ENTREPRENEURIAL

MIND
CRITICAL THINKING

• Ability to apply reasoning and logic to new or unfamiliar ideas, opinions, and
situations
ASPECT OF CRITICAL THINKING

• Open minded thinking – not assuming that your views or perspectives are always right
• Rationality – requires analyzing all known information and making judgements or analysis base
on fact or evidence.
• Empathy – ability to view the world in a way that does not focus on the self.
LEVELS OF OUR THINKING

• Level of Practical Decision Making – thinking about the means to use to accomplish our goals.
• Level of Meaningfulness – thinking on how deal with much larger issues of living our life.
• Level of Concepts – thinking on ways that will shape our life in a considerable degree.
TYPES OF MINDSET

• Fixed Mindset - People perceive their talents and abilities as set of traits
• Growth Mindset – people believe that their abilities can be developed.
PASSION AND ENTREPRENEURSHIP
- intense positive emotion, it is easier to face challenges and take risk as an entrepreneur.

ENTREPRENEURSHIP AS A HABIT
- Habit – is sometimes unconscious pattern of behavior that is carried out often and regularly.
- Habit Loop – the process by which our brain decides whether or not a certain behavior should be
stored and repeated.
OPPORTUNITY
implies a good chance or a favorable situation to do something offered by circumstances

BUSINESS OPPORTUNITY
good or favorable change available to run a specific business in agiven environment at a given
point of time
 HEN OR EGG CONTROVERSY

• an entrepreneur may find 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.
 ENTREPRENEURS SELECTED THEIR
PRODUCTS OR PROJECTS BASED ON:
• Their own or partner’s past experience in that business line.
• The Government’s promotional schemes and facilities offered to run some specific business
enterprises;
• The high profitability of products; Which indicate increasing demand for them in the market
• The ability of inputs like raw materials, labor, etc. at cheaper rates;
• The expansion or diversification plans of their own or any other ongoing business known to
them;
• The products reserved for small scale units or certain location
SOURCES OF IDEA

• In a sense, opportunity identification and selection are akin to, what is termed
in marketing terminology, new product development.' Thus, product or
opportunity 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.
• Knowledge of potential customer needs.
• Watching emerging trends in demands for certain products,
• Scope for producing substitute product,
• Going through certain professional magazines catering to specific interests like electronics, computers,
etc.,
• Success stories of known entrepreneurs or friends or relatives,
• Making visits to trade fairs and exhibitions displaying new products and services
• Meeting with the Government agencies,
• Ideas given by the knowledgeable persons,
• Knowledge about the Government policy, concessions, and incentives, list of items reserved for
exclusive manufacture in small-scale sector,
• Anew product introduced by the competitor
VARIOUS SOURCES OF IDEAS
CONSUMERS
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

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.
DISTRIBUTION CHANNELS
Also called market intermediaries, ultimately deal with the ultimate consumers
and, hence, better known the consumers' wants.

GOVERNMENT
Government from time-to-time issues regulations on product production and consumption. These
regulations become excellent sources for new ideas for enterprise formation.
RESEARCH AND DEVELOPMENT
R & D activity suggests what and how a new or modified product can
be produced to meet the customers requirement
 METHOD OF GENERATING IDEAS

• This involves a process of including first generating the ideas and then scrutinizing of the ideas
generated to come up with an idea to serve as basis for a new enterprise formation.
• The most commonly used methods of generating ideas are: focus groups, brainstorming, and
problem inventory analysis.
FOCUS GROUPS
focus group consisting of 6-12 members belonging to various socio economic background
are formed to focus on some particular matter like new product idea. The mode of
discussion of the group can ne either a directive or a non directive manner.

BRAINSTORMING
This technique was originally adopted by Alex Osborn in 1938 for encouraging creative thinking in
groups of six to eight people. According to him, brainstorming means using the brain to storm the
issue/problem
PROBLEM INVENTORY ANALYSIS
This differs from focus group because this does not only generate
ideas, but also identifies the problems the product faces. 2 steps:
Providing consumers, a list of specific problems in a general product
category
Identifying and discussing the products in the category that, suffer
from specific problems
OPPORTUNITY /PRODUCT IDENTIFICATION

• IDEA STAGE – simply an idea about what to do

• OPPORTUNITY STAGE – idea has actually been germinated about what to

start to do
•Entrepreneurs’ ideas and intentions
form the initial strategic template
of new organizations and are
important underpinnings of new
venture development.
 ENTREPRENEUR INTENTIONS

• 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 arena to theory-based research.

 ENTREPRENEUR INTENTIONS

•It directs attention toward the complex relationships among entrepreneurial

ideas and consequent outcomes of these ideas, and it directs attention away from

previously studied entrepreneurial traits (example, personality, motivation, and

demographics) and context (example, displacements, prior experience, markets,

and economics).
 NATURE OF ENTREPRENEURIAL
INTENTIONS

•I n tention ality is a state o f min d d ir ectin g a p er so n ’s atten tio n ( an d th er ef o r e

ex p erience an d actio n ) to w ar d a sp ecif ic o b ject ( g o al) o r a p ath in o r d er to

ach iev e so meth in g ( m ean s) . A s a p sy ch o lo g ical p r o cess, in ten tio n h as b een

ex amin ed b y a nu mb er o f th eo r ists an d r esear ch er s. William James co n str u ed

w ill (a m ore g en er al ter m w h ich in clu d es in ten tio n ) as an in d ep en d en t f acu lty

o f th e min d, op eratin g th r o u g h p er so n ’s atten tio n ( h o ld in g th e in ten d ed im ag e

in min d) and con sen t.

NATURE OF ENTREPRENEURIAL INTENTIONS
•Som e m ode rn t he ori st s de sc ri be i nt e nt i on a s one va ri a bl e wit hin l a rge r psyc hol ogi c a l

m ode l s Mi l l e r, Ga l a nt e r, a nd Pri bra m i nc l ude i nt e nt i ona l c ont rol ove r those m e nt a l

i m a ge s a nd va l ue s whi c h gui de be ha vi or a s a fa c tor i n the ir c ybe rne t i c m ode l of

be ha vi or.

•E nt re pre ne uri a l i nt e nt i ons a re a i m e d a t e i t he r c re a t ing a ne w ve nture or c re a ti ng ne w

va l ue s i n e xi st i ng ve nt ure s. Ka t z a nd Ga rt ne r obse rve d t ha t inc lude a di m e nsion of

l oc ut i on: t he e nt re pre ne ur ’s i nt e nt i on (i nt e rna l l oc us) a nd i nt e nt i ons of ot he r

sta ke hol de rs, m a rke t s, a nd so fort h (e xt e rna l l oc us).

NATURE OF ENTREPRENEURIAL INTENTIONS

•H o w p e r s o n a l a n d s o c i a l c o n t e x t s i n t e r a c t K i t h r a t i o n a l a n d i n t u i t i v e t h i n k i n g d u r i n g t h e

formulation of entrepreneurial intentions.

1. a person’s rational, analytic, and cause and-effect-oriented processes structure and intention

and action. These psychological processes underlie formal business plans, opportunity

analysis, resource acquisition, goal setting, and most observable goal-directed behavior.

2. 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.

 GOAL SETTING

• Goal setting defined in an interpersonal context, involves hierarchically

oriented behavior (i.e., goal setting between superior and subordinate,
where subordinate control over goals is seen as employee participation).
 IMPACT OF INTENTIONS

• E n t r e p r e n e u r i a l i n t e n t i o n s h a v e a s i g n i f i c a n t i m p a c t o n a l l o rg a n i z a t i o n s . I n
e x i s t i n g f i r m s , e x e c u t i v e s ’ p e r s o n a l v a l u e s h a v e b e e n f o u n d t o a ff e c t
c o r p o r a t e s t r a t e g y, i n t u i t i o n h a s b e e n s h o w n t o p l a y a n i m p o r t a n t r o l e i n
executive problem solving and planning, and the beliefs and perceptions of
t o p m a n a g e r s h a v e b e e n f o u n d t o d i r e c t l y a ff e c t t h e o rg a n i z a t i o n s t h e y l e a d .
T h u s i n t e n s i o n s a ff e c t t h e v e n t u r e ’s s u c c e s s , h e r e d e f i n e d a s t h e f i r m ’s
survival growth.
 MODEL DEVELOPMENT

•T h e m o d e l p r e s e n t e d h e r e i s b a s e d o n d i s c o v e r y - o r i e n t e d i n q u i r y. T h r o u g h

interviews with 20 entrepreneurs (seven in service, eight in manufacturing,

and five in publishing who had 2-40 years’ experience as entrepreneurs),

d i s t i n c t p a t t e r n s o f t h o u g h t a n d b e h a v i o r e m e rg e d .
INTENTIONAL PROCESS
•T h e i n t e n t i o n a l p r o c e s s b e g i n s w i t h t h e e n t r e p r e n e u r ’s p e r s o n a l n e e d s ,

values, wants, habits, and beliefs, which have their own precursors.

SUSTAINING TEMPORAL TENSION

•T h e m o s t o b v i o u s d i m e n s i o n o f t e m p o r a l t e n s i o n a m o n g We s t e r n

entrepreneurs involves linking the present (the way it is, the “way we do it

around here) to the future, which is not yet manifest.

FUTURE TIME HORIZON
•I n o r g a n i z a t i o n s , t h e t i m e h o r i z o n i s t h e “ a m o u n t o f t i m e i n t h e

o r g a n i z a t i o n a l f u t u r e . ” ( T h e o n e ’s m o s t i m p o r t a n t d e c i s i o n s w i l l a f f e c t t h e

firm).

TIME COMPLEXITY

•E n t r e p r e n e u r s a r e m a r k e d l y n o w - o r i e n t e d p e o p l e . T h e y l i v e i n t h e

present, plan rarely for the future, and reflect minimally on the past.
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, and labor).

SUSTAINING STRATEGIC FOCUS

• Entrepreneurs’ intentions tend to be directed toward goals, which are desired end- states, rather
than 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.
 ENTREPRENEURIAL FACTORS: THE
ENTREPRENEURIAL ZOOM LENS
• The apparent equivocality of focus pertains to the complexity of their jobs.
They move between operations (where details are important) and strategy
( w h e r e t h e “ b i g p i c t u r e ” o r v i s i o n i s i m p o r t a n t . ) T h e e ff e c t i v e e n t r e p r e n e u r
responds to this complexity by developing a psychological, social, and
strategic “zoom lens.”
 DEVELOPING AN INENTIONAL POSTURE

• An intentional posture involves the position of an individual in relation to his or her

values, needs, and so forth, and the outer world. Two variables considered here are
valuable to the entrepreneur:
1. Alignment - a configuration of parts such that all parts are contributing to a single
purpose and direction. This means that our many “inner voices” which reflect
different and conflicting needs, values, memories, and wishes, need to agree on
one direction.
2. Attunement - the readiness to send and receive information, influence, or meaning
from other sources. It requires vigilance, open-mindedness, extroversion, and the
ability to learn from mistakes on the simplest level.
 BUSINESS RESOURCES AND IDEAS FOR
AN ENTREPRENEUR
• A successful entrepreneur has drive, passion, energy, and stamina, but an
entrepreneur needs one more ingredient to go along with these key traits --- a
simple business idea.
 PERSONAL SERVICES

• Encompasses a broad spectrum of services offered to individuals rather than

businesses.
• These may include personal shoppers, personal assistants, child and elder
care, wedding planners, tutor and many more
 ENTREPRENEURIAL RESOURCES

• Assets both tangible and intangible

• That are mobilized by entrepreneurs in the process of building a business, organization, or other
initiative.
• Include sources of financing such as lines of credit and investment capital, but may also include
abstract resources such as knowledge of a particular field or technology, or network of contacts
who can be called upon to contribute financial support, publicity, or other benefits to a growing
enterprise.
 FIVE FACTORS WILL BE KEY TO
ENTREPRENEURIAL SUCCESS
1. Creativity - Do not be dissuaded by the challenge to be creative. You need not be the original wheel creator to improve
upon a stone cylinder. By accumulating your ideas, you will be able to distill the great ones from the rest and be ready to run
with the best.

2. Risk Tolerance - Rewards rarely come without risk. Your ability to take advantage of an opportunity will depend, in part,
on your tolerance for risk.

3. Responsiveness - The ability to respond to the market and new business opportunities can be the difference between a
successful entrepreneur and a failed business model.

4. Leadership - Leaders are challenged with taking possibilities and turning them into inspiring visions for others. You must
take the lead for your ideas to come to fruition

5. Rights - Intellectual property laws can provide you with exclusive business rights to your ideas. If you do not protect your
ideas, they may be copied cheaply
 ENTREPRENEURS CONTROL RESOURCES

1. Advertiser - A person or company that pays for a product, event, or job to be advertised in a
newspaper, on television or on a poster.
2. Crowd Funding- It is an innovative way to raise capital without having to deal with lawyers,
bankers or regulatory agencies.
3. Social Media
 BUSINESS CONCEPT

• For entrepreneurs, it is often easier to come up with a variety of ideas for new
businesses and more difficult to actually implement those concepts
• - A business concept is a bridge between an idea and a business plan.
 BUSINESS PLANNING
• It is a formal statement of business goals, reasons they are attainable, and plans for reaching
them.
• - It may also contain background information about the organization or team attempting to reach
those goals.

ENTREPRENEUR NETWORK
• An entrepreneur network describes a group of entrepreneurs, who have come together to share
resources and generally support one another.
• A great place for new and experienced entrepreneurs alike, to ask questions and share ideas