2 - Entrepreneurial Mindset
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Transcript of 2 - Entrepreneurial Mindset
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8/10/2019 2 - Entrepreneurial Mindset
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INDIVIDUALENTREPRENEURIALMINDSET &
PERSONALITY
Lecture # 2
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Agenda for Today
Some myths Entrepreneurial mindset
Common characteristicsBackgroundComparison of male and female entrepreneurs
Tipping points
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Some Myths
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Myth # 2
Entrepreneurs are born, not made(Trait theory)
Truth is:Some of the most successful entrepreneurs are themost unlikely
It is a lifestyle choice, not an accident
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Myth # 3
Entrepreneurs are doers, not thinkers
Truth is: Although entrepreneurs tend towards action, they arealso thinkersMethodical people who plan their moves carefullyCombination of thinking & doing makes anentrepreneur
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Myth # 4
"I'll have all this free time"
Truth is entrepreneurs work many hours Advantages are:
control of timevariety of tasks
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Myth # 5
It gets easier
Truth is, it gets more challengingOne must work faster, smarter & longerOne must enjoy the battle
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Myth # 6
Entrepreneurs are academic & social misfits
Truth isThis misunderstanding is a result of some businessowners having started successful enterprises afterdropping out of schoolToday the entrepreneur is considered a hero socially, economically, and academically
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Myth # 7
All entrepreneurs need is luck
Truth is luck happens when preparation meetsopportunity!
Prepared entrepreneurs who seize the opportunityoften seem luckyWhat appears to be luck is actually preparation,determination, desire, knowledge and innovativeness
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Myth # 8
Entrepreneurs are extreme risk takers
Truth Entrepreneurs are calculatorsStudies show entrepreneurs take calculated risksonlyMost entrepreneurs plan & prepare to minimize
the risk involved & gain better control
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Myth # 9
You have to have a great idea
Truth isYour idea must be goodYour idea must be doableYour idea must be wanted or needed
Your idea must be priced right
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Myth # 10
It takes a lot of money
Truth Over 50% start for under $10,000 Also look for
Certain business typesTurn-around situations
Possibility of using other peoples money Market Niche
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One Last MythThe key to success is a great idea
Good idea
Great plan. Passion!
The keys are:
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The Entrepreneurial Mindset
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Common Characteristics Associated with Entrepreneurs
Commitment, determination, & perseveranceTotal dedication to success can overcome obstacles &setbacksSheer determination & unwavering commitment to succeed
Drive to achieveSelf-starters; Internally driven by a strong desire to competeThey examine a situation, determine how to increase theodds of winning, and then push ahead
Opportunity orientation
Focus on opportunity rather than on resources, or structureConstant awareness of opportunities that exist in everydaylife
Initiative & responsibilityEffective entrepreneurs actively seek & take initiatives
Willingly put themselves in situations where they arepersonally responsible for success or failure of an operation
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Common Characteristics Associated with Entrepreneurs
Persistent problem-solvingNot intimidated by difficult situations
Internal locus of controlDo not believe that the success/failure of their venture willbe governed by fate, luck, or similar forces Accomplishments/Setbacks are within their own control
Calculated risk takingCalculated risk takers
Do everything possible to get the odds in their favor
Tolerance for ambiguity
Easily deal with setbacks/changes confronting themThrive on the fluidity & excitement of such an ambiguousexistence
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Common Characteristics Associated with Entrepreneurs
Tolerance for failureUse failure as learning experiences; Realistic enough toexpect difficulties
Creativity & innovativenessNew ventures often possess a collective creativity thatemerges from the joint efforts of the founders and personneland produces unique goods and services
VisionKnow where they want to go; Have a vision of what theirfirm can beThis vision, at times, also develops over time as theindividual realizes what the firm is and what it can become
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Common Characteristics Associated with Entrepreneurs
Self-confidence & optimismMaintain confidence during down periods
IndependenceDesire for independence is a driving force behind mostentrepreneursNot all decisions, but they do want to make the importantones
Team buildingMost successful entrepreneurs have highly qualified, well-
motivated teams that help handle the ventures growth anddevelopment
Integrity & reliabilityFind these two characteristics crucial to success
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Entrepreneur Background
EducationFormal education is not necessary for starting anew business
Research shows education provides a goodbackground, although majority of successfulventure owners like Henry Ford, Bill Gates werecollege dropouts
Others do have relevant degrees in engineering,science, etc.
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AgeMost entrepreneurs initiate their entrepreneurialcareers between the ages of 25 and 45
Generally, Male entrepreneurs start their firstventure in their early 30s whereas women do so intheir mid 30s
Work HistoryDissatisfaction with various aspects of ones jobsuch as lack of challenge, or promotionalopportunities, frustration, boredom etc. motivatesthe launching of new venture
Entrepreneur Background(Contd.)
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Dark Side of Entrepreneurship
Entrepreneurs confrontation with risk
Typology ofEntrepreneur ial Styles
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Dark Side of Entrepreneurship(Contd.)
Entrepreneurs face a number of different typesof risks:
Financial risk In most new ventures, an
individual puts a significant portion of his or hersavings or other resources at stakeCareer risk Major concern for managers with asecure job with a high salary and good benefit
packageFamily and social riskPsychic risk Psychological impact in case theventure fails
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Stress and the entrepreneurSources of Stress:
Loneliness Often isolated from people; Longworking hours prevent them from seeking counselfrom friends/familyImmersion in business Most are married tobusinessPeople problems Have to deal with differentkind of people including bankers, employees,customers
Need to achieve
Dark Side of Entrepreneurship(Contd.)
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Six ways to cope with entrepreneurial stress:NetworkingGetting away from it all
Communicating with employeesFinding satisfaction outside the companyDelegating
Exercising rigorously
Dark Side of Entrepreneurship(Contd.)
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Entrepreneurial Ego Negative effects of aninflated ego
Overbearing need for control
Sense of distrustOverriding desire for successUnrealistic optimism
Dark Side of Entrepreneurship(Contd.)
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Are you a High Achiever?
Exercise
C i f M l & F l E
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Comparison of Male & Female Entrepreneurs
Characteristic Male Entrepreneurs Female Entrepreneurs
Motivation Achievement-strive to make
things happen, Personalindependence, Job satisfactionarises from the desire to be incontrol
Achievement- Accomplishment
of a goal, independence-to do italone
Departure point Dissatisfaction with present job,
sideline in college, present job,or outgrowth of present job,discharge or layoff, opportunityfor acquisition
Job frustration, interest in and
recognition of opportunity in thearea, change in personalcircumstances
Sources of funds Personal assets & savings, bankfinancing, investors, loans fromfriends and family
Personal assets & savings,personal loans
Occupationalbackground
Experience in line of work,Recognized specialist orachiever, competent in variety ofbusiness functions
Experience in area of business,Middle management oradministrative level experiencein the field, service relatedoccupational background.
C i f M l & F l E t
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Comparison of Male & Female Entrepreneurs
Characteristic Male Entrepreneurs Female Entrepreneurs
Personalitycharacteristics
Opinionated & persuasive, Goaloriented, innovative & idealistic,High level of self confidence,Enthusiastic & energetic, Mustbe own boss
Flexible & tolerant, goal oriented,Creative & realistic, medium levelof self confidence, enthusiastic &energetic, ability to deal with thesocial & economic environment
Background Age= 25-35, father was self-employed, college educated(degree in business or technicalarea)
Age= 35-45, father was selfemployed, college educated(degree in liberal arts), firstbornchild
Support groups Friends, professionalacquaintances(lawyers,accountants), businessassociates, spouse
Close friends, spouse, family,womens professional groups,trade associations
Type ofbusinessstarted
Manufacturing or construction Service related- educationalservices, consulting or publicrelations
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Set a big dream and put yourtime and thinking into chasing
it, your painful memories willhave no room to bother you
again.(dont know who said it)
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Case Study
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Thank you!
Thats all for today!