Entrepreneurial Mindset & idea

Chapter 2
Overview
LECTURE CONTENTS
Entrepreneurial mindset

Entrepreneurs skills

Entrepreneurial ideas

Support networks value

Activities
What is mindset?
• A mindset is an established set of
attitudes of a person or group concerning
culture, values, philosophy, frame of
mind, outlook, and disposition
• It may also arise from a person's
worldview or beliefs about the meaning
of life
What Kind of Mindset Do You Have?

Taking the mindset test

https://www.idrlabs.com/growt
h-mindset-fixed-
mindset/test.php
Kind of Mindset
• Two different types of mindset: a fixed
mindset and a growth mindset (Stanford
University psychologist Carol Dweck)
• Fixed mindset: the assumption held by
people who perceive their talents
and abilities as set traits.
• Growth mindset: the assumption held by
people who believe that their abilities can be
developed through dedication, effort, and hard
work
The Mindset for Entrepreneurship
• Entrepreneurial mindset is the ability to quickly sense, take
action, and get organized under uncertain conditions.

• Entrepreneurial mindset requires constant thinking and

rethinking, adaptability, and self-regulation—the capacity to
control our emotions and impulses
Passion and Entrepreneurship
• Passion is an element of the entrepreneurial
mindset.
• Passion: 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.
 Cultivating entrepreneurial mindset

• Three habits that need to be

cultivated for an entrepreneurial
mindset:
– self-leadership
– creativity
– improvisation.
Self-leadership
A process whereby people can influence and
control their own behavior, actions, and
thinking to achieve the self-direction and self-
motivation necessary to build their
entrepreneurial business ventures.
Elements of Self-Leadership
Self-observation: a process that raises our awareness of how, when, and
why we behave the way we do in certain circumstances.

Self-goal setting: the process of setting individual goals for ourselves.

Self-reward: a process that involves compensating ourselves when we

achieve our goals. These rewards can be tangible or intangible.

Self-correcting feedback: a process that allows us to examine our own

behaviors in a constructive way in order to reshape
these behaviors
 The capacity to
Creativity produce new ideas,
insights, inventions,
products, or artistic
objects that are
considered to be
unique, useful, and
of
value to others.
Improvisation

• The art of spontaneously

creating something
without preparation.
• The ability to function in
an uncertain world
requires a degree of
improvisation.
What are entrepreneurial skills?
• Entrepreneurial skills can encompass a broad range of various skill
sets like technical skills, leadership and business management skills
and creative thinking.
• Because entrepreneurial skills can be applied to many different job
roles and industries, developing your entrepreneurial skills can mean
developing several types of skill sets.
• For instance, to be a successful business owner, you may need to
develop your business management skills. To build and maintain
successful project teams you might need to improve your leadership
and communication skills.
The Five Skills

Five skills essential to building a mindset for The Practice of Entrepreneurship

The skill of play
• frees the imagination
• opens up our minds to a wealth of
opportunities and possibilities,
• helps us to be more innovative as entrepreneurs

The Skill of Play

www.ted.com/talks/steven_johnson_how_play_leads_to_great_inventions
In this TED talk, Steven Johnson discusses how ideas can arise from a sense of
playfulness.
The skill of experimentation
• Described as acting in order to learn—
trying something
• Learning from the attempt and building that learning into the next iteration.
• Means taking action, such as getting out of the building and collecting real-
world information to test new concepts, rather than sitting at a desk searching
databases for the latest research.
• It involves asking questions, validating
assumptions, and taking nothing for granted
The skill of empathy
• Understanding the emotion, circumstances,
intentions, thoughts, and needs of others.
• Exercises such as interviewing practicing entrepreneurs help develop
empathy for what they have been through.
• Allows you to connect with potential stakeholders, cútomers in a more
meaningful way, which could help to identify unmet needs, leading to
the
creation of new products and services.
The skill of reflection
• Helps codify our learning from practicing the four other skills
• Provides us with new perspectives,
• Allows us to evaluate outcomes and draw conclusions
The skill of creativity
• Requires a general openness to the world and relates to
unleashing our creative ability to create and find opportunities and
solve
problems.
The Five Skills
• The five skills are essential for
building a mindset for The
Practice of Entrepreneurship.
• They are designed for those
who are keen to take action.
The skills
cannot be developed without
learning through doing.
The brother of the skill of creativity:
5 Discovery skills

1. Networking - finding &

testing ideas
2. Observing others -
5. Associating

INNOVATION
particularly potential
customers seemingly
unrelated =
3. Questioning common
things -
wisdom – asking why?
connectivity
& why not?
4. Experimenting - trying
things out
Dyer et al., 2009
 22

Activities: You Be The Entrepreneur

Mary Kay Ash began her first company, Mary Kay Cosmetics, with the help
of her husband, who handled the financial and legal matters for their
household. However, tragedy struck when her husband suddenly died of a
heart attack one month before the company was scheduled to open. Her
lawyer and accountant
urged her to abandon the plan because she did not have a financial
background and did not have the status of a man.

What Would You Do?

Source: Mary Kay Ash. (October 10, 2008). Entrepreneur Magazine

Entrepreneurial ideas
• Entrepreneurial ideas are
concepts for new business
ventures that aim to fill a gap in
the market or address specific
customer needs. They typically
involve innovation or the
introduction of new products,
services, or methodologies.
 What is an Business ideas?

Find a way a producing the solution at a

price customers are willing to pay

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Discussion: Let's distinguish between
business ideas and Entrepreneurial ideas
Key characteristics of entrepreneurial ideas

Innovative

Profit
Feasibility
Potential

Value Creation

Market
Scalability
Demand

Competitive
Advantage
 Developing your ideas
• Product/service innovation
• New venture typologies
• Finding a business idea
 Product/service innovation

Developments in technology
- from radical to incremental
Improvements in design or functionality
- doing things better
Improvements in efficiency
- doing things at lower cost
New combinations of marketing mix
- ways of getting things to markets

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 New venture typologies

Radical
product/service New-to-the-
Radical world
innovation innovation industries

Incremental
Incremental
product/service
innovation
innovation

Existing Market Market

Copy-cat
product/service development paradigm
shift

Existing Incrementally Radically

market new market new market

29
 Finding a business idea
Market need  Changes in
technology, law &
regulation, market
& industry
structures,
demographics,
Create opportunity Spot opportunity culture, moods &
fashions
 Product deficiencies
Incremental
Radical product or  Unmet demand
product or market
market innovation
innovation

30
Support networks
Definition
Value of support network
How to build a support
network
Support network definition
• Support network means the one or more
individuals selected by a person or by the
person and the person's guardian, if one
has been appointed, to provide assistance
and guidance to that person in
understanding issues, making plans for the
future, or making complex decisions.
Value network
• A value network is a set of connections between
organizations and/or individuals interacting with each other
to benefit the entire group.
• A value network allows members to buy and sell products as
well as share information.
• These networks can be visualized with a simple mapping tool
showing nodes (members) and connectors (relationships).
Benefits of a Value Network
• The benefit that a value network provides comes from the way a
business or individual applies the resources, influence, and insight of
others to whom they are connected.
• A startup, for example, may look to its external connections, such as
its investors and mentors, to provide experienced guidance on how to
approach the development and growth of the business.
How to Build a Support Network

Make time
for old
Give more friends
than you ask
Organize to receive
informal
Host social opportunities
events to talk shop
Be bold
about
reaching out
 Activities(optional): You Be The Entrepreneur

Mary Kay Ash began her first company, Mary Kay Cosmetics, with the help of
her husband, who handled the financial and legal matters for their
household. However, tragedy struck when her husband suddenly died of a
heart attack one month before the company was scheduled to open. Her
lawyer and accountant
urged her to abandon the plan because she did not have a financial
background and did not have the status of a man.

What Would You Do?

Source: Mary Kay Ash. (October 10, 2008). Entrepreneur Magazine

37
Thank you for listening!