GENTREP – The Entrepreneurial Mind

MODULE 3: JOURNEY TO ENTREPRENEURIAL DEVELOPMENT

Outline ENTREPRENEURIAL MINDSET

I. Ten (10) Personal Entrepreneurial Competencies • aka entrepreneurial talent or mentality
A. Achievement cluster • being drawn to opportunities, innovation, and new value creation
B. Planning cluster • thinking differently, embracing challenges to propel one’ self
C. Power cluster • truest entrepreneurial mindset = providing value
II. The Entrepreneurial Mind
A. Definition of terms (“mindset” and “entrepreneurial”) IMPORTANCE OF THE ENTREPRENEURIAL MINDSET
B. Entrepreneurial mindset • to build an entrepreneurial society
1. Importance of the entrepreneurial mindset • developing the right mindset at a very early age
2. Five (5) characteristics of the EM • entrepreneurs = agents of change at every level of the society
C. Entrepreneurial mind attributes
• entrepreneurship = way of life
1. The independent mind
2. The growth-oriented mind
FIVE CHARACTERISTICS OF THE EM
3. The goal-oriented and effectuating mind
4. The risk-managing mind 1. They passionately seek new opportunities.
5. The resilient mind 2. They pursue opportunities with enormous discipline.
6. The opportunity-recognizing mind 3. They pursue only the very best opportunities and avoid exhausting
7. The designing mind themselves and their organizations by chasing after every option.
III. The Entrepreneurial Organization 4. They focus on execution – adaptive execution.
A. Entrepreneurial Orientation (EO) 5. They engage the energies of everyone in their domain.
B. Dimensions of EO
1. Autonomy ENTREPRENEURIAL MIND ATTRIBUTES
2. Innovativeness
3. Proactiveness THE INDEPENDENT MIND
4. Complete aggressiveness • willing to stand up publicly for what they believe
5. Risk taking • believes in one’s capability to successfully achieve goals
• prefers tasks and situations with little formal structure
TEN PERSONAL ENTREPRENEURIAL COMPETENCIES
THE GROWTH-ORIENTED MIND
ACHIEVEMENT CLUSTER • leads a desire to learn; sees effort as the path to mastery
1. Opportunity-seeking • embraces challenges; receptive to feedback
2. Persistence
3. Commitment to work contract THE GOAL-ORIENTED AND EFFECTUATING MIND
4. Demand for efficiency and quality • determined to reach high achievements and goals
5. Taking calculated risks • translates ideas into actionable plans
• understands that earnest and strenuous efforts are required
PLANNING CLUSTER
6. Goal setting (most important competency) THE RISK-MANAGING MIND
7. Information seeking
8. Systematic planning and monitoring • takes calculated risks based on the relative value
• considers the long-term viability, costs, and risks of opportunities
POWER CLUSTER • financial risk vs profit: varies in entrepreneurs’ desire for wealth
9. Persuasion and networking • career risk: loss of employment security
10. Self-confidence • family and social risk: competing commitment of work
• psychic risk: psychological impact of failure on one’s well-being
THE ENTREPRENEURIAL MIND
THE RESILIENT MIND
DEFINITION OF TERMS • generally positive attitude; failure = opportunity
Mindset • inspired by and celebrates the successes of others
• mental attitude or inclination • confidence, social support, adaptability, purposefulness
• sum of your knowledge-beliefs about the world and yourself
• can be shaped by an intentional awareness THE OPPORTUNITY-RECOGNIZING MIND
• driven by our experiences; habit that requires practice • curious and inquisitive
• sensitive to problems and available yet idle resources
Entrepreneurial • empathetic to the beliefs, feelings, and needs of others
• undertaker (Richard Cantillon)
• creates value (Jean Baptiste Say) THE DESIGNING MIND
• agent of change or creative destruction (Joseph Schumpeter) • transcends traditional rules and patterns
• resourcefulness and uncertainty (Howard Stevenson) • creates meaningful and fresh ideas, interpretations, and solutions
• opportunity (Peter Drucker)

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GENTREP – The Entrepreneurial Mind

THE ENTREPRENEURIAL ORGANIZATION

ENTREPRENEURIAL ORIENTATION (EO)

• strategy-making practices to identify and launch new ventures
• reflected in the firm’s ongoing processes and corporate culture
• infuses decision-making styles and practices of the members

DIMENSIONS OF EO

AUTONOMY
• willingness to act independently to carry forward an
entrepreneurial vision or opportunity
• promoted by:
o using skunk works to foster entrepreneurial thinking
o organizational structures that support independent action
• problems include:
o duplication of effort
o wasting of resources

INNOVATIVENESS
• firm’s efforts to find new opportunities and novel solutions
• promoted by:
o fostering creativity and experimentation
o new technology, R&D, and continuous improvement
• problems include:
o no results = waste of resources
o competitors may copy it more profitably

PROACTIVENESS
• firm’s efforts to seize new opportunities
• promoted by:
o introducing new products or tech ahead of the competition
o continuously seeking out new product or service offerings
• problems include:
o first movers are not always successful
o brand extensions can go too far

COMPETITIVE AGGRESSIVENESS
• refers to a firm’s efforts to outperform its industry rivals
• promoted by:
o entering markets with drastically lower prices
o finding successful business models and copying them
• problems include:
o being overly aggressive and damaging a firm’s reputation
o trying to destroy rather than just defeat the competition

RISK TAKING
• firm’s willingness to act boldly without knowing the consequences
• promoted by:
o researching and assessing risk factors (business, financial,
and personal) to minimize uncertainty
o using techniques that worked in other domains
• problems include:
o lack of forethought, research, and planning
o failure to evaluate uncertainty

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