Entrepreneurial Mindset PDF

The Individual Entrepreneurial Mindset  Learning Objectives: To discover the fundamentals of being an entrepreneur To examine contextual influences for entrepreneurs To identify and discuss the most cited characteristics and perceptions of successful entrepreneur...

The Individual Entrepreneurial Mindset  Learning Objectives: To discover the fundamentals of being an entrepreneur To examine contextual influences for entrepreneurs To identify and discuss the most cited characteristics and perceptions of successful entrepreneurs To discuss the ‘dark side’ of entrepreneurship To examine entrepreneurial cognition risks and stress To introduce the variety in entrepreneurial career pathways  Fundamentals of Entrepreneurship Entrepreneurial Mindset – describe the most common characteristics associated with successful entrepreneurs as well as the elements associated with the “dark side” of entrepreneurship Entrepreneurial Leadership – the capacity to lead and the capacity to risk pursuing innovative opportunities  Who are the Entrepreneurs? Independent individuals, intensely committed and determined to persevere and work very hard. COMMON CHARACTERISTICS Opportunity-driven - an entrepreneur who opts to start a business because they have spotted an available opportunity, and is prepared for and has the resources to carry it out Necessity-driven - entrepreneurs start a business because they see better opportunities.  COMMON CHARACTERISTICS ? Self-efficacy - Self-assessed conviction or confidence about personal abilities to muster the motivation, behavior, social environment and perform the cognitive tasks and conduct the actions needed to successfully execute a specific task within a given context. Ex: Academic Self Efficacy  Entrepreneurial Cognition Cognition the mental processes that take place in the brain. Entrepreneurial cognition is concerned with the 'knowledge structures' that entrepreneurs use to make assessments, judgements or decisions involving opportunity evaluation, creation and growth It encompasses mental processes like attention, memory, language, problem-solving, decision-making, and information processing. It involves applying knowledge and adapting preferences. 5 Influences for Entrepreneurs  Profile dimensions that characterize Entrepreneurs Determination - total dedication to success and focused on advantage Perseverance - unwavering commitment and will do everything to succeed  Profile dimensions that characterize Entrepreneurs Drive to Achieve - Internally driven by a strong desire to compete, to excel against self-imposed standards and to pursue and attain challenging goals. Need to Achieve - examine a situation, determine how to increase the odds of winning and then push ahead and prove something.  Profile dimensions That Characterize Entrepreneurs Opportunity orientation is the constant awareness of the opportunities that exist in everyday life. Persistent Ex: Persistent problem Solving - relentless attack on a problem or an obstacle that is impeding business operations.  Seeking feedback Strong desire to know how well they are doing and how they might improve their performance. Locus of Control - They believe their accomplishments and setbacks are within their own control and influence.  Creativity and Innovativeness - cultures differ very much in terms of creativity and innovation Passion - a fundamental emotional experience for entrepreneurs Team-building - Successful entrepreneurs need to have highly qualified, well-motivated teams that help handle the venture’s growth and development.  Tolerance for Failure Entrepreneurs use failure as a learning experience Vision Entrepreneurs know where they want to go Tolerance for Ambiguity A person's ability to operate effectively in an uncertain environment. High Energy Level The extraordinary workloads and the stressful demands faced by entrepreneur Profile dimensions That Characterize Entrepreneurs Calculated Risk Taking - if they decide to participate in a venture, they do so in a very calculated, carefully thought-out manner There are certain negative factors that may surround entrepreneurs and dominate their behavior.  The Dark Side of Entrepreneurship Opportunistic entrepreneurs Dishonest entrepreneurs Flattery Error of judgement Unethical Entrepreneurs Entrepreneurs attracting controversy Entrepreneurs who grow too quickly and lose control  The Entrepreneur’s Confrontation with Risk Financial Risk Failure may lead to financial loss. Entrepreneurs may personally guarantee company obligations. New ventures involve risking personal savings and resources Risk of personal bankruptcy is a concern.  The Entrepreneur’s Confrontation with Risk Career Risk Will entrepreneurs find a job if venture fails? Returning to old job after venture failure Career risk worries for secure managers with high salary and benefits  The Entrepreneur’s Confrontation with Risk Family & Social Risk New ventures demand entrepreneur's energy and time. Other commitments may suffer. Increased family and social risks. Friendship impact due to missed social events.  The Entrepreneur’s Confrontation with Risk Psychic Risk Money, possessions, relationships can recover. Psychological impact can be severe and lasting. Some entrepreneurs can't immediately bounce back from financial losses. Psychic impact can have long-lasting effects. Stress and The Entrepreneur  Stress and The Entrepreneur Entrepreneurial stress can be viewed as a function of discrepancies between an entrepreneur’s expectations and ability to meet demands, as well as discrepancies between the individual’s expectations and personality. Stress and entrepreneurship go hand in hand. The symptoms of mental stress that come from building a successful business can include anxiety, depression, poor sleeping habits, weight changes and other health concerns.  Dealing with Stress How can entrepreneurs improve the quality of their business and personal lives Getting away from it all Communicating with employees/friends Finding satisfaction and happiness Delegating tasks Networking Exercising  Stress and The Entrepreneur Type A behavior The phrase "Type A" refers to a pattern of behavior and personality associated with high achievement, competitiveness, and impatience, demanding and over-strung/sensitive among other characteristics. Entrepreneurial Ego A self-centered characteristic exhibited by entrepreneurs obsessed with the importance of themselves and their ideas. An entrepreneur whose ego gets too big can actually become a detriment to the growth of their own business. Individuals with oversized egos can be difficult to work with and might make poor decisions that put the business at risk.. The reasons associated with the entrepreneurial ego include: 1. an overbearing need for manage; 2. a way of distrust; 3. an overriding desire for fulfillment; 4. and unrealistic optimism.  The Entrepreneurial Ego An Overbearing need for control Entrepreneurs are driven by a strong need to control both their venture and their destiny. Too much care and concern. Preoccupied with controlling everything.  The Entrepreneurial Ego Sense of Distrust To remain alert to competition, entrepreneurs are continually distrustfully scanning the environment. Anticipate and act ahead of others. Excessive vigilance can lead to fixation on trivial matters. May distort reasoning, logic, and take harmful actions. Distrust has dual-edged nature.  The Entrepreneurial Ego Overriding Desire for Success Entrepreneur's ego tied to desire for success. Despite challenges, strong drive to succeed persists. Entrepreneurs believe they are living on the edge of existence, with a strong desire to succeed in spite of the odds.  The Entrepreneurial Ego Overriding Desire for Success Monumental or huge achievements can overshadow venture's importance. Danger of losing perspective, becoming more important than the venture The business tend to deviate direction  The Entrepreneurial Ego Unrealistic Optimism This is the ceaseless optimism that emanates from entrepreneurs. High enthusiasm creates external optimism, inspires trust during challenges. Extreme optimism can lead to unrealistic, fantasy-based approaches. Self-deception ignores trends, facts, and reports. May result in inability to handle business reality. Unrealistic Optimism  Pathway to Entrepreneurial Career Entrepreneurial career means finding the pathways toward creating ventures that are right for you. The nature of entrepreneurial capabilities vary across the different stages of entrepreneurial activity, can be compared with the entrepreneurial characteristics that are needed for success.  The Entrepreneurial Journey Experiential Nature of Creating a Sustainable Enterprise Emergence of an excellent idea Emergence of Opportunity Emergence of the Venture Emergence of the Entrepreneur and mindset Are Entrepreneurs in born in nature Starting a business is hard and operating it is more challenging Pathway to Entrepreneurial Career  Pathway to Entrepreneurial Career There are various pathways that can help build personal qualities and start the entrepreneurial career, such as finding or creating an opportunity, becoming involved in the family business, working with an employer to commence a new venture activity, seeking a franchise or buying an existing business to turn around or grow. Entrepreneurial careers are jobs that can give you the experience and skills that help prepare you to start your own business or develop your own product. Certain careers can offer more training in the abilities and qualities necessary to take on the challenge of starting a business. Thank you for listening!