COURSE TITLE: ENTREPRENEURIAL MIND

CODE: ENT 101

PRE-REQUISITE/CO-REQUISITE: None

COURSE UNIT: 3

COURSE OBJECTIVES:

The course is designed to train mindset of students by developing their attitude to become
motivated as entrepreneurs. Students will be immersed in situations that could change their lives
and inspire them to address these changes using their skills to carefully evaluate opportunities,
productively resolve complications, effectively communicate with people and efficiently work as
an individual and in teams as how it affects the organization.

COURSE CONTENTS:

MODULE 1: The Concept of Entrepreneurship

MODULE 2: Characteristics Associated with Entrepreneurial Mind-Set

MODULE 3: Entrepreneurial Ethics

MODULE 4: Entrepreneurial Mind Set in Organization: Corporate Entrepreneurship

MODULE 5: Social Entrepreneurship and the Global Environment for Entrepreneurship

MODULE 6: Innovation: The Creative Pursuit of Ideas

MODULE 7: Assessment of Entrepreneurial Opportunities

MODULE 8: Pathways to Entrepreneurial Ventures

MODULE 9: Sources of Capital for Entrepreneurs

MODULE 10: Marketing Challenges

MODULE 11: Developing an Effective Business Plan

MODULE 1

MODULE TITLE: The Concept of Entrepreneurship

In today’s world of modernization and development the term entrepreneurship is a well

known term. Entrepreneurship is the ability to foresee or ascertain the various opportunities
related with investment and then to evaluate these various opportunities and forming enterprise,
the purpose of which is to give the maximum contribution in the national’s growth. When we
combine these activities performed by entrepreneurs the results are known as entrepreneurship.

Entrepreneurship is more than the mere creation of business. Although that is certainly an
pimportant facet, it’s not the complete picture. The characteristics of seeking opportunities, taking
risks beyond security, and having the tenacity to push an idea through to reality combine into a
special perspective that permeates entrepreneurs. The term “Entrepreneurial Mind Set” represents
the cognition and commitment to view the world with an innovative perspective. This composes
the entrepreneurial potential in every individual. The mind-set can be exhibited inside or outside
an organization, in for-profit or not-for-profit enterprises, and in business or nonbusiness activities
for the purpose of bringing forth creative ideas.

Thus, entrepreneurship is an integrated concept that permeates an individual’s business in

an innovative manner It is this mind-set that has revolutionized the way business is conducted at
every level and in every country. It is clear that the world has embraced entrepreneurship and
innovation, and the way we view business will never be the same.

MODULE OBJECTIVES:
After Module 1, the student will be able to:
1. Understand the concept of entrepreneurship
2. Know the meaning of entrepreneurship
3. Describe the relationship between the small business and the entrepreneurship
4. Identify the elements of entrepreneurship
5. Apply the entrepreneurial competencies in real situation
Topic 1 – Content
The Concept of Entrepreneurship
Entrepreneurship involves decision making, innovation,
implementation, forecasting of the future, independency, and success first
and this is how entrepreneurship developed. It is a discipline with a
knowledge base theory. It is an outcome of complex socio-economic,
psychological, technological, legal and other factors. It is a dynamic and
risky process. It involves a fusion of capital, technology, and human
talent. Entrepreneurship is equality applicable to big and small
businesses, to economic and non-economic activities.
It is an important aspect of the contemporary
business world. It occurs for individuals and within
organizations, both large and small. Entrepreneurship fuels
success in a highly competitive business environment. Thus,
strategic thinking and risk-taking behavior results in the
creation of new opportunities for individuals and/or
organizations.

What the entrepreneurship definition doesn’t tell you is that

entrepreneurship is what people do to take their career and dreams into
their hands and lead it in the direction of their own choice. It’s about
building a life on your own terms. No bosses. No restricting
schedules, and no one holding you back. Entrepreneurs are able to take the
first step into making the world a better place, for everyone in it.

Who is an Entrepreneur(s)?

An entrepreneur is a person who starts, organizes,

and manages any enterprise, especially a business, usually
with considerable initiative and risk. An individual who
organizes or operates a business or businesses. They are
aggressive catalysts for change within the marketplace.
They start companies and create jobs at a breathtaking
pace.

According to Peter Drucker Entrepreneurship is defined as a systematic innovation, which

consists in the purposeful and organized search for changes, and it is the systematic analysis of the
opportunities such changes might offer for economic and social innovation.

Relationship between Small Business and Entrepreneurship

 The term entrepreneurship is often conflated with the term small business or used
interchangeably with this term. While most entrepreneurial ventures start out as a small business,
not all small businesses are entrepreneurial in the strict sense of the term.

Small businesses are independently owned and operated, are not dominant in their fields,
and usually do not engage in many new or innovative practices. They may ever grow large, and
the owners may prefer a more stable and less aggressive approach to running these businesses; in
other words, they manage their businesses by expecting stable sales, profits, and growth. Because
small firms include those purchased as already established businesses as well as franchises, small-
business owners can be viewed as mangers of small businesses.

Entrepreneurship Small Business Management

Definition of the Field The process whereby an
individual discovers, evaluates
and exploits a business
opportunity.
Firm size Small, medium or large
Economic sector Private, public or non-for-profit
Potential for Growth Significant: targets a large,
Innovation global market
Significant: usually based on a
new product, a new way of
producing it or a new business
model
Key individual and strategic The entrepreneur: an individual
objectives who established and manages a
business for the principal
purpose of profit and growth
The administration of a small,
independent business venture.
Small to medium
Primarily private
Limited: targets a local or
regional market
Limited: although a small
business might be new to a
locality, it usually delivers an
established product or service
The small business owner-
manager: an individual who
manages a business for the
principal purpose of furthering
personal goals.

Four Key Elements of Entrepreneurship

1. Innovation - An entrepreneur is the key source of innovation and variation in an economy. It

is actually one of the most important tools of an entrepreneur’s success. They use innovation to
exploit opportunities available in the market and overcome any threats.

So this innovation can be a new product, service, technology, production technique, marketing
strategy, etc. Or innovation can involve doing something better and more economically. Either
way in the concept of entrepreneurship, it is a key factor.
2. Risk-Taking - Entrepreneurship and risk-taking go hand in hand. One of the most important
features of entrepreneurship is that the whole business is run and managed by one person. So
there is no one to share the risks with. Not taking any risks can stagnate a business and excessive
impulsive risk-taking can cause losses. So a good entrepreneur knows how to take and manage
the risks of his business. But the willingness of an entrepreneur to take risks gives them a
competitive edge in the economy. It helps them exploit the opportunities the economy provides.

3. Vision - Vision or foresight is one of the main driving forces behind any entrepreneur. It is the
energy that drives the business forward by using the foresight of the entrepreneur. It is what
gives the business an outline for the future – the tasks to complete, the risks to take, the culture
to establish, etc.

All great entrepreneurs of the world that started with an entrepreneurship business are known
to have great vision. This helps them set out short term and long term goals for their business
and also plan ways to achieve these objectives.

4. Organization - In entrepreneurship, it is essentially a one-man show. The entrepreneur bears

all the risks and enjoys all the rewards. And sure he has the help of employees and middle-level
management, yet he must be the one in ultimate control. This requires a perfect organizational
skills.

An entrepreneur must be able to manage and organize his finances, his employees, his resources,
etc. So his organizational abilities are one of the most important elements of entrepreneurship.

How to become an Entrepreneur?

1. Prepare Yourself Mentally –A specific mindset that is most conducive to learning how to be a
successful entrepreneur, and aligning yourself with this way of thinking.
- Develop a positive perspective when it comes to mistakes Inevitably you
will commit mistakes, take it as a lessons for learning.
- Become your own cheerleader, critical voices in your head will hold you
back. Always look things in a positive perspective. Be optimistic on all
your undertakings.
- Avoid excuses for why you can’t move forward with your idea right away. If you think
you are inspired from your idea start working on it. Don’t put it off until the right or
perfect time.

2. Find a Mentor- a mentor can show you the ropes and offer the encouragement you need to
 develop in your entrepreneurial skills. Any successful and willing entrepreneur may be
a good mentor. Find through school, networking, searching online for mentors for hire
and/ or placing a classified ad.
3. Get an Education in Entrepreneurship – study or enroll in entrepreneurship and or graduate
studies in business majors or you may enroll in an online training programs.
4. Network with other Entrepreneurs – Joining network clubs and online social networks,
and attend trade shows and seminars in order to find a group of like-minded individuals
that can support, inspire, and challenge you to further your education or knowledge in
entrepreneurship. Joining networks can a be a great source of information in learning
mistakes and successes of other entrepreneurs.

https://www.businessmanagementideas.com/entrepreneurship-2/concept-of-entrepreneurship/20312

https://www.studocu.com/in/document/karnataka-state-law-university/law-of-evidence-crpc/lecture-
notes/concept-of-entrepreneur-entrepreneurship/3535409/view
COURSE TITLE: ENTREPRENEURIAL MIND

CODE: ENT 101

PRE-REQUISITE/CO-REQUISITE: None

COURSE UNIT: 3

COURSE OBJECTIVES:

The course is designed to train mindset of students by developing their attitude to become
motivated as entrepreneurs. Students will be immersed in situations that could change their lives
and inspire them to address these changes using their skills to carefully evaluate opportunities,
productively resolve complications, effectively communicate with people and efficiently work as
an individual and in teams as how it affects the organization.

COURSE CONTENTS:

MODULE 1: The Concept of Entrepreneurship

MODULE 2: Characteristics Associated with Entrepreneurial Mind-Set

MODULE 3: Entrepreneurial Ethics

MODULE 4: Entrepreneurial Mind Set in Organization: Corporate Entrepreneurship

MODULE 5: Social Entrepreneurship and the Global Environment for Entrepreneurship

MODULE 6: Innovation: The Creative Pursuit of Ideas

MODULE 7: Assessment of Entrepreneurial Opportunities

MODULE 8: Pathways to Entrepreneurial Ventures

MODULE 9: Sources of Capital for Entrepreneurs

MODULE 10: Marketing Challenges

MODULE 11: Developing an Effective Business Plan

MODULE 2

MODULE TITLE: Characteristics Associated with Entrepreneurial Mind-Set

Is Entrepreneurship for Everyone?

Entrepreneurship can be learned but it is not for everybody.

Passion is required to learn and keep moving forward, but contrary
to popular advice, simply having the passion to be an entrepreneur
is not enough. To create and sustain an enterprise, a person needs to
have an eye to satisfy unmet needs of a group of prospects that be
large enough to have a differentiated, growing, profitable, scalable
and sustainable operation - - this means having deep insights and
robust planning skills for relevant competitive advantage. One needs
to have a healthy risk appetite, to be bold and have a high tolerance
for failure or ambiguity to grow big.

Starting a new business requires more than just an idea; it

requires a special person, an entrepreneur, who combines sound
judgment and planning with risk taking to ensure the success of his
or her own business. Entrepreneurs, driven by an intense
commitment and determined perseverance, work very hard. They
are optimists who see the cup as half full rather than half empty.
They strive for integrity. They burn with the competitive desire to
excel. They use failure as a tool for learning. They have enough
confidence in themselves to believe that they personally can make
major difference in the final outcome of their ventures.

MODULE OBJECTIVES:
After Module 2, the student will be able to:
1. Describe the entrepreneurial mind-set and entrepreneurial cognition
2. Identify and discuss the most commonly cited characteristics found in successful
entrepreneurs
3. To discuss the “dark side” of entrepreneurship
4. Identify the different types of risk entrepreneurs will be facing.
5. Describe the major causes of stress for those individuals and the ways they can handle
these stress

.
 Topic 1 – Content - Characteristics Associated with Entrepreneurial Mind-Set
This lesson is devoted to a more psychological look at entrepreneurs. It describes
entrepreneurial cognition, the most common characteristics associated with successful
entrepreneurs, the elements associated with the “dark side” of entrepreneurship, as well as the
ethical challenges that entrepreneurs confront. Examining the mind-set provides interesting
insights into the entrepreneurial potential within every individual.

Entrepreneurial Characteristics
1. Determination and Perseverance - more than any other factor, total dedication to
success as an entrepreneur can overcome obstacles and setbacks. Sheer determination and an
unwavering commitment to succeed often win out against odds that many people would consider
insurmountable. They also compensate for personal shortcomings.
2. Drive to Achieve - entrepreneurs are self-starters who appear to others to be internally
driven by a strong desire to compete, to excel against self-imposed standards, and to pursue and
attain challenging goals. High achievers tend to be moderate risk takers. They examine a
situation, determine how to increase the odds of winning, and then push ahead. As a result, high-
risk decisions for the average businessperson often are moderate risks for the well-prepared high
achiever.
3. Opportunity Orientation - it is the constant awareness of opportunities that exist in
everyday life. Successful entrepreneurs start with the opportunity and let their understanding of it
guide other important decisions. They are goal oriented in their pursuit of opportunities. Setting
high but attainable goals enables them to focus their energies, to selectively sort out opportunities,
and to know when to say “no”. Their goal orientation also helps them to define priorities and
provides them with measures of how well they are performing.
4. Persistent Problem Solving - they are not intimidated by difficult situations. In fact,
their self-confidence and general optimism seem to translate into a view that the impossible just
takes a little longer. If the task is extremely easy or perceived to be unsolvable, entrepreneurs
often will give up sooner than others simple problems bore them, unsolvable ones do not warrant
their time. Moreover, although entrepreneurs are extremely persistent, they are realistic in
recognizing what they can and cannot do and where they can get help to solve difficult but
unavoidable tasks.
5. Seeking Feedback - effective entrepreneurs often are described as quick learners.
Unlike many people, however, they also have a strong desire to know how well they are doing and
how they might improve their performance. In attempting to make those determinations, they
actively seek out and use feedback. Feedback is also central to their learning from mistakes and
setbacks.
6. Internal Focus of Control - successful entrepreneurs believe in themselves. They
do not believe that the success or failure of their venture will be governed by fate, luck, or similar
forces. They believe that their accomplishments and setbacks are within their own control and
influence, and that they can affect the outcome of their actions. This attribute is consistent with a
high-achievement motivational drive, the desire to take personal responsibility, and self-
confidence.
7. Tolerance for Ambiguity - start-up entrepreneurs face uncertainty compounded by
constant changes that introduce ambiguity and stress into every aspect of the enterprise. Setbacks
and surprises are inevitable; lack of organization, structure, and order is a way of life. A tolerance
for ambiguity exists when the entrepreneur can deal with the various setbacks and changes that
constantly confront with him or her.
8. Calculated Risk Taking - these strategies include getting others to share inherent
financial and business risks of the organization by persuading partners and investors to put up
money, creditors to offer special terms, and suppliers to advance merchandise.
9. High Energy Level - the extraordinary workloads and stressful demands placed on
entrepreneurs put a premium on their energy. Many entrepreneurs fine-tune their energy levels by
carefully monitoring what they eat and drink, establishing exercise routines, and knowing when to
get away for relaxation.
10. Creativity and Innovativeness - creativity was once regarded as an exclusively
inherited trait. Judging by the level of creativity and innovation. New ventures often possess a
collective creativity that emerges from the joint efforts of the founders and personnel and produces
unique goods and services.
11. Vision - entrepreneurs know where they want to go. They have a vision or concept
of what their firms can be. It is an integral part of the person’s life in terms of learning and
communicating and it develops over time as the individual begins to realize what the firm is and
what it can become.it
 12. Passion - it is characterized by a discrete emotion that is quite intense being described
as an underlying force that fuels our stronger emotions, or the intensity felt when engaging in
activities that are of deep interest, or the energy that enables entrepreneurs to achieve peak
performance. Thus, entrepreneurial passion is recognized as a fundamental component of the
entrepreneurial mind-set.
13. Team Building - most successful entrepreneurs have highly qualified, well-
motivated teams that help handle the venture’s growth and development. In fact, although the
entrepreneur may have the clearest vision of where the firm is (or should be) headed, the personnel
often are more qualified to handle the day-to-day implementation challenges.
Topic 2 – Content - Dealing With Failure
Failure, for entrepreneurs, is inevitable. This might come in the
form of small losses, like losing an important deal to a competitor, or in
big ones, like being unable to make payroll. The best entrepreneurs,
however, are not defined by these failures but rather by how they deal
with them. Navigating difficult situations both externally and internally
is crucial to being a successful entrepreneur.
The most effective entrepreneurs are realistic enough to expect
difficulties and failures. If they can deal effectively with any grief that
emanates from the failure, then they will not become disappointed,
discouraged, or depressed by a setback or failure. In adverse and difficult times, they will continue
to look for opportunity. In this way, entrepreneurs will believe that learn more from their early
failures to form the foundation of later successes.
When faced with this failure, here are ten (10) ways to better handle it:
1. Be prepared
2. Find what can build your energy back up
3. Do not make emotional decisions
4. Have a strong support network
5. Reevaluate your situation
6. Do not take yourself too seriously
7. Disassociate the failure from yourself as a person
8. Do not dwell on it
9. Learn from it
10. Understand what you are getting yourself into

https://www.entrepreneur.com/article/304948
The Dark Side of Entrepreneurship

“Fear is the path to the dark side. Fear leads to anger. Anger leads to hate.
Hate leads to suffering.”

– Yoda in Star Wars

A dark side of entrepreneurship also exists, and its destructive source can be found within
the energetic drive of successful entrepreneurs. The following are the factors that may envelop
entrepreneurs and dominate their behavior, it is important for them to understand their potential
destructive side as well.
The Entrepreneur’s Confrontation with Risk
1. Financial Risk versus profit (return) motive varies in entrepreneurs’ desire for wealth
2. Career Risk - loss of employment security
3. Family and social risk - competing commitments of work and family
4. Psychic Risk - psychological impact of failure on the well-being of entrepreneurs
COURSE TITLE: ENTREPRENEURIAL MIND

CODE: ENT 101

PRE-REQUISITE/CO-REQUISITE: None

COURSE UNIT: 3

COURSE OBJECTIVES:

The course is designed to train mindset of students by developing their attitude to become
motivated as entrepreneurs. Students will be immersed in situations that could change their lives
and inspire them to address these changes using their skills to carefully evaluate opportunities,
productively resolve complications, effectively communicate with people and efficiently work as
an individual and in teams as how it affects the organization.

COURSE CONTENTS:

MODULE 1: The Concept of Entrepreneurship

MODULE 2: Characteristics Associated with Entrepreneurial Mind-Set

MODULE 3: Entrepreneurial Ethics

MODULE 4: Entrepreneurial Mind Set in Organization: Corporate Entrepreneurship

MODULE 5: Social Entrepreneurship and the Global Environment for Entrepreneurship

MODULE 6: Innovation: The Creative Pursuit of Ideas

MODULE 7: Assessment of Entrepreneurial Opportunities

MODULE 8: Pathways to Entrepreneurial Ventures

MODULE 9: Sources of Capital for Entrepreneurs

MODULE 10: Marketing Challenges

MODULE 11: Developing an Effective Business Plan

MODULE 3

MODULE TITLE: Entrepreneurial Ethics

Ethical issues in business are of great

importance today, and with good reason. The
prevalence of scandals, fraud, and various forms of
executive misconduct in corporations has spurred the
watchful eye of the public.

Today’s entrepreneurs are faced with many

ethical decisions, especially during the early stages of
their new ventures. There is no simple universal
formulas for solving ethical problems. We have to
choose from our own codes of conduct whichever
rules are appropriate to the case in hand; the outcome
of these choices makes us who we are. It is our hope
that aspiring entrepreneurs will realize the powerful
impact that integrity and ethical conduct have on
creating a successful venture.

MODULE OBJECTIVES:
After Module 3, the student will be able to:
1. Define the term Ethics in entrepreneur
2. Discuss the importance of ethics for entrepreneurs
3. Describe the constant dilemma of law versus ethics
4. Emphasize the importance of entrepreneurial ethical leadership
5. Present strategies for establishing ethical responsibility and leadership

.
Topic 1– Entrepreneurial Ethics

• Ethics
➢ A set of principles prescribing a behavioral code that explains what is good and
right or bad and wrong; ethics may outline moral duty and obligations.
➢ Provide the basic rules or parameters for conducting any activity in an “acceptable”
manner.

• Reasons for Ethical Conflicts

➢ The many interests that confront business enterprises both inside and outside the
organization
➢ Changes in values, mores, and societal norms
➢ Reliance on fixed ethical principles rather than an ethical process

CLASSIFYING DECISIONS USING A CONCEPTUAL FRAMEWORK

 The quadrant showed above demonstrate the age-old dilemma between law and ethics.
Moving from the ideal ethical and legal position (Quadrant 1) to an unethical and illegal position
(Quadrant IV), one can see the continuum of activities within an ethical process. Yet legality
provides societal standards but not definitive answers to ethical questions.

For the entrepreneur, the legal versus ethical dilemma is a vital one. Just how far can an
entrepreneur go to establish his or her venture? Survival of the venture is a strong motivation for
entrepreneurs, and, although the law provides the boundaries for what is illegal (even though the
laws are subject to constant interpretation), it does not supply answers for ethical considerations.

Ethics and Laws

• Managerial Rationalizations
➢ Justifications in defense of unethical acts are believing that an activity:
1. Is not “really” illegal or immoral.
2. Is in the individual’s or the corporation’s best interest.
3. Will never be found out.
4. That helps the company will be condoned by the company.

Types of Morality Questionable Acts

The Matter of Morality

• Ethical conduct may reach beyond the limits of the law.

➢ The requirements of law may overlap at times but do not duplicate the
moral standards of society.
➢ Legal requirements tend to be negative (forbidding acts), whereas
morality tends to be positive (encouraging acts).
➢ Legal requirements usually lag behind the acceptable moral standards
of society.
➢ Inherent problems arise when people believe laws represent morality.
Economic Trade-Offs

• Innovation, risk taking, and venture creation are the backbone of the free enterprise
system which fosters individualism and competition.
➢ We cannot blame single individuals for the ethical problems of free
enterprise.
➢ Rather, we must understand the total, systematic impact that free
enterprise has on the common good.
Reasons for Unethical Behavior

• Greed
• Distinctions between activities at work and activities at home
• A lack of a foundation in ethics
• Survival (bottom-line thinking)
• Reliance on other social institutions to convey and reinforce ethics.

Topic 2 - Establishing a Strategy for Ethical Enterprise

Ethical Practices and Codes of Conduct

• A code of conduct is a statement of ethical practices or guidelines to which an enterprise

adheres.
• Codes of conduct are becoming more prevalent in industry.
• Recent codes are proving to be:
- More meaningful in terms of external legal and social development
- More comprehensive in terms of their coverage, and easier to implement
in terms of the administrative procedures used to enforce them.
Approaches to Managerial Ethics

Shaping an Ethical Strategy

• The entrepreneur’s guiding values and commitments must make sense and be clearly
communicated.
• Entrepreneurs must be personally committed, credible, and willing to take action on
the values they espouse.
• The espoused values must be integrated into the normal channels of the
organization’s critical activities.
• The venture’s systems and structures must support and reinforce its values.
• Employees throughout the company must have the decision-making skills,
knowledge, and competencies needed to make ethically sound decisions every day.
Ethical Responsibility

Ethical Consciousness – it is the responsibility of the

entrepreneur, because his or her vision created the
venture. The key figure to set the tone for ethical
decision-making and behavior is the entrepreneur.
An open exchange of issues and processes withing
the venture, established codes of ethics for the
company, and the setting of examples by the
entrepreneur are important.

Ethical Process and Structure - the procedures,

position statements (codes), and announced ethical
goals designed to avoid ambiguity.

Institutionalization - is a deliberate step to incorporate the entrepreneur’s ethical objectives with

the economic objectives of the ventures. This is where the entrepreneur’s commitment to ethics
and values is tested. Constant review of procedures and feedback in operations are vital to
institutionalizing ethical responsibility.

Ethics and Business Decisions

Complexity of Ethical Decisions:

1. Ethical decisions have extended consequences
2. Business decisions involving ethical questions have multiple alternatives.
3. Ethical business often have mixed outcomes.
4. Most business decisions have uncertain ethical consequences.
5. Most ethical business decisions have personal implications.
Four Main Themes of Ethical Dilemmas for Entrepreneurs
Ethical Considerations in Corporate Entrepreneurship

Corporate Entrepreneurs
• Are managers or employees who do not follow the status quo of their co-workers.
• Are depicted as visionaries who dream of taking the company in new directions.
• Often walk a fine line between clever resourcefulness and outright rule breaking.

Effective Corporate Entrepreneurship

Corporate Entrepreneurship requires:

• Establishing the needed flexibility, innovation, and support of employee initiative and
risk taking.
• Removing the barriers that the entrepreneurial middle manager may face to more closely
align personal and organizational initiatives and reduce the need to behave unethically.
• Including an ethical component to corporate training that will provide guidelines for
instituting compliance and values components into state-of-the-art corporate
entrepreneurship programs.

Topic 3 - Ethical Leadership by Entrepreneurs

The Opportunity for Ethical Leadership by Entrepreneurs

• An owner has the unique opportunity to display honesty, integrity, and ethics in all key
decisions.
• The owner’s actions serve as a model for other employees to follow.
• An owner’s value system is a critical component of the ethical considerations that
surround a business decision
Issues Viewed by Entrepreneur/Owners

The Ethics of Caring

• Caring
A feminine alternative to the more traditional and masculine ethics that are based on
rules and regulations.
• Following laws may not lead to building as strong of relationships as one could.
• Entrepreneurs must realize that their personal integrity and ethical example will be the
key to their employees’ ethical performance.
Topic 4 - Entrepreneurial Motivation

Entrepreneurial motivation is the process of transforming an

ordinary individual to a powerful businessman, who can create
opportunities and helps in maximizing wealth and economic
development. It is defined as various factors stimulate desires and
activates enthusiasm in entrepreneurs which make them attain a
particular goal. Entrepreneurship is the process of identifying
strengths and opportunities which help in the realization of one’s
dreams for designing, developing and running a new business by
facing threats and risks effectively.

To become an entrepreneur one should identify their strengths and opportunities from the
external environment. Here motivation plays a major role in identifying their own strengths to
become strong leaders or powerful entrepreneurs which make them to accepting risks and face
uncertainty for the purpose of reaching pre-described goals.

Motivation makes entrepreneur

by fulfilling higher level needs such as
recognition, esteem, and self-
actualization. Various theories
explained motivation as an influencing
concept, it can bring out hidden talents
and creativity, and it contributes to the
individual goals and society
development. Maslow’s need hierarchy theory, Hertzberg’s two-factor theory, and David MC
Clelland’s acquired needs theory proved that motivation can bring energy, enthusiasm, creativity
and efficiencies in fulfilling the desired objectives.

Motivation activates innate strengths to achieve a particular goal, many questions arise
during knowing this concept such as why can’t all the human beings become leader or
entrepreneurs even though they face same motivation during his/her lifetime? Who can become
effective motivators? What type of motivation can influence one’s behavior? Is the extent of
motivation decides the power of externalized behavior? Etc, entrepreneurial motivation is a
psychological process in which all the motives may not influence with the same intensity, it varies
with the perception levels of the individuals and factors responsible for the motivation. Sometimes
a single motive can influence to become strong and powerful entrepreneurs, these motives may
come from various factors as follows.

• Internal factors
• External factors
Internal Factors
Need for self-actualization
Optimism
Positive attitude
Self-motivation
Enthusiasm
Commitment
Education
Background
Financial background

External factors

Influence
Availability of resources
Product’s demand
Government policies
Information availability
Technological advancement
Changing tastes and preferences

https://myventurepad.com/entrepreneurial-motivation/