discuss within the scope of economics. It was believed that Richard Cantillon, a French economist during the 17th century give this term. Entrepreneurship basically refers to any activity of undertaking risk (from the French word Module for GE 11: Entrepreneurial Mind Page | 9 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 entreprendre which means to undertake) in scanning every available opportunity and transform it into a sustainable business venture (Pahuja & Sanjeev, 2015). As history progresses, the term entrepreneurship becomes more and more complex and finally goes out into the silhouette of economics and form its own profession. This scenario gives birth to numerous perspectives of entrepreneurship and this concept becomes a single room for numerous perspectives. Other experts formulated their own definition of entrepreneurship. Accordingly, entrepreneurship is any ‘undertaking’ of adding value through time and effort. Also, entrepreneurship refers to any ‘undertaking’ of doing things that are not generally done. Finally, entrepreneurship refers to any ‘undertaking’ of a person with independent mind and thought that aims to create change and innovation by taking every available risk and resources (Hayes, 2020). From the definitions presented, it can be implied that there is no perfect definition for entrepreneurship. Regardless of your profession, as long as you are willing to ‘undertake’ risk to pursue an opportunity, it is not impossible for you to define your own definition of entrepreneurship. 2. Importance of Entrepreneurship (Baijal, 2016; Seth, 2019; Awlaqi and Altheeb, 2019; Hayes, 2020) The contribution of entrepreneurship in the economic and social development of any country can never be underemphasized. In fact, entrepreneurship plays a pivotal role in the economic development of the country by allowing new ideas and perspectives to flourish. Entrepreneurship promotes competition bringing the best quality for the consumers and driving the prices down. It also pushes the producers to be competitive and innovative to survive in an everchanging climatology of markets. Entrepreneurs are the one who take every available resource which is to be used and developed as an opportunity into money-making venture that address the needs of the country. However, entrepreneurship is not that all about. Development and evolution bestowed benefits to this profession. Modernization gives birth to entrepreneurship in other profession or what they called intrapreneur, a person who utilize the characteristics, attitudes and mindset of an entrepreneur to contribute a creative and innovative ideas to further deepen the scope of every profession. As a person who desires to become an intrapreneur, it is important for you to refer to this section to guide yourself for unfamiliar terms and vocabularies you may encounter as you go further to this lesson. Similar to other complex concepts, the importance of entrepreneurship cannot be underemphasized because it contributes to the development of the economy, society, and among others. Entrepreneurship spurs economic growth. New products and services are developed/innovated by entrepreneurs which create domino effect as it addresses the needs and wants of the consumers which stimulate market operations which contribute to continuous economic growth and development. Entrepreneurship adds to the national income of the country. When new ventures are explored by the entrepreneurs, it generates income both for the people and the government. Module for GE 11: Entrepreneurial Mind Page | 10 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 It provides employment for the people which stimulate demand, thereby also addressing poverty and food hunger. It also provides taxes to be used for the projects and programs necessary for development of the country. The development of Micro Small Medium Enterprises (MSMEs) also create opportunity to people and adds up to the national income of the country. Entrepreneurship creates social change. As new products and services come into being, society tends to break away from traditions. New and sophisticated products and services replace the obsolete ones. The curiosity of entrepreneurs created the principle of “only the word change is constant”. For example, a community without a water supply tends to experience minor development but due to curiosity of one entrepreneur, he or she undertakes the task of taking risk and build a sophisticated water pump machine which enables the water to reach far flung community and further increase the availability of water, lifting people out of from scarce water scenario. Entrepreneurship creates community development. Entrepreneurship does not refer to money or profit alone, it also aims to contribute community development by supporting charities and other non-government organization (NGO) in their quest of spurring further development to a certain region. Entrepreneurship gives rise to sound government policies. As new and more sophisticated things rising in the horizon, policymakers tend to regulate this activity to avoid any unwanted activities such as unfair market practices, pervasive corruption, financial crisis and even criminal activity. This further enrich the ideas of creating proactive policies to prevent anticipated irregularities. As the relationship between entrepreneurship and economic development continues to grow, it is believed that more and more importance will rise from the horizon. Thus, without entrepreneurial activities, the growth of the economy is unstable and uncertain. 3. Common Myths About Entrepreneurship (Patel, 2014; Stibbe, 2019; Berry, n.d.) Reality is hard to accept. As this happens, myths come into existence as people tend to create their own belief of something. In the concept of entrepreneurship, the current situation of majority of entrepreneurs (rich, with sports cars and the like) gives rise to some myths. People are overshadowed by the success of entrepreneurs without knowing their struggles and sacrifices. In order for you not to be fooled, here are some myths that me and you also believe. Entrepreneurs do not quit! People believe that quitting is a big mistake which tends to veer away of becoming an entrepreneur. Instead, quitting from something can make a person to become an entrepreneur. If they know that it is not going to be that way, they have already their exit strategy. Before becoming a successful one, famous entrepreneurs also quit. They quit from their jobs to start a business, they quit from their vices or even quit from their own comfort zones. They even stop from the business they started because the environment is not favorable anymore. Sometimes, the “never give up advice” is not best advice. Entrepreneurs stop operations of Module for GE 11: Entrepreneurial Mind Page | 11 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 businesses when financial and economic indicators signal. However, entrepreneurs don’t quit from their dreams or aspirations. These dreams and aspirations give fuel to their life. Entrepreneurs know everything! As majority says, nobody’s perfect. Entrepreneurship is all about trying, failing then try again. No one is ahead, entrepreneurs believe that learning is a two-way process. Entrepreneurs accept mistakes and solicit ideas for improvement. Entrepreneurs listen to criticisms as these can lead into a more productive decision. Entrepreneurs are the boss. In this kind of activity, no one is a boss. Entrepreneurs need to make reports out of the business transactions. Thinking this way will safeguard entrepreneurs from major catastrophes. Yes, you are the in charge of your successful business, but you need to make reports to establish historical transactions, decisions which lead to either success or flunk. In this sense, you are not the boss, it’s the market transaction/opportunity that compels you. Entrepreneurship is unstructured and chaotic It is true that entrepreneurship is a complex activity, but it is not unstructured or chaotic. Entrepreneurship is a system that needs coordination among the players in the markets (consumers and producers). This myth basically makes potential entrepreneurs to be afraid of entering into the activity. This is because they failed to understand the process, cannot handle the pressure, the risks and challenges ahead. But once you think otherwise, becoming a successful entrepreneur is not an impossible thing to you. Entrepreneurship is all about money In starting a business, money is one of the essential things to consider among others, but to become an entrepreneur money is not everything. You can capitalize on your skills (e.g. communication skills such writing and speaking), abilities (literary, dancing or speaking) and technical knowledge. Without these essential skills and knowledge, money will just come into your way and then disappear. If you cannot handle yourself and you believe into this myth. Go away, entrepreneurship is not for you. Entrepreneurship is fun! Yes, it is fun, especially when you love what you are doing. It gives you opportunity to achieve the dream and aspirations you set. It is also fun to bring new ideas for the development of people. However, in some instance entrepreneurship is not that as easy. Other entrepreneurs have experienced ups and downs and because of these challenges, sometimes you can say that you do not belong in this profession. Entrepreneurship is just like a cycle, there are good times and there are bad times. Bad times makes the entrepreneur stronger and bolder. Finally, entrepreneurship is full of challenges that can make you think, is this the end? However, if you believe that you can do it, then entrepreneurship is for you. Entrepreneurship is all about risk taking and gambling The future is uncertain; yes, that is true. Despite uncertainties, entrepreneurs tend to calculate the risks before entering into a new venture or opportunity. Entrepreneurs will not enter into a fight if they know that the odds are against them. Setting up calculated risk is an essential skill for every entrepreneur as it guides them to come up with decisions that can lead Module for GE 11: Entrepreneurial Mind Page | 12 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 them to success that they wanted from the start. Entrepreneurship is all about inventing something new Yes, discovering new things or innovating some things tend to help you become a good entrepreneur. But that is not the way in entrepreneurship. It is not the primary requirement that you need to invent something new or create a sophisticated thing to be successful. For as long as you solve a certain problem or you address a certain need or you make other people lives’ easier, then it’s entrepreneurship. Majority of entrepreneurs utilize what is already available and then apply innovation to it. From the above discussions, it is concluded that if you really aspire to become an entrepreneur or want to experience the joys of entrepreneurship, you really need to stop believing these myths. Remember, believing in yourself, in your capabilities, in your aspirations will make you achieve your beckoning future. Similarly, with entrepreneurship, believing in what you aspire, you calculate the risks involve and implement your plans, eventually you will achieve the desired goals, maybe not at first. 4. Knowing yourself better: What/who is an entrepreneur? (De La Torre, 2015; Ward, 2019) The complexity of entrepreneurship shared its benefits to the practitioners of it. A lot of qualities can be used to define what is really an entrepreneur. Suffice to say that this is the reality, entrepreneur possesses a lot of adjectives that you cannot find in an ordinary person. From the previous part of this module, any person who ‘undertake’ opportunities (from the French word ‘entreprendre’) is called an entrepreneur. But as the transformation continues to kick in. More and more information created the difficulty of describing the real entrepreneur. Ease yourself, it is not the end yet. Here are some figures of speech that describe an entrepreneur. An entrepreneur is a starter An entrepreneur is always on the frontline, searching and pursuing every available opportunity. They are always on the hunt for a possible business venture that can be created. An entrepreneur initiates changes and innovations to replace the obsolete ones. They are always on the top, transforming ‘flash of brilliance’ ideas in to a reality. An entrepreneur is the beginning or even the end of a business venture. An entrepreneur considers himself or herself the gasoline to run the very important entrepreneurial process. An entrepreneur is a driver An entrepreneur takes the lead. A person who believes that they need to take in charge of something to make it into motion is an entrepreneur. Leadership is another primary requirement to become an entrepreneur. Leadership skills that can inspire others to follow or push others to do something innovative or different is another vocabulary that describes an entrepreneur. Consider a car, an entrepreneur is the one who sits on the driver’s seat, therefore, he or she must possess the ability of changing the direction, accelerating or slow down the car. An entrepreneur is accountable responsible Starting a business is a tedious task for everyone. Once you are there, it is your Module for GE 11: Entrepreneurial Mind Page | 13 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 giant responsibility to make it in the right path. The future of the company (including your employees and consumers who depend on your product offerings and salaries) lies within your hands. Accountability is another challenging factor in entrepreneurship. An entrepreneur should be always accountable for every action he or she made. Blame-game is not found in entrepreneurship. An entrepreneur considers every possible outcome of his or her actions. If something went wrong from that action, it is your accountability as well as responsibility to face employees or consumers. Becoming an entrepreneur does not happen overnight, it is a learning process which performs numerous tasks that no one except yourself knows what the ending is. It is not a simple thing that automatically comes out of the blue. By defining or knowing who you are, you can already answer the question that bother everyone’s mind. 5. Think like them: How do entrepreneurs think? There are a lot of things everyone can do to contribute economic value to society. Some do it by simply becoming a tax-payer or by simply following the promulgated laws. However, the way entrepreneurs doing it makes them unique to that called “others” (Quora, 2013). Entrepreneurs think by actions It is not surprising that entrepreneurship is an avenue where actions are colliding with each other. With that, entrepreneurs, given their insatiable ability, always crave for actions to innovate and look for opportunities. However, before entrepreneurs create an action, he or she thinks of any available “smart guesses” or hypotheses. In this way, they can gather special market intelligence which can be used for attaining they established objectives. Entrepreneurs tend to create their own theories and make it into action once opportunity enters the field. Entrepreneurs think in possibilities Entrepreneurs does not ensure perfection before doing any action. To them, perfection is an enemy of progress. A simple but calculated possibility can make them jump out of their set and begin their move. As long as the much needed and important resources are intact, with no hesitations, entrepreneurs will deploy himself or herself into a whirlwind drive to success. Entrepreneurs can think in ambiguity For the vast majority, ambiguity and fear hinders their abled mind to perform efficiently. This led to poor decisions that eventually lead to failure. For entrepreneurs, this is an avenue where they can test themselves as ambiguous situation enable them to evaluate more options to settle or solve the issue. The availability of limited information is not a barrier to them, instead, it is an opportunity to create a strong and sustainable decisions that eventually lead to what they desired from the start. Entrepreneurial thinking embraces risks People tend to avoid risks as they perceived it as negative thing for their survival. It is not the same or totally applicable for entrepreneurs, risks can make entrepreneurs more passionate and curious. Entrepreneurs perceive risk as an area of opportunity. They believe that in this area they can find the once in a lifetime opportunity which can make them successful Module for GE 11: Entrepreneurial Mind Page | 14 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 or more successful. Entrepreneurs already equip themselves of much needed armaments before entering this kind of battle. Entrepreneurs think in patterns Ordinary people believe that everything happens for a reason. Entrepreneurs are not like that; they tend to study previous patterns before they create actions. Graphs and other available charts guide them in their future pursuit of opportunity. Entrepreneurs believe that previous events influence the present and the present may influence the future. Entrepreneurs also know how to utilize the available patterns to uncover the future opportunities that ordinary people could not see. Entrepreneurs believe that there is something of a creative force that influence the birth of opportunity. Entrepreneurs think incessantly Normal people tend to settle of what are available, their appetite of something is far from entrepreneurs. Entrepreneur continuously think of something that gives value. Continuous curiosity is their main characteristics as they unsatisfactorily scan the environment for any available opportunities. Every person or resource they meet is a potential source for new or innovative creation. Entrepreneurs trained their mind to be ready always for every problem that needs solution. Entrepreneurs think internally Rather than letting the external environment controls them, entrepreneur utilizes their maximum internal capability to direct their future actions, to work for their achievements and even use it to plan with an eye for any available long-term opportunity. Entrepreneurs do not let other people control their feelings or influence their decisions. They only utilize external information to weigh in and calculate risks of their actions. Entrepreneurs think of value-add Singular thinking is a big no for entrepreneurs. Entrepreneur thinks for an action that give plurality in terms of its benefits and advantages. Partnering with people and organization who are committed in extracting every available market opportunity is an essential tool for them. Entrepreneurship is a “no man is an island” concept. Entrepreneurs think of giving meaning Entrepreneurs always desire for giving the world a better place to live. By doing so, entrepreneurs tend to create an action that can make difference. For them, this desire is another opportunity for them to create wealth and make money. Entrepreneurs’ desire is to be proud of what they have done in changing the world for the future. Entrepreneurial thinking makes an ordinary person entrepreneur. The abovementioned entrepreneurial thinking is not enough. As the reality speaks that there is no perfect definition for entrepreneurship, entrepreneurial thinking is constantly evolving. With specification, DeMers (2014) enumerated her beliefs on how the entrepreneurs think. For entrepreneurs: - Challenges are opportunities - Competitors are research subjects - Everything requires effort - Perfection is the enemy of progress Module for GE 11: Entrepreneurial Mind Page | 15 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 - Big things are made from small components - Mistakes are healthy - There is no magic - Outside perspective is invaluable - Discipline is a pre-requisite - Entrepreneurship is a lifestyle Following most, if not all, thinking of entrepreneurs will eventually gives you an opportunity to define yourself if you have at least a micro-possibility of becoming an entrepreneur. For you, how should be an entrepreneur think if he or she is in your profession? 6. A glaring question: How to become an entrepreneur? There is no set of specific formula in becoming an entrepreneur. As previously defined, for as long as you undertake risks, use opportunities to transform a status quo to address specific condition or to improve something, then you can be an entrepreneur already. The field of entrepreneurship is a highly attractive profession for so many reasons. However, it is not easy as what you think. For some, entrepreneurship is a battle. A battle against your emotions, against your comfort zones or even a battle between your close friends, girlfriend or boyfriend and family members. This is not to discourage you from entering into entrepreneurship, this is a teaser of a something big which can make you decide to know yourself better before entering the world of entrepreneurship. McConnell and Cremades (2019) shared some of their views about how to become an entrepreneur: You value comfort over performance In the context of entrepreneurship, many persons who entered this kind of game aspire for comfort such as having a nice house or a car. Others also entered this game by quitting work in exchange of undertaking risk because for them working gives pressure and discomfort. In other ways, entrepreneurship is a comfortable way of attaining fullness, curiosity and makes a person more conscious. However, this kind of mindset is not always in good shape. Valuing comfort over performance or vice versa is a perception that can be inculcated in the minds of entrepreneurs. With that perception, you can easily adjust to the changing scenario of entrepreneurial ecosystem. You established Goals and Objectives It is often concluded that in entrepreneurship, you can do what and where you want. Others said, entrepreneurship gives you freedom. That is not absolute. Entering into the field of entrepreneurship without setting a concrete and sustainable goals lead you to catastrophe. It is important for you to have a concrete, meaningful and empirically centered vision in your mind always if you want to become an entrepreneur. Defining your goals and objectives is a tedious task as it requires a lot of your time and other resources. But, if these things are set, then you have the freedom to alter or revise it based on your own perceptions of the current situation. You skillfully handle stress well Module for GE 11: Entrepreneurial Mind Page | 16 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 It is not surprising that entrepreneurship is a profession full of stress. Challenges from all sides are knocking your emotions and mentality down. Entrepreneurs tend to stay away from this. Entrepreneurs skillfully handle the stress by taking calculated risks and decisions. A lot of people like Mr. Branson avoiding stress by taking calculated risk in order to prevent unintended situations that can cause stressful thinking 7. THE ENTREPRENEURIAL MIND PROCESS 7. LEARNING 1. THE IDEA AND GROWING 2. THE OPPORTUNITY 6. LAUNCH 3. CONDUCTING MARKET 5. BUILDING RESEARCH COMPETENT HUMAN 4. ANALYZE & RESOURCE VERIFY MARKET RESEARCH RESULTS Figure 1. Entrepreneurial Mind Process The start of every entrepreneurial venture is to have an “idea”. An idea meant to address a lacuna or gap between products supplied and demanded by the players of market. The idea may be a revolutionary or subtle one. When we say entrepreneurial idea, there is no perfect or false idea. Every idea is acceptable provided that it addresses/helps a specific issue to resolve. However, contextually, the idea being referred here is the set of specific activities that an entrepreneur has in mind and that he would like to explore it to address particular transactions. This idea may be new/novel or something that is existing already but adopted with a twist/ innovation. This idea will serve as a fuel to propel an entrepreneurial mind to critically think, research and find ways on how to pursue it. Without an idea of specific activity to address something, then there is nothing to pursue or start with. Ideas remain ideas if it were not to be realistic. Ideas, if coupled with “opportunities” give entrepreneurs high probability of pursuing it. In this context, opportunity refers to an intended product or service for which customers will pay more than cost the venture it provided. In economic terms, an opportunity is a positive net Module for GE 11: Entrepreneurial Mind Page | 17 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee  College of Business Administration Education 2nd Floor, SS Building Bolton Street, Davao City Telefax: (082)227-5456 Local 131 present value project where the value of customer inflows exceeds the value of outflows to all resource providers. Opportunity can also mean the circumstances or environmental factors which allows the entrepreneurs to pursue start-ups or ideas they have in mind (e.g. support system, capital, labor, land, technology). Corollary to this, if there is no opportunity or if the environment is unfavorable then the idea in mind will not yet be pursued. In the above framework, the third step is the conduct of market research. Conducting market research is deemed important as it tests hypotheses and determines the possible size of your target customers. It gives entrepreneur an empirical basis whether the idea is worth pursuing. Also, through this market research, certain assumptions can be established to approximately determine the financial soundness of your proposed idea/ entrepreneurial venture. In less words, it measures the demand and prospective financial indicators of your prospective product/service to be offered. Also, by conducting market research, it will allow entrepreneurs to know the willingness to pay which will allow you to determine the price of product/service. Presently, the conduct of market research is now done using multimedia platforms such as google, facebook, and among others. Once the conduct of market research is done, you as an entrepreneur need to carefully analyze and verify the data collected and draw conclusion/ decision whether your idea is worthy of pursuing. Is the data telling you to pursue your ideas given the opportunities you have? If yes, then it is great! If not, then look for other opportunity or place where your venture will flourish. Note, when looking at the data, as an entrepreneur you should be “objective”. Being objective means you are guided by facts, reasons and viability of your ideas, not just purely by emotions and impulsive behavior. The fifth part of the process is to build or have competent human resource which will help you in successfully running the business. Competent human resource means the resources are fit, able to produce the expected outputs, knowledgeable and experienced in terms of what they are doing. To ensure the success of your venture, entrepreneurs need to position and collaborate with people with industry experience helping them in each step of the business way. In an ever-changing environment, flexible and competent human resource will help you improvise, strategize in your ventures and as well as advise in your decisions. Ensuring these critical elements are in position, you as an entrepreneur can now proceed with launching of your business and expecting your model to work. It must be remembered that in a business or any entrepreneurial venture, there are always risks involve and that you cannot expect a 100% correct or flawless operation. There will always be room for error or improvement. From these faulty decisions and mismanagement committed, learning and growing will take place. You as an entrepreneur must set corrective mechanisms to ensure regressing previous errors. Through learning and growing, an entrepreneur will be able correct and achieve the goals set for his/her venture.. Module for GE 11: Entrepreneurial Mind Page | 18 FOR INSTRUCTIONAL USE ONLY. NOT for QUOTATION. NOT for REPRODUCTION Prepared by: Reil S. Romero Reviewed by: CBAE College Monitoring Committee