The Entrepreneurial Mind-Set

Why This Lesson

Some people believe that the entrepreneurial mindset is something a person is born
with. In some ways, it might be true. To be an entrepreneur, a person must have a
passion and a set of core values that are in line with the business. These two
characteristics give entrepreneurs the drive and dedication to create a new venture.
Even though some entrepreneurial characteristics (for example, risk-taking,
innovation, creativity) can be only developed over a period of time, basic essential
business skills can be learned by anyone interested in doing so.

Self-awareness and knowing how to improve or learn the required skills that you need
is the most important part of any entrepreneurial journey. As a result, in this lesson, we
are going to look into general characteristics, aspects of personality and required
business/soft skills that a successful entrepreneur needs.

The Entrepreneurial Mind-Set

The decision (and the reason behind this decision) to start a business varies from one
person to another. Some people see an opportunity, a need that is not being filled,
and work to create a business that fills that need. Others have different objectives.
They are interested in starting a business, so they look for opportunities that fit their life
and work styles. Another individual may see a consumer need that is not being met
and find a way to address that. Yet another individual may have a personal hobby
that inspires him or her to create a venture. Someone else may discover an
opportunity as a result of previous employment. Another person may want to create
an organization that is a mechanism for social change. Someone else may choose to
start a new venture because of a desire for a certain lifestyle or level of wealth.

Types of Entrepreneurs

In addition to the types of ventures they seek to create (such as social or commercial),
entrepreneurs can be categorized by their different ideas for the growth of the
venture.

• Lifestyle: these entrepreneurs build a business in a way that is integrated into

their lifestyle. For some lifestyle entrepreneurs, profit (beyond what is needed to
sustain their lifestyle) is not the motive; they plan to keep the venture small.
Other lifestyle entrepreneurs may grow businesses with many employees and
significant revenues.
• Foundation: these entrepreneurs plan to build a large, ongoing business with
an objective of long-term growth and profitability. These ventures do not

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 typically attract venture capital funding or become public companies
because of their size and modest growth potential.
• High-potential growth: these entrepreneurs are interested in building a business
that will grow to be worth a lot of money to become public or acquired by
another company. High-growth companies that grow significantly, at least 20%
per year in the recent past, are called gazelles.

Attributes and Skills of Successful Entrepreneurs

Despite the impression given by stories in the media about successful entrepreneurs
who are extreme risk-takers, there is no single personality trait that predicts that
someone will become an entrepreneur or be successful at it. Among entrepreneurs,
there are introverts and extroverts, artistic and scientific individuals, sensitive and
tough people. They can have any type of personality. What entrepreneurs share is
their drive to launch a new venture and to create value.

There are several skills, both personal and professional, that entrepreneurs need to
have to succeed. On the personal side, people who choose to be entrepreneurs
need to have a certain understanding of themselves, especially who they are and
how they work best, since starting or running a business of any type requires
dedication and a lot of work. On the business side, an entrepreneur needs to have
enough organizational or management skills to turn an idea into a viable business.
Examples of key attributes include the following ( See this link for more explanations):

• Adaptability
• Creativity
• Drive to achieve
• Initiative
• Leadership skills
• Motivation
• Perseverance
• Tolerance of ambiguity
• Tolerance of risk

Self-Assessment

Creating an entrepreneurial venture from the ground up is an arduous process. An

individual who is interested in doing so needs to understand himself or herself to know
whether this type of lifestyle is suitable.

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As you consider starting a new venture, it is helpful to understand your strengths and
weaknesses, what you can contribute to the venture, and in what areas you will need
to partner with someone to be successful. Because of the nature of entrepreneurship
and how it differs from being an employee at a company, it is also very helpful to
understand your feelings about and capacity for hard work, how you deal with
insecurities and adversity, and your capacity for working toward a goal.

As you think about your skills and attributes, it is also important to understand your life
goals—personal, professional, and financial. Where does a venture fit into those
goals? How will starting a new venture help you to meet the goals you have set for
your future?

Are You Ready?

Understanding yourself is a vital step toward understanding what type of entrepreneur

you are and increasing your odds for success. Here are some questions to ask yourself
as you consider starting a new venture. There are no right or wrong answers. Your
answers will help you understand who you are, what type of venture may be best for
you to start, and what is important to you in starting a venture.

Entrepreneurial

• Why do I want to start a venture?

• Do I have a passion for a certain market or type of venture?
• Am I willing to work long hours?
• Am I willing and able to work without pay for some amount of time?
• What experience do I have running a business or managing people?
• Am I able to rely on the expertise of others?
• Do I have good organizational skills?

Personal

• How do I feel about risk?

• How do I face failure or the possibility of failure?
• How do I deal with change and unpredictability?
• Am I able to make decisions about important things?
• Am I able to meet my commitments?
• How do I deal with pressure?

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 • What is my comfort level with debt and financial insecurity?
• Am I creative?
• Do I have a strong ability to solve problems?

Our understanding of entrepreneurship has evolved over the years. In modern times,
entrepreneurs have been thought of an as a unique type of person, unorthodox or
daring. We now know that entrepreneurs are not a special breed of individual. Some
entrepreneurs are born with many of the attributes needed to be successful. But it is
also possible to develop some of the skills necessary to create a successful venture.
The important thing to understand is that if you are interested in an entrepreneurial
life, it is attainable.

See if you got what it takes to be an entrepreneur by doing this self-assessment test:
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