DEVELOPING THE ENTREPRENEURIAL
MIND serve as a barrier to your competitors. You thought you wanted
Entrepreneurial Habits
Every people will face some challenges, but
what sets entrepreneurs apart from non-
entrepreneurs is their mental habits. Listed
below are the habits of entrepreneurs:
Curious being
Boredom is the killer of effectiveness,
which is why the most successful
entrepreneurs are never bored. They
happily spend endless hours working and
doing what they love to do. They make it
a habit to be open and curious about
everything. This curiosity keeps them
asking questions and generating ideas for
what their next steps are going to be.
Because they remain open and curious, it
is impossible to drain their creative
reservoirs. They always have some small
idea they are eager to explore at a later
time. Curiosity is just another aspect
which contributes their effectiveness and
success. Curiosity is the difference
between average success and great
successes. Average people tend to stop
working when they run out of creative
energy, while highly effective
entrepreneurs have a radically different
approach in that they never stop
generating new ideas or paths to follow.
Turn obstacles into assets
The best entrepreneurs believe and act as
if everything is a gift. Well, maybe not
every single thing imaginable. But
assuming that everything is a gift is a
good way of looking at the problems and
surprises you'll encounter in any
endeavor, such as getting a new venture
off the ground, obtaining buy-in from
your boss, or launching a new product
line in an ultra-competitive market.
First, you were going to find out
eventually what people did and did not
like about your idea. Better to learn it as
soon as possible, before you sink more
resources into the concept, venture, or
product line. You always want to keep
potential loses to a minimum.
Second, the feedback could take you in another direction, or
to start a public relations firm but a quick survey told you
potential customers thought the field was saturated. But more
than a few of them said they would love someone who could
help with their internal communications.
Third, you got evidence. True, it was not what you were
expecting or even wanted, but that still puts you ahead of the
person who is just thinking about doing something. You know
something they don't, and that is an asset. You are ahead of the
game.
Having high tolerance of ambiguity
Ambiguity can be really uncomfortable to many people. They
need a clear set of rules and expectations about how things
should be. Without them, they tend to flounder or stall out.
That isn’t necessarily a mark of failure; in some ways, it is most
adults’ natural predisposition. Interestingly, though, researchers
have found that children generally have a higher tolerance for
ambiguity than grownups do. They are more willing to accept
murky conditions—situations where the likelihood of winning or
losing is unknown. That makes perfect sense: As we mature, we
become more adept at assessing risk. Children, as any parent
knows, gleefully indulge in “risky” behaviors on an hourly
basis–always testing their limits and exploring.
Some of the most successful entrepreneurs share that trait with
kids. They tend to have a high tolerance for ambiguity, which
makes them more likely to take risks based on limited
information. Indeed, starting a business is all about confronting
one unknown after another.
Having a high tolerance for ambiguity makes you less likely to
get anxious in novel situations or when faced with your own
uncertainty. You can think quickly on your feet and see things
from different angles.
The unfamiliar is simply an opportunity to adapt, and you know
there’s no set of guidelines that can help you do that.
Using fears and anxieties as fuel
When we’re feeling anxious, many of us try to calm ourselves
down. According to research by Dr. Alison Wood Brooks of
Harvard Business School, “Anxiety is incredibly pervasive.
People have a very strong intuition that trying to calm down is
the best way to cope with their anxiety, but that can be very
difficult and ineffective.”
In fact, Wood Brooks has found that trying to calm yourself
down can actually worsen your performance. Instead, reframing
your anxiety as excitement can dramatically improve your
performance. That’s one reason why professional athletes and
successful entrepreneurs frame their anxieties as feeling
“pumped up,” harnessing those normal
jitters to work in their favor.
Focus on the causes, not effects, of
confidence and success
Source: https://visual.ly/community/infographic/education/summary-stephen-covey-
Many people don’t handle either failure
or success very well. They are on a
behavioral roller-coaster that soars or dips
according to the circumstances. When
things are not going well, they are
overwhelmed or depressed. When things
are going well, they are overconfident
and lazy.
In fact, success might represent an even
greater adversity than failure. That’s been
indifferent.
Be proactive
Figure 1. The Effects of Being Proactive
bestseller-7-habits
Proactivity means more than merely taking initiative. It means
that as human beings, we are responsible for our own lives. Our
behavior is a function of our decisions, not our conditions. We
can subordinate feelings to values. We have the initiative and the
responsibility to make things happen.
Highly proactive people recognize that responsibility means the
ability to choose a response. They do not blame circumstances,
conditions, or conditioning for their behavior.

“No one can make you feel inferior without your consent.”
apparent long before the rise of modern
psychology; Abraham Lincoln said,
“Nearly all men can stand adversity, but if
you want to test a man’s character, give
him power.” As soon as we succeed, we
tend to focus on the causes of our
success, believing we were right all
along to feel confident in ourselves. Our
focus shifts toward the effects of our
success. The distracting noise of praise,
opportunities, and other rewards pulls us
away from the work that got us there,
which can wreck our future performance.
– Eleanor Roosevelt
Proactive people are influenced by external stimuli, whether
physical, social or psychological. But their response to stimuli,
conscious or unconscious, is a value-based choice or response.
It is not what happens to us, but our response to what happens
to us that hurts us. Of course, things can hurt us physically or
economically and can cause sorrow. But our character, our basic
identity, does not have to be hurt at all. In fact, our most difficult
experiences become the crucibles that forge our character and
develop the internal powers, the freedom to handle difficult
circumstances in the future and to inspire others to do so as well.

Successful entrepreneurs have the

presence of mind to resist that shift in
focus. Their behavior is remarkably
consistent regardless of whatever success
or defeat they experience. They know that
the confidence they feel and any
achievements they make are the products
of a constant, internal drive to improve
their craft. After all, those effects are
outside their control. Instead, they focus
on their own behavior, which is the root
cause of all those outcomes–good, bad, or
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As we look at those things within our circle of concern, it
i
r becomes apparent that there are some things over which we have
c no real control and others that we can do something about. We
l could identify those concerns in the latter group by
e
circumscribing them within a smaller circle of influence (Covey,
o
1989).
f
Begin with the end in mind
I
This principle states that all things are created twice, but not all
n
f first creations are by conscious design. In this case, leadership is

Management is doing things right; leadership is doing the right things.

l the first creation, and management is the second creation

u
(Covey, 1989).
e
n
c Put first things first
e

a There are two (2) factors that define an activity: urgent and
n important. Urgent means it requires immediate attention. For
d example, a ringing phone is urgent; most people can’t stand the
thought of just allowing the phone to ring. Urgent matters are
C usually visible; they insist action.
i
r
Importance, on the other hand, has to do
with results. If something is important, it
contributes to an entrepreneur’s mission,
values, and high priority goals.
Looking at Figure 3, Quadrant I is both
urgent and important. It deals with
significant results that require immediate
attention. Activities in Quadrant I are
usually called crises or problems. Some
entrepreneurs are beaten so bad by problems
in Quadrant I that they escape to the not
important and not urgent activities of
Quadrant IV.

There are entrepreneurs who spend a great

deal of time in urgent but not important
activities in Quadrant III, thinking they are
in Quadrant I. They spend most of their time
reacting to things that are urgent, assuming
they are also important. But the reality is
that the urgency of these matters is often
based on the priorities and expectations of Figure 3. Time Management Matrix
others. Source: https://visual.ly/community/infographic/education/summary-stephen-
covey-bestseller-7-habits
Entrepreneurs who spend time almost
exclusively in Quadrants III and IV
basically lead irresponsible lives. Effective
people stay out of Quadrants III
and IV because, urgent or not, they are not important. They also shrink Quadrant I down to size by spending
more time in Quadrant II. Quadrant II is the heart of effective personal management. It deals with things that
are not urgent, but are important. It deals with things like building relationships, writing a personal mission
statement, long-range planning, exercising, preventive maintenance, preparation -- all those things we know
we need to do, but somehow seldom get around to doing, because they are not urgent (Covey, 1989).
Think win-win

Win-win is a frame of mind and heart

that constantly seeks mutual benefit in
all human interactions. Win-win
means that agreements or solutions are
mutually beneficial and satisfying.
With a win-win solution, all parties
feel good about the decision and feel
committed to the action plan. Win-win
sees life as a cooperative, not a
competitive arena. Most people tend
to think in terms of dichotomies:
strong or weak, hardball or softball,
win or lose. But that kind of thinking
if fundamentally flawed. It is based on
power and position rather than on
principle. Win-win is based on the
paradigm that there is plenty for
everybody, that one person's success
is not achieved at the expense or
exclusion of the success of others
(Covey, 1989).
Figure 4. Win-win Situation
Source:
https://visual.ly/community/infographic/education/summary-
stephen-covey-bestseller-7-habits

Seek first to understand, then to be understood

"Seek first to understand" involves a very deep shift in paradigm. People typically seek first to be understood.
Most people do not listen with the intent to understand; they listen with the intent to reply. They are either
speaking or preparing to speak. They are filtering everything through their own paradigms, reading their
autobiography into other people's lives.

EXAMPLE: If a parent has a problem with his/her child, the usual response is “I understand him/her, I
know what s/he’s going through. I went through the same thing myself. I just don’t understand why s/he
won’t listen to me.” When in reality, the parent doesn’t have the vaguest idea about his/her kid. S/he
thought of him/herself and assumed that the kid has the same perspective.

Emphatic listening is getting inside another person’s frame of reference. You look through it, you see
the world the way they see the world, you understand their paradigm, and you understand how they feel.

Empathy is not sympathy. Sympathy is a form of agreement, a form of judgment. And it is sometimes the
more appropriate emotion and response. But people often feed on sympathy. It makes them dependent. The
essence of empathic listening is not that you agree with someone; it is that you fully, deeply, understand that
person, emotionally as well as intellectually (Covey, 1989).
 Figure 5. Process of Emphatic Listening
Source: https://visual.ly/community/infographic/education/summary-stephen-covey-bestseller-7-habits

Figure 6. Exchange of Conversation with an Emphatic

Listener
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Synergize

Figure 7. Concept of Synergy

Source: https://visual.ly/community/infographic/education/summary-stephen-covey-bestseller-7-habits

Synergy means that the relationship which the parts have with each other is a part in and of itself. It is not
only a part, but the most catalytic, the most empowering, the most unifying, and the most exciting part
(Covey, 1989).

Sharpen the saw

This means expressing all four (4) (perspective, autonomy, connectedness, and tone) motivations. It is the
exercising of the four (4) dimensions of our nature, regularly and consistently, in wise and balanced ways
(Covey, 1989).
 DEVELOPING BUSINESS ACUMEN
The Purpose of Business

Naert’s Model
Naert, dean of the Antwerp Management School in Belgium, believes that value creation is the purpose of
business.
Van Duzer’s Model
Jeff Van Duzer, dean of the School of Business and Economics at Seattle Pacific University, shares some
commonalities with Naert in his criticism of the shareholder model.
Van Duzer proposes that the purpose of business is twofold:
 To serve customers through providing goods and services that promote human flourishing
 To serve employees by providing opportunities for meaningful and creative work
Parikh’s Model
Indira Parikh, president of the Foundation for Liberal and Management Education (FLAME), argues that the
ancient wisdom of many Hindu scriptures can and should be appropriated to business practice in India.
1. Bhagavad Gita
It asserts that people should focus on their thoughts and actions rather than the outcomes of those actions.
1. Greed is bad. You should never engage in action only for the desire of rewards. Acting on worldly
desires leads to failures. Do well and good things will come.
2. Be fair. Enlightened leaders are compassionate and selfless. “They treat everyone as equals.”
Followers will rally around them and follow their example.
3. Act rather than react. A leader’s actions today can become the “karma” that influences his/her
status tomorrow. Leaders accomplish “excellence by taking action.”
4. Seek higher consciousness. Leaders should view problems within their larger contexts. Show
sensitivity to multiple stakeholders including shareholders, employees, partners, and neighbors.

2. Dharma
Dr. Athreya, a renowned management guru, has highlighted some of the core concepts of Dharma (natural
law), as enshrined in the Indian Shashtras (timeless principles). Generally speaking, Dharma can be
understood as righteous duty, or the right path that will uphold the family and the organizational and social
fabric. Prominent concepts of Dharma that apply to business include the following:
1.Loka Sangraha (Public Good) – the practice of seeking one’s own gains and also catering to the
welfare of others. This largely reflects all the stakeholders.
2. Kausalam (Efficacy) – judicious use of resources and preserving resources for future generations.
This reflects concern for ecology as well as for stakeholders.
3. Vividhta (Innovation) – beyond survival, business has to be the engine of innovation constantly
seeking more effective solutions to meet their economic and social expectations.
4. Jigyasa (Learning) – change and continuity coexist. Corporate governance has to keep learning
from the feedback loop from society and through internal processes of questioning, challenging,
debating, and training.
BUSINESS MODEL
In essence, a business model embodies nothing less than the organizational and financial ‘architecture’ of a
business.
Red Ocean vs. Blue Ocean

Blue oceans are not about technology innovation.

Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space. Create uncontested market space.

Beat the competition. Make the competition irrelevant.

Exploit existing demand. Create and capture new demand.

Make the value/cost trade-off. Break the value/cost trade-off.

Align the whole system of Align the whole system of
a company’s activities with its strategic a company’s activities in pursuit of
choice of differentiation or low cost. differentiation and low cost.

The creators of blue oceans, in sharp contrast to companies playing by traditional rules, never use the
competition as a benchmark. Instead they make it irrelevant by creating a leap in value for both buyers
and the company itself.
Strategy Canvas
The strategy canvas graphically depicts a company’s and its competitors value proposition investments,
suggests areas of opportunity on which to escape/eliminate competition, captures the current and future state
of activity within a marketspace, and documents current and future competitive investment.
 The strategy canvas serves two (2) purposes:
 To capture the current state of play in the known market space, which allows users to clearly see
the factors that the industry competes on and where the competition currently invests
 To propel users to action by reorienting their focus from competitors to alternatives and from
customers to noncustomers of the industry.
ERRC (Eliminate, Reduce, Raise, Create)
A helpful tool in crafting a future strategy canvas is the Four Actions Framework as it facilitates in
identifying the value elements to be created, increased, decreased, or eliminated.
The Eliminate-Reduce-Raise-Create (ERRC) Grid developed by W. Chan Kim and Renee Mauborgne is a
simple matrix like tool that drives companies to focus simultaneously on eliminating and reducing as well as
raising and creating while unlocking a new blue ocean.

Figure 2. The Four Actions Framework

ESSAY

1. Explain how an entrepreneur can break out of red oceans.

2. Explain how the Four (4) Actions Framework can help an entrepreneur in pursuing a venture
3. Cite a practical scenario or personal experience demonstrating one (1) of the entrepreneurial habits.
4. Evaluate the importance of Parikh's model as the purpose of a business.
5. Explain the possible implications if there are no balance sheets.