MODULE I.

INTRODUCTION TO ENTREPRENEURIAL
MINDSET AND THINKING SKILLS

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 a 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 are 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.

MODULE OUTLINE:

1. Critical Thinking skills of the Entrepreneur

2. Evaluate Problems and Opportunities
3. Implementing ideas

LEARNING OBJECTIVES

1. Explain the critical thinking skills of entrepreneur

2. Outline the problems and opportunities entrepreneurial minds face.
3. Implement entrepreneurial idea generation practices

1.1 CRITICAL THINKING SKILLS OF THE ENTREPRENEUR (LO1)

Critical thinking is the ability to apply reasoning and logic to new and unfamiliar ideas, opinions, and situations.
This 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.

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 than what was originally expected. Open-
minded thinking requires that a person does not assume that his or her way of approaching the situation
is always best, or even right.

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 opinion or thought
processes. Rational thought involves identifying and eliminating prejudices, so that someone can have a
fresh and objective approach to the 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.

Developing 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.

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
and accurately.

Ancillary skills

Critical thinking involves 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 you are able to take on complex problems and projects
with confidence of a successful outcome.

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 level 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, decide what clothes to buy, etc. 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 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 to deal with the much larger issues of living their life. It
frees people the way nothing else really can, from habits of thinking they are often ruled by.

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 all have concepts, critical thinking helps
us rethink those concepts because we, as people, change and we have to understand why.

Mindset
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. There are two (2) different types of mindset: Fixed and Growth.

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 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 is 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
performance, and to learn from their mistakes. Despite setbacks, they tend to persevere rather than give 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 round. In contrast,
children who were praised for being smart or intelligent after the test
chose the easy test on the second time around.
Carol Dweck - American Psychologist
It seems that the children who had been praised for being
smart wanted to keep their reputation for being smart and tended to avoid any challenge that would jeopardize
this belief. 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.

The Mindset for Entrepreneurship

A growth mindset is essential to a mindset for entrepreneurship. The Practice of entrepreneurship 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 organized under certain conditions. This also includes the ability to persevere, accept, and learn from
failure, and get comfortable with a certain level of discomfort.

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 because working in uncertain environments “goes with the territory” in entrepreneurship.

We touch on the concept of metacognition, which is the way in which understand our own performance or the
process of “thinking and thinking”:
 For example, say you are reading through a complex legal document; you 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”.

While passion is not all that is needed to be successful, research has shown that positive feelings motive
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; anyone 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 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.
1.2 EVALUATE PROBLEMS AND OPPORTUNITIES (LO2)
In the general sense, the term opportunity implies a good chance or a favorable situation to do something
offered by good 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 in 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 cornerstones of a 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.

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 moments may dislike or turn it down and may think for and find other products/projects
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, 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.

To mention the important ones, the entrepreneurs selected their products or projects based on:

a) Their own or partner’s past experience in that business line;

b) The Government’s promotional schemes and facilities offered to run some specific business enterprise;
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’. This, 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:

1. Consumers
2. Existing products and services
3. Distribution channels (market intermediaries)
4. Government
5. Research and Development

Methods of Generating Ideas

There could be a variety of sources available to generate ideas for enterprise formation (see above). 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 of 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.

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 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 a 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 or problem.

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. Withheld criticism of others’ ideas
Problem Inventory Analysis
Problem inventory analysis though seems similar to focus group method, is somewhat different from the latter
in the sense that it not only generates ideas, but also identifies the problems the product faces. The procedure
involves two steps:

1. Providing consumers a list of specific problems in a general product category

2. Identifying and discussing the products in the category that suffer from 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 is better used for
generating and identifying new ideas for screening and evaluation. The results derived from the analysis needs
to be carefully screened and analyzed 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 best results, problem inventory analysis should be used
primarily to generate product ideas for evaluation.

1.3 IMPLEMENTING ENTREPRENEURIAL IDEAS (LO3)

Entrepreneurs’ ideas and intentions form the initial strategy template of new organizations. 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 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.

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 Jones construed will (a more general
term which includes intention) as an independent faculty of the mind, operating through a 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.

Entrepreneurial intentions are aimed at either creating a new venture or new values in existing ventures.
Katz and Gartner observed that intentions include a dimension of locution:

1. The entrepreneur’s intention (internal locus)

2. Intentions of other stakeholders, markets, and so forth (external locus)

Another dimension of entrepreneurial intentions is that of rationality versus intuition. The figure below
shows how personal and social contexts interact with rational and intuitive thinking during the formulation
of entrepreneurial intentions.
 Social, Political and Personal History,
Economic Context Current Personality
and Abilities

Rational, Analytical, Intuitive, Holistic,

Cause-Effect Contextual Thinking
Thinking

Intentionality

Actions

Certain personal history factors, such as having prior experience as an entrepreneur, personality
characteristics (such as need for achievement and need for control), and abilities (such as promoting ideas)
predispose individuals to entrepreneurial intentions. Along with individual variables, social, political and
economic variables (displacement, changes in markets, government deregulation of industries) create the
context for entrepreneurship.

First, a person’s rational, analytic, and cause-and-effect oriented process structure intention and action.
These psychological processes underlie formal business plans, opportunity analysis, resource acquisition, goal
setting, and most observable goal-directed behavior.

Second, intuitive, holistic and contextual thinking frames and structures an entrepreneur’s intention
and action. Inspired by vision, hunch, and expanded view of untapped resources, and a feeling of the potential
of the enterprise, the entrepreneur perseveres.

Impact of Entrepreneurial 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 organization they lead.

It follows, then, that the impact of the leader’s intentions will be even greater at the birth of an
organization, when the influence 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 of potential of the venture and culture that emerges.

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 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 [7] in service, eight [8] in manufacturing, and five [5] in publishing who had 2-40 years of experience as
entrepreneurs), distinct patterns of thought and behavior emerge. Subsequent analysis of transcripts and
observer’s notes suggest that these patterns are relatively consistent among entrepreneurs. The intentional
process described below refines these patterns on 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 precursors. The figure below depicts these five antecedents followed by creating and maintaining a
temporal tension (the time factor), sustaining strategic focus and developing a strategic posture.

Focusing on
Specific:
Creating and Maintaing:
 Needs Choosing a Strategic
 Values  Temporal Tension Posture
 Wants  Strategic Focus
 Habits
 Beliefs
Figure: Intention-Direction

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 to the future
that has not yet manifested. The farther into the future that one has visions, the greater the uncertainty and the
greater the temporal tension one attempts to draw that future into the present. Common sense suggests that
entrepreneurs do this. Entrepreneurs experience and manage time differently than those who have other roles or
mindsets because of their complex roles in a venture. 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 is more salient for entrepreneurs than for others because of their personal, financial and
psychological investment.

Sustaining Strategic Focus

Entrepreneurs’ intentions tend to be directed towards goals, which are desired end-states, rather than towards
means of conduct, although both ends and means can be intentional. An entrepreneurs’ goals are economic –
survival and growth of an 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 such 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 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 order to 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,
this, on the overall well-being of the enterprise.

The 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.

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.
 An entrepreneur’s job requires complete focusing. The inability to develop cognitive complexity and
flexibility may result in organizational standstill or the entrepreneur exit from the central leadership position.
Entrepreneurs who successfully lead growth in new ventures have variable strategic focus which allows’ them
to shift their range and vision and the amount of detail in order to make the most of their vision.

Developing an Intentional Posture

An intentional posture involves the position of the individual in relation to his or her values, needs, and so forth,
and the world. There are two variables that will be considered here and these are Alignment and Attunement.

Alignment

Alignment is a configuration of parts such that all parts are contributing to a single purpose and direction. A
lack of psychological alignment prevents focused intention. A conflict and values, such as work versus family
or control versus growth, can slow, stop, or even divert intended action, and this is called ‘obstructed will’.

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.

There needs to be synergy – a social and organizational level of alignment – between the entrepreneur
and other members of the enterprise team. When individuals (team members) 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
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, thereby
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, consultants in order to gain key resources for the new venture.

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 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.

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 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 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 may be discovered and analyses.

MODULE SUMMARY
 Entrepreneurs assess the tools that they have, come up with goals on the fly and keep adapting to new
circumstances and new information
 Critical thinking is the ability to apply reasoning and logic to new or unfamiliar ideas, opinions and
situations.
 The ability to think critically is essential as it creates new possibilities in problem solving
 Critical thinking often relies on the ability to view the world in a way that does not focus on the self
 Critical thinking sounds like a dispassionate process but it can engage emotions and even passionate
responses.
 The growth mindset is essential to a mindset for entrepreneurship
 Among many elements of the entrepreneurial mindset, one of the most talked about is the element of
passion
 In the general sense, the term opportunity implies a good chance or a favorable situation to do something
offered by circumstances.
 Distribution channels called, market intermediaries, also serves as a very effective source of new ideas
for entrepreneurs.
 Entrepreneurs’ ideas and intentions for the initial strategic template of new organizations and are
important underpinnings of new venture development.
 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).
 Entrepreneurial intentions have a significant impact on all organizations.
 The distance of that future time horizon is particularly important in creating and transforming
organizations.
 Entrepreneurs’ intentions tend to be directed towards goals, which are desired end-states, rather than
own means of conduct, although both ends and means be intentional

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