Entrepreneurial Mind

MA. CHRISTINA L. ABRAHANO, MBA

TOPIC 1: The Concept
of Entrepreneurship

LEARNING OBJECTIVES:
 Define entrepreneurship in the
context of small and medium-
scale industries
 State the key elements of
entrepreneurship.
 Explain the role of
entrepreneurship in economic
growth and development.
LO1: Define entrepreneurship in the context of small and
medium-scale industries.

Learning objectives

After reading this module, you should be able to:

1. Provide a definition of entrepreneurship

2. State the key elements of entrepreneurship

3. Explain the role of entrepreneurship in economic growth

 Introduction
Who are the New Entrepreneurs?
How are they Creating Business Today?

Mark Zuckerberg David Karp Ben Silbermann and Evan Sharp Daniel Ek
LO1: DEFINING
ENTREPRENUERSHIP

 Entrepreneurship stems from the

French word “entreprendre”
meaning ‘to undertake’ or ‘to
take in one’s own hands.
 “We define entrepreneurship as
the process, brought about by
individuals, of identifying new
entrepreneurial opportunities
and converting them into
marketable products or services.
Importance of Entrepreneurial Mindset
The entrepreneurial mindset is about a certain way of thinking.

It is about the way in which you approach challenges and mistakes. It is

about an inherent need to improve your skill set and to try and try again.

But why is this important?

 The entrepreneurial mindset is what you need to propel yourself
forward. This mindset can dim as you get entrenched in the daily
grind of entrepreneurship. But by making an effort to embody this
mindset, you position yourself to meet everyday challenges and
experience growth.

• (Source: https://www.forbes.com/sites/theyec/2018/05/25/6-tips-for-growing-with-an-entrepreneurial-
mindset/#4603fcbc1343).
Importance of
Entrepreneurial
Mindset
In order to have an
entrepreneurial mind, one
must be or have:
 Revisit Your Vision On
A Daily Basis
 Put Yourself In
Challenging Situations
 Read On A Daily Basis
 Approach Problems
From All Sides
 Always Be In Motion:
Provide Value
1. Revisit Your Vision On A Daily Basis
Much of the entrepreneurial mindset involves a steadfast commitment
to a very narrow vision. This drive allows entrepreneurs to carry out the
necessary steps to accomplish that vision. The problem is that the
demands of the day can get in your way, creating a space where your
vision recedes. This leaves room for frustration and doubt, which can
lead to stagnation or worse.

That’s why it’s so important to try to set aside a specific time every single day to focus
upon your vision and your goals -- to bring your vision to the forefront. You don’t need to
set aside hours to remind yourself of why you’re doing what you’re doing. Even ten
minutes can be enough to create the energy needed to refocus your efforts and propel you
to work a little harder the next day. The key, however, is to make this commitment concrete.
Write it in your planner if you must. Set a reminder on your phone at the end of every night.
Over time, it will become a habit.
2. Put Yourself In Challenging Situations
As an entrepreneur, you will naturally face new challenges every day. Just because
obstacles arise doesn’t mean you should be afraid of making mistakes. If you want to
cultivate an entrepreneurial mindset, you must embrace challenges. You must seek them
out.
It all comes down to basic psychology. The more that you put yourself in challenging
situations, the more you will find that you not only equip yourself with the skills to handle
those very challenges but also the confidence of knowing that you were able to succeed.

Much of the entrepreneurial life is about trial and error and mistakes are a
natural byproduct of that. But more than this, mistakes are an opportunity for
growth. Extract all the value from them that you can.
3. Read On A Daily Basis
The best entrepreneurs out there are never content with the way things are. That’s
exactly what drives them to create in the first place. This also applies to their own
skill set. Simply put, entrepreneurs are always looking to improve themselves in
some way. This could be adding to their skills or reading motivational quotes to
inspire them to act.

If you want to get into the entrepreneurial mindset, you need to act like an
entrepreneur. You must commit to becoming a better version of yourself. This
means nourishing your brain by reading on the daily basis. Learn new skills.
Devour books about successful entrepreneurs. The more you read books like
these, the more you'll think like them as well.
4. Approach Problems From All Sides

That’s exactly If you read a lot about the entrepreneurial mindset, there is a common
thread: the idea of approaching problems from all sides. Simply put, the entrepreneurial
mindset is about thinking differently than the rest.
Again, the entrepreneurial life is about trial and error. That means that you must learn to
think differently and approach problems from a range of different angles if you expect to
move forward. Chances are high that your first solution may not be the best one.

You can take this one step further by daring to do things

differently each day. Even something as small as
changing your environment or going on a walk can help
you approach things differently.
5. Always Be In Motion: Provide Value
If entrepreneurs are not thinking about their vision, then they are putting
their vision into motion. Much of the entrepreneurial mindset is to
simply do. They have discipline, which allows them to continually reach
their goals. But there is a secondary component to this “doing.” The truest
entrepreneurial mindset is about providing value. Entrepreneurs are on a
quest to help the customer in some way and to continue to make their
service better and better. They identify problems and solve them.

So, by treating tasks as problems to be solved -- and thinking about how you can
provide value at every single turn -- you can continually put the entrepreneurial
mindset into practice.
Above all, the entrepreneurial mindset is about being committed to your vision
regardless of the challenges and obstacles along the way. It is about seeing mistakes
as an opportunity for growth and not as something to be feared. It is about
approaching problems from a range of different ways. By embodying all of the above,
you can strengthen your mindset and equip yourself with one of the most important
tools that an entrepreneur can have.
LO2. State the key elements of entrepreneurship.
The five factors have been commonly cited for entrepreneurship to take place:
1)an individual (the entrepreneur),
2) a market opportunity,
3) adequate resources,
4) a business organization and a
5) favorable environment.

These five factors are considered contingencies — something that must be present in the
phenomenon but that can materialize in different ways. The entrepreneur is responsible for
bringing these contingencies together to create new value. The entrepreneur
Entrepreneurship requires at least one motivated person.

The entrepreneur is the cornerstone of the entrepreneurial process — the chief conductor who
perceives an opportunity, marshals the resources to pursue this opportunity and builds an
organization that combines the resources necessary to exploit the opportunity. Researchers
have hypothesized number of factors that influence the way opportunities are recognized
and exploited by entrepreneurs. Among these, four have been identified as especially
important: active search of opportunities, entrepreneurial alertness, prior knowledge and
social networks.
The key element of Entrepreneurship
1. The entrepreneur
✓ Entrepreneurship requires at least one motivated person.
✓ The entrepreneur is the cornerstone of the entrepreneurial
process.
✓ The chief conductor who perceives an opportunity, marshals
the resources to pursue this opportunity and builds an
organization that combines the resources necessary to exploit
the opportunity.
✓ Researchers have hypothesized number of factors that
influence the way opportunities are recognized and exploited
by entrepreneurs. Among these, four have been identified as
especially important: active search of opportunities,
entrepreneurial alertness, prior knowledge and social networks.
The key element of Entrepreneurship
2. Opportunity
 In broad terms, an opportunity can be defined as a situation in which a new product,
service or process can be introduced and sold at greater than its cost of production. In this
situation, new products, services and processes can be introduced through the formation
of new means, ends or means–ends relationships.
 In its most elemental form, what may later be called an opportunity may appear as
imprecisely defined market needs, or unemployed resources or capacities Imprecisely
defined market needs are the source of market-pulled opportunities. Prospective
customers may or may not be able to articulate their needs, interests and problems. Even if
customers cannot do so, the role of the entrepreneur is to recognize these needs and to
develop an offer in which customers will perceive some value.
 Under-utilized or unemployed resources, as well as new technologies or capabilities, may
also offer possibilities to create new value for customers. In this case, entrepreneurs first
identify resources that are not optimally used, and 8 then seek a better use or combination
of these in a specific market.
 This type of opportunity can be called market-pushed opportunities. For example, the
technology for making a material with the combined properties of metal and glass may be
developed before there are any known applications. Similarly, new medical compounds
may be created without knowledge of their potential applications in the field of medicine.
The key element of Entrepreneurship
3. Resources
 Having distilled an opportunity, would-be entrepreneurs must be willing and able
to marshal resources in order to pursue the opportunity and transform their idea
into an organization. A resource is any thing or quality that is useful.
 The resource-based theory recognizes six types of resources: financial, physical,
human, technological, social and organizational. The construction of an initial
resource base poses quite a challenge for the entrepreneur. If a venture lacks a
reputation and has no track record, this creates an increased perception of risk
on the part of potential resource providers. In most new ventures, initial resource
endowments are incomplete; so entrepreneurs act as though they are
trustworthy in order to gain access to other resources.
 They may use time-relevant language or symbols (e.g. polished business plans,
stories, or stylish offices) to create an image of success that will encourage
providers to commit resources to the venture. In this way, some resources (social,
for example) are leveraged to obtain others (financial, for example). Favorable
social capital can be converted into tangible and intangible benefits, including
increased cooperation and trust from others, finance, or assets and equipment
purchased at less expensive prices.
The key element of Entrepreneurship
4. Organization
Many different types of organizational arrangement exist for the exploitation of entrepreneurial
opportunities. Although most media attention and research in entrepreneurship has focused on
new independent start-ups, other possible types of organizational structure include corporate
ventures, franchises, joint ventures and business acquisitions. This indicates that entrepreneurship
can take place in diverse environments, and that there are many ways to become an
entrepreneur. The creation of corporate ventures or start-ups inside a corporation, in order to
develop, produce and market a new product or service, is an illustration of this point. The new
entity can be either a new internal division or a new subsidiary in the established corporation. Joint
ventures, licenses, franchises and spin-offs (business operations derived as secondary
developments of a larger enterprise, which become separate legal entities) are other examples of
possible organizational arrangements. Sometimes it is not necessary to build an organization from
scratch to exploit new opportunities and to combine resources.
For example, the acquisition of a business can be an alternative to a start-up if the entrepreneur
wants to use an existing vehicle to ‘hit the ground running’. In this case, the buyer can introduce
substantial innovation along the lines of new products or new processes to give the business a
boost. The takeover of a family business by the next generation and the redeployment of its
resources according to a new business model constitutes another example. 9 Many believe that
for a venture to be deemed entrepreneurial it is not sufficient for the owner to launch an
organization; the venture must also represent innovation. However, everyday evidence shows that
starting a business venture does not always demand much originality or power of invention. The
fresh, new firm may be a mere clone of another one in a neighboring town.
 LO3: Explain the role of Entrepreneurship in Economic
Development.
Creates employment Improves quality of life

Develops new market Serve as role modes

ROLE OF
Introduces innovation ENTREPRENEURSHIP Brings social benefits
AND ENTREPRENEURS to the people
IN ECONOMIC
Generates new sources of Utilizes and mobilizes
DEVELOPMENT AND
materials indigenous resources
SOCIETY

Stimulates investment interest Provides more alternatives

in the new business ventures for consumers
being created
References

Textbooks
Dallago, B., & Tortia, E. (2018). Entrepreneurship and local economic development: A comparative
perspective on entrepreneurs, universities, and governments. Routledge.
D ‘Andria, A., & Gabarret, I. (2017). Building 21st century entrepreneurship. John Wiley & Sons.
Michaud, T. (2017). Innovation, between science and science fiction. John Wiley & Sons.
Scholz, T. M. (2017). Big data in organizations and the role of human resource management: A complex
systems theory-based conceptualization. Peter Lang Gmbh, International Verlag Der Wissenschaften.
Marcolongo, M. (2017). Academic Entrepreneurship: How to Bring Your Scientific Discovery to a
Successful Commercial Product. [VitalSource Bookshelf]. Retrieved from
https://bookshelf.vitalsource.com/#/books/9781118858967/
References

Online Journals
Birkinshaw, J. (n.d.). Entrepreneurial mind-set in multinational corporations. Next Generation Business
Handbook, 773-792. https://doi.org/10.1002/9780470172223.ch45
Brännback, M., & Carsrud, A. (2017). Revisiting the entrepreneurial mind: Inside the black box.
International Studies in Entrepreneurship, 1-9. https://doi.org/10.1007/978-3-319-45544-0_1
Carsrud, A., Brännback, M., Elfving, J., & Brandt, K. (2017). Motivations: The entrepreneurial mind and
behavior. International Studies in Entrepreneurship, 185-209.
https://doi.org/10.1007/978-3-319-45544-0_13