THE

ENTREPRENEURIAL
MIND
SCOPE
The benefits of being an entrepreneur are being one’s own boss and having the freedom and
flexibility to directly handle problems and be creative. While the realities of being an
entrepreneur are often glorified, there is some truth to the stereotype. Reporting to no one but
clients, having the freedom to adopt pet projects, and being able to drop the task at hand for
something more important are benefits people around the world strive for. These benefits are
usually acquired by becoming an entrepreneur or at least thinking outside the box like one.
Being one’s own boss is a major benefit of being an entrepreneur. In fact, many say they cannot
imagine working the standard nine-to-five job. Becoming self-employed means having a lot of
freedom and flexibility, but it is also a practice in self-discipline. It is common to hear business
owners state that they put in a full-time job’s worth of hours for months or even years before
their businesses began to thrive, usually for little income. People who lack the drive to work
hard often fail at starting or maintaining the business.

OVERVIEW
An entrepreneur may be defined as an individual who takes initiatives to bundle resources in
innovative ways and is willing to bear the risk and/or uncertainty of acting. Entrepreneurial
action may be understood as behavior in response to a judgmental decision in conditions of
uncertainty about a possible opportunity for profit. Finns need to develop the capacity and
willingness to develop, organize, and manage a business venture along with the embedded
risks in order to make a profit. The most obvious example of entrepreneurship is the starting of
new businesses. Besides economic entrepreneurship, social entrepreneurship combines
economic entrepreneurship with a mission to change society, which is considered part of social
responsibility to be delivered by companies. Social entrepreneurship offers insights that
stimulate ideas to develop socially acceptable and sustainable business strategies. It
contributes directly to internationally recognized sustainable development goals, and also to
encourage business firms in undertaking corporate social responsibility. The major factors that
contribute in the emergence of the entrepreneurial economy include:
► The rapid evolution of knowledge and technology-promoted high-tech entrepreneurial
start-ups
► Demographic trends accelerating the proliferation of newly developing ventures
► The venture capital market becoming an effective funding mechanism, and
► Industries in developing countries beginning to leam how to manage entrepreneurship.

Entrepreneurship is woven around performing goal-oriented tat and handling capital and
operational risks in business. One of the major threats for new and small enterprises is
growing market competition. The challenge of entrepreneurship amid increasing innovations,
technologies, and managerial competencies lies in effectively managing the uncertainty
inherent in delivering something new to consumers while surviving in the competitive
marketplace. While operating business with certain limitations some entrepreneurs ignore
emerging uncertainties while others tend to be extremely sensitive to managing every
anticipated contingency and can the risk of falling off the market track. Entrepreneurs should
manage uncertainty through a disciplined approach by the adoption of an iterative
experimentation model. In carrying out disciplined strategy entrepreneurs should formulate
working propositions about exploring opportunities and resources, and finally design and can
real-world experiments. Analyzing various propositions, the entrepreneur may plan to harvest
resources and create value through sales. Entrepreneurs are more business leaders than
managers as they largely bring their innovative ideas into the enterprise for improving their
products, services, and strategies. Managers and leaders are two very different types of people.
Managers excel at defusing conflicts between individuals or departments, and driving
employees to manage day-to-day activities, while entrepreneurs as leaders drive an entire
organization toward achieving corporate goals. They look for the opportunities and rewards
that lie around the comer, inspiring subordinates and firing up the creative process with their
own energy. Entrepreneurs develop intense relationships with employees and coworkers, and
help in developing a pleasant workplace ambience.
 UNIT 1
ENTREPRENEURIAL MINDSET AND THINKING SKILLS
INTRODUCTION
“Entrepreneurs assess the tools that they have, come up with goals on the fly, and keep
adapting to new circumstances and new information. In other words, thinking and action
happen at the same time. Non-entrepreneurs tend to prefer causing reasoning, kind of cause
and-effect way of thinking, where they start off with a long-term goal and plot out the best
means to achieve it. In essence, non-entrepreneurs think before they act. Although this
continues to be the model many parents and educational settings thrust on young minds,
entrepreneurs are less likely to follow it.”
Universities get students who already at the early stage of their entrepreneurship journey. They
chose this specific place of study and degree because this is what they want to do in their life
and so far this is their achievement, which might turn into something great later on. Since
students are accepted, this is the moment when universities as science hubs have the
responsibility to satisfy academic needs of students and even more, they can inspire students
to do more in their lives and help them to build their own career paths despite all the life
circumstances. Universities can make students think entrepreneurially and innovatively.
LEARNING
OBJECTIVES
After reading and analyzing the unit, you should be able to:
1. Identify the critical thinking skills of
entrepreneur
2. Learn and evaluate the entrepreneurial problems and opportunities
3. How to implementing entrepreneurial ideas
D
CRITICAL THINKING SKILLS OF ENTREPRENEUR
Critical thinking is the ability to apply reasoning and logic to new or unfamiliar ideas, opinions,
and situations. Thinking critically involves seeing things in an open-minded way and
examining an idea or concept from as many angles as possible. This important skill allows
people to look past their own views of the world and to better understand the opinions of
others. It is often used in debates, to form more cogent and well-rounded arguments, and in
science.

Open-Minded Approach
The ability to think critically is essential, as it creates new possibilities in problem solving.
Being “open-minded” is a large part of critical thinking, allowing a person to not only seek out
all possible answers to a problem, but to also accept an answer that is different from what was
originally expected. Open-minded thinking requires that a person does not assume that his or
her way of approaching a situation is always best, or even right. A scientist, for example, must
be open to the idea that the results of an experiment will not be what is expected; such results,
though challenging, often lead to tremendous and meaningful discoveries.

Rational Considerations
Another aspect of critical thinking is the ability to approach a problem or situation rationally.
Rationality requires analyzing all known information, and making judgments or analyses based
on fact or evidence, rather than opinion or emotion. An honest approach to reasoning requires
a thinker to acknowledge personal goals, motives, and emotions that might color his or her
opinions or thought processes. Rational thought involves identifying and eliminating
prejudices, so that someone can have a fresh and objective approach to a problem.
Empathy
Critical thinking often relies on the ability to view the world in a way that does not focus on the
self. Empathizing with a person usually involves a thinker trying to put himself or herself in the
place of someone else. This is often done by students of history, for example, in an attempt to
see the world as someone would have while living in an ancient civilization or during a violent
conflict. Communication skills, teamwork, and cooperation are typically improved through
empathy, which makes it valuable in many professional fields.
How to Apply It
Effective critical thinking often begins with a thinker analyzing what he or she knows about a
subject, with extra effort made to recognize what he or she does not know about it. This forms
an initial knowledge base for consideration. The thinker can then look at what research has
been done on the subject, and identify what he or she can learn simply by looking over such
work. This approach is often used in science, as it allows a scientist to determine what people
do not yet know or understand, and then look for ways to discover this information through
experimentation.
When someone applies this approach to his or her own life, he or she often places more
emphasis on finding prejudices and preconceived notions he or she holds. This lets the thinker
strive to eliminate or avoid these opinions, to come to a more honest or objective view of an
issue. Someone struggling with a fear of heights, for example, might strive to determine the
cause of this fear in a rational way. By doing so, he or she might be better able to deal with the
root cause directly and avoid emotional responses that could prevent self-improvement.

Common Uses
Critical thinking is used in many situations. Members of a debate team frequently think
critically about a subject to form a strong argument and anticipate points their competitors
might make. Diets using common sense, in which the focus is on how weight is gained and lost
through calories and exercise, S an require that the dieter thinks critically about his or her
lifestyle. Many people use open-mindedness and empathy in their professional lives, allowing
them to work better with others and complete tasks more effectively.
Teaching This Skill
School systems in the US usually teach critical thinking from elementary school up through
college-level courses. Teachers encourage students to learn through writing assignments and
problem solving. For example, younger students might be asked how their lives would be
different if they were born in another country or in a different time period. Such assignments
push students to let go of what they know about the world around them, to better consider
other perspectives and apply new ideas to their own lives.
Develop critical thinking skills

Benefits in professional and everyday life

Skills in critical thinking bring precision to the way you think and work. You will find that
practice in critical thinking helps you to be more accurate and specific in noting what is
relevant and what is not. The skills listed above are useful to problem-solving and to project
management, bringing greater precision and accuracy to different parts of a task.
M Although critical thinking can seem like a slow process because it is precise, once you
have acquired good skills, they save you time because you learn to identify the most relevant
information more quickly.
Ancillary skills
Critical thinking invoIves the development of a range of ancillary skills such as:
► Observation
► Analysis
► Reasoning
► judgement
► Decision-making
► Persuasion
Realistic self-appraisal
It is likely that you already possess some or all of these skills in order to cope with everyday
life, work. However, the more advanced the level of study or the professional area, the more
refined these skills need to be. The better these skills are, the more able you are to take on
complex problems and projects with confidence of a successful outcome.
Critical thinking rarely takes place in a vacuum. Higher-level critical thinking skills usually
require some or all of the skills and attitudes listed below.
Emotional self-management
Critical thinking sounds like a dispassionate process but it can engage emotions and even
passionate responses. This should not surprise us when we consider that reasoning requires
us to decide between opposing points of view. In particular, we may not like evidence that
contradicts our own opinions or beliefs. If the evidence points in a direction that is unexpected
and challenging, that can rouse unexpected feelings of anger, frustration or anxiety.
The academic world traditionally likes to consider itself as logical and immune to emotions, so
if feelings do emerge, this can be especially difficult. Being able to manage your emotions under
such circumstances is a useful skill. If you can remain calm, and present your reasons
logically, you will be better able to argue your point of view in a convincing way.
Need for Critical Thinking
One of the great things about critical thinking is its versatility. It is valuable at all levels of our
thinking.
At the Level of Practical Decision Making
Critical thinking helps when we are simply trying to deal with ordinary tasks: how to study
more efficiently, find a strategy when we are stuck in an airport, decide what kind of clothes to
buy. This is thinking about the means to use to accomplish our goals. It is problem solving of
the most authentic kind. This is an important level of critical thinking, one that addresses all
those ordinary decisions we make
Developing thinking skills helps you envision alternative paths you could take. It helps you
identify and discard outdated assumptions you may be making. It helps you anticipate some of
the consequences, both positive and negative, of decisions you or others may make. It helps
you keep your goals in sight and think of more effective means of achieving those goals.
At the Level of Meaningfulness
Learning to think critically also helps people deal with the much larger issues of living their
life. Critical thinking frees people, the way nothing else really can, from habits of thinking they
are often ruled by. Not completely of course, but substantially. Critical thinking opens up other
viable courses of action that leave people far more fulfilled, paths that otherwise might never
occur to them. Finding a life partner or a new occupation; incorporating the profound
knowledge that’s available in your courses into your way of thinking about your life; developing
reasonable attitudes toward self, toward others, toward your values, toward all the things that
make life meaningful for you—all of these can be made richer and more attainable when you
examine them thoughtfully
At the Level of Concepts
We think in terms of concepts, and these inevitably shape our life to a considerable degree.
Very often the concepts we think in terms of are ones we accept uncritically. We may
understand what love is from movies and from the way we feel. We may understand what
freedom is simply by having heard the word over and over and making vague associations with
it. We may grow up thinking justice means getting even. We all have concepts of what it is to be
a student, a teacher, a woman, a man, a religious person, an atheist, a scientist, an artist, a
professional in the field we are studying. We have concepts of what it means to be brave, to be
treated fairly, to be intelligent, to be cool, to be anything you can name or describe. We can
reach a deep level of critical thinking by examining our concepts critically, becoming more
aware of the way individual concepts help us or hurt us, limit us or free us.
Even aspects of ourselves that are distinct from thinking are heavily influenced by our
concepts. Desires, for instance: If you like something, or hate it—a person, a movie, a subject
in school, a kind of car—the liking or the hating is not itself an instance of thinking. Rather,
the liking or hating is influenced by the concepts you use in your thinking. It is only recently
that anyone thought suntans were beautiful, that beaches were a desirable place to spend a
vacation, that thinness in men and women was attractive, that wilderness held value, that
toleration was a virtue, that democracy was workable, that it was unhealthy to be a caretaker
in a relationship. Our standard concepts for each of these key terms has changed, becoming
strikingly more positive or negative. The concepts may well change again. It can be liberating to
step out of the fads that come and go with respect to what is desirable. Re-examining the
concepts you have of the things you desire will help you rise above the fads.
Similarly, your concepts have an immense influence on what you are afraid of and what brings
you joy. If you are afraid of the dark, afraid of math, or even afraid of dying— these are not
universal fears. There are many People, not very different from you, who don’t share these
fears. Some people feel safe in the dark, delight in math (even if they are not very good at it),
and find peace and acceptance in contemplating death. We fear things in part because of the
concepts we have of those things, because of how we classify them and think about them.
I
The influence of our thinking extends even to bodily sensations: “Even though nerve signals
work the same way, something as obviously biological as pain in childbirth is experienced
differently depending on cultural expectations. Women develop expectations not just about how
they should respond but about how they should experience their own sensations and
emotions.”

Emotions are not really under our direct control, though how we act on those emotions often
is. Many of the ways people try to gain direct control over their emotions actually hurt. If you
are afraid of speaking in public, for example, but feel you shouldn’t be afraid of it, you can try
to suppress the fear. Maybe you can even force yourself to speak in public, or pretend to
yourself that you are not afraid of it. You can reason as follows: “It doesn’t make sense to feel
fearful of speaking in public. There’s really nothing to be afraid of. Therefore, I am not afraid of
speaking in public.” This is called denial. Denial is when you keep yourself from seeing
something you know is true. The classic case is alcoholics who refuse to see that they are
alcoholics. Many people confuse denial of this sort with being rational. Neither suppression nor
denial is very healthy. Neither is very effective either, at least not in the long run. Both have
high psychological costs. Though our emotions are not under our direct control, we can
indirectly affect them by addressing our concepts. You can work on your concept of public
speaking and try to understand why you see it as fearsome. You can admit and honor the fear
that arises. You can investigate what its roots are, what associations you have with it that
generate the fear, and build new associations. You can rethink the concept over time, and
usually this will be effective in changing your reaction to it.
N
Mindset
A
We have been using the term mindset since, so perhaps it is time we stopped to examine what
it actually means. It has traditionally been defined as “the established set of attitudes Held by
someone.”’ It is a good description of how our mindset operates. When we wake up in the
morning, we have a choice between the “easy” way and the “right” way. Depending on our
mindset, we will choose one path or the other. There are two different types of mindset: a fixed
mindset and a growth mindset (Figure 1).
 Figure 1:
In a fixed mindset, people perceive their talents and abilities as set traits. They believe that
brains and talent alone are enough for success and go through life with the goal of looking
smart all the time. They take any constructive criticism of their capabilities very personally,
and tend to attribute others’ success to luck or some sort of unfair advantage. People with a
fixed mindset will tell themselves they are no good at something to avoid challenge, failure, or
looking dumb.
On the other hand, in a growth mindset, people believe that their abilities can be developed
through dedication, effort, and hard work. They think brains and talent are not the key to
lifelong success, but merely the starting point. People with a growth mindset are eager to
enhance their qualities through lifelong learning, training, and practice. Unlike people with
fixed mindsets, they see failure as an opportunity to improve their performance, and to learn
from their mistakes. Despite setbacks, they tend to persevere rather than giving up.
Recent studies have found that overly praising or being praised simply for our intelligence can
create a fixed mindset. For example, using a series of puzzle tests,
Dweck discovered that 5th-grade children who were praised for their hard work and effort on
the first test were far more likely to choose the more difficult puzzle next time round. In
contrast, children who were praised for being smart or intelligent after the first test chose the
easy test the second time around. It seems that the children who had been praised for being
smart wanted to keep their Nreputation for being smart and tended to avoid any challenge that
would nbelief. Yet the children who had been praised for how hard they had worked on the first
test and practice had more confidence in their abilities to tackle a more challenging test and to
learn from whatever mistakes they might make.

Dweck observes the growth mindset in successful athletes, business people, writers,
musicians; in fact, anyone who commits to a goal and puts in the hard work and practice to
attain it. She believes that people with growth mindsets tend to be more successful and
happier than those with fixed mindsets.

Although many of us tend to exhibit one mindset or the other, it is important to recognize that
mindsets can be changed. Even if your mindset is a fixed one, it is possible to learn a growth
mindset and thereby boost your chances for happiness and success. How can you do this? By
becoming aware of that “voice” in your head that questions your ability to take on a new
challenge, by recognizing that you have a choice in how you interpret what that voice is telling
you, by responding to that voice, and by taking action.

For example, say you want to start a new business, but you’re a little unsure of your
accounting skills. Following are some messages you might hear from the “voice” in your head
and some responses you might make based on a growth mindset.
The Mindset for Entrepreneurship
The growth mindset is essential to a mindset for entrepreneurship. The Practice of
Entrepreneurship and how it requires a specific mindset so that entrepreneurs have the ability
to alter their ways of thinking in order to see the endless possibilities in the world. While there
is no one clear definition of mindset and how it relates to entrepreneurs, we believe the most
accurate meaning of an entrepreneurial mindset is the ability to quickly sense, take action,
and get organized under uncertain conditions.6 This also includes the ability to persevere,
accept and learn from failure, and get comfortable with a certain level of discomfort!
9
Many successful entrepreneurs appear to be very smart—but rather than being born with high
intelligence, it is often the way they use their intelligence that counts. Cognitive strategies are
the ways in which people solve problems such as reasoning, analyzing, experimenting, and so
forth. The entrepreneurial mindset involves employing numerous cognitive strategies to identify
opportunities, consider alternative options, and take action.
U
Because working in uncertain environments “goes with the territory” in entrepreneurship,the
entrepreneurial mindset requires constant thinking and rethinking, adaptability, and
self-regulation—the capacity to control our emotions and impulses.

We touched on the concept of metacognition, which is the way in which we understand our
own performance or the process of “thinking about thinking” (Figure 2). T

Figure 2: Metacognition
For example, say you are reading through a complex legal document; you to think it through,
note the elements that do not make sense to you, and then either come back to it later or find a
way to clarify the parts you do not understand. In this example, you are using your
metacognitive skills to monitor your own understanding of the text, rather than simply plowing
through the document without having much comprehension at all.
Entrepreneurs regularly engage in metacognitive processes to adapt to changing circumstances
by thinking about alternative routes to take and choosing one or more strategies based on
these options. Metacognitive awareness is part of the mindset, and it is not something that we
are born with. It can be developed over time through continuous practice.
Passion and Entrepreneurship
Among many elements of the entrepreneurial mindset, one of the most talked about is the
element of passion. The entrepreneurial mindset is about understanding yourself, who you are,
and how you view the world. It deeply connects to your desired impact, which some people
equate to passion. In the past, researchers tended to use passion as a reason to explain certain
behaviors displayed by entrepreneurs that were thought to be unconventional, such as
perceived high risk taking, intense focus and commitment, and a dogged determination to
fulfill a dream!
But what is passion, and is it really that important to entrepreneurial success? In the context
of entrepreneurship, passion can be defined as an intense positive emotion, which is usually
related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and
which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and
remain focused on their goals. This type of passion is aroused by the pleasure of engaging in
activities we enjoy. Studies have found that passion can also “enhance mental activity and
provide meaning to everyday work,’ as well as fostering “creativity and recognition of new
patterns that are critical in opportunity exploration and exploitation in uncertain and risky
environments.””
Passion has also been associated with a wide range of positive effects, such as strength and
courage, motivation, energy, drive, tenacity, strong initiative, resilience, love, pride, pleasure,
enthusiasm, and joy—all of which can occur as part of the entrepreneurship process.
While passion is not all that is needed to be successful, research has shown that positive
feelings motivate entrepreneurs to persist and engage in tasks and active in order to maintain
those pleasurable emotions.
However, there can also be a dysfunctional side to passion. It is possible to become blinded by
passion and so obsessed by an idea or new venture that we fail to heed the warning signs or
refuse to listen to negative information or feedback. This type of negative passion can actually
curb business growth and limit the ability to creatively solve problems.

Entrepreneurship as a Habit
So far, we have discussed the meaning of mindset, the different types, and the importance of
passion and positive thinking for success. As we have learned, mindset is not a predisposed
condition; any one of us can develop a more entrepreneurial mindset, but how do we do it?
A good approach is to consider developing new habits. A habit is a sometimes unconscious
pattern of behavior that is carried out often and regularly. Good habits can be learned through
a “habit loop”—a process by which our brain decides whether or not a certain behavior should
be stored and repeated.
If we feel rewarded for our behavior, then we are more likely to continue doing it. For example,
toothpaste companies instigate a habit loop in consumers by not just advertising the hygiene
benefits of brushing teeth, but also the “tingling, clean feeling” we get afterwards—the reward.
People are more likely to get into a tooth brushing habit loop as a result.’
EVALUATE PROBLEMS AND OPPORTUNITIES
In general sense, the term opportunity implies a good chance or a favorable situation to do
something offered by circumstances. In the same vein, business opportunity means
a good or favorable change available to run a specific business in a given environment at a
given point of time.
The term ‘opportunity’ also covers a product or project. Hence, the identification of an
opportunity or a product or project is identical and, therefore, all these three terms are used as
synonyms.
Opportunity identification and selection are like comer stones of business enterprise. Better the
former, better is the latter. In a sense, identification and selection of a suitable business
opportunity serves as the trite saying ‘well begun is half done.’ But, it is like better said than
done. Why? Because if we ask any intending entrepreneur what project or product he/she will
select and start as an enterprise, the obvious answer he/she would give is one that having a
good market and is profitable. But the question is how without knowing the product could one
know its market?
Whose market will one find out without actually having the product? Whose profitability will
one find out without actually selling the product? There are other problems, besides. While
trying to identify the suitable product or project, the intending entrepreneur passes through
certain processes.
The processes at times create a situation, or say, dilemma resembling ‘Hen or Egg’ controversy.
That is, at one point, the intending entrepreneur may find one product or project as an
opportunity and may enchant and like it, but at the other moment may dislike and turn down
it and may think for and find other product or project as an opportunity for him/her. This
process of
dilemma goes on for some intending entrepreneurs rendering them into the problem of what
product or project to start. Then, how to overcome this problem of product identification and
selection?
One way to overcome this dilemmatic situation is to know how the existing entrepreneurs
identified the opportunity and set up their enterprises. An investigation into the historical
experiences of small enterprises in this regard reveals some interesting factors.
I
To mention the important ones, the entrepreneurs selected their products or projects based on:
a. Their own or partners’ past experience in that business line;
b. The Government’s promotional schemes and facilities offered to run some specific business
enterprises;
c. The high profitability of products;
d. Which indicate increasing demand for them in the market?
e. The availability of inputs like raw materials, labor, etc. at cheaper rates;
f. The expansion or diversification plans of their own or any other ongoing business known to
them;
g. The products reserved for small-scale units or certain locations.
Now, having gained some idea on how the existing entrepreneurs selected products/ projects,
the intending entrepreneur can find a way out of the tangle of which opportunity/
product/project to select to finally pursue as one’s business enterprise.
Idea Generation
Sources of Ideas
In a sense, opportunity identification and selection are akin to, what is termed in marketing
terminology, ‘new product development.’ Thus, product or opportunity identification and
selection process starts with the generation of ideas, or say, ideas about some opportunities or
products are generated in the first instance.

The ideas about opportunities or products that the entrepreneur can consider for selecting the
most promising one to be pursued by him/her as an enterprise, can be generated or discovered
from various sources- both internal and external.

These may include:

(i) Knowledge of potential customer needs,
(ii) Watching emerging trends in demands for certain products,
(iii) Scope for producing substitute product,
(iv) Going through certain professional magazines catering to specific interests like electronics,
computers, etc.,
(v) Success stories of known entrepreneurs or friends or relatives, (vi) Making visits to trade
fairs and exhibitions displaying new products and services,
(vii)Meeting with the Government agencies,
(viii) Ideas given by the knowledgeable persons,
(ix) Knowledge about the Government policy, concessions and incentives, list of items reserved
for exclusive manufacture in small-scale sector,
(x) A new product introduced by the competitor, and (xi) One’s market insights through
observation.
In nutshell, a prospective entrepreneur can get ideas for establishing his/ her enterprise from
various sources. These may include consumers, existing products and services presently on
offer, distribution channels, the government officials, and research and development.
A brief mention about each of these follows in turn:
Consumers
No business enterprise can be thought of without consumers. Consumers demand for products
and services to satisfy their wants. Also, consumers’ wants in terms of preferences, tastes and
liking keep on changing. Hence, an entrepreneur needs to know what the consumers actually
want so that he/she can offer the product or service accordingly. Consumers’ wants can be
known through their feedback about the products and services they have been using and
would want to use in future.
Existing Products and Services:
One way to have an enterprise idea may be to monitor the existing products and services
already available in the market and make a competitive analysis of them to identify their
shortcomings and then, based on it, decide what and how a better product and service can be
offered to the consumers. Many enterprises are established mainly to offer better products and
services over the existing ones.
Distribution Channels
Distribution channels called, market intermediaries, also serves as a very effective source for
new ideas for entrepreneurs. The reason is that they ultimately deal with the ultimate
consumers and, hence, better known the consumers’ wants.
As such, the channel members such as wholesalers and retailers can provide ideas for new
product development and modification in the existing product. For example, an entrepreneur
came to
know from a salesman in a departmental store that the reason his hosiery was not selling was
its dark shade while most of the young customers want hosiery with light shade. The
entrepreneur paid heed to this feedback and accordingly changed the shade of his hosiery to
light shade. Entrepreneur found his hosiery enjoying increasing demand just within a month.
Government
At times, the Government can also be a source of new product ideas in various ways. For
example, government from time to time issues regulations on product production and
consumption. Many a times, these regulations become excellent sources for new ideas for
enterprise formation.
For example, government’s regulations on ban on polythene bags have given new idea to
manufacture jute bags for marketing convenience of the sellers and buyers. A prospective
entrepreneur can also get enterprise idea from the publications of patents available for license
or sale.
Besides, there are some governmental agencies that assist entrepreneurs in obtaining specific
product information. Such information can also become basis for enterprise formation.
Research and Development:
The last but no means the least source of new ideas is research and development (R&D)
activity. R&D can be carried out in-house or outside the organization. R&D activity suggests
what and how a new or modified product can be produced to meet the customers’
requirements.
Available evidences indicate that many new product development, or say, new enterprise
establishments have been the outcome of R&D activity. For example, one research scientist in
a Fortune 500 company developed a new plastic resin that became the basis of a new product,
a plastic molded modular cup pallet. Most of the product diversifications have stemmed from
the organization’s R&D activity.
Methods of Generating Ideas:
As seen above, there could be variety of sources available to generate ideas for enterprise
formation. But, even after generating ideas to convert these into enterprise is still a problem for
the prospective entrepreneur. The reason is not difficult to seek. This involves a process
including first generating the ideas and then scrutinizing of the ideas generated to come up
with an idea to serve as the basis for a new enterprise formation. The entrepreneur can use
several methods to generate new ideas. However, the most commonly used methods of
generating ideas are: focus groups, brainstorming, and problem inventory analysis. L

These are discussed as follows

Focus Groups
A group called ‘focus group’ consisting of 6-12 members belonging to various socio economic
backgrounds are formed to focus on some particular matter like new product idea. The focus
group is facilitated by a moderator to have an open in-depth discussion. The mode of the
discussion of the group can be in either a directive or a non-directive manner.
The comment from other members is supplied with an objective to stimulate group discussion
and conceptualize and develop new product idea to meet the market requirement. While
focusing on particular matter, the focus group not only generates new ideas, but screens the
ideas also to come up with the most excellent idea to be pursued as a venture.
Brainstorming
Brainstorming technique was originally adopted by Alex Osborn in 1938 in an American
Company for encouraging creative thinking in groups of six to eight people. According to
Osborn, brainstorming means using the brain to storm the issue/problem.
Brainstorming ultimately boils down to generate a number of ideas to be considered for D
dealing with the issue/problem.

However, brainstorming exercise to be effective needs to follow a modus operandi involving four
basic guidelines:
1. Generate as many ideas as possible.
2. Be creative, freewheeling, and imaginative.
3. Build upon piggyback, extend, or combine earlier ideas.
4. Withhold criticism of others’ ideas.
There are two principles that underlie brainstorming. One is differed judgment, by which all
ideas are encouraged without criticism and evaluation. The second principle is that quantity
breeds quality. The brainstorming session to be effective needs to work like a fun, free from any
type of compulsions and pressures.
Each member needs to have willingness and capacity to listen to others’ thoughts, to use these
thoughts as a stimulus to spark new ideas of their own, and then feel free to express them. As
such, efforts are made to keep the brainstorming session free from any sort of dominance and
obstruction derailing and inhibiting discussion to proceed in a desired manner to serve its
purpose. A normal brainstorming session lasts for from ten minutes to one hour and does not
require much preparation.
Inventory Analysis:
Problem Inventory analysis though seems similar to focus group method, yet it is somewhat
different from the latter in the sense that it not only generates the ideas, but also identifies the
problems the product faces. The procedure involves two steps: One, providing consumers a list
of specific problems in a general product category.
Two identifying and discussing the products in the category that, suffer from the specific
problems. This method is found relatively more effective for the reason that it is easier to relate
known products to a set of suggested problems and then arrive at a new product idea.
However, experiences available suggest that problem inventory analysis method should better
be used for generating and identifying new ideas for screening and evaluation. The results
derived from product inventory analysis need to be carefully screened and evaluated as they
may not actually reflect a genuine business opportunity.
For example, General Foods’ introduction of a compact cereal box in response to the problem
that the available boxes did not fit well on the shelf was not successful, as the problem of
package size had little effect on actual purchasing behavior. Therefore, to ensure the better if
not the best results, problem inventory analysis should be used primarily to generate product
ideas for evaluation.

Opportunity/Product Identification:
After going through above process, one might have been able to generate some ideas
that can be considered to be pursued as ones business enterprise. Imagine that someone have
generated the five ideas as opportunities as a result of above analysis:
1. Nut and bolt manufacturing (industry)
2. Lakhani Shoes (industry)
3. Photocopying unit (service-based industry)
4. Electro-type writer servicing (service-based industry).
5. Polythene bags for textile industry (ancillary industry)
H
An entrepreneur cannot start all above five types of enterprises due to small in size in terms of
capital, capability, and other resources. Hence, he/she needs to finally select one idea which
he/she thinks is the most suitable to be pursued as an enterprise. How does
the entrepreneur selects the most suitable project out of the alternatives available? This is
done through a selection process discussed subsequently.

Having gone through idea generation, also expressed as ‘opportunity scanning’ and opportunity
identification, we can distinguish between an idea and opportunity. We are giving below the two
situations that will help you understand and draw the line of difference between an ‘idea’ and
an ‘opportunity’.
 Situation I
Having completed their Master of Business
Administration (MBA), Mrinmoy and
Chandan met after about six months. The
two were conversing with each other about
who is doing what. Mrinmoy is running his
travel agency business and Chandan is still
searching for a job. Mrinmoy suggests
Chandan to start some business. Observe
and read the market scenario and produce
what the consumers actually want.
Situation II
On completion of his engineering degree, Tridip got
a job in Assam State Transport Corporation. He
was the in-charge of the purchase department.
Having worked in the purchase department for
over ten years, he had gained a good idea about
which components have more demand and who
are the buyers of these parts in bulk. He,
therefore, thought of good prospects of
manufacturing some of the components having
good demand in bulk.

Now, it is clear that, in the above mentioned two situations, situation I is at the ‘idea stage’ and
situation II at the ‘opportunity stage’. At the idea stage, there is simply an idea about what to
do. But at the opportunity stage, ideas has actually been germinated about what to start/do.
The understanding of such a difference between an ‘idea’ and ‘opportunity’ is very important
for the intending entrepreneurs who are seriously trying to identify an ‘opportunity’ to be
pursued as an enterprise.17
IMPLEMENTING ENTREPRENEURIAL IDEAS
Entrepreneurs’ ideas and intentions form the initial strategic template of new organizations
and are important underpinnings of new venture development. Even though entrepreneurial
ideas—for new products, new services, new social movements—begin with inspiration,
sustained attention and intention are needed in order for them to become manifest
Entrepreneurs’ intentions guide their goal setting, communication, commitment, organization,
and other kinds of work. Although behavior can result from unconscious and unintended
antecedents, what is of interest here is a conscious and intended act, the founding of a firm.
The study of entrepreneurial intentions opens new arenas to theory-based research It directs
attention toward the complex relationships among entrepreneurial ideas and the consequent
outcomes of these ideas, and it directs attention away from previously studied entrepreneurial
traits (example, personality, motivation, and demographics) and contexts (example,
displacements, prior experience, markets, and economics). The model presented here is
behavioral and not institutional; it does not provide a strategic map of how to start a venture or
how to succeed in business. Instead it guides attention to questions about how entrepreneurs
create, sustain, and transform organizations, thus helping to distinguish entrepreneurship
from strategic management
Nature of Entrepreneurial Intentions
Intentionality is a state of mind directing a person’s attention (and therefore experience and
action) toward a specific object (goal) or a path in order to achieve something (means). As a
psychological process, intention has been examined by a number of theorists and researchers.
William James construed will (a more general term which includes intention) as an
independent faculty of the mind, operating through person’s attention (holding the intended
image in the mind) and consent. Addressing the tension aspects of intention, shows that a
person’s intentions sustain value or effort despite interruptions. Some psychoanalytic theorists
have found that the process involves persistence, perseverance, and courage.
Some modern theorists describe intention as one variable within larger psychological models
Miller, Galanter, and Pribram include intentional control over those mental images and values
which guide behavior as a factor in their cybernetic model of behavior. Cognitive theorists have
demonstrated the importance that intentional elements, such as expectation, attention, and
belief, have on behaviorial outcomes. Others have focused on processes that build or define
intention, suggesting that how individuals express promises and goals is important.
Entrepreneurial intentions are aimed at either creating a new venture or creating new values in
existing ventures. Katz and Gartner observed that intentions include a dimension of locution:
the entrepreneur’s intention(internal locus) and intentions of other stakeholders, markets, and
so forth (external locus).
Another dimension of entrepreneurial intentions is that of rationality versus intuition. Figure 3
shows how personal and social contexts interact -Kith rational and intuitive thinking during
the formulation of entrepreneurial intentions. Certain personal history factors, such as having
prior experience as an entrepreneur, personality characteristics, such as the need for
achievement and the need for control, and abilities, such as promoting ideas, predispose
individuals to entrepreneurial intentions. Along with individual variables, social, political, and
economic variables, sucn as displacement, changes in markets, and government deregulation
of industries, create the context for entrepreneurship.
First, a person’s rational, analytic, and cause and-effect-oriented processes structure intention
and action These psychological processes underlie formal business plans, opportunity analysis,
resource acquisition, goal setting, and most observable goal-directed behavior.
Goal setting, usually defined in an interpersonal context, involves hierarchically oriented G
behavior (i.e., goal setting between superior and subordinate, where subordinate control over
goals is seen as employee participation). In traditional approaches, the person setting the goals
has obvious “partial inclusion,” a condition that is not apparent in new venture start-ups
where the entrepreneur is fully invested and identifies with the venture. Thus, goal-setting
concepts, as addressed in current literature, are too narrow to capture the unique aspects of
initiating, directing, and organizing new ventures. Intentionality is the larger framework which
includes not only goal setting but also a greater degree of freedom and expanded creativity for
the entrepreneur (participation is total and usually not negotiated in start-ups except where
partnerships are formed).
Second, intuitive, holistic, and contextual thinking frames and structures an entrepreneur’s
intention and action. Inspired by vision, hunch, an expanded view of untapped resources, and
a feeling of the potential of the enterprise, the entrepreneur perseveres.
Impact of Intentions
Entrepreneurial intentions have a significant impact on all organizations. In existing firms,
executives’ personal values have been found to affect corporate strategy, intuition has been
shown to play an important role in executive problem solving and planning, and the beliefs and
perceptions of top managers have been found to directly affect the organizations they lead.

Figure 3: The contexts of intentionality

It follows, then, that the impact of the leader’s intentions will be even greater at the
birth of an organization, when the influences of external stakeholders, corporate structure,
politics, image, and culture have not yet been established. There is some evidence that the
ambitions and skills of the founder(s) determine the size and growth potential of the venture
and the culture that emerges. A good example is the development of culture at Kollmorgen
Corporation, where the personal values of Robert and Jim Swiggett influenced the firm’s
strategy and subsequent adjustments.
The founder’s intentions determine the form and direction of an organization at its inception.
Subsequent organizational success, development (including written plans), growth, and change
are based on these Intentions, which are either modified, elaborated, embodied, or
transformed. Thus, intentions affect a venture’s success, here defined as the firm’s survival
and growth.
Model Development
The model presented here is based on discovery-oriented inquiry. Through interviews with 20
entrepreneurs (seven in service, eight in manufacturing, and five in publishing who had 2-40
years’ experience as entrepreneurs), distinct patterns of thought and behavior emerged.
Subsequent analysis of transcrtots and observer’s notes suggests that these patterns are
relatively consistent among entrepreneurs. The intentional process described below refines
these patterns of how entrepreneurs implement ideas.
The Intentional Process
The intentional process begins with the entrepreneur’s personal needs, values, wants, habits,
and beliefs, which have their own precursors. Figure 4 depicts these five antecedents, three in
traps chic activities (creating and maintaining a temporal tension, sustaining strategic focus,
and developing a strategic posture) which are at the core of intentional and behavioral
outcomes which contribute to the creation of a new organization and, in turn, affect the
entrepreneur’s needs, values, wants, habits, and beliefs.
Sustaining Temporal Tension
In the Western world, time is conceived as irreversible movement along a straight line. The
most obvious dimension of temporal tension among Western entrepreneurs involves linking the
present (the way it is, the “way we do it around here”) to the future, which is not yet manifest.
The farther into the future that one has visions, the greater the uncertainty and the greater the
temporal tension as one attempts to draw that future into the present. Common sense suggests
that entrepreneurs do this. However, the psychological nature of the link between the present
and the future of new venture developments has not been studied, although potential
measurements have been developed.
Future Time Horizon
The distance of that future time horizon is particularly important in creating and transforming
organizations. In organizations, the time horizon is the “amount of time in the organizational
future. (That one’s most important decisions will affect the firm”. Related organizational
constructs include the time span of feedback, which refers to the time lag between performance
and results, and the time span of discretion, which refers to the time between work review by
hierarchical superiors.

Further, organizational roles appear to become future time-specialized, based on function and
hierarchical level. Lawrence and Lorsch reported that different functions in an organization
develop different time spans of feedback: Research and development generally develop longer
time spans than marketing, which generally develops longer time spans than prod action. It is
important to note that in certain circumstances, time lag in feedback actually improves
performance. However, Levicki reported that functional groups differ more in terms of time
span of discretion than in time span of feedback on decisions.
Although research is limited, the existence of time span differences across functions seems a
reasonable assumption
L
S

Figure 4: Intention-direction.
Hierarchical time specialization in bureaucracies is based on the time span of discretion. Time
spans range from less than 3 months to more than 10 years, and they are related to both task
and individual development (i.e., job satisfaction and performance are affected by the “match”
between role demands and temporal capacity). Time span of discretion also correlates with
perceptions of fair pay (more pay for longer time spans). Jaques proposed that operators
(example, typists, machine operators, laboratory assistants) perform tasks that have a time
span of less than 3 months, whereas those who design new methods, procedures, or policies
operate in a 2-5 year time span, and chief executives of large organizations operate in a 5-10
year time span.
Entrepreneurial Time. The entrepreneurial role does not hot neatly into the functional or
hierarchical aspects of organizations. Entrepreneurs’ functions are a mix of operations,
management, promotion, and leadership activities, ranging from stuffing envelopes to running
a machine, making sales calls, analyzing competition, meeting with bankers, and forming
strategic alliances. In addition, the hierarchical position of the entrepreneur is less well
established than that of traditional executives. Entrepreneurs, their partners, investors, and
employees organize themselves, often in an ad hoc way, into “teams” that can be described as
having flat or star-shaped configurations, reflecting the centrality of the entrepreneur as well
as his or her status.
Because of their complex roles, entrepreneurs experience and manage time differently than
those who have more specialized roles. As a result, they also experience temporal tension
differently, in ways that uniquely energize them, color their perceptions, and cue their search
for information. The future of the new venture is more salient for entrepreneurs than for others
because of their personal financial and psychological investment. Likewise, because
entrepreneurs are characterized by a higher need for control, they feel more responsible as the
future unfolds into the present: They created this organization, and it is theirs.
21
Time Complexity
Because entrepreneurs perform a wide variety of organizational functions and have relatively
undifferentiated hierarchical positions, the following questions are posed. What happens to the
time horizon when one person is involved at all levels of organizational implementation? What
happens when one person is responsible for both operations and strategy? What is the
entrepreneur’s experience of future time?
Entrepreneurs are markedly now-oriented people. They live in the present, plan rarely for the
future, and reflect minimally on the past. Although many entrepreneurs formulate strategies,
and some conduct formal planning, overall, they believe that opportunities to create are vested
in the present. Their time is best spent in doing, not in dreaming or retrospective sense
making.
Even though entrepreneurs are anchored in the here-and-now, they also envision what is to
come. Like charismatic leaders, entrepreneurs use images to guide their organizations into the
future, toward ideals and situations that do not yet exist. In a study of entrepreneurial
executives, Rockey found that visualization played an important role in helping these
executives to clarify the organization’s purpose, to dispel the negative thoughts of others, to
plan facilities, to hire employees, and so forth. The entrepreneur’s visualization, together with
his or her persistent efforts, are thought to sustain the new venture during its early vulnerable
years (depending on the source, 30-50 % of new ventures cease operations with the first five
years).

Even though entrepreneurs are both now oriented and future-oriented, the past holds no
attractions for them, not even for older, retired entrepreneurs (who presumably have more
personal history than future). Most of the entrepreneurs interviewed by Bird stated that the
interview process was the first time they had reviewed their business history or reflected on the
chain of events that brought them to success Of course, some reflection is necessary for the
successful entrepreneur to learn from his or her mistake: and successes.
Based on this understanding about entrepreneurs, it is proposed that they have greater time
complexity than operators, managers, and traditional leaders. Specifically, the present and
future are equally important to an entrepreneur’s success, and successful entrepreneurs are
agile in moving from present to future and across different future horizons.
Because entrepreneurs see the continuity between the here-and-now and what will be
tomorrow, month, and years from now, they have a wide range of future horizons that are
coherently related to the present. Moreover, entrepreneurs are expected to have a wider range
of future time horizons and more time coherence than time-specialists, such as managers or
operators.
Fast Dancing
Another aspect of entrepreneurial time is the necessity for entrepreneurs to make quick
decisions in order to adjust to the environment (example markets, government, labor)
Because of familiarity with their chosen field, they have the ability to recognize patterns as they
develop and the confidence to assume that missing elements of the pattern will take the shape
they foresee. This early recognition enables them to get a jump on others in commitment to
action
For entrepreneurs, there are four possible time lags (a) time between environmental change
and when information about the change is received by the entrepreneur, (b) time between the
receipt of that information and when a decision is made, (c) time between deistic and action;
and (d) time between action and results, such as increased productivity, increase° value of the
firm, and better quality Entrepreneurs apparently shorten the first three segments, adding
speed to their responses through vigilance, updated expertise, and intuitive anticipation, or the
ability to see beyond the present.
Additionally, entrepreneurs in fast changing markets, such as computer technology,
biotechnology, defense contracting, and health se -vices, are very
sensitive to environmental music or outside timing Entrepreneurs develop confidence that their
“fast dancing” and new products will harmonize or synchronize with external conditions
(example, being first into the market).
Sustaining Strategic Focus
Entrepreneurs’ intentions tend to be directed toward goals, which are desired end-states,
ratherthan toward means of conduct, although both ends and means can be intentional. An
entrepreneur’s goals are economic--survival and growth of the organization, although personal
wealth and organizational finances are often more a means of keeping score than highly valued
ends in themselves Means and Ends Orientations. Entrepreneurs tend to be opportunistic
about how they reach goals such as breaking even, becoming profitable, and experiencing high
business growth They develop instrumental and transactional strategies to achieve goals,
prefer renting resources and subcontracting work, rather than buying resources or hiring full
time workers, and prefer hiring employees to sharing the business with partners. “
Although most entrepreneurs are ends oriented, some are means- or process-oriented.
Process-oriented entrepreneurs choose self employment (often this includes a few employees)
as a means to achieve satisfying work and a comfortable life. Process-oriented entrepreneurs
are “craftsman-entrepreneurs,” those who begin ventures in order to use their technical skills
autonomously. In contrast, “opportunistic-entrepreneurs” become entrepreneurs in orderto
build an organization which they can lead. As might be expected, opportunistic entrepreneurs
develop larger and more complex organizations.
A related type of means-oriented entrepreneur is the professional-turned entrepreneur. “Most
such professionals launch their start-ups without deciding whether they are in business to
practice a profession or in a profession to build a business”. Sometimes means-oriented
entrepreneurs end up failing or bankrupt by becoming overly attentive to “image,” and this has
a negative impact on the credibility of the entrepreneur and, thus, on the overall well-being of
the enterprise.

Entrepreneurial Focus
Despite the need to be goal directed, entrepreneurs may have more difficulty in sustaining
strategic focus than other organizational players like effective executives, successful
entrepreneurs will make simple, clear statements about what they value and where they are
headed, and they will follow through with resources.

For example, Don Oberg, founder of Oberg Industries in Pennsylvania, dots his plant with signs
such as “If it’s almost right, it’s wrong,” “The biggest room in our company nis the room for
improvement,” and other simple aphorisms that echo his philosophy His follow-through is
widely acknowledged within the organization.
However, entrepreneurs also have a reputation for being “tentative, uncommitted, or
temporarily dedicated”. Although this style may be opportunistic and tactically advantageous,
it creates uncertainty about the entrepreneur’s commitment to a project, vision, or venture.
The Entrepreneurial Zoom Lens. The apparent equivocality of focus found in entrepreneurs
pertains to the complexity of their jobs. They move between operations (where details are
important) and strategy (where the “big picture”/ vision is important) Likewise, in taking
personal responsibility for the outcome of the organization, the entrepreneur moves from an
inside view of the firm (example, operations, staffing) to an outside view (e. g, competition,
customers). The effective entrepreneur responds to this complexity by developing a
psychological, social, and strategic “zoom lens.”
Like the camera lens, the strategic zoom lens allows the entrepreneur to see both close up and
at a distance. The lens allows him or her to adjust the depth of field, or the amount of detail
made visible. The zoom quality of the lens allows for a rapid shift in the framework of any
specific decision or action, and it is one way of coping with the temporal tension.

Importance of Tight Focus. Entrepreneurs exercise considerable freedom in directing their

organization’s efforts. However, once they choose a direction, it is this direction that defines
and funnels resources and channels opportunities. That is, the entrepreneur’s vision
precipitates decisions and activities which provide more detailed information about market,
resources, technology, and talents and, in turn, feed into and constrain subsequent decisions.
Through a series of such decisions and activities, resources are employed in increasingly
specific ways.

As resources are specifically applied and a business concept that includes identifiable products
and markets is developed, the entrepreneur enters a corridor of costs and benefits, excluding
many alternative concepts, products, and so forth. However, along with the narrower focus of
the chosen business concept comes new opportunities, resources, and talents which were
previously unseen Hands-on versus Hands-off. Entrepreneurs’ preference for hands-on work is
another indication of the importance of details and specific focus in new venture development.
Entrepreneurs want to be “where the action is,” doing it, in contrast to managers with a “bias
for action,” who help others to do it. The hands-on orientation results in global involvement,
and he or she may bypass existing management structure, ignore corporate politics and
individual egos, and violate bureaucratic procedures.
Although tight focus, attention to detail, and hands-on orientation are important for
entrepreneurial success, it seems equally important that the entrepreneur be able to step
outside operations and expand the focus, to “see the bigger picture,” to find the right problems
to solve, and to “think big.” If the entrepreneur chooses to build a growth oriented venture, the
necessary delegation and empowerment of others requires a hands-off attitude, a letting-go of
details, and less involvement with operations and some decision making. Wider focus is
especially important if organizational growth is a goal because new products, markets,
resources, acquisitions, and possible partners must be identified.
4
An entrepreneur’s job requires complex focusing. The inability to develop cognitive complexity
and flexibility may result in organizational standstill or the entrepreneur’s exit from the central
leadership position. Entrepreneurs who successfully lead growing new ventures have variable
strategic focus, which allows them to shift their range of vision and the amount of detail in
order to make the most of their ventures.
Developing an Intentional Posture
An intentional posture involves the position of the individual in relation to both his or her
values, needs, and so forth, and the outer world. Two variables considered here are valuable to
the entrepreneur.
Alignment
Alignment is a configuration of parts such that all parts are contributing to a single purpose
and direction Intrapsychically, in terms of intention, this means that our many inner “voices,”
which reflect different and conflicting needs, values, memories, and wishes, need to agree on
one direction.
A lack of psychological alignment prevents focused intention. A conflict in values, such as work
versus family or control versus growth, can slow, stop, and even divert intended action; this is
what James called “obstructed will” and Freud called “abulia.” Perhaps one can distinguish
entrepreneurs from potential entrepreneurs who are serious about venturing but never take
appropriate action by examining how key concepts align. Those who implement a new venture
are more likely to have concepts of career, work, risk, rewards, and family that align with the
venture concept.
Synergy is a social and organizational level of alignment which is reflected in terms such as
differentiating, controlling, persuading, and changing. When individuals work toward common
goals, there is excitement as well as progress, and when they work at cross-purposes, conflict
and stonewalling are possible. For entrepreneurs, aligning individuals on the entrepreneurial
team and the early staff can be an important and difficult leadership task. Not organizing and
aligning team members (e. g, partners and employees) results in inefficient communication,
inconsistent decisions, and counterproductive conflict, there by contributing to the
vulnerability of the venture.
Attunement
Attunement is the readiness to send and receive information, influence, or meaning from other
sources, and it requires vigilance, open-mindedness, extroversion, and the ability to learn from
mistakes the simplest level, attunement allows entrepreneurs to make economically rational
adjustments to environments. Another form of attunement involves the entrepreneur’s
networking with external team members such as bankers, venture capitalists, lawyers,
accountants, and consultants in order to gain key resources for the new venture. The content
of networking, the activity involved, and the history behind the networking are associated with
the creation of new ventures and, subsequently, how profitable they will be.
Attunement is also characteristic of visionary entrepreneurs, who pursue both noneconomic
and economic values. Noneconomic attunement is less frequently recognized by organizational
and entrepreneurship researchers, although it is often dramatically enacted in some new
ventures. It involves the personal values and beliefs of the founder/owner and the impact these
values and beliefs have on the founder’s organizing capabilities and high performance. Thus,
some entrepreneurs use their organizations and resources to foster peace, philanthropy, or a
certain ideology. Harrison uses verbs such as “yielding,” “giving,” “nurturing, “Listening, “and
“appreciating” to distinguish attunement postures to the environment and to a mission enables
them to be effective, even when the mission is not economic. These postures not only prepare
entrepreneurs to accept the luck of the draw, but also put them in the position to seize
unexpected opportunities or to deal immediately with setbacks, making their ventures more
likely to succeed than those whose founders assume other postures.
Implications
The model of intentionality presented here advances entrepreneurship research in three ways.
First, it addresses a psychological base of venture development which helps to differentiate
entrepreneurship from strategic management. If entrepreneurial intentions can be examined
with regard to temporal tension, strategic focus, and posture, a deeper insight into the creative
process of venture development can be achieved. Second, the propositions and hypotheses set
forth allow the impact that entrepreneurial intentions have on organizational direction,
survival, growth, and form to be studied in ways that are consistent with, and contribute to,
existing theories of leadership, organizational development, and organization theory. Such
research moves the existing theory of entrepreneurial behavior beyond descriptive and bivariate
analyses. Third, because the creating, structuring, and sustaining of organizations are based
on entrepreneurs’ personal ideas and experiences, rather than formal theories of management
and organization, these entrepreneurs create organizational theories that later may be
discovered and analyzed. Through this model the intrapsychic and social organization, which
both precedes and structures entrepreneurial organizations and theories, can be studied.
Understand how much you already know about using appropriate Critical Thinking
in Business

Critical Thinking in Business

The concept of critical thinking means that an individual is able to analyze a situation
or a set of possibilities with a view toward determining the best solution to any problem that
may have presented itself. As such, the uses of critical thinking in business are numerous and
are indeed the bedrock of any successful business enterprise. For one instance, the application
of critical thinking in business can be used to arrive at the best alternative to difficult
situations, or it may be utilized in management as well as for proper communication between
management and employees. It is due to this vital role of critical thinking in business that it is
included as a part of formal business studies in colleges and other institutions of higher
learning.
One of the applications of critical thinking in business is for the purpose of utilizing
such thinking skills to come up with solutions to problems that may present themselves during
the course of normal business operations. This is especially important for those who hold key
positions in the organization, something that is usually part of the criteria for putting such
people in key positions in the first place. An example of how critical thinking in business is
important can be seen when an important machine or equipment that is used in the
production process in a manufacturing plant breaks down right in the middle of operations.
The shift supervisor or the manager would be responsible for applying critical thinking skills in
order to arrive at the best solution to such a problem. This will necessarily involve the
consideration of several possible solutions and the elimination of the most unlikely until the
supervisor or manager is able to reach the most suitable solution for that situation.

Another use of critical thinking in business can be seen in the area of communication
where the proper application of critical thinking skills can help achieve a desired aim, or to
avert an undesired one. For example, a manager can apply critical thinking skills to motivate
employees by thinking of the right words to say in order to achieve this aim. The manager may
also use critical thinking skills to avert a possible labor or union action through what he or she
does or says.
Read Information Sheet very well then find out how much you can remember and how much
you learned by doing self-check.
E
INFORMATION SHEET
Prepare yourself mentally
There is a specific mindset that is most conducive to learning how to be a successful
entrepreneur, and aligning yourself with this way of thinking will provide you with the
foundation upon which you can build your education in entrepreneurship.
► Develop a positive perspective when it comes to mistakes.
You must be prepared that, to be an entrepreneur, you will inevitably make some mistakes
along the way. Mistakes are only failures if they prevent you from trying again. Mistakes that
serve as lessons for learning are successes that propel you forward. Accept that you will make
mistakes, and commit to pushing through them.
► Become your own cheerleader. The critical voices in your head will only hold you back. Every
time you find that you are having a negative thought about your ability to be an entrepreneur,
stop that thought immediately and counter it with a positive affirmation. Eventually, it will
become a habit to be optimistic about your potential.
► Avoid excuses for why you cannot move forward with your idea right away. If you are
inspired toward an idea, then start working on it. Do not put it off until the “right” or
“perfect” time.
 Progress Check Test 1
Directions: On a separate piece of paper, classify the different kinds of words according to
their meaning in entrepreneurial mindset and thinking skills.
Words Meaning
Distribution Channels
Brainstorming
Impact of Intentions
Time Complexity
Attunement
Implications

Activity
1. Define” mindset” and explain its importance to Entrepreneur.
2. Explain how to develop the habit of creativity.
3. Explain the Need for Critical Thinking skills.
4. What Kind of Mindset Do You Have?
5. What is entrepreneurship? What are the scopes of entrepreneurship in present scenario?