The
ENTREPRENEURI
AL
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MIND
LEARNING OUTCOMES
At the end of the lesson, you should be able
to:
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define the term mindset;
explain the different insights on what it
means to be entrepreneurial; and
discuss the definition of entrepreneurship
and how a person creates an
entrepreneurial mindset.
Questions to
ponder:
1.What is
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Entrepreneurship?
2. What is mind-set
and its types?
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What is a Mind-set?
A mind-set is
defined by Merriam-
Webster as a “mental
attitude or inclination.”
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Your mindset is the sum
of your knowledge, including
beliefs and thoughts about the
world and yourself in it. It is your
filter for information you get in and
put out. So it determines how you
receive and react to information.
What is
your
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Mindset?
Do you have a fixed or growth mindset? To find out, start by
reading the following statements and decide which ones you
agree with most:
1. People have a certain amount of intelligence, and there isn't any way to
change it.
2. No matter who you are, there isn't much you can do to improve your basic
abilities and personality.
3. People are capable of changing who they are.
4. Youzcan learn new things and improve your intelligence.
5. People either have particular talents, or they don't. You can't just acquire
talent for things like music, writing, art, or athletics.
6. Studying, working hard, and practicing new skills are all ways to develop new
talents and abilities.
If you tend to agree with statements 1, 2, and 5, then you probably have a
more fixed mindset. If you agree with statements 3, and 4, 6, however,
then you probably tend to have a growth mindset.
Can you
change your
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mindset?
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From an academic
standpoint, the mindset
concept comes out of the
cognitive psychology and
organization theory fields.
Gupta
z and Govindrarajam (2002)
summarized the findings from this literature
as they pertain to individuals:
1. As human beings, we are limited
in our ability to absorb and process
information. Thus, we are
constantly challenged by the
complexity, ambiguity, and
dynamism of the information from
the environment around us.
Guptaz and Govindrarajam (2002)
summarized the findings from this literature
as they pertain to individuals:
2. We address this challenge
through a process of filtration.
We are selective in what we
absorb and biased in how we
interpret it. The term mindset
refers to these cognitive filters.
Gupta and Govindrarajam (2002) summarized the
findings
z from this literature as they pertain to
individuals:
3. Our mindsets are product of our
histories and evolve through an
interactive process. Our current mindset
guides the collection and interpretation
of new information. To the extent that
this new information is consistent with
the current mindset, it reinforces that
mindset.
From time to time, however, new information
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appears that is truly novel and inconsistent
with the existing mindset. When this
happens, we either reject the new
information or change our mindset. The
likelihood that our mindsets will undergo a
change depends largely on how explicitly
self-conscious we are of our current
mindsets: the more the hidden and
subconscious our cognitive filters, the
greater the likelihood of rigidity.
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What does it
mean to be
entrepreneurial?
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The word
“entrepreneur”
originates from the French word
entreprendre, which means
“undertaker” as in
the sense of someone undertaking a
major project.
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Jean Baptiste Say, emphasized
that “the entrepreneur shifts
resources out of an area of lower
and into an area of high
productivity and greater yield.”
Thus, the creation of value is of
the very essence of
entrepreneurship.
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In examining the
evolution of the
definition of
entrepreneur, it is
important to recognize
five key insights
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Insight #1 “Are you an
entrepreneur?” Is a wrong
question.
Rather, it should be “how
entrepreneurial are you?”
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Insight #2: Being
entrepreneurial is
relevant to more
than just start-ups.
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Insight #3: There are
many types (and
sizes) of
entrepreneurial
opportunities.
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Insight #4: Being
entrepreneurial
requires the
creation of value.
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Insight #5: Being
entrepreneurial
involves embracing
uncertainty
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Putting it Together:
The Entrepreneurial
Mindset
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Entrepreneurial mindset
is the inclination to
discover, evaluate, and
exploit opportunities.
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In their book, entitled The Entrepreneurial
Mindset, McGrath and MacMillan (2000)
suggest that you know you have fully
embraced the entrepreneurial mindset
when you start to act and think like
a habitual entrepreneur.
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As suggested by the name,
habitual entrepreneurs are
known for making a career out of
starting businesses, both within
existing organizations and as
independent ventures.
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While you do not need to actually
start businesses to embrace the
entrepreneurial mindset, the point is
that you utilize the entrepreneurial
way of thinking so frequently that it
has become a habit.
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5 characteristics of the
entrepreneurial mind-set
in common with habitual
entrepreneurs:
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1.They passionately
seek new
opportunities.
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2. They pursue
opportunities with
enormous discipline.
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3. They pursue only the
very best opportunities
and avoid exhausting
themselves and their
organizations by chasing
after every option.
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4. They focus on
execution—
specifically, adaptive
execution.
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5. They engage the
energies of everyone in
their domain.
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Can we really
change
mindset?
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Yes, but it requires
practice so that it
becomes a habit.
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As outlined by Neck et al. (2014: 9):
…in order to learn entrepreneurship,
one must do entrepreneurship.
However, doing entrepreneurship does
not exclude theory. On the contrary,
effective doing of entrepreneurship
requires a set of practices and these
practices are firmly grounded in theory.
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How does one
develop the
Entrepreneur Mind?
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How to Develop an
Entrepreneurial Mindset
It may seem difficult to develop an
entrepreneurial mindset if you aren’t
actively working as CEO of a successful
startup. However, the truth is that you
can hone the skillsets required for
successful entrepreneurship no matter
your current job title. Let’s take a look at
some of the ways you can develop your
entrepreneurial mindset in your everyday
life
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How to Develop an
Entrepreneurial Mindset
1. Set Clear Goals
2. Practice Being Decisive
3. Redefine Failure
4. Face your Fears
5. Remain Curious
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1.SET CLEAR GOALS.
Setting a goal—speaking it to the
universe, writing it down, mentioning it
to friends and family who will hold you
accountable—can subtly influence
aspiring entrepreneurs to work towards
that goal bit by bit each day. If you
don’t feel like you’ve clearly articulated
your goals, set aside some time to
brainstorm until you know exactly what
you’re aiming for.
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2. PRACTICE BEING DECISIVE.
Entrepreneurs, innovators, and new business
owners must develop the ability to analyze a
situation, absorb the relevant data, and make a
confident decision. Small businesses and start-ups
can be ruined by indecision, which is why making
a decision with confidence is one of the most vital
entrepreneurial skills. You can practice
decisiveness in the real world or in your personal
life, whether you’re ordering at a restaurant or
making evening plans. Practicing making small
decisions with confidence will pay off when you’re
faced with big challenges in your business.
3. REDEFINE
z FAILURE.
Failing typically has negative
connotations, but the best entrepreneurs turn
failure into something positive. Failing
indicates that you’ve tried something, which
can be a scary thing to do. True failure is not
trying at all. Practice failure dialogues. You
can do this in your notebook or with a friend.
Have them ask you about your failures every
day for a week. Answer honestly. Soon, you
may find that instead of feeling shame when
you discuss your failures, you’ll feel pride at
showing off what you’ve attempted.
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4. FACE YOUR FEARS.
Many entrepreneurs fear public
speaking, failure, and embarrassment.
The only way to chisel away at that
fear is to expose yourself to it. Getting
rejected again and again will
anesthetize you to the letdown. Take a
public speaking class—anything to get
you more comfortable in front of a
crowd. If you want to improve your
communication skillset, take an acting
or stand-up comedy class.
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5. REMAIN CURIOUS.
Curiosity is one of the most important
traits for entrepreneurs. To constantly
learn and maintain your competitive
edge, you must always seek out new
people and new experiences. Never
lose the curiosity to see around
corners
z Thank you for listening!
