CHAPTER 6

SKILLS AND COMPETENCIES OF ENTREPRENEUR

Entrepreneurs
Entrepreneurs start businesses and franchises that offer products and services to
customers. There are specific skills and competencies that help make entrepreneurs
successful. Skills include the ability to multi-task and promote interest in a business.
Competencies include initiative and creativity and the ability to solve problems and take
risks.

Entrepreneurial Skills
An entrepreneur must be a jack of all trades, especially when launching a business. If
you're looking to get a business off the ground, you'll need to the ability to multi-task, or
oversee details, often at the same time. For instance, let's imagine that you want to
open a fitness center and have already saved enough have money to purchase
equipment and rent space. While your passion is training others, you soon find yourself
faced with other accounting, customer service, and operational chores. These include
covering the front desk, maintaining the facility, managing advertising, and paying bills.
Because you're a start-up business, you can't afford a full-time staff and must perform
much of this work yourself.
Beyond the basic operational activities needed for a company to function, entrepreneurs
need to focus on marketing and sales activities. This means attracting new customers,
selling products and services, and growing public awareness of the company. For
example, you know that there are other gyms in your area, but you believe you can
create a thriving business by offering the newest fitness equipment and specialized
services. In order to generate interest in your business, you'll need to determine the
best way to market your gym. This might involve designing some eye-catching signs or
social media pages. It could also involve offering specials for new members or
sponsoring fitness events.

Entrepreneurial Competencies
Entrepreneurs may start with a dream and the willingness to make it come true.
However, they'll soon have a nightmare on their hands if they don't have the necessary
competencies to get their businesses off the ground.
Initiative is the drive and passion a business owner has to do anything and everything
necessary to support the company. Entrepreneurs must be willing to do grunt work and
put in long hours to make their businesses successful.
For example, every day you arrive two hours before the fitness center opens to make
sure that the facility is clean, equipment is working properly, bookwork is complete, and
management tasks are taken care of before clients arrive. You also use this time to
meet with potential clients and area businesses to grow your enterprise. This is
initiative.
Entrepreneurs must also have good problem-solving abilities, which involve thinking
quickly, evaluating options, and resolving customer and employee issues and
questions. It may feel overwhelming to have so many people relying on you, but the
ability to solve problems is key to becoming an effective entrepreneur. For example, you
have three employees at your fitness center. While they're great with clients, they
frequently have questions and problems that require your input. It can be very
frustrating for employees and even lower their motivation if you can't make timely
decisions and provide them with possible solutions. Problem-solving abilities not only
help to resolve situations, but also build confidence in you as a leader.
The behaviour of an entrepreneur is dependent largely on his psychology and
motives which are the main determinants of behaviour. These motives are based on
needs for survival and growth. The movements of an entrepreneur are affected by
the psychological background. Many theorists Akouri, McClelland, Javillionar & Winter
have given views related to psychological factors as follows:

Achievement Motive: Achievement motive is most important for an entrepreneur. It is

this motive which  motivates people to do something different and extraordinary so that
one may feel that he has achieved or created something which others are not able
to do.

Desire to Influence Others: Strong desire of the need for power, helps a person to

become a successful institution builder.

Desire for Independence: Entrepreneur possesses strong desire for independence

and it is only due to this desire that they are motivated to start a new business.

Innovation:   This is an important psychological factor of entrepreneurs. Generally, an

entrepreneur does those acts which are not taken up by other persons. They transform
the creative ideas into useful applications.

Hope for Success: Entrepreneurs are always hopeful for future success. They work for
being successful which enlightens them with the confidence, positive attitude and high
energy level. Hope for success makes their behaviour strong and stable.

Calculated Risk Taking: Entrepreneur is a person who is always in a position to accept

challenging job, He works on those projects only, which are risky but have a probability
of success through their efforts. He does not rely on those ventures, which totally
depends on chance. In other words, the entrepreneur believes in calculated risk-taking.

Immediate feedback: Entrepreneur wants immediate feedback of the progress of his

entrepreneurial targets so that he can improve the way of achieving the targets and his
behaviour changes according to the situations.

Self-Efficacy: An entrepreneur has a drive for self-efficacy. They want to become the
problem solver, instead of problem avoiders. They do not want to copy others but they
want others to copy them. Further they feel proud of their achievements and live in the
present.

Self-Expression: The desire for self-expression appears to be a common thread and

may help explain why so many men and women prefer to work for themselves than for
someone else.

Self Confidence: Entrepreneurs believe in themselves. They have confidence that they

can outdo anyone in their field. They tend not to accept the status quo, believing instead
that they can change the facts. Often, they insist the odds are better than the
facts would justify. They have winning habits. On the basis of self-confidence, they
become overachievers.
 CHAPTER 7
HUMAN AND MORALE IN BUSINESS
In human resource management, morale is the most important factor for the employee
and the employer. Morale is defined as the desire of the human or the groups to co-
operatively work with others. Every employee being an individual may have diffirent
morale.

Types of Morale

High Morale Low Morale

(Positive sign of morale) (Negative sign of morale)

POSITIVE EFFECTS OF HIGH MORALE

 Strength of organization is increased
 Employees take interest in their work
 Employees are interested in improving their skills
 Industrial disputes can be avoided

NEGATIVE EFFECTS OF LOW MORALE

 Absenteeism of employees increase
 Due to lack of co-operation between employees, there is no discipline in the
organization
 Level of work efficiency and skills of employees is not appreciable
 Increases labour turn-over

MEASURES TO INCREASE THE MORALES

 Proper Salary
 Job Safety
 Promotion Policy
 Solutions to Grievances
 Appreciation of Work
 Supplying Information
 Participation of Employees
 Accepting the Instructions
 Two-Way Communication
 Power of Decentralization
 CHAPTER 8
SOCIAL RESPONSIBILITIES IN BUSINESS

Social responsibility is an ethical framework and suggests that an entity, be it an

organization or individual, has an obligation to act for the benefit of society at large.
Social responsibility is a duty every individual has to perform so as to maintain a
balance between the economy and the ecosystems. A trade-off may exist between
economic development, in the material sense, and the welfare of the society and
environment, though this has been challenged by many reports over the past decade.
Social responsibility means sustaining the equilibrium between the two. It pertains not
only to business organizations but also to everyone whose any action impacts the
environment. This responsibility can be passive, by avoiding engaging in socially
harmful acts, or active, by performing activities that directly advance social goals.
Businesses can use ethical decision making to secure their businesses by making
decisions that allow for government agencies to minimize their involvement with the
corporation. For instance if a company follows the United States Environmental
Protection Agency (EPA) guidelines for emissions on dangerous pollutants and even
goes an extra step to get involved in the community and address those concerns that
the public might have; they would be less likely to have the EPA investigate them for
environmental concerns. "A significant element of current thinking about privacy,
however, stresses "self-regulation" rather than market or government mechanisms for
protecting personal information". According to some experts, most rules and regulations
are formed due to public outcry, which threatens profit maximization and therefore the
well-being of the shareholder, and that if there is not outcry there often will be limited
regulation.
Some critics argue that corporate social responsibility (CSR) distracts from the
fundamental economic role of businesses; others argue that it is nothing more than
superficial window-dressing, or "greenwashing"; others argue that it is an attempt to pre-
empt the role of governments as a watchdog over powerful corporations though there is
no systematic evidence to support these criticisms. A significant number of studies have
shown no negative influence on shareholder results from CSR but rather a slightly
negative correlation with improved shareholder returns. Student social responsibility is
the bfnfhresponsibility of every student for his/her actions. It is morally binding, and
suggests that each person act in such a way that minimizes the adverse effect on those
immediately around them. It is a commitment everyone should have towards society –
contributing towards social, cultural and ecological causes. SSR is based on an
individual's ethics. Instead of giving importance only to those areas where one has
material interests the individual supports issues for philanthropic reasons. It forms the
base for CSR or Corporate Social Responsibility because if everyone in a business
organization does his/her bit the bigger things automatically fall into place. The trends
however show that big charitable organizations recorded high growth due to the SR
efforts of individuals and not corporations or the government.
Corporate social responsibility or CSR has been defined by Lord Holme and Richard
Watts in the World Business Council for Sustainable Development's publication "Making
Good Business Sense" as "…the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of
the workforce and their families as well as the local community and society at large."
CSR is one of the newest management strategies where companies try to create a
positive impact on society while doing business. Evidence suggests that CSR taken on
voluntarily by companies will be much more effective than CSR mandated by
governments. There is no clear-cut definition of what CSR comprises. Every company
has different CSR objectives though the main motive is the same. All companies have a
two-point agenda—to improve qualitatively (the management of people and processes)
and quantitatively (the impact on society).

Undesirable Practices
 Manufacturing & Sale of adulterated goods
 Making deceptive advt.
 Not Paying taxes
 Polluting Environment
 Exporting workers
Desirable Practices
 Supplying quality Goods
 Healthy working conditions
 Honestly paying Taxes
 Pollution control Devices
 Attending Complaints
Social Responsibility follow those policies, make those decisions or do those actions,
which are desirable in terms of objectives & values of our society.
Social Responsibility of Business Implies,
 Respect aspirations of society
 Contribute for achievement of these aspirations

Types of Social Responsibility:

 Economic Responsibility
o Economic Entity
 o Provide and produce goods and services which society wants
o Little Discertation is required
 Legal Responsibility
o Follow law of land
o Laws meant for welfare
o A law abiding enterprise is a socially responsible enterprise as well
 Ethical Responsibility
Includes
o Expected behaviour not codified by law

Respecting
o The religious sentiments
o Dignity of people while advertising product
 Discretionary Responsibility
o Purely voluntary action
o Charitable contribution
o Helping people
 CHAPTER 9
ETHICS IN ENTREPRENEURSHIP
In the age of neck to neck competitive business market, to operate a business
successfully and for having an edge over others, an entrepreneur must follow certain
ethical principles and norms. That ethical norms not just only helps an entrepreneur to
manage ethical dilemmas and problems faced in daily business but also it helps to
retain in the business for long period of time.
In modern society business has the potential to provide a major contribution to our
society, in terms of producing product and service that people want, providing
employment, paying taxes and acting as an engine for economic development and
thereby increasing goodwill.
There are certain key elements that gives a solid base for an ethical organizations:
(Matthwes, 2018)
1. Respect
As an entrepreneur starting a business, one need to respect himself and
surround organization with people that one can respect. An entrepreneur should
try to not hire or do business with people he don’t respect, or who don’t respect
him or his business. Since these are the types of people he don’t respect, or who
don’t respect him or his business. Since these are the types of people who
ultimately don’t respect their colleagues, customers, vendors, or themselves.
Respect is the first and prime most thing while talking about an ethical business.
2. Honor
For running a business successfully an entrepreneur need a team of some good
and honorable people, good people are fundamental part of good ethics. A good
enterprise always recognize and give special attention to strong performers and
best achievers of organization. They always show their gratitude to the people
who exhibit exemplary behavior, and who have helped organization to be
successful, and they must be acknowledged and get be honored for their
contributions publicly, as well as privately.
3. Integrity
When it comes to integrity, it is impossible to avoid sounding preachy or parental.
Do not lie, steal, or cheat. One should always stand by their promises that they
make to other stakeholders such as customers, shareholders and employees.
For making an ethical enterprise an entrepreneur try to do not hire or retain
people who do not have integrity. Other employees, customers and vendors will
not trust them. That lack of trust is like a virus; eventually this lack of trust will
lead them to having a bad impression about organization and lack of trust for
both enterprise and entrepreneur.
4. Customer Orientation
 A company is nothing if it does not have customers, in other words, if a company
does not produce what people want and will pay for, there is no point to that
company. Customer oriented service is most vital and important for an
organization, since they are the one who are going to pay for the product or
service an enterprise is producing, hence serving all of these people is part of
ethical responsibility of an organization. Compromising with customer’s right will
not only risks compromising ethics, it also risks the long-term health of the
enterprise.
5. Result Oriented
An entrepreneur is not called entrepreneur if he hasn’t focused on results
already, but consider ethics factor into results too. A successful entrepreneur
don’t aim for results at any cost. One should work on achieving the results within
company values. Results should be attained in the context of developing
something that customers want, and producing and delivering it at a price that is
fair to all the parties involved. In a good enterprise results are more than just
numbers, they are benchmarks and lessons for the future as well as goals for the
present.
6. Risk taking Ability
Risk taking ability is one the key quality of an entrepreneur. Good organizations
are thrive, prosper and grow do so taking risks. They do not stick to the safe
path. Great companies innovate, they think “out of the box”, and they try new
things. They re-invent themselves and they reward the risk-takers. As long as
one stick to his philosophical gun, risk-taking poses no threat to organizational
ethics. Great companies attract employees who are willing to take risks, and they
encourage, support and reward them for taking calculated risks.
7. Passion
Great organizations are comprised of people who have a passion for their task
and job profile. The role model of these employees are those people who are
willing to take the thrill and challenge of problems and who are not just working
for a mere salary slip. This people are excited, driven, and believe that their work
and efforts can make a difference. Without the passion burning within them,
people put in a minimal effort, getting paid and going home and this is not what
an emerging firm want from their employees.
8. Persistence
People in great organizations have the will to persist. They will keep working
even when results are not what theu hoped, or when customers refuse to buy.
Their persistence is tied to their passion for what they are doing and a belief that
this group of people, this company, has the best chance of “making it” of any
company they could join. And so, they work harder, they continue to take risks.
They behave with honor and integrity. They keep their focus on the customer’s
need and wants. And, they are not satisfied until they achieve the goals and
results that are expected. And the leader, need to put a lot of time and effort into
hiring people who share these values.
 UNETHICAL PRACTICES IN ENTREPRENEURSHIP
Act of dishonesty or deception through business has been existing from a long time in
society, so seeing evidences in modern day entrepreneurship is not something that is
surprising. Although it is right for an enterprise to get involve in ethical activities or to
avoid doing anything wrong in business, though in modern business scenario
enterprises give priority to maximizing profit over ethical norms and get involved in
unethical practices.
According to a poll survey by IBM, Almost two-thirds of 100 venture capital (VC)
investors 64% polled claim performing ‘unethical business conduct’. The IBM report
cited misreporting of financial and other data, misrepresentation of financial plans or
achievements, and ignorance of regulatory requirements as factors of unethical
business conduct. (economic times, 2017)
In today business world where business is dynamic in nature, there are many
enterprises that takes unethical shortcuts to overcome others. There are so many ways
by which a firm performs unethical activities, such as:
 Publish wrong or false report of financial and other data

 Misrepresentation of financial plans and other achievement

 Ignoring various factors such as government norms, regulatory policy and other
legislative policies.
 Blind and over depletion of natural resources and ignoring environmental
policies.
In business, there is a probe saying that ‘Customer is king’ but there are many
enterprises that cheats customer by making false promises and not delivering what
customers are pay for. And nothing is more unethical than cheating your customers. If
an entrepreneur is playing with rights of customer, makes false promises and is involve
in other unethical activities then one thing is sure that he is going to face severe
consequences in future.
 CHAPTER 10

INDIVIDUAL DIFFERENCES, MENTAL ABILITY, AND PERSONALITY

INDIVIDUAL DIFFERENCE

 Refers to the variation in how people respond the same situation based on personal
characteristic.

 Each person id different from all others and that these difference are usually substantial
rather than meaningless.

CONSEQUENCES OF INDIVIDUAL DIFFERENCES

1. People differ in productivity

productivity refers to the rate of output per worker. It differs from person to person.

Example: If the rate of output in a sales office is measured in terms of number of units
sold by each salesman, it cannot be expected that everyone will sell the same number of units
for a given period.

2. People differ in the quality of their work

Some individuals will not be contented in making products of mediocre quality, while
other will just strive to produce outputs that barely passed standard equipment.

3. People react differently to empowerment

empowerment means giving someone the power to do something. Some person may
feel happy if he is provided with responsibility, other will feel uncomfortable and will prefer just
follow order.

4. People react differently to any style of leadership

Some people will prefer a leader with a democratic style, while some will need close
superiors.
 5. People differ in terms of need for contact with other people

Some will need more contact, while others can work alone the whole day. Other people
cannot be productive unless they meet people as they work.

Example: Salesman is in need of frequent interactions with other people. In contrast, there are
those who can perform jobs in research laboratories where contact with other is minimal.

 6. People differ in terms of commitment to the organization

Those who are highly committed tend to produce high quality output while those are less
committed are less concerned about and attendance.

 7. People differ in terms of level of self-esteem

Low Self-esteem – less productive, avoid accepting more responsibilities.

High Self-esteem – Many great invention, literary work, and discoveries are being made.

MENTAL ABILITY

 Also referred to as intelligence

 Capacity to do metal activities, such as thinking, reasoning, And problem solving

Dimensions of Intelligence Ability

Cognitive Intelligence Capacity of a person to acquire and apply knowledge including solving
problems

Social Intelligence Person’s ability to relate effectively with others

Emotional Intelligence Person’s qualities such as understanding one’s own feelings, empathy
for others, and regulation of emotion to enhance living

Cultural Intelligence Ability to interpret someone’s unfamiliar and ambiguous behavior the
same way that person’s compatriot would

Learning, Perceptions and Attribution

 Ability to tell the truth rests in part upon the witness nearest to event. Nearest is here
used in both geographical and chronological sense. The reliability o f the witness's
 testimony tend to vary in portion to his own remoteness from the scene in time and
space and remoteness from the event of his recording of it.

 Obviously, all witness even if equally close to the event are not equal competent as
witness. Competent depends upon degree of expertness, state of mental and physical
health, age education, memory, narrative skill. etc. the ability to estimate number is
especially subject to suspicion

 Degree of attention is also an important factor in ability to tell the truth. Obviously, the
entire meaning of event rested upon the unnoticed act: It was experiment of psychology
Of attention. Because each student's interest had been fixed upon how own part in the
dram, each had given an erroneous interpretation of what have occurred.

 Investigator barely missed reasoning in a circle-from premise back to premise again. It

has been contended also that one of the reason why religious problem an event receive
so much attention in the history of the Middle Ages is that is principal source were
written by clergymen.

 One almost inescapable shortcoming of the personal document is it egocentris. It is to

be expected that even a modest observer will tell what he himself heard and what he
himself did as if those details were most important things that were said and done.

 Willing to tell the truth This historical also has to deal document whose author, though
otherwise competent to tell the truth, consciously or unconsciously tell falsehood. There
are several condition that trend especially toward untruthfulness and against which the
experience of mankind has armed lawyers, historians, and others who deals with
testimony

 One of the most elementary rules in analysis of testimony is that which requires the
exercise of caution against the interested witness. A witness's interest is obvious when
he himself may benefit from perversion of the truth or may thereby benefit someone or
some cause dear to him. Certain kinds of propaganda are perhaps the worst examples
of deliberate perversion of truth out of a desire to benefit a cause

 Often the benefit to be derived from a perversion of the truth is subtle and may not be
realized by the witness himself. In such a case the cause of prevarication probably is
bias. If the witness's bias is favorable to the subject of his testimony, it is frequently
 designated stadium. If it is unfavorable, it may be designated odium. Stadium and
odium, bias for and bias against, frequently depend upon the witness's social
circumstances and may operate in a fashion of which he himself may not be aware. It
becomes important to the historian to know what the witness's "frame of reference" may
be, as well as his religious

 The intended hearers or readers of a document, it has already been remarked play an
important part in determining the truthfulness of a statement. The desire to please or to
displease may lead to coloring of the avoidance of the truth

 Literary style sometimes dictates the sacrifice of truth. Authors of autobiographies And
letters, especially when they write for private amusement, may feel tempted to state as
fact what is only hearsay or tradition or even fiction; and frequently narrators and
reporters especially if they hope for large audiences seek to appear omniscient rather
than to use the less vigorous word, the less striking phrase, the ifs and buts, the there-is-
some-reason-to- believe and the it-is-perhaps-safe-to-say of more precise discourse.

 Closely to this category are the many instances of inexact dating of historical
documents because of the conventions and formalities involved. Some rulers used to
date documents as of certain towns though they were not at those towns on the dates
indicated. The modern officials and businessman's habit of sending letters on office
stationery regardless of where they may be or dictating but not reading their letters,
which are signed by a rubber stamp or a secretary, may make it very difficult for future
biographers to trace their itineraries. Bank checks, having the city of the bank's location
printed on them, may also prove misleading as to the signer's whereabouts

PERSONALITY AND BEHAVIOR CONCEPTS

• Personality is taken to be what we are, We cannot change what we are. Personality

refers to the pattern of characteristics to distinguish one person from another.

• Refers to the sum total of ways in which an individual reacts and interact with others.

• Behavior refers to absolutely everything we do. Also it is the way in which a person acts
– we can see it, we can hear it.

Self knowledge and personal development

 • Self knowledge is a dynamic process that never ends, because firstly there is a constant
development of cognitive abilities itself; secondly, the object of cognition – person –
changes itself

• personal development is a process of consciously improving yourself in various aspects

of your life.

Here are some of the entrepreneurial behavior that will help you.

1. Planning your day in advance

2. Get proper nutrition and exercise

3. Setting clear goals

4. They take calculated risk

5. Knowing strengths and weaknesses

6. Always looking for opportunities

LEARNING PERCEPTIONS AND ATTRIBUTION

 LEARNING May be defined as a relatively permanent change in behavior or knowledge

due to experience.

 PERCEPTION May be defined as the process by which people select, organize,

interpret, retrieve and respond to information from their environment.

 ATTRIBUTION Is the process by which people ascribe causes to the behavior they
perceived.

SKILLS AND COMPETENCE OF ENTREPRENEURS

Main skills and competences of entrepreneurs

• There are specific skills and competencies that help make entrepreneurs

successful. Skills include the ability to multi-task and promote interest in a
business. Competencies include initiative and creativity and the ability to solve problems
and take risks.
Ambition

• It is easy to give up when the going gets tough, but the most successful entrepreneurs
persist because of their ambitious nature. They want to succeed, and they thrive on
reaching small milestones that are stepping stones to their major goal. When you are
highly ambitious, you may have an internal drive to work hard, and you may be
committed to doing what it takes to make your business a success. Generally, you will
not look for shortcuts and are willing put in the time necessary to get the job done right.

Willingness to Learn

• Some people think that learning stops when you graduate college or earn a special
certification, but this is not the case. Education is a life-long process. You must stay
updated with changes in technology, the evolution of your industry, sales processes and
more. Always seek new knowledge. More than that, look for the most successful people
in your industry and do not be afraid to ask for their opinions or advice.

Ability to listen

• You simply cannot manage a great team or run provide a great customer service if you
are not an effective communicator. Communication is a two-way street. In order to
communicate outwardly in an effective manner, you must pay attention to others’
motivations, hot buttons, interests and more. You also must be aware of non-verbal
cues, such as body takes to make your business a success. Generally, you will not look
for shortcuts and are willing put in the time necessary to get the job done right.

THE POWER OF WHY IN ENTREPRENEUR

Most entrepreneurs don't talk about their insecurities, but everyone has them. One huge
insecurity is simply the fear of having no idea what they are doing. They may have an area of
expertise that propelled them to start a business, but entrepreneurship requires skills in so many
other areas that almost every founder is faced with domains where they're pretty ignorant.  The
good news is that in many ways, ignorance can actually be an asset.  The most successful
entrepreneurs don’t run from what they don’t understand but instead embrace it and use their
inexperience as a tool to help them move into unchartered (and often scary) territory.

• To me, it means something more. It is not only someone who decided to build something
out of nothing. It's someone who wakes up every day not knowing exactly what to
 expect. It’s someone who jumped off the ledge without a parachute. I often say I’m at the
crossroads of being broke and being a billionaire. It’s an emotional rollercoaster, filled
with heartbreak, glory, stress and immense satisfaction For those of you who understand
what I’m saying, I’m sure you can relate. But, for everyone else, for those of you who are
wondering what it's like to be an entrepreneur, let me give you some personal insight.
Let me take you out of the glorified media bubble of billion-dollar exits and pretty-colored
unicorns. Let me tell you a secret, just between us: It is a damn war. I wake up every day
uncertain. I am a deal away from glory and an event away from failure. One day is the
best day of your life, followed by the worst day of your life. One day you are a hero and
the next day you are a big fat zero.

• So, now that you know the truth and we got that out of the way, let's talk about why we
do this and why we put ourselves through this gauntlet of craziness. Why would we cut
ourselves, roll around in sea salt, get up and shower and do it all over again?

• He WHY is that I want to connect different people together through entrepreneurship. I

believe that different cultures throughout time have broken down political and social
boundaries through working with each other to achieve common goals. I believe that
collaboration is a byproduct of evolution and we will become a better world when we
decide to all work together. 

The selective ignorance of entrepreneur

By our very nature, we entrepreneurs are risk-takers. We’re also a little crazy, if we admit it. I
mean, how else would you explain the time, energy, money, and sanity we invest in making our
businesses grow—not to mention juggling everything else in our lives?

Yet there’s one risk most entrepreneurs are loathe to take: the risk of embracing ignorance.

We live in a world that changes exponentially on almost every front. Innovations in technology,
business, healthcare, education, etc., compound so quickly, it can leave a gal gasping for air.
Which is exactly why it’s crucial to allow yourself to be ignorant

Advantage of ignorance

Most entrepreneurs don't talk about their insecurities, but everyone has them. One huge
insecurity is simply the fear of having no idea what they are doing. They may have an area of
expertise that propelled them to start a business, but entrepreneurship requires skills in so many
other areas that almost every founder is faced with domains where they're pretty ignorant.  The
good news is that in many ways, ignorance can actually be an asset.  The most successful
entrepreneurs don’t run from what they don’t understand but instead embrace it and use their
inexperience as a tool to help them move into unchartered (and often scary) territory.

The Limit of Entrepreneur Behavior

Self-limiting behaviors are quite common, but without the understanding that these beliefs and
behaviors are mutable and changeable, many would-be successful entrepreneurs flounder.
Those who are joyful about their choice of career and attain true success purposefully avoid
negative behaviors that their less successful peers habitually get stuck in. Here are a few of
those negative behaviors that I’ve noticed; avoid them and watch your success soar.

Courage and Risk Taking

Gut feelings are so often disregarded in the course of decision-making, to great cost. The most
successful entrepreneurs utilize their perception to great advantage, balancing logic with
intuition to make substantial decisions that propel them far. They believe in their own
awareness, and lead from a place of deep self-knowing and clarity. Developing intuition does
take time and practice if you’re used to second-guessing yourself, but it can be done and will
serve you well in your success.

Expect easy success through hand outs.

There is no such thing as a free lunch, they say, and “they” are right. Entrepreneurial success is
found almost exclusively through very hard work and a desire to provide value. The best
entrepreneurs wouldn’t dream of asking for handouts, or expect that they will be rewarded for
nothing. Of course, looking for ways to get ahead should be expected, especially in the lean
stages of beginning a business. But reaching out to someone for free help, advice, or resources
without considering what can be offered in return seems disrespectful and lazy. Successful
professionals know that their success is directly proportional to how much work they put in, and
give the respect that’s due to others who have done the same.

Believe they cannot change.

Those who self-limit share the common trait of meeting frustrations by placing blame on other
people or saying the situation is outside of their control. Changing their own behavior is not in
the cards; the beliefs that most encapsulate this mindset are, “It’s just who I am,” or “It’s not my
fault.” However in most cases, reactions and behaviors are habits that can be changed quite
easily with consistent self-inquiry. Successful entrepreneurs take full responsibility for creating
and changing their habitual reactions to outside influences, and know that the only thing that
they can change is their own perspective.

Think there’s not enough time.

Everyone has the same amount of time per day you have the same 24 hours as Oprah.
Continually believing that there isn’t enough time in the day to get things done may actually be
delineating an inability to delegate, a lack of scheduling, or distractions with unnecessary tasks.
Successful entrepreneurs are sticklers for their time, and know how to get things done by paying
close attention to how they prioritize, constantly looking for ways to improve their time
management.

Strive only for perfection.

Speaking of wasting time, successful entrepreneurs do not waste theirs trying to create perfect
things. Perfect does not exist. Striving for perfection ties up vital time and energy that robs
happiness and satisfaction from a job well done, and oftentimes creates blockades to finishing a
project or even starting. Those who achieve success strive for excellence, not perfection. They
know that constantly second-guessing their achievements and thinking, “I could have done that
better,” only diminishes what they have already done and sets unrealistic expectations.

Stay powerless and quiet.

They say I’m polarizing,” quips Naomi Klein, an outspoken activist and fearless writer. Klein is a
great example of a successful thought leader completely in her power who speaks out proudly
to support her beliefs. Successful entrepreneurs are strong advocates for themselves and
others, and know that what they add to the conversation has value and merit. They do not take
on a victim mentality, nor shrink themselves for any reason. They speak up when necessary,
and meet the challenges of creating a business head-on, with self-possession, grace, and
consideration.

People please.
Most humans have a deep-seated need to be liked, and put the desires of others ahead of their
own, throwing their own dreams and plans off track. However, the most successful
entrepreneurs know how to maintain clear boundaries for themselves while staying considerate
of other’s feelings. They are masters of their own lives, and take the reins of their personal
priorities. They don’t focus too much on making everyone else happy, and keep their ultimate
goals in mind to avoid thwarting progress. Advancing professionally is directly in alignment with
how we advance personally. Though identifying the self-limiting beliefs that cause self-limiting
behaviors can be difficult, it is not impossible. It can be a slow process, but your continued
entrepreneurial success will show you that it’s worth it.

6 BEHAVIORS THAT ARE LIMITING YOUR SUCCESS

Jealousy

Today it is easy to get caught up in jealous behaviors because we live in a social world. We get
notifications when someone gets a huge promotion, we see every picture from our “friends” two
week cruise, and we read the posts about fairy tale relationships. The problem with jealousy is
it can be consuming and ruin your life. It limits success because instead of working on your
dreams, you are spending time being envious of other. Instead of being jealous of others, be
grateful for what you have in your life.  It helps you be more productive and happier.

Self-limiting beliefs

The behavior that keeps many people from achieving success is self-limiting beliefs. This
behavior is when you hear that little voice start talking you out of doing great things. Self-
limiting beliefs includes thinking you are too inexperienced for a job, believing you shouldn’t take
a risk because you’ll fail, thinking it is too late, or you don’t need more money because you are
comfortable. All of these thoughts keep us from success.  Don’t come up with reasons why you
shouldn’t, think of reasons why you should do something great because you might actually
succeed!

Living in the past

It is hard to drive a car by looking in the rear view mirror, but there are many people who live life
like this.  They live by always bringing up the past and fail to move forward. This includes
living in the past by riding prior successes and past failures. We all see people who seem to be
on the fast track to success, but hit a plateau because they are living on that one big sale they
got two years ago. We also know people who can’t recover from failure or overcome someone
who wronged them Whether you are living in the past from a success or failure, you need to
move forward. Moving forward and setting goals is the only way to achieve and sustain success.

Gossip

If you are in business and have a bad behaviour of gossiping, then you won’t be in business
long. When we gossip to others and say bad things about others; it makes you look bad. People
will stop doing business with you, it will be difficult to rise higher in a company, and you will get a
bad reputation. There is no reason to gossip because it can destroy all of your success and limit
future success. As the old saying goes, don’t worry
about those who talk behind your back, they’re behind you for a reason.  If you want to get
ahead, then talk positively about others. It goes much further than gossip.

Giving up too soon

Many people never achieve success because they give up too soon. When there is a bump in
the road or an obstacle, they resort to backing down rather than persevering. We must be
willing to keep going. We need mind sets like Walt Disney, Abraham Lincoln, and Michael
Jordan who all fought on through failures to achieve wild success. We are wired to persevere.
When we were younger and learning to walk, we all overcame obstacles. Many of us fell and
got hurt while we were trying to go from crawling to walking. However, we all got back up and
learned to walk.

Negative thinking

Negative thinking is a dangerous behavior because it can be detrimental to our lives. When we

have a bad case of what Zig Ziglar calls “stinkin thinkin“, we limit our success significantly. This
behavior is bad because we start to think the world is out to get us, things will never get better,
or we expect everything to turn out bad. Turn your negativity around. Think about what is good
in your life and what you are possible of accomplishing. Take a self-assessment of yourself
and determine if any of these behaviors may be keeping you from success. If you are suffering
from one of them, then change it. When you make the decision to change any of these
behaviors, you will start to experience more success in your life.

TIME MANAGEMENT

What is Time Management?

the process of planning and exercising conscious control of time spent on specific activities,
especially to increase effectiveness, efficiency, and productivity.

major themes arising from the literature on time management include the following:

• Creating an environment conducive to effectiveness

• Setting of priorities

• Carrying out activity around prioritization.

• The related process of reduction of time spent on non-priorities

• Incentives to modify behavior to ensure compliance with time-related deadlines.

Time management is related to different concepts such as:

*  Project management

Time management can be considered to be a project management subset and is more

commonly known as project planning and project scheduling. Time management has also been
identified as one of the core functions identified in project management

 Attention management

relates to the management of cognitive resources and in particular the time that humans
allocate their mind to conduct some activities.

IMPORTANCE OF PLANNING

What is Planning?

the process of thinking about the activities required to achieve a desired goal. It is the first and
foremost activity to achieve desired results. It involves the creation and maintenance of a plan,
such as psychological aspects that require conceptual skills.

 A primary managerial activity that involves:

 Defining the organization’s goals.

  Establishing an overall strategy for achieving those goals.

 Developing plans for organizational work activities.

IMPORTANCE OF PLANNING

1. Increases efficiency

2. Reduces business-related risks

3. Facilitates proper coordination

4. Aids in Organizing

5. Increases efficiency

6. Reduces business-related risks

7. Facilitates proper coordination

8. Motivates personnel

9. Helps in decision-making

PROACTIVITY AND REACTIVITY

Proactivity or Proactive Behavior

 by individuals refers to anticipatory, change-oriented and self-initiated behaviour in

situations. Proactive behaviour involves acting in advance of a future situation, rather
than just reacting. It means taking control and making things happen rather than just
adjusting to a situation or waiting for something to happen. Proactive employees
generally do not need to be asked to act, nor do they require detailed instructions.

Pro-active behaviour has three key features:

 Anticipatory

 Change-oriented 

 Self-initiated 

Reactivity or Reactive Behavior

a phenomenon that occurs when individuals alter their performance or behaviour due to the
awareness that they are being observed. The change may be positive or negative, and depends
on the situation. It is a significant threat to a research study's external validity and is typically
controlled for using blinf experiment designs.
 CHAPTER 11
CONSUMER BEHAVIOR FUNDAMENTALS
Consumer Behavior is the study of when, why, how and where people do or do
not buy a product. It basically depends on the psychology of the consumer. It
attempts to understand the buyer decision making process both individually & in
groups. It studies the individual consumers such as demographics & behavioural
aspects to understand the people’s wants.
In the study of Consumer Behaviour main focus is the customer satisfaction
because customer is the only person with whose presence businesses actually
exists.

Types of consumer:

Consumer

Ultimate
BUYER Customer
Customer

Institutional
Buyer

 Consumer: According to International Dictionary of Management

“Consumer is a purchaser of goods and services for immediate use or
consumption”.
 Buyer: He is the person who purchase goods either for resale or for use in
production or for use of somebody else.
 Customer: He is the one who purchases goods for his own use or for the
use of others or else he is regular customer of a particular product and he
is a regular customer of particular shop.
 Institutional buyer: These are either govt. institutions or private
organizations.

Characteristics of consumer behavior

It is a process where consumer decide what to buy, when to buy, how to buy,
where to buy & how much to buy. It comprises of both mental and physical
activities of consumer. Consumer behaviour is very complex and dynamic which
keeps on changing constantly. Individual buying behaviour is affected by various
internal factors like his needs, wants, attitudes & motives and also by external
factors like social groups, culture , status, environmental factors etc. Consumer
behaviour starts before buying and even after buying.

Importance/Need of study of consumer behaviour

 To make better strategies for increasing profits.
 To take into consideration customer’s health, hygiene & fitness.
 To know the buying decisions and how consumer make consumption.
 Consistent change in Consumer’s tastes or preferences.
 Consumer behavior study is necessary to make pricing policies.
 To avoid future market failures.

Types of Consumer
Behavior

Complex Dissonance
Reducing Variety Seeking

Habitual

Buying Motives
According to D.J.Ducan, “Buying Motivesare those influences or considerations
whichprovide the impulse to buy, induce action ordetermine choice in the
purchase of goodsand services”.

Types of Buying Motives

A. Product & Patronage Motives
1.Product Motives
 Primary
 Secondary
2.Patronage Motives
 Price
 Quality
 Location
 Services
 Variety
 Personality of the owner
B. Emotional & Rational Motives
1. Emotional Motives
  Love of others
 Social acceptance motive
 Vanity Motive
 Recreational motive
 Emulate motive
 Comfort & convenience motive
2. Rational Motives
 Monetary gain
 Efficiency in operation
 Dependability
C. Inherent & Learned motives
1. Inherent motives are those which come from physiological & basic
needs such as hunger, thirst, sleep etc. If these motives are not satisfied
then consumer feels dissatisfied and feels mental tension.
2. Learned motives are those which are learned or acquired by a person
from environment and education like social status, acceptance, fear,
security etc.
D. Physiological & Social buyingMotives
1. Physiological motives are those which are driven by learning,
perception or attitude.
2. Social buying motives are those which are influenced by the society in
which the consumers live.

Factors influencing consumer behaviour

 Psychological factors
1. Consumer Needs motivation (Maslow’s need hierarchy theory)
2. Perception
3. Learning
4. Beliefs & Attitudes

 Social Factors
1. Reference group
2. Role and status
3. Family

 Cultural Factors
1. Culture
2. Sub Culture
3. Social Class

 Personal Factors
1. Age
2. Stages in life cycle
3. Occupation in economic status
4. Life style
5. Personality
  Economic factors
1. Personal income
2. Family income
3. Income expectations
4. Savings
5. Liquidity position advancement
6. Consumer credit
 Environmental Factors
1.Political situation
2.Legal forces
3.Technological
4.Ethical considerations

Market Segmentation
Segmentation is essentially an identification of the subsets of buyers within a
market that share a similar needs and demonstrates similar buyer behaviour. The
world is made up of billion buyers with there own set of needs and behaviour.
Segmentation made to match different group of buyers with different set of needs
& buyer behaviour. Such a group is known as “segment.”

Product Differentiation
It is the process of distinguishing a product or offering from others, to make it
more attractive to a particular target market. This involves differentiating it from
competitors products as well as a firms own product offerings. Difference
between market segmentation & product differentiation Market Segmentation
Product differentiation
22. Criteria for successful segmentation Segment must be large Segment must
be large Substantiality Substantiality enough to warrant a special enough to
warrant a special marketing mix. marketing mix. Identifiability Identifiability
Segments must be identifiable Segments must be identifiable Measurability
Measurability and their size measurable. and their size measurable. Members of
targeted segments Members of targeted segments Accessibility Accessibility
must be reachable with must be reachable with marketing mix. marketing mix.
Unless segment responds to a Unless segment responds to aResponsiveness
marketing mix differently, noResponsiveness marketing mix differently, no
separate treatment is needed. separate treatment is needed. Customers in one
particular Segment Homogeneity should be similar in terms of their responses
There should be sufficient demand Profitability for goods in the segment selected

Geographical Segmentation
In this type of segmentation market is divided into different geographical units
like:
 Regions (by country, nation, state, neighborhood)
 Population Density (Urban, suburban, rural)
 City size (Size of area, population size and growth rate)
  Climate (Regions having similar climate pattern)
 A company, either serving a few or all geographic segments, needs to put
attention on variability of geographic needs and wants.
 After segmenting consumer market on geographic bases, companies
localize their marketing efforts (product, advertising, promotion and sales
efforts)

Demographic Segmentation
 In , market is divided into small segments based on demographic
variables like:
 Age
 Gender
 Income
 Occupation
 Education
 Family size
 Family life cycle
 Religion
 Demographic factors are most important factors for segmenting the
customers groups. Consumer needs, wants, usage rate these all depend
upon demographic variables. So, considering demographic factors, while
defining marketing strategy, is crucial.

Psychographic Segmentation
In this type of segmentation, segments are defined on the basis of social class,
lifestyle and personality characteristics. Psychographic variables include:
o Interests
o Opinions
o Personality
o Self Image
o Activities
o Values
o Attitudes
o A segment having demographically grouped consumers may have
different psychographic characteristics.
Behavioral Segmentation
In this segmentation market is divided into segments based on consumer
knowledge, attitude, use or response to product. Behavioral variables include:
 Product segmentation.
 Product benefits segmentation.
 Brand Loyalty segmentation
 Occasions segmentation (holidays like mother’s day, New Year and
Eid)
 User Status (First Time, Regular or Potential)
  Behavioral segmentation is considered most favorable
segmentation tool as it uses those variables that are closely related
to the product itself.

Limitations of Market Segmentation

 High cost of production.
 High advertising & promotional costs.
 High working capital & storage expenses required.
 High administration expenses.
 Difficult to choose variable segments.
 Difficulty in getting skilled & experianced workers.

TARGET MARKETING
A target market is a group of customers at whom entire marketing efforts are
directed. In target marketing ,marketer identifies some parts of market, selects
one or more of them and develop suitable products & other elements
(price ,place, promotion) for each target market selected. For e.g.: Mercedes
target high status consumers, .whereas Hyundai target sensitive customers.

Approaches for selecting target market

Total market approach: in this company develops a single marketing mix and
direct it t the entire market for a particular product. Concentration approach: in
this organisation approach a single marketing segment through a single market
mix, total market consists of many segments but this will select only one segment
as target market. Multisegment approach: In this organisation targets two or
more segments by developing marketing mix for each segment. Eg: P7 G.
toyota.

Advantages of target marketing

 It enables the firm to tap marketing opportunities better.
 Firm can offer suitable product to each target market, thus they can serve
better nad also could develop loyal customers.
 It can expand the market share.
 Possible to build up company image in the market.
 It is suitable in case of services.

Product positioning
Consumers will position the product in there minds because they find some
unique features in the product as compare to other products. The act of creating
an image about the product in the minds of the customers is known as Product
positioning. For eg; Close up has looked upon by consumers as mouth freshener
than teeth cleaner and pepsodent is looked upon as a germ killer in consumer’s
mind.

Steps in Product positioning

 Identifying potential competitve advantages.
  Identify the competitors positions.
 Choosing the right competitive advantage. (may be in terms of technology,
quality, costs etc)
 Communicating the competitive advantage.
 Monitoring the position strategy.

Techniques of product positioning

 Positioning by corporate identity (eg: Tata , Sony, Godrej etc.)
 Positioning by brand endorsement.
 Positioning by product attributes and benefits. (Eg: Colgate positioned
itself on the basis of fresh breath, tooth decay)
 Positioning bye use occasion & time. Eg:Dettol for nicks n cuts, vicks for
children at night. Positioning by price and quality: Eg Nirma detergent
powder.
 Positoning by product category: For eg & up earlier was positioned as a
fresh clean taste now it has been positioned as soft drink.
 Positioning by product user: Eg: Farex. Positioning by competitor.
 CHAPTER 12

TIPS FOR GROWING WITH AN ENTREPRENEURIAL MINDSET

1. Revisit your vision on a daily basis

Much of the entrepreneurial mindset involves a steadfast commitment to a very
narrow vision. This drive allows entrepreneurs a to carry out the necessary steps to
accomplish that vision.

2. Put yourself in Challenging Situation

As an entrepreneur, you will naturally face the new challenges everyday. Just
because obstacles arise doesn’t mean you should be afraid of making mistakes. If you
want to cultivate an entrepreneurial mindset you have to embrace challenges.

3. Read on a daily basis

The best entrepreneurs out there are never content with the things are. That’s
exactly why drives them to create in the first place. This also applies to their own skill
set.

4. Approach problems from all sides

If you read a lot about the entrepreneurial mindset, there is a common thread; the
idea of approaching problems from all sides. Simply put the entrepreneurial mindset is
about thinking differently than the rest.

5. Always be in motion: Provide Value

If entrepreneurs are not thinking about their vision then they are actually putting their
vision into motion. Much of the entrepreneurial mindset is to simply do. They have
discipline, which allows them, to continually reach their goals.

Basic Style Rules Every Male Entrepreneur Should Follow

How an entrepreneur dresses says a lot about them, and the perspective they have of
their audiences. Over the years, media attention has shifted to what business people are
wearing and this has in turn influenced fashion and culture. Regardless, what you wear
to work will determine how others treat and see you.
1. Wear the right attire
 Some individuals may think that wearing oversized t-shirts adorned with the logos of
their companies will market their business. In an ideal situation, everyone should be wearing
collared shirts, well-fitting pants and suits. However, the rule of the thumb is to avoid baggy
attires. Avoid anything that will make you look as if you are struggling to show up for work. Keep
your clothes ironed and tuck your shut. You do not have to look expensive to seem professional.

2. Choose the right kind of shoes

The kind of shoes that you choose as an entrepreneur is important. Unless you are an
iconic business person such as Zuckerberg, stick with leather. You need to create an
impression of professionalism in your business affairs. Invest in blucher, longwigs, oxfords and
wingtips if you want your associates to see you as serious individual to carry on the business
with.

3. Have a watch

For some people, wearing a watch seems old school. People are now using their phones
to tell time. However, serious entrepreneurs should wear a watch as it easier to have one than
pulling out your phone every now and then. Good wristwatches that compliment whatever you
are a wearing is the way to go. However, keep it simple. Understated luxury watches with
leather straps appear modest and classy. Go for the sleek styling watches that are not too
flashy. You don’t want your associates’ attention to always be on the accessories. Smart
watches may be trending but it is a good idea to keep it simple.

4. Wear a belt

If you are wearing a suit, it will look good of you also wear a belt. The most common are
black and brown as they match most of the attire you wear. When it comes to shopping for a
belt, choose high quality that will last you a long time. The crocodilian or calfskin belts are good.
You can never go wrong with them.

5. Have a tie

The current trend is doing away with ties. Young entrepreneurs wearing collared shirts
without any tie. However, a tie is still an important piece of clothing that will compliment your
suit. A Charvet or a Brioni tie will give that professional look that creates a good impression
among the people that you meet.
6. Smile!

I feel that we don’t all know how important it is to smile. We smile because we are happy, it
shows others we are happy, but studies show that smiling works the other way around and also
makes us feel happy without actually being happy. Taking it a step further, whiten those teeth
with a whitening toothpaste and use a chapstick if you have dry lips. Having a great looking
smile makes it easier to do so, and people are generally more open to happier people with a
great smile.

7. Exude confidence.

Don’t leave home without an attitude and look that makes people gravitate to you. Looking
great makes you feel more comfortable, makes you more confident, and lets your more
charming side expose itself. Exercise open body language- never slouch, look relaxed wherever
you sit or stand, and look people in the eye when you talk to them. Don’t be afraid to talk to new
or random people either- if you look confident, people will be more comfortable approaching you
or more open when you approach them. Whether it’s talking to venture capitalist or hitting on a
beautiful woman, confidence is the one factor that covers everything.

8. Get a quick workout in.

Especially when sitting at a computer all day is how you grow your business, exercising is
crazy important. Over time it makes you stronger, healthier, and makes you look more
masculine. There are also more immediate effects you’d appreciate. Getting a quick workout in,
especially lifting weights, pumps more blood into your muscles and makes you look toned for a
period of time after your workout.

9. Take care of your skin.

Women aren’t the only ones who should have beautiful skin. Staying acne and blemish free
is a necessary part of looking healthy, clean, and also feeling confident about yourself. Using a
good face wash for your type of skin is really important. Most of the time, I just use whatever
products my girlfriend uses- exfoliators, cleansing washes, pore-unclogging masks, and
hydrating moisturizers- I look great so no complaints there. Try something new, even if it doesn’t
look “manly” enough.

10. Eat Like a Boss = Look and Feel like a Boss

 This last point ties many of the other points together. Feeling great and looking your best
is directly linked to eating right. Drink plenty of water every day, all day, to stay hydrated- it
affects your appearance, is linked to good skin, and keeps you energized because you can’t
function well (or tell) if you are even mildly dehydrated. Eat good food, none of that greasy fast
food or those sugary junk snacks. Grass-fed beef, chicken and fish, organic fruits and
vegetables and whole grains can literally change your life when you get into the habit of eating
well.