UNIT B15.

1: USING ENTREPRENEURIAL CONCEPTS

DURATION: 10 HOURS 1 CREDIT HOURS

SPECIFIC LEARNING OUTCOMES

15.1.1 Explain concepts of entrepreneurship

15.1.2 Describe different types of entrepreneurs

15.1.3 Discuss the back ground to emergence of entrepreneurship

15.1.4 Explain the benefits of entrepreneurship

LEARNING ACTIVITIES

Explaining concepts of entrepreneurship

Generic explanation of the terms

 Enterprise
 Entrepreneurs
 Entrepreneurship
 Enterprise
 Entrepreneurial competences

Define new enterprise creation

Differentiate between an Entrepreneur and an Intrapreneur

Describing different types of entrepreneurs

 Pushed and pulled entrepreneurs

 enterprise, entrepreneurship and the entrepreneur

Discussing the background to emergence of entrepreneurship

 Origin of entrepreneurship
 Motive of entrepreneurship
 Importance of entrepreneurship to national development

Explaining the benefits of entrepreneurship

 Employment and self-employment

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  Benefits of enterprise development

ASSESSMENT CRITERIA

Entrepreneurship concepts well explained

Notes

Enterprise refers to a for-profit business started and run by an entrepreneur. And we

will often say that people running such businesses are enterprising. The roots of the
word lie in the French word entreprendre (from prendre), meaning ‘to undertake’,
which in turn comes from the Latin “inter prehendere” (seize with the hand).

Entrepreneurs

a person who sets up a business or businesses, taking on financial risks in the hope
of profit.

"many entrepreneurs see potential in this market"

An entrepreneur is an individual who creates and/or invests in one or more

businesses, bearing most of the risks and enjoying most of the rewards.[1] The
process of setting up a business is known as "entrepreneurship". The entrepreneur
is commonly seen as an innovator, a source of new ideas, goods, services, and
business/or procedures.

An entrepreneur is an individual who starts and runs a business with limited

resources and planning. This individual is responsible for all the risks and rewards of
their business venture.

Entrepreneurship is the ability and readiness to develop, organize and run a

business enterprise, along with any of its uncertainties in order to make a profit.

Entrepreneurship is the pursuit of starting, managing, and scaling a business. It

involves combining innovation, skills, and vision to develop new products, services,
or ideas that meet market demand and create value for a target audience. Those
who choose this path often take on financial risks and require resilience and

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problem-solving skills. Entrepreneurship also applies to other types of self-
employment, such as online content creators and consultants.

9 business competencies that every entrepreneur should have

 Communication
 Networking
 Leadership
 Sales
 Feedback
 Finances
 Focus
 Management
 Mindset

Ability to communicate:

Being a good communicator is one of the core competencies an entrepreneur needs

to be successful. This means they need to be able to talk to people and explain
things clearly in various situations; from dousing fires at the workplace, to
negotiating terms with investors, to being the proverbial POCs for most major
undertakings. In short, founders need to be able to talk to their employees,
customers, and investors in a way that inspires trust and understanding. If they
can’t communicate well, their ideas may not be understood, and their business may
fail. Being persuasive is a big part of being a successful entrepreneur, and it’s a skill
that cannot be replaced by technology.

Networking:

Networking means getting to know people who can help an entrepreneur in their
business. These people could be investors, advisors, mentors, or other
entrepreneurs. Is networking that important? Yes. It’s important to make
connections because it can indirectly affect the success of the business. Even if an
entrepreneur didn’t go to a fancy school, they can still make important connections.
After all, being a good networker means being genuinely interested in other
people’s stories, and asking about their experiences. For example, you can:

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Leadership abilities:

Third on our list of business competencies in entrepreneurship: Leadership is an

important skill for entrepreneurs to have. Running a business can be difficult, with
many obstacles to overcome. However, a strong leader can help their team face
these challenges with confidence and purpose. Even big, successful companies
have faced challenges, but they have strong leaders to guide them. An
entrepreneur’s ability to lead is crucial for their business to succeed. While there’s
no clear guide on how to become a good leader, there are things an entrepreneur
can do to appear as one. For example, a good leader has a strong vision and
believes in themselves and their team. They trust in their idea and how it will
benefit their customers.

Ability to make Sales:

As part of their core competencies, entrepreneurs should learn how to be effective

salespeople. Why? Salespeople talk to customers a lot and understand how they
think, and what they want. They know what’s wrong with how a business is run
because they are close to the customers. So learning how to sell is important for
building a successful business. Even if a product is good, it won’t sell on its own
because there are many competing products. Entrepreneurs who learn how to sell
and work hard will make their business relevant even in tough times. Moreover,
selling can help entrepreneurs get rid of assumptions they have about the market. It
helps them understand what works in the real world and how to improve their
business. They will learn things they might not have known otherwise.

Ability to take feedback:

Have you ever heard the saying: “Doing the same thing over and over again, and
expecting different results is lunacy”? Well, it’s true! That’s why entrepreneurs need
to learn how to take feedback – from customers, investors, peers, and employees.
After all, it’s possible to be wrong on so many levels, and there will be times when

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you just don’t know what to do next. If you want to gather feedback effectively,
there are a lot of ways to do it. For example, you can use online feedback software
like SurveySparrow to conduct online surveys for customers or employees, or ask
for feedback from investors, experienced entrepreneurs, and other peers. You don’t
have to implement everything that’s suggested. But taking feedback will at least
give you an idea of what relevant stakeholders think about your business and your
leadership.

Managing finances:

One of the core competencies in entrepreneurship is always having enough money

to keep it running. If you don’t manage your money properly, your business could
fail. Even if you have a great idea, without proper funding, it can be tough to get
your business off the ground. The after-effect of Covid-19 is still looming large, and
given that there are talks of recession, investments have dried up. That makes it all
the more important for businesses to be prudent with their money. Where to begin?
Start by tracking where (and how much) money is coming in and going out, and find
ways to cut down on expenses. By having a good understanding of your finances,
you’ll be able to make smart choices and avoid wasting money. It’s also important
to know how to read financial statements like income statements, balance sheets,
and cash flow statements. These documents can help you see where you’re
spending too much money and where you can save. By having the necessary
finance skills, you will not overspend and end up allocating your funds only where it
is necessary.

Being focused:

An entrepreneur is the business head of their startup, so there are hundreds of

things that they need to take care of. For them, hiring an accountant is as important
as looking for funding. They cannot slack on one aspect just because the other task
is perceived to be more important. That’s why successful entrepreneur are always
clear about their end goals. Whether it’s blocking out focus times or notifications,
they use various techniques to avoid falling in the distraction trap. There will be

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issues that crop up every now and then. When you are starting from scratch, there
are several things you will not have a clear idea of. Handling different business
aspects can be difficult for everyone. This is where staying focused on your most
important goal helps your organization. It is imperative that they remain composed,
confident, and focused on what they want.

Managing people:

To run a business, you need to work with different people who have different skills
and backgrounds. It’s important to choose the right employees as they can greatly
impact the success of your business. Moreover, you cannot do everything yourself,
so delegating tasks is necessary. Additionally, if you micromanage your employees,
they will feel unappreciated and will not want to stay with the company. So, trust
your employees and their abilities to get the job done well.

In addition, give your employees the resources and support they need to do a good
job, and communicate your expectations clearly. In fact, online survey forms can
help you automate this process. To give some examples:

Possessing a growth mindset:

Among the several business competencies examples we have talked about here,
having a growth mindset will help entrepreneurs stay focused. A growth mindset
means they see obstacles as opportunities to learn and grow. This helps them stay
focused and make progress towards their goals Having a growth mindset gives the
entrepreneur the ability to look at each obstacle as a stepping stone to success.
Someone with such an attitude will be able to value testing and iteration in the
entrepreneurial process. You will capitalize on the opportunities you get and find
more ways to improve throughout the course of the journey.

Starting a business can be unpredictable, so it’s important to be optimistic about

the future and focus on growth. With a growth mindset, entrepreneurs can
overcome any challenges that come their way.

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The first three stages of the Enterprise Creation stages which emerged are:
Discovery, Modeling, and Startup which form the new venture formation stages. The
next three Existence , Survival and Success develop the business into a sustainable
business entity. The last three stages: Adaption, Independence and Exit provide the
entrepreneurship pathways for the entrepreneur. These final elements complete
the entrepreneurship model by focusing on the success of the business, how the
entrepreneur progresses beyond the business, their separation into different entities
and the entrepreneurs eventual exit. The 9 Stages of Enterprise Creation are set out
below:

STAGES OF ENTERPRISE CREATION

Stage 1 Discovery

This first stage of the 9 Stages of Enterprise Creation is centred around the focal
competency of Opportunity recognition, creation and evaluation. These are the
processes by which entrepreneurs identify and evaluate potential new business
opportunities. An opportunity by definition is a favorable set of circumstances which
creates a need for a new product, business, or service. Opportunity recognition is
the process by which the entrepreneur comes up with a prospective idea for a new
venture. Evaluating the opportunity takes research, exploration, and understanding
of current needs, demands, and trends from consumers and others. The process of
researching and surveying allows the product or service idea to develop, so that it
can be modelled.

Stage 2 – Modeling

The second stage is about developing the business logic to create a business model.
This is split into three parts and starts by setting out a Strategy, formulating a
business model and setting the business processes to achieve the strategy . These
form the key elements for the plan to start the business and, are an integral piece
of submitting any proposal for an entrepreneurial or intrapreneurial business. The
model should be underpinned by the resources available and those which may still
need to be secured. Resource allocation and availability are extremely important to

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startups because sustainability and profit (not loss) depend on proper planning and
understanding of the internal and external environments.

Stage 3 – Startup

The fourth stage is starting the enterprise. Once the resources detailed in the
business plan are mobilised the entrepreneurial process can be effected and
implementation can take place. In this stage the business may be trading or begin
to research or develop a product. The aim of this stage is to have the processes in
place so that the business can have a scalable, repeatable and profitable business
focused on distinct customers within an identified market.

Stage 4 – Existence

At this stage the business has two core focuses; to gain enough customers to create
a profitable business and, at the same time establishing production or product
quality. The majority of businesses fail at this stage due, in part, to either one or
both of these factors. At this stage the organisation is a simple one, the
entrepreneur does everything and directly supervises subordinates, who should be
of at least average competence. Systems and formal planning are minimal to
nonexistent. The company’s strategy is simply to remain alive which requires the
focal competency of tolerance of uncertainty, risk and failure

Stage 5 – Survival

At this stage the business should be a viable entity in terms of cash flow and
resources, it has enough customers and satisfies them sufficiently with its products
or services to gain repeat sales. The organisation is still simple. The company may
have a limited number of employees supervised by a junior manager or supervisor.
Neither of them makes major decisions independently, but instead carries out the
rather well-defined orders of the entrepreneur. Formal planning is, at best, cash
forecasting. The major goal is still survival, and the entrepreneur is still synonymous

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with the business. The entrepreneur starts to implement ideas through leadership
and management which provides opportunities to scale.

Stage 6 – Success

Entrepreneurs at this point of the 9 Stages of Enterprise Creation have a number of

options: capitalise on the company’s accomplishments, expand or, keep the
company stable and profitable. The entrepreneur has a number of ways to
capitalise, from exit to taking a ‘founders dividend’ from the business. If the
entrepreneur want to expand then the core tasks are to make sure the basic
organisation stays profitable so that it will not outrun its source of cash and, to
develop managers to meet the needs of the growing organisation. Through the
entrepreneurs leadership all managers within the business should now identify with
the company’s future opportunities rather than its current condition demonstrating
a success to its stakeholders.

Stage 7 – Adaptation

Businesses which reach this stage normally have a number of factors pushing them
to adapt, these are normally grounded in changes either to the micro or macro
environments. Businesses at this stage will normally be entering a phase of rapid
change and will have to have secured the required finances to develop. At this point
key management is in place with a set of operational systems. Operational and
strategic planning are now a key focus. The organisation is decentralised and, at
least in part, divisionalised. The key managers must be very competent to handle a
growing and complex business environment. The systems, strained by growth, are
becoming more refined and extensive. Both operational and strategic planning are
being done and involve specific managers. The entrepreneur and the business have
become reasonably separate, yet the company is still dominated by both the
entrepreneur’s presence and stock control.

Stage 8 – Independence

A business at this stage should now has the advantages of size, financial resources,
market share and managerial talent. Innovation and Intrapreneurship are now key
factors in keeping the business in market position. The organisation has the staff

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and financial resources to engage in detailed operational and strategic planning.
The management is decentralised, adequately staffed, and experienced. Business
systems are extensive and well developed. The entrepreneur and the business are
quite separate, both financially and operationally.

Stage 9 – Exit

The last of the Enterprise Creation stages is focused on exiting the business and
making their separation permanent. An exit strategy will give the entrepreneur a
way to reduce or eliminate their stake in the business and, if the business is
successful, make a substantial profit. This stage removes the entrepreneur from
primary ownership and decision-making structure of the business. Common types of
exit strategies include Initial Public Offerings (IPO), strategic acquisitions and
management buyouts. The organisation at this stage is generally profitable, has a
definable set of resources with a clear and realistic strategy to continue. The CEO
and founder(s) are separate.

Differences Between Entrepreneur and Intrapreneur

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Key Differences Between Entrepreneur and Intrapreneur

The important distinguishing points between entrepreneur and intrapreneur, are

given in the following points:

 An entrepreneur is defined as a person who establishes a new business with

an innovative idea or concept. An employee of the organisation who is
authorised to undertake innovations in product, service, process, system, etc.
is known as Intrapreneur.
 An entrepreneur uses his own resources, i.e. man, machine, money, etc.
while in the case of an intrapreneur the resources are readily available, as
they are provided to him by the company.

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  An entrepreneur raises capital himself. Conversely, an intrapreneur does not
need to raise funds himself; rather it is provided by the company.
 An entrepreneur works in a newly established company. On the other hand,
an intrapreneur is a part of an existing organisation.
 An entrepreneur is his own boss, so he is independent to take decisions. As
opposed to intrapreneur, who works for the organisation, he cannot take
independent decisions.
 This is one of the salient features of an entrepreneur; he is capable of bearing
risks and uncertainties of the business. Unlike intrapreneur, in which the
company bears all the risks.
 +The entrepreneur works hard to enter the market successfully and create a
place subsequently. In contrast to Intrapreneur, who works for organization-
wide change to bring innovation, creativity and productivity.

different types of entrepreneurs

Pushed and pulled entrepreneurs

We distinguish between two types of entrepreneurs based on their motivation to

engage in entrepreneurial activity: “Push” entrepreneurs are those whose
dissatisfaction with their positions, for reasons unrelated to their entrepreneurial
characteristics, pushes them to start a venture. “Pull” entrepreneurs are those who
are lured by their new venture idea and initiate venture activity because of the
attractiveness of the business idea and its personal implications.

There are two schools of thought when it comes to entrepreneurs: the pushed and
the pulled.

 “Some of the early research on the topic discusses a push-pull analogy.

“Push” (or necessity-based) entrepreneurs are those who may be faced with a
job loss, dissatisfaction with their current positions, or lack of career
opportunities. For these reasons – unrelated to their entrepreneurial
characteristics – they are pushed to start a venture.

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 “Pull” (or opportunity-based) entrepreneurs are those who initiate venture
activity because of the attractiveness of the business idea and its personal
implications. They may seek independence, increased earnings, and
opportunities to carry out their own ideas.” (Centre for MIT Entrepreneurship)

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Origin of entrepreneurship

The origins of entrepreneurship

The first instances of entrepreneurship centered on the exchange of goods between

ancient tribal societies. The development of agricultural skills created the
opportunity for even more entrepreneurship, and this eventually evolved into more
specialized skills and tasks, from crafting jewelry to making weapons to crafting
tools for working with crops. Exchanging these goods and services with others was
the birth of entrepreneurship.

Where Does the Term "Entrepreneur" Come From?

The term “entrepreneur” likely comes from the French word "entreprendre,"
meaning to start something. Richard Cantillon, an 18th-century Irish-French
economist, is widely credited with defining entrepreneurship — and entrepreneurs
— as an economic force that drives development.

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The word “entrepreneur” originates from a thirteenth-century French verb,
entreprendre, meaning “to do something” or “to undertake.” By the sixteenth
century, the noun form, entrepreneur, was being used to refer to someone who
undertakes a business venture. The first academic use of the word by an economist
was likely in 1730 by Richard Cantillon, who identified the willingness to bear the
personal financial risk of a business venture as the defining characteristic of an
entrepreneur. In the early 1800s, economists Jean-Baptiste Say and John Stuart Mill
further popularized the academic usage of the word “entrepreneur.” Say stressed
the role of the entrepreneur in creating value by moving resources out of less
productive areas and into more productive ones. Mill used the term “entrepreneur”
in his popular 1848 book, Principles of Political Economy, to refer to a person who
assumes both the risk and the management of a business. In this manner, Mill
provided a clearer distinction than Cantillon between an entrepreneur and other
business owners (such as shareholders of a corporation) who assume financial risk
but do not actively participate in the day-to-day operations or management of the
firm.

Two notable twentieth-century economists, Joseph Schumpeter and Israel Kirzner,

further refined the academic understanding of entrepreneurship. Schumpeter
stressed the role of the entrepreneur as an innovator who implements change in an
economy by introducing new goods or new methods of production. In the
Schumpeterian view, the entrepreneur is a disruptive force in an economy.
Schumpeter emphasized the beneficial process of creative destruction, in which the
introduction of new products results in the obsolescence or failure of others. The
introduction of the compact disc and the corresponding disappearance of the vinyl
record is just one of many examples of creative destruction: cars, electricity,
aircraft, and personal computers are others. In contrast to Schumpeter’s view,
Kirzner focused on entrepreneurship as a process of discovery. Kirzner’s
entrepreneur is a person who discovers previously unnoticed profit opportunities.
The entrepreneur’s discovery initiates a process in which these newly discovered
profit opportunities are then acted on in the marketplace until market competition
eliminates the profit opportunity. Unlike Schumpeter’s disruptive force, Kirzner’s
entrepreneur is an equilibrating force. An example of such an entrepreneur would
be someone in a college town who discovers that a recent increase in college

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enrollment has created a profit opportunity in renovating houses and turning them
into rental apartments. Economists in the modern austrian school of economics
have further refined and developed the ideas of Schumpeter and Kirzner.

During the 1980s and 1990s, state and local governments across the United States
abandoned their previous focus on attracting large manufacturing firms as the
centerpiece of economic development policy and instead shifted their focus to
promoting entrepreneurship. This same period witnessed a dramatic increase in
empirical research on entrepreneurship. Some of these studies explore the effect of
demographic and socioeconomic factors on the likelihood of a person choosing to
become an entrepreneur. Others explore the impact of taxes on entrepreneurial
activity. This literature is still hampered by the lack of a clear measure of
entrepreneurial activity at the U.S. state level. Scholars generally measure
entrepreneurship by using numbers of self-employed people; the deficiency in such
a measure is that some people become self-employed partly to avoid, or even
evade, income and payroll taxes. Some studies find, for example, that higher
income tax rates are associated with higher rates of self-employment. This
counterintuitive result is likely explained by the higher tax rates encouraging more
tax evasion through individuals filing taxes as self-employed. Economists have also
found that higher taxes on inheritance are associated with a lower likelihood of
individuals becoming entrepreneurs.

Motive of entrepreneurship

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Uddin and Bose (2013) have highlighted that entrepreneurs in Khulna City are
motivated towards entrepreneurship primarily because they can provide jobs for
their family members, and also can stay closer to them. Hussain and Yaqub (2010)
have revealed from their analysis that employment of the family members is one of
the most important factors which motivates the entrepreneurs to have their own
venture. Job and income security needs are strong motivators compared to personal
needs and self-satisfaction for the entrepreneurs, with the thriving reason for
starting their own businesses to increase their levels of income and having job
security (Stefanovića et al., 2010).

According to the research carried out by Kumar (2012), the prime motivational
factor for entrepreneurship is to increase the income level. His respondents opted
for earning more money as the triggering factor to become entrepreneurs. To
stabilise the family financially motivates entrepreneurs as per the findings by
Raman et al. (2008).

With the gain of past experiences in the related or some other field gives self-
confidence to the entrepreneurs, leading them to start their own enterprise
(Kalyani and Kumar, 2011). Previous business experience is an important
motivational factor (Zhu and Chu, 2010). With the experience and knowledge
gained from earlier experience, it is easier to implement those to the self-owned
enterprise. There is no end to learning, but conducting own business becomes
easier if there is some experience gained from previous jobs. Being able to use the

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past experience and training has been found to be the motivational factor by the
research carried out by Stefanovića et al. (2010). Skills possessed due to taking up
a hobby, or a previous job experience, or from any task done from an early age can
lead to the ambition of starting own business utilising the possessed skills. Good
management skills, charisma and friendliness, and hard work are considered to be
important factors that contribute to thriving businesses, and are essential for
success in entrepreneurship (Zhu and Chu, 2010). Thus, these are the major factors
motivating an entrepreneur. Self-efficiency is found to be the motivational factor by
the study carried out by Joo (2011). Amit et al. (2001) found that one of the most
important dimensions of motivation is self-actualisation, with the assumption of
more responsibility and the ability to deal with a wider range of issues.

Self-actualisation is the desire for self-fulfilment, becoming everything that an

individual is competent of becoming. It is the desire to prove that one can do it.
Gaining a higher social status is one of the important reasons that motivate
entrepreneurs to initiate their own business (Islam, 2012; Jesurajan and Gnanadhas,
2011).

Identifying an opportunity and discovering a need that can be fulfilled can motivate
entrepreneurship. Support of family and friends is essential, and is a motivational
factor (Zhu and Chu, 2010). If your family and friends are not by your side, you are
less likely to succeed.

Family and friends are strong assets of life, and their motivation and
encouragement leads to a greater success in entrepreneurship. In the light of
extensive review of previous literature, some motivational factors have been
identified for this study. These factors are presented in Figure above. Those factors
are authority and autonomy, job and income security, skills, past experience, family,
self-actualisation and family.

Importance of Entrepreneurship

Entrepreneurship drives the growth and diversification of the economy and

contributes to the creation of wealth. Before we get into the specifics of the role of
entrepreneurship in economic development, let’s briefly encapsulate its
significance. Entrepreneurship’s importance lies in the following:

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Role of Entrepreneurship in Economic Development

The role of entrepreneurship/ Enterprise in economic development has nine salient

takeaways:

1. Raises Standard of Living

A significant role of entrepreneurship in economic development is that it can greatly

enhance the standard of living for individuals and communities by setting up
industries and creating wealth and new positions. Entrepreneurship not only
provides large-scale employment and ways to generate income, it also has the
potential to improve the quality of individual life by developing products and
services that are affordable, safe to use, and add value to their lives.
Entrepreneurship also introduces new products and services that remove the
scarcity of essential commodities.

2. Economic Independence

Entrepreneurship can be a path to economic independence for both the country and
the entrepreneur. It reduces the nation’s dependence on imported goods and
services and promotes self-reliance. The manufactured goods and services can also
be exported to foreign markets, leading to expansion, self-reliance, currency inflow,
and economic independence. Similarly, entrepreneurs get complete control over
their financial future. Through their hard work and innovation, they generate income
and create wealth, allowing them to achieve economic independence and financial
security.

3. Benefits of New Firms and Businesses

Entrepreneurs identify market needs and develop solutions through their products
and services to begin their business venture. By starting new firms and businesses,
entrepreneurs play a key role in shaping the economy and creating a more dynamic
and diverse business landscape. Entrepreneurship also promotes innovation and
competition, leading to new and improved products and services that contribute to
economic growth and development.

4. Creation of Jobs

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Entrepreneurship is a pivotal driver of job creation. Running the operations of new
businesses and meeting the requirements of customers results in new work
opportunities. Entrepreneurship also drives innovation and competition that
encourages other entrepreneurs and investments, creating new jobs in a wide range
of industries, from manufacturing and construction to service and technology
sectors.

5. Encourages Capital Formation

Capital formation is the process of accumulating resources, such as savings and

investments, to fund new business ventures and support economic growth.
Entrepreneurship can encourage capital formation by attracting investment. In
addition, the creation of new businesses and the growth of existing firms can also
contribute to the development of a more diverse and dynamic economy that
encourages capital formation and opens the door to a wide range of investment
opportunities.

6. Elimination of Poverty

Entrepreneurship has the potential to lift people out of poverty by generating

employment and stimulating economic activity. Entrepreneurship also contributes to
the development of local economies and helps improve the overall standard of
living.

7. Community Development

Entrepreneurship promotes economic growth, provides access to goods and

services, and improves the overall standard of living. Many entrepreneurs also make
a positive impact on their communities and improve their well-being by catering to
underserved areas and developing environment-friendly products. Their work can
help build stronger, more vibrant communities and promote social and economic
development.

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8. Optimal Use of Resources

Entrepreneurship can help identify market opportunities and allocate resources in

the most effective way possible. Entrepreneurs also play a key role in developing
innovative products and services that meet the needs of customers while optimizing
the use of available resources.

9. Increases Gross National Product and Per Capita Income

Entrepreneurship can play a significant role in increasing economic growth and

prosperity by increasing Gross National Product (GNP) and Per Capita Income (PCI).
GNP measures the total economic output of a country while PCI calculates the
average income per person. The increase in GNP can lead to a rise in PCI.
Entrepreneurship can contribute to GNP by creating new businesses and industries,
which can lead to job creation, increased consumer spending, and higher tax
revenue.

Benefits of entrepreneurship

What is self-employment?

Self-employment is when a person works independently from a company or is the

key member or owner of a business. Self-employed individuals receive direct
payment from clients for their services and rarely work under a salary-based
standard.

What is employment?

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Employment is a verbal or written agreement between a professional and an
organization that specifies their duties, pay structures, benefits and workplace
guidelines. Here are some of the most common types of employment

UNIT B15.2: BUILD POSITIVE ATTITUDE TOWARDS ENTREPRENEURSHIP

DURATION: 10 HOURS 1 CREDIT

SPECIFIC LEARNING OUTCOMES

15.2.1 Develop positive thinking

15.2.2 Develop positive ambition

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15.2.3 Discuss positive outlook

15.2.4 Develop constructive ambition

LEARNING ACTIVITIES ASSESSMENT CRITERIA

Developing positive thinking

 The mind-set of a positive entrepreneur

 Positive thinking and goal setting

Developing positive ambition

 The entrepreneur’s psychological preparedness

Developing constructive ambition

 Realistic targets
 Setting realistic targets

Notes

What is an Entrepreneurial Mindset?

An entrepreneurial mindset is the set of skills and qualities that entrepreneurs have
or develop to create, innovate and make their ideas into reality. It’s a combination of
entrepreneurial thinking, problem-solving skills, creativity and the ability to hold
themselves accountable for the success or failure of their projects. Entrepreneurial
thinkers can think outside the box, come up with creative solutions to problems and
are driven by a passion for what they do. They are self-motivated, take risks and
embrace challenges as opportunities.

An entrepreneurial mindset focuses on building something from nothing – it’s all

about taking ownership of your dreams and making them happen! This type of
mentality requires you to be open-minded and willing to experiment with different
approaches. It also means that you are eager to learn from failure and find ways to
succeed the next time. Entrepreneurial thinking can be a powerful tool for creating
something new and accomplishing your goals.

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Entrepreneurial thinking is essential to success in the modern world and requires a
lot of hard work and dedication. It’s not enough to have an entrepreneurial mindset;
you must also be willing to put in the effort and take calculated risks to make your
ideas into reality. An entrepreneurial mindset can help you think strategically,
develop innovative solutions, network effectively and build lasting relationships.

Most importantly, having an entrepreneurial mindset means holding yourself

accountable for the successes or failures of your projects – no excuses allowed! With
the right attitude and determination, great things can happen when you embrace
entrepreneurial thinking.

So if you are ready to take on challenges head-on, dream big and make something
out of nothing, you have the entrepreneurial mindset it takes to succeed! It’s all
about having an entrepreneurial attitude that focuses on problem-solving, creativity
and grit. Anyone can achieve their entrepreneurial dreams with a little hard work
and dedication.

Mindset Traits of Successful Entrepreneurs

1. Ability to maintain a positive attitude

A positive thought process is instrumental to success in any field, especially for

entrepreneurs. Jim Rohn, widely known as one of the greatest business minds of all

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time, said it best: “The major value in life is not what you get but what you
become.” In other words, having a positive thought process requires looking at
every failure and setback as an opportunity for growth and improvement.

Steve Jobs was known for his unwavering commitment to his vision despite hard
times. He once said, “Sometimes life hits you in the head with a brick. Don’t lose
faith.” Optimism can help you stay focused on your long-term goals and keep
pushing forward even when things seem difficult. By maintaining a positive attitude,
you can stay motivated and use challenging times as opportunities for growth and
success.

Successful entrepreneurs understand that thought processes are essential to their

success — it’s not all about the hustle and hard work. A “can-do” attitude is vital to
your success because it helps you persevere through difficult times and strive for
greatness. They can maintain a positive attitude regardless of their challenges,
which is worth cultivating if they want to be successful in business.

The key is to remember that thought processes matter when it comes to success
and always strives to maintain a positive attitude. With dedication and commitment,
you can stay focused on your goals and use difficult situations as learning
experiences. Have faith in yourself, persevere through the tough times, and you’ll
be well on your way to greatness.

2. Openness to anything

Having the right mindset is essential to succeed as an entrepreneur. Jeff Bezos, the
founder of Amazon and one of the wealthiest people in the world, has this trait that
made him successful: openness to anything. This means he was willing to take risks,
explore uncharted waters and try something new. He could view failure as an
opportunity to learn something valuable instead of letting it dent his confidence or
self-esteem.

To be successful, you have to have this same attitude – don’t let fear of failure stop
you from trying something new and following your dreams! When making decisions,
consider all possible outcomes and take calculated risks when necessary. An open
mind can help you stay ahead of the competition by constantly innovating and
finding new solutions. Don’t forget to trust your gut and take the right decisions for

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you and your business! Remember that there is no right or wrong way to succeed as
an entrepreneur, so be open to anything! It just might be the key to success.

3. Being Independent

When it comes to best entrepreneurs, Thomas Edison is often mentioned. After all,
the inventor of the phonograph, the motion picture camera and the long-lasting
light bulb was a man who knew how to be independent. His business success was
due not only to his creative abilities but also to his decision-making skills and
independence. Those qualities enabled him to take risks and make decisions that
others did not believe would succeed.

This attitude of standing up for himself allowed Edison to become one of the most
successful people in history. The best entrepreneurs can think independently and
draw their conclusions, giving them an edge over those who are overly dependent
on outside advice or resources. They recognize opportunities when they arise and
act quickly on them without worrying about what others might think or say.

By taking this approach, they can move swiftly and decisively towards success in
their chosen field. It is clear that independence has been a crucial part of many
successful entrepreneurs’ journeys, and it should be something that aspiring leaders
strive for as well. Learning to be independent will help people become the best
versions of themselves and pave the way for future success.

4. Goal-oriented

Successful entrepreneurs know that goal setting is a fundamental part of achieving

success. Mark Cuban, entrepreneur and investor, famously said, “The entrepreneurs
I know don’t just work on things they want to do — they identify needs in the
marketplace and then create solutions. That’s where all great companies start.”
Research has also shown that entrepreneurs who set clear and measurable goals
are more likely to be successful than those without them.

Without specific goals, entrepreneurs can find themselves wandering instead of

having a clear path to their desired outcome. Therefore creating realistic plans and
objectives is essential to reach their long-term vision. Setting attainable goals
provides entrepreneurs with a roadmap for success; it allows them to measure
progress and make necessary adjustments. Additionally, entrepreneurs can use

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their goals to motivate themselves and stay focused on achieving their dreams.
Ultimately, entrepreneurs need to be goal-oriented to achieve success.

By setting achievable short-term and long-term goals, entrepreneurs can create a

roadmap that will enable them to reach the ultimate destination of success.

5. Passion for entrepreneurship

One of the most successful entrepreneurs in history, Bill Gates, is a testament to the
fact that having a passion for entrepreneurship sets entrepreneurs apart. His drive
and tenacity have made him one of the world’s wealthiest people, with an
estimated net worth of over $100 billion USD. His entrepreneurial spirit has inspired
many aspiring business owners around the world, providing valuable lessons on
what it takes to be successful. Passion for entrepreneurship is essential when
starting a venture– without it, success is much harder to come by.

A true entrepreneurial spirit will provide the inspiration, determination and ambition
necessary for any business endeavour. Those who don’t possess these qualities
often struggle more than those who do; this passion sets them apart from their
competition and gives them the edge they need to succeed. Passion for
entrepreneurship is invaluable; it can be the difference between success and failure
in any business endeavour.

A passion for what you do will help drive you forward and keep you motivated, even
in the face of challenges. There’s no doubt that passion is an essential ingredient for
any successful entrepreneur, and Bill Gates is proof of that. His entrepreneurial
spirit has made him one of the world’s wealthiest people, and his inspirational story
serves as a reminder for aspiring entrepreneurs everywhere.

Passion for entrepreneurship can be cultivated through education, practice, and

experience. If you are determined to become an entrepreneur, then it pays to
develop your skills and knowledge to give yourself the best chance of success.
Learning from the experiences of others like Bill Gates can also provide invaluable
lessons on achieving business success. With time and dedication combined with a
passion for entrepreneurship, you, too, can succeed.

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So if you want to become an entrepreneur, developing a passion for business and
the entrepreneurial lifestyle is essential. Having this passion will give you the
motivation, determination and ambition necessary for success. It won’t guarantee
success, but it will go a long way in helping you achieve your goals. So find your
inner bill gates, embrace your entrepreneurial spirit and strive to make your dreams
into reality

6. Persuasion comes naturally to you

Warren Buffett, famously known as the “Oracle of Omaha”, is a perfect example of

someone who has mastered the art of persuasion. His ability to influence people
with his words and ideas has been a driving force behind his success. He uses
persuasive techniques such as setting clear goals and objectives, being confident in
his vision, using stories to paint a picture in people’s minds and having the courage
to take risks.

All these traits are essential for any successful entrepreneur who wants to succeed.
Therefore, it’s safe to say that persuasion comes naturally to entrepreneurs like
Buffett. They understand the importance of effective communication when it comes
to making deals and inspiring others, which allows them to achieve their goals more
effectively. By leveraging their persuasive skills, entrepreneurs can make a lasting
impact on their business endeavours and turn their dreams into reality.

7. Being Self-Motivated

Self-motivation is a motivational set of beliefs that allows entrepreneurs to strive for

learning and improvement opportunities continuously. It pushes them forward,
regardless of the obstacles and failures they may encounter. This attitude ensures
that their mindset is focused on overcoming any difficulties or challenges they face
instead of giving up. Self-motivated entrepreneurs also have an innate drive
towards success, often leading them to take calculated risks and make informed
decisions when tackling complex problems. Overall, self-motivation is one of the
essential traits for aspiring entrepreneurs who want to reach their goals in business.

To stay motivated, it’s important to set achievable goals and break down large
projects into smaller steps that are easier to accomplish. Try setting daily, weekly
and monthly goals that will help guide your progress. Additionally, having a positive

29
attitude and surrounding yourself with like-minded people can provide further
encouragement. Finally, keep track of your successes to remind yourself of all the
progress you’re making! With these tips in mind, entrepreneurs can stay self-
motivated and on their way to success.

8. creative

Creativity is essential for an entrepreneur to identify learning opportunities and see

potential problems. Famous entrepreneurs, such as Elon Musk, have used their
creativity to its fullest to create innovative solutions that benefit society. Even if you
don’t have the same level of ambition or resources as someone like Elon Musk,
being creative is still a great way to ensure success when starting your own
business.

Taking time to come up with innovative ideas can help you think outside the box
and find ways to problem-solve more efficiently. This can be very useful in
competitive markets where having a unique approach can make all the difference.
Keep learning new skills, observe other people’s successes and failures, and use
your imagination – it could just give you the edge you need. With the right mindset
and application of creativity, you can be one step ahead of the competition and
have a successful career.

9. Learning-oriented

One of the essential traits of successful entrepreneurs is their learning-oriented

mindset. Steven Bartlett, a British entrepreneur and founder of the social media firm
Social Chain, is an excellent example of someone who has achieved success
through self-education. Steven started his business out of his bedroom with £400 in
2013, and now he has grown it to become one of Europe’s fastest-growing
businesses.

Steven attributes much of his success to self-education, saying, “it gave me a better
solution than my university degree ever could have”. His story is an inspiring
reminder that anyone can succeed if they are willing to invest in self-education and
improve their knowledge base. By investing in yourself, you can take your career or
business to the next level!

10. Taking ownership of everything that happens,

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One of the skills and traits that successful entrepreneurs share is taking ownership
of everything that happens, whether a success or failure. Research has shown time
and time again that those who take full responsibility for their actions are more
likely to succeed in business than those who don’t. This wisdom has been echoed by
many renowned entrepreneurs, including Sir Alan Sugar, who said: “One must take
ownership of all his successes and failures.” Taking ownership helps ensure
mistakes can be corrected quickly and efficiently rather than being swept under the
rug. It also allows entrepreneurs to learn from their good and bad experiences,
which can help them become more effective decision-makers. In short, taking
ownership is one key ingredient in the recipe for entrepreneurial success.

Ultimately, successful entrepreneurs understand that the buck stops with them, and
they have the know-how to take full responsibility for their actions. Success doesn’t
happen by chance – it takes dedication, hard work, and a willingness to take
ownership of the outcome. By taking this approach, entrepreneurs can increase
their chances of achieving success in whatever they set out to do.

For those looking to become successful entrepreneurs, taking ownership is an

essential component of any business endeavour. It may not be easy at first, but the
skills and traits associated with taking ownership will help ensure that any mistakes
made are dealt with swiftly, allowing entrepreneurs to learn from them and move on
to greater success. Sir Alan Sugar said it best: “The willingness to take ownership of
your own successes and failures is a must-have for any entrepreneur.” Those who
take ownership have the best chance of achieving success. So, if you want to
become a successful entrepreneur, be sure to prioritize taking ownership.

11. Resiliency and tenacity

Lakshmi Mittal, the Indian-born steel magnate, is an excellent example of an

entrepreneur who has demonstrated resiliency and tenacity. After making mistakes

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along his journey to success, Lakshmi was able to pick himself up and keep pushing
forward. His bold entrepreneurial behaviour has allowed him to be one of the
wealthiest people in the world today. Lakshmi’s story is a testament to how
important it is for entrepreneurs to adopt resilient and tenacious attitudes if they
are looking for long-term success.

Through his example, Lakshmi shows us that no matter how many mistakes you
make mistakes, you can still succeed in life with resilience and perseverance. The
lesson here? Keep going – no matter what! Lakshmi Mittal has proven that success
is possible if you stay determined, resilient and tenacious. It’s these qualities that
set successful entrepreneurs apart from the rest. So take a lesson from Lakshmi –
no matter how many times you fail, keep pushing forward towards your goals! You
can make your entrepreneurial dreams come true with grittiness, resourcefulness,
and the right attitude.

12. Not afraid of failure

Business success is not always linear. David Goggins, a successful entrepreneur and
former US Navy seal, once said, “Failure is a shortcut to success.” His motto for life
is “embrace the suck.” This means that you should face challenges and obstacles
with positivity and determination. David Goggins has undoubtedly taken this to
heart as he has pushed himself to become one of the most successful entrepreneurs
in the world despite facing countless failures along the way.

He believes that failure should be viewed as a learning opportunity rather than a

setback and encourages others to do the same. While it may sound counterintuitive,
successful entrepreneurs are not afraid of failure – they understand that it’s part of
doing business and use each experience to grow and learn. David Goggins is an
excellent example of someone who has embraced failure and turned it into success.
He is living proof that with the right attitude, anything is possible. So don’t be afraid
to fail – it could lead you down a path to success!

Why is Entrepreneur Mindset Important?

Having an entrepreneurial mindset is essential for success in any business venture.

An entrepreneur’s mentality is focused on taking risks, creatively solving problems,

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and having a passion for success. With an entrepreneurial mindset, you will be able
to develop innovative solutions that can transform your business into a successful
enterprise. Additionally, entrepreneurs constantly learn and adapt to new
challenges to stay ahead of the competition and make their businesses more
profitable.

By embracing this type of thinking, you can create a positive working environment
that encourages team members to push themselves to reach their highest potential.
An entrepreneurial mindset also helps individuals take ownership of their career
paths rather than following someone else’s predetermined path or relying solely on
others for guidance. Ultimately, having an entrepreneurial mindset can help you
make smart decisions, stay ahead of the competition, and maximize your potential.
So if you’re looking to build a successful business or career, investing in an
entrepreneurial mindset is essential.

Of course, developing an entrepreneurial mindset isn’t just about having a go-getter

attitude—it also requires hard work and dedication. It would help if you were willing
to put in the effort to learn new skills and gain valuable knowledge to help you take
your business or career to the next level. This includes staying up-to-date with
industry trends, networking with other entrepreneurs, attending conferences, and
reading books related to entrepreneurship.

Additionally, it is essential for entrepreneurs to set realistic goals for themselves

and their businesses and to track their progress along the way. Having a plan of
action, setting deadlines, and creating milestones can help keep you on track and
motivated in your venture. By taking these steps, entrepreneurs are more equipped
to succeed and make lasting changes for themselves and the world.

Overall, an entrepreneurial mindset is a valuable asset that can help individuals

create something new and powerful that can revolutionize industries or even entire
markets. With dedication and hard work, those with an entrepreneurial attitude can
usher in positive outcomes for themselves, their businesses, and their communities.

Goal-Setting

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  Goal-setting is the process of taking active steps to achieve your desired
outcome.
 Goal setting involves the development of an action plan designed in order to
motivate and guide a person or group toward a goal.

The benefits of goal setting for entrepreneurs

Goal setting provides a number of benefits for entrepreneurs. Here are some of the
most important ones:

Clarity and focus: By setting goals, entrepreneurs can identify their priorities and
determine the steps they need to take to achieve them. This helps them stay
focused on what's important and avoid distractions.

Measurable progress: With well-defined goals, entrepreneurs can track their

progress and see how far they've come. This is a great motivator and helps them
stay on track.

Increased motivation: When entrepreneurs set goals, they're investing time and
energy into something that they truly care about. This helps them stay focused and
motivated, even when things get tough.

Better time management: When you have clear goals, you're able to prioritize
your time and focus on the most important tasks. This helps you manage your time
more effectively and avoid wasting time on unimportant tasks.

Improved decision-making: Goal setting helps entrepreneurs make better

decisions. By knowing what they want to achieve, they can make decisions that are
aligned with their goals and help them reach their desired outcomes.

Increased chances of success: Research has shown that people who set goals
are more likely to achieve their desired outcomes than those who don't. Goal setting
is critical for success, especially for entrepreneurs who are starting a new business
or looking to take their existing business to the next level.

Greater sense of control: When you set goals, you have a roadmap for your
future. This gives you a greater sense of control over your life and business and
helps you feel more confident and empowered.

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In summary, goal setting is a powerful tool that can help entrepreneurs achieve
their desired outcomes, stay motivated, and reach their full potential.

Setting SMART goals for your business

Setting SMART goals is a widely used approach for goal setting, especially in the
business world. SMART is an acronym that stands for Specific, Measurable,
Achievable, Relevant, and Time-bound. By following this approach, you can create
goals that are well-defined, realistic, and achievable. Here's what each letter of the
acronym means:

Specific: A goal should be clear and specific, not vague or general. It should answer
the questions "What do I want to achieve?" and "Why is this goal important?"

Measurable: A goal should be quantifiable and have a defined endpoint. This way,
you'll be able to track your progress and know when you've achieved your goal.

Achievable: A goal should be challenging, but achievable. It should stretch you, but
not be impossible to reach.

Relevant: A goal should be relevant to your business and aligned with your values,
skills, and interests.

Time-bound: A goal should have a deadline or timeline. This gives you a sense of
urgency and helps you stay focused on what's important.

By setting SMART goals, you'll have a roadmap for your business that is clear,
achievable, and focused on what's important. You'll be able to track your progress,
stay motivated, and reach your full potential as an entrepreneur. Whether you're
looking to increase sales, improve customer satisfaction, or grow your team, SMART
goal setting is an essential tool for success.

Overcoming common obstacles to goal setting

Goal setting is a powerful tool for success, but it's not always easy. There are many
obstacles that can get in the way of reaching your goals. Here are some of the most
common obstacles and ways to overcome them:

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Lack of clarity: It can be difficult to set clear goals if you're not sure what you want
to achieve. To overcome this obstacle, take some time to reflect on your values,
skills, and interests, and determine what's most important to you.

Procrastination: It's easy to put off goal setting and delay taking action. To
overcome this obstacle, set a deadline for yourself and break your goal into smaller,
manageable steps.

Fear of failure: Many people are afraid of failing and don't set goals because
they're afraid they won't be able to achieve them. To overcome this obstacle, focus
on the process of goal setting and celebrate your progress, no matter how small.

Too many goals: It's important to focus on a few important goals, rather than
trying to tackle too many at once. To overcome this obstacle, prioritize your goals
and focus on the most important ones first.

Lack of accountability: It can be difficult to stay motivated and on track without

someone to hold you accountable. To overcome this obstacle, find a accountability
partner or join a goal setting group.

Unforeseen circumstances: Life is unpredictable and things don't always go as

planned. To overcome this obstacle, be flexible and adjust your goals as needed.

By overcoming these common obstacles, you'll be able to set and achieve your
goals with greater ease and success. Remember, goal setting is a journey, not a
destination, so be patient, stay focused, and celebrate your progress along the way.

Tracking progress and making adjustments to goals

Tracking progress and making adjustments to your goals are essential parts of the
goal-setting process. Here's why:

Tracking progress: Monitoring your progress helps you see how far you've come
and what's working. By tracking your progress, you'll be able to identify what's
working well and what needs improvement. This will help you stay motivated and
focused on what's important.

Making adjustments: Life is unpredictable, and things don't always go as planned.

By making adjustments to your goals as needed, you'll be able to stay on track and

36
reach your desired outcome. This might mean setting new goals, adjusting your
timeline, or changing your approach.

To track your progress and make adjustments to your goals, consider using tools
such as a goal setting journal, a planner, or a spreadsheet. These tools can help you
keep track of your progress and make adjustments as needed. It's also helpful to
review your goals regularly and make any necessary changes.

Remember, goal setting is not a one-time event. It's a continuous process that
requires ongoing effort and commitment. By tracking your progress and making
adjustments to your goals, you'll be able to stay on track and reach your desired
outcome.

Staying motivated and accountable

Staying motivated and accountable are key to reaching your goals. Here are some
tips for staying motivated and accountable:

Celebrate your progress: Celebrating your progress, no matter how small, will
help you stay motivated and focused on what's important. This can be as simple as
acknowledging your progress in your goal setting journal or treating yourself to
something special.

Find accountability partners: Having someone to hold you accountable can be a

great motivator. Find a friend, colleague, or mentor who is supportive and willing to
hold you accountable.

Join a goal setting group: Joining a group of like-minded individuals who are
working towards similar goals can be a great way to stay motivated and
accountable.

Write down your goals: Writing down your goals makes them more real and
tangible. Keeping your goals visible, such as in a planner or on a bulletin board, will
help you stay focused and motivated.

Stay flexible: Life is unpredictable, and things don't always go as planned. By

staying flexible and making adjustments to your goals as needed, you'll be able to
stay motivated and focused on what's important.

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Reward yourself: Set up a system of rewards for when you achieve your goals.
This can be a small treat or something more significant, such as a trip or a new item
you've been wanting.

By staying motivated and accountable, you'll be more likely to reach your goals and
achieve success. Remember, goal setting is a journey, not a destination, so be
patient, stay focused, and celebrate your progress along the way.

The role of goal setting in business planning

Goal setting plays a critical role in business planning. It helps entrepreneurs to:

Clarify their vision and mission: By setting goals, entrepreneurs can clarify their
vision and mission for their business. This helps to ensure that all efforts are aligned
towards a common purpose.

Focus their efforts: Goals provide a roadmap for entrepreneurs, helping them to
focus their efforts and allocate resources effectively. This ensures that they don't
get sidetracked by distractions and remain focused on what's important.

Measure progress: Goals serve as markers of progress, allowing entrepreneurs to

measure their success and determine if they're on track. This helps them to make
necessary adjustments and stay on track towards their desired outcome.

Stay motivated: Setting goals provides a sense of accomplishment and helps

entrepreneurs to stay motivated. As they reach each goal, they gain confidence and
are more motivated to continue working towards their next goal.

Make better decisions: When entrepreneurs have clear goals, they're better
equipped to make informed decisions that support their objectives. This helps them
to avoid wasting time and resources on unproductive activities.

In summary, goal setting is a vital component of business planning. It helps

entrepreneurs to clarify their vision, focus their efforts, measure progress, stay
motivated, and make better decisions. By setting and working towards meaningful
goals, entrepreneurs can increase their chances of success and achieve their
desired outcome.

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Tips for successful goal setting

Goal setting is a powerful tool for success, but it's not always easy. Here are some
tips for successful goal setting:

 Make your goals specific, measurable, and attainable: Use the SMART goal
framework to ensure that your goals are specific, measurable, attainable,
relevant, and time-bound.

 Write your goals down: Writing your goals down makes them more real and
tangible. Keeping your goals visible, such as in a planner or on a bulletin
board, will help you stay focused and motivated.

 Break down larger goals into smaller, manageable steps: Breaking down
larger goals into smaller, manageable steps makes them easier to achieve
and less overwhelming.

 Prioritize your goals: Determine which goals are most important and
prioritize them. This will help you focus your efforts and avoid getting
sidetracked by less important tasks.

 Set deadlines: Give yourself a deadline for each goal. This will help you stay
motivated and focused, and ensure that you make steady progress towards
your desired outcome.

 Stay flexible: Life is unpredictable, and things don't always go as planned.

By staying flexible and making adjustments to your goals as needed, you'll be
able to stay motivated and focused on what's important.

 Celebrate your progress: Celebrating your progress, no matter how small,

will help you stay motivated and focused on what's important. This can be as

39
 simple as acknowledging your progress in your goal setting journal or treating
yourself to something special.

The impact of goal setting on overall business success

Goal setting can have a profound impact on overall business success. Here's how:

 Increases productivity: By setting clear, achievable goals, entrepreneurs

can increase their productivity and focus their efforts on what's most
important. This leads to more efficient use of time and resources and helps to
avoid wasting time on unproductive activities.

 Improves decision making: Having clear goals in mind helps entrepreneurs

make better decisions. They're able to prioritize their efforts and allocate
resources in a way that supports their objectives, which leads to more
effective decision making.

 Enhances motivation: Setting goals provides a sense of purpose and

direction, which enhances motivation. As entrepreneurs reach each goal, they
gain confidence and are more motivated to continue working towards their
next goal.

 Encourages personal and professional growth: Goal setting forces

entrepreneurs to think about what they want to achieve and how they want
to grow as a person and a business owner. This leads to personal and
professional growth and helps entrepreneurs become more self-aware and
confident in their abilities.

 Facilitates planning and organization: Goals provide a roadmap for

entrepreneurs, helping them to plan and organize their efforts more
effectively. By setting and working towards meaningful goals, entrepreneurs
can increase their chances of success and achieve their desired outcome.

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Incorporating goal setting into your daily routine as an entrepreneur

Incorporating goal setting into your daily routine as an entrepreneur is essential for
success. Here's how:

 Make time for goal setting: Schedule time in your daily routine to focus on
goal setting. This can be as simple as setting aside 10-15 minutes each day
to reflect on your goals and progress.

 Use a planner: Keep your goals visible by writing them down in a planner or
journal. This will help you stay focused and motivated, and ensure that you
make steady progress towards your desired outcome.

 Track your progress: Regularly track your progress and make adjustments
to your goals as needed. This will help you stay on track and ensure that
you're making steady progress towards your desired outcome.

 Celebrate your progress: Celebrating your progress, no matter how small,

will help you stay motivated and focused on what's important. This can be as
simple as acknowledging your progress in your goal setting journal or treating
yourself to something special.

 Reframe setbacks as opportunities: Setbacks are a normal part of the

journey towards achieving your goals. By reframing setbacks as opportunities
for growth and learning, you'll be better equipped to stay motivated and
focused on what's important.

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  Stay flexible: Life is unpredictable, and things don't always go as planned.
By staying flexible and making adjustments to your goals as needed, you'll be
able to stay motivated and focused on what's important.

 Make goal setting a habit: Make goal setting a habit by incorporating it

into your daily routine. This will help you stay focused and motivated, and
ensure that you make steady progress towards your desired outcome.

Entrepreneurs’ psychological resilience

Psychological resilience is made up of two defining elements. First, someone must

experience adversity, which threatens their performance or well-being. After
experiencing this adversity, a person’s recovery to their initial level of performance
or well-being is known as positive adaptation. This ability to bounce back after
facing an obstacle is resilience.

Personality: Believing in your abilities and having a strong sense of control over
life events, being “gritty” and passionate about your business.

Attitudes and behaviours: Positive mindsets, meaning, preparedness and

reflection after experiencing setbacks further enhances entrepreneurs’ resilience.

Learning: Participating in entrepreneurial education programs, like university

business courses, and learning how other entrepreneurs successfully cope with
adversity and learning from their struggles and failures can help entrepreneurs
learn how to bounce back from adversity.

Personal experiences: Resilience also develops from personal experiences, like

overcoming the initial challenges of starting a business. In addition, early childhood
experiences can be instrumental, like when parents focus on learning opportunities
and allow their children to overcome their own challenges.

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Social networks: Having strong sources of social support, whether through business
networks, formal mentorship programs or feedback from potential investors.

5 ways to become more psychologically resilient

Even if you weren’t born with an inherent ability to weather every storm that comes
your way, you can still learn to become more mentally tough and adaptable. Here
are five ways to develop personal resilience so that you can triumph over the next
obstacle you face.

Cultivate a growth- or learning-orientated mindset. Prioritize learning over short-

term performance, seek out challenges, embrace failures and experiment with
ideas, even if you don’t achieve immediate success. Adopting a healthy mindset
about adversity (like “it builds character”) can change how you respond to
inevitable bumps in the road.

Proactively learn from others. Seek out formal mentors who can offer advice
and knowledge about how to overcome entrepreneur-specific challenges. Invest
time in reading about how other entrepreneurs overcame adversity while launching
and accelerating a business.

Develop strong social support networks. Social support is critical to

overcoming adversity, whether it comes from family, friends, colleagues or mentors.
Support networks offer instrumental guidance, like helping entrepreneurs look at
problems from new perspectives, as well as emotional support for managing
negative emotions and stressful experiences. Find people and organizations you can
lean on.

Focus on your core strengths and capabilities to achieve success. Believe in

your ability to manage the unexpected. Dive in passionately to what you are

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building. Passion is the fuel that keeps entrepreneurs motivated and committed to
learning, despite obstacles.

Participate in local entrepreneurship programs. By engaging with local

programs, entrepreneurs can find and use essential resources, including specific
knowledge and industry connections, to help them bounce back when adversity
strikes (or even proactively anticipate challenges).

Tips for Maintaining a Positive Outlook as an Entrepreneur

1. Focus on Your Own Progress—Don't Compare Yourself to Others

It's natural to compare yourself to those around you, but constantly focusing on
others may hinder your progress. Research has shown that comparisons can
increase stress and decrease satisfaction with your accomplishments. Instead, focus
on improving yourself and celebrating your successes. Setting personal goals and
tracking your progress toward them can help keep you motivated and give you a
sense of achievement. Comparing yourself to others may provide temporary
motivation, but it's only through focusing on bettering yourself that you will truly
see lasting growth and improvement. So, before you compare yourself to your
peers, think about where you want to be in the future and how you can work toward
achieving those goals. Remember that your progress is unique to you.

2. Set Achievable Goals and Celebrate Your Accomplishments

Setting realistic goals and celebrating your accomplishments helps keep you
motivated and on track to achieve success. Studies have shown that individuals
who set goals are 11% to 25% more productive than those who do not set goals.
Setting achievable goals does not mean having low standards for yourself; instead,
it means breaking down larger tasks into manageable chunks and allowing room for
flexibility and growth. Additionally, celebrating small victories can provide a boost in
confidence, making it easier to tackle larger challenges. So go ahead and pat

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yourself on the back for every milestone you reach, big or small. It's just one more
step toward meeting your ultimate goal.

3. Take Time for Yourself, Even If It's Just 10 Minutes A Day

In a world where many of us are constantly connected and on the go, it's important
to schedule time for yourself. Taking just 10 minutes out of your day to focus on self-
care can have a positive impact not only on your mental well-being but also on your
physical health. According to a 2022 survey by the American Psychological
Association, 76% of U.S. adults experience physical symptoms, such as headaches
or fatigue, as a result of stress. Taking a break from work or daily obligations can
help reduce these symptoms. This could be as simple as taking a short walk
outside, meditating or reading a book. Whatever allows you to recharge and reset is
worth making time for. Don't wait until burnout strikes—prioritize yourself and
schedule some "me" time every day. Your body and mind will thank you for it.

4. When You Need Help, Don't Be Afraid to Ask

It can be difficult to ask for assistance, but the fact of the matter is that seeking
help can benefit both your personal and professional lives. Asking for help shows
humility and the ability to acknowledge one's limitations, characteristics that are
valuable in any leadership role. Additionally, asking for assistance can open up new
opportunities for growth and collaboration. So next time you feel overwhelmed,
don't hesitate to reach out and ask for support from your colleagues or mentors.
Remember that building a strong support network is a key to success in any field.
Don't be afraid to ask for help—it might just lead you to even greater achievements.

5. Try to Have a Positive Attitude

Having a positive attitude can have a profound impact on your overall well-being as
an entrepreneur. According to the Mayo Clinic, positive thinking can lead to lower
rates of depression, better cardiovascular health and even a longer life. Of course,
maintaining positivity can be challenging when faced with difficult situations.

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However, individuals who engage in positive thinking and reframe negative events
in more optimistic terms tend to have greater coping skills and better stress
management. So next time life or business throws you a curveball, try to focus on
the silver lining rather than dwelling on the negative. Not only will it improve your
mood and overall mental health, but it may also even improve your physical health
as well.

Realistic Goals

A realistic goal is one you can achieve, given your skills, timeframe, and level of
motivation. But only by determining these goals will you get closer to achieving
them.

What’s realistic for one person may not be realistic for another, but you should still
think of realistic goals as something attainable. Above all, you have to believe in
your goals. If you don’t believe in them from the start, you can’t truly consider them
to be goals.

Why is it important to set realistic goals?

In short, having realistic goals makes them easier and faster to accomplish. On the
one hand, it keeps us motivated and focused on what we must do to achieve those
goals and it’s one of the best ways to increase business revenue. On the other
hand, it builds confidence and self-esteem in our abilities, changing our perspective
and, ultimately, our life!

How to set realistic goals in 5 steps

1. Write down your goals

2. Make your goals SMART
3. Determine what you need to do to achieve them
4. Work your goals into your future plans
5. Evaluate and readjust your goals if need

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1. Write down your goals

We start with a piece of advice we give fairly often — write a list.

Writing lists down is an excellent organizational technique that will allow you to
have a macro view of your goals. You don’t need an endless list of goals: the more
concise you’re, the more focused you’ll be.

Additionally, writing down your goals also helps you prioritize. By having a clear
vision of everything you want to achieve in a given period of time — whether it’s
one year or five years — it’s easier to prioritize those goals and chart the path
needed to achieve them.

Discover the difference between long-term goals and short-term goals.

2. Make your goals SMART

It doesn’t matter if they’re personal goals or work goals. After writing down your
goals, you need to make sure they’re SMART: Specific, Measurable, Attainable,
Realistic, and Time-Oriented.

The acronym SMART was created in 1981 when George T. Doran, is:

Specific: clear as water, unambiguous.

Measurable: with specific criteria that assess its achievement.

Achievable: it cannot be impossible to accomplish.

Realistic: within reach and relevant to your life purpose.

Time-Oriented: it needs a deadline.

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Although ideally, all goals should be SMART, the author explains that not all goals
have to fulfill the 5 SMART criteria in the original document. Not everything is, for
example, measurable.

4. Work your goals into your future plans

Now that you know exactly where you want to go and what you need to get there,
it’s time to lay out a plan. Part of what makes your goals realistic is your ability to
include them in your future plans and work toward them.

5. Evaluate and readjust your goals if need

Finally, our tip is to be flexible with your goals. Sometimes things happen, and not
everything goes as we predict. So, it’s important to have the permeability to realize
when a goal is no longer realistic due to various factors and adjust it. It may be just
a matter of timing: the goal you wanted to achieve in one year may only be
achievable in

But it may also happen that your dreams change due to alterations in your life or
even your will. We change, and our goals can and should change with us. So we
invite you to look at your list of goals from time to time and adjust those that need
it.

Tips on how to set realistic goals

Now that you have the blueprint for setting realistic goals let’s dig deeper. Next,
we’ll present you with 4 extra tips to help you with your goals. Take control of your
goals! Start tracking your time to maximize productivity

1. Set milestones along the way

As we said before, SMART goals need deadlines. But it’s equally important to set
some milestones along the way. If your goals take 5 years to accomplish, you can
set a checkpoint at the end of each year, for example. That way, you can make sure
your action plan is turning out to be the right strategy. On the other hand, setting
milestones will also feed your motivation, which is sure to increase when you see
that you’re making progress!

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2. Share your goals

We often hear that we must share our goals with someone because it makes us
accountable. In most cases, this is true. However, recent research has shown that
we should not just share our dreams with someone — but with someone we admire.
According to the same study, sharing your goals with a higher-up not only keeps you
accountable, but it also increases motivation.

The reason is simple: you care about what this person thinks of you and build
motivation because you want to make them proud.

3. Don’t compare your journey with others

Your goals may not be unique, but you, your circumstances, and your resources are.
While it can be motivating to have someone to share the journey to a goal with, we
advise you not to compare yourself to others. You can become demotivated if you
feel you fall short or overconfident if, at any given moment, you’re closer than
someone else to your goals. Your journey is unique, personal, and non-comparable.

4. Expect to fail

“Expect the best, but prepare for the worst”. While believing in yourself and your
abilities is essential, it’s equally important to be prepared for failure. It’s inevitable
and will come sooner or later. So adjust your expectations and be prepared. You
may not have met all your milestones, but that doesn’t mean you won’t meet your
ultimate goal. If and when you eventually fail, just pick yourself up and keep
working towards your big goal.

Realistic vs. Unrealistic Goals.

Realistic: I will learn a new language and become fluent in the next 3 years.

Unrealistic: I will learn a new language and become fluent in two months.

Realistic: I will work hard to become the leader of my team in the next 2 years.

Unrealistic: I will become my team’s leader after 2 months in the company.

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Realistic: I will organize and optimize my work in such a way as to increase my
productivity by 30%.

Unrealistic: I will double my productivity just by working faster.

Realistic: I will lose 20kg and reach my ideal weight in one year.

Unrealistic: I will lose 20kg for an event I have next month.

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