AB 301-5 Mindset.pdf

MINDSET AB 301 Lecture 4 Entrepreneurial Mindset THE ABILITY TO QUICKLY SENSE, TAKE ACTION, AND GET ORGANIZED UNDER UNCERTAIN CONDITIONS.  FIXED MINDSET GROWTH MINDSET Why do you want to start up a business? I might not be any good at accounting You need...

MINDSET AB 301 Lecture 4 Entrepreneurial Mindset THE ABILITY TO QUICKLY SENSE, TAKE ACTION, AND GET ORGANIZED UNDER UNCERTAIN CONDITIONS.  FIXED MINDSET GROWTH MINDSET Why do you want to start up a business? I might not be any good at accounting You need accounting skills. You were at first, but I think I can learn to be good always terrible at math at school. Are at it if I commit to it and put in the time you sure you can do it? and effort. If you fail, people will laugh at you. Give me the name of one successful person who never experienced failure at one time or another. Do yourself a favor, forget the idea and If I don’t try, I’ll fail anyway. Where’ hang on to your dignity. Suppose… You enroll in accounting course, but you score very low marks on your first exam. Once again, you’re likely to hear messages from the “voice” in your head and respond to them as follows:  FIXED MINDSET GROWTH MINDSET Dude! This wouldn’t have happened if Not so fast. Look at Richard Branson you were actually good at accounting in and Sean Parker – they suffered lots of the first place. Time to throw in the setback along the way, yet they still towel. persevered. Why am I being criticized for doing badly I can own this setback and learn from it. in the accounting exam? It’s not my I need to do more practicing, and next fault. I’m just not cut out for accounting, time, I will do better. that’s all. Robert Donat, GPS Insight It took some creativity (and serious faith in the ideal) to build out and pay for the infrastructure he needed. He sold a company he was part owner of, took out $150, 000 in bank loans, and secured an additional $200,000 from an outside investor. The company did not become profitable until it had approached $2 million in cumulative losses. Donat explains, “We were creative about doing the most with as little as possible, and entered many obscenely expensive (18%-22%) leases purchasing computer hardware since it was the only way to get money. We even leased three copiers at double their cost over five years in order to get a $30,000 rebate up front, which helped us make payroll in year three.”  Unknowingly, Omidyar had tapped one of the richest veins in the online world-the desire of people to connect with others who share their interests. And he quickly realized that few interests generate more passion than collecting. "I thought people would simply use the service to buy and sell things," he says. "But what they really enjoyed was meeting people.” Encouraged by this early success, Omidyar quit his day job, and he and Skoll devoted their time to building eBay's community and technology. The duo rationalized that as long as the system worked, the community (and the profits) would continue to grow. And grow they did. By mid-1997, eBay had become the one of the most visited sites on the Web, with more than 150,000 users bidding on 794,000 auctions every day. The average eBay shopper was spending nearly 3.5 hours per month on eBay, longer than the average shopper on any other site. When Bezos had his idea for "the everything store," his well- intentioned friends and family tried to talk him out of quitting his "stable job" in finance. Yet Bezos, raised by his teen mom and later his Cuban immigrant stepfather, always dreamed of creating something different, once telling his school teacher that "the future of mankind is not on this planet." Bezos even has a website, BezosExpeditions.com, that provides a rundown of 20 or so of his major investments and charitable donations. The name "expeditions" is appropriate since Bezos' investments are not concentrated in just one or two industries or even market sectors; rather, they represent a far-flung exploration of many different business areas and ideas, including media, virtual reality, cloud computing, and homespun arts and crafts. Entrepreneurial Mindset About understanding yourself, who you are, and how you view the world. Deeply connects to your desired impact, which some people equate to passion. PASSION  In the past, researchers tended to use passion as a reason to explain certain behaviors displayed by entrepreneurs that were thought to be unconventional, such as perceived high risk taking, intense focus and commitment, and a dogged determination to fulfill a dream. In the context of entrepreneurship, passion can be defined as an intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals. This type of passion is aroused by the pleasure of engaging in activity we enjoy. Studies have found that: Passion can also “enhance mental activity and provide meaning to everyday work,” as well as fostering “creativity and recognition of new patterns that are critical in opportunity exploration and exploitation in uncertain and risky environments.” Passion has also been associated with a wide range of positive effects: STRENGTH AND MOTIVATION ENERGY COURAGE DRIVE TENACITY STRONG INITIATIVE RESILIENCE LOVE PRIDE PLEASURE ENTHUSIASM JOY All of which can occur as part of the entrepreneurship process. While passion is not all that is needed to be successful: RESEARCH HAS SHOWN THAT POSITIVE FEELINGS MOTIVATE ENTREPRENEURS TO PERSIST AND ENGAGE IN TASKS AND ACTIVITIES IN ORDER TO MAINTAIN THOSE PLEASURABLE EMOTIONS. THERE CAN ALSO BE A DYSFUNCTIONAL SIDE TO PASSION… It is possible to become blinded by passion and so obsessed by an idea or new venture that we fail to heed the warning signs or refuse to listen to negative information or feedback. This type of negative passion can actually curb business growth and limit the ability to creatively solve problems. ENTREPRENEURSHIP AS A HABIT A habit is a sometimes unconscious pattern of behavior that is carried out often and regularly. Good habits can be learned through a “habit loop” – a process by which our brain decides whether or not a certain behavior should be stored and repeated. So far, we have discussed the meaning of mindset, the different types, and the importance of passion and positive thinking for success. As we have learned, mindset is not a predisposed condition; anyone of us can develop a more entrepreneurial mindset. A good approach is to consider developing new habits. Strength and courage Motivation Energy Drive Tenacity Strong initiative Resilience Love PASSION Passion and Entrepreneurial Success Passion can be defined as an intense positive emotion