ENTREPRENEURIAL MIND LESSON 1

INTRODUCTION TO ENTREPRENEURSHIP

CONTEMPORARY VIEW OF ENTREPRENEURSHIP

It is worth pointing out that while the early thinking on entrepreneurship primarily focused on the entrepreneur as
an individual, it has become necessary to also consider the environment where entrepreneurs operate as much as
their personal traits come into play. The early thinking seems to suggest that entrepreneurship is something
remarkable that is only undertaken by talented individuals—people of high ingenuity, big risk- takers and those
determined to be their own bosses. This may not reflect today’s thinking.

Entrepreneurship in contemporary behavioral science focuses on the individual, the process and the individual’s
freedom of choice. Focusing on the individual is about the earlier behavioral entrepreneurship research, which
unearthed the characteristics of the entrepreneur. Focusing on the process shows the relationship between the
environment and the behavior of the individual. For instance, individuals with entrepreneurial parents tend to
pursue entrepreneurial careers to a larger extent than others, which can be explained with the help of social
learning models. Focusing on the individual’s freedom of choice shows that new businesses are started by
individuals choosing to start them. This means that the psychologically oriented entrepreneurship research has
also taken an interest in the individual’s intentions and choices when starting a business.18

The contemporary or modern perspective of entrepreneurship or entrepreneur should examine the

entrepreneurial spirit, not only as the expression of unusual individuals, but also as the product of an environment
or culture that encourages and supports people in their efforts to launch new ventures. This view presupposes that
more people would embark on new ventures if they were given the right support. Although it remains critical for
entrepreneurs to identify opportunities, allocate resources and create value through innovative solutions, this is
only possible in an environment that promotes entrepreneurial culture and nurturing of new ideas.

ENTREPRENEURSHIP
- It is the process of creating launching and managing:

CREATING business operation

- Creating new business
- Creating new ideas
- Creating goods & services
- Creating procedures

LAUNCHING business operation

- Launch the new business, ideas, goods & services and procedures.

MANAGING business operation

- Managing the new businesses, ideas, goods & services and procedures.

The “act” of being an entrepreneur

ENTREPRENEUR
- Comes from the French word “entreprendre”
- Means to undertake, to set about, “to undertake or to try”; to start off or to begin (Richard Cantallion
1775)
- Individual that develops new creation and assumes the risk of business to produce products that satisfies
the customer need (essential) and wants (desires)
WIDER DEFINITIONS OF ENTREPRENEUR
- Has the ability to find, act on opportunities, translate these opportunities into products that would satisfy
the market.
- Has the capacity to recognize the market potential of creativity and organize the resources needed
(capital, talent & other resources --- turn creation into a beautiful market innovation)

ENTREPRENEURIAL SKILLS
Entrepreneurial skills are those normally associated with being an entrepreneur, although
anyone can develop them.
Being an entrepreneur usually means starting and building your own successful business, but
people with entrepreneurial skills can thrive within larger organizations, too.

Many researchers have studied entrepreneurial skills, but found no definitive answers. Some common
themes are:

 Personal characteristics.
 Interpersonal skills.
 Critical and creative-thinking skills.
 Practical skills and knowledge.

Regardless of how you define it, entrepreneurship isn't easy. So be prepared to do the "hard yards,"
even after you've learned the skills we describe below.

The following sections examine each skill area in more detail, and look at some of the questions you'll
need to ask yourself if you want to become a successful entrepreneur.

The Personal Characteristics of an Entrepreneur

Do you have the mindset to be a successful entrepreneur? For example, entrepreneurs tend to be
strongly innovative in outlook, and they may take risks that others would avoid.

Examine your own personal characteristics, values and beliefs, and ask yourself these questions:

 Optimism: Are you an optimistic thinker? Optimism is an asset, and it will help you through the
tough times that many entrepreneurs experience as they find a business model that works for
them.
 Initiative: Do you have initiative, and instinctively start problem-solving or business-
improvement projects?
 Drive and persistence: Are you self-motivated and energetic? And are you prepared to work
hard, for a very long time, to realize your goals?
 Risk tolerance: Are you able to take risks, and make decisions when facts are uncertain?
 Resilience: Are you resilient, so that you can pick yourself up when things don't go as planned?
And do you learn and grow from your mistakes and failures? (If you avoid taking action because
you're afraid of failing, our article, Overcoming Fear of Failure , can help you to face your fears
and move forward.)

Entrepreneurial Interpersonal Skills

As an entrepreneur, you'll likely have to work closely with others – so it's essential that you're able to
build good relationships with your team, customers, suppliers, shareholders, investors, and other
stakeholders.
Some people are more gifted in this area than others, but you can learn and improve these skills.

The types of interpersonal skills you'll need include:

 Leadership and motivation: Can you lead and motivate others to follow you and deliver your
vision? And are you able to delegate work to other people? As an entrepreneur, you'll have to
depend on others to get beyond the early stages of your business – there's just too much to do
by yourself!
 Communication skills: Are you skilled in all types of communication? You need to be able to
communicate well to sell your vision of the future to a wide variety of audiences, including
investors, potential clients and team members.

Critical and Creative-Thinking Skills for Entrepreneurs

As an entrepreneur, you need to come up with fresh ideas, and make good decisions about opportunities
and potential projects.

Many people think that you're either born creative or you're not. But creativity is a skill that you can
develop, and there are many tools available to inspire you.

 Creative thinking: Are you able to see situations from a variety of perspectives to generate
original ideas? Tools like the Reframing Matrix can help you to do this.
 Problem solving: You'll need sound strategies for solving business problems that will inevitably
arise. Tools such as Cause & Effect Analysis , the 5 Whys technique, and CATWOE are a good
place to start.
 Recognizing opportunities: Do you recognize opportunities when they present themselves? Can
you spot a trend? And are you able to create a workable plan to take advantage of the
opportunities you identify?

Practical Entrepreneurial Skills and Knowledge

Entrepreneurs also need solid practical skills and knowledge to produce goods or services effectively,
and to run a company.

 Goal setting: Setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-Bound)
will focus your efforts and allow you to use your time and resources more effectively.
 Planning and organizing: Do you have the talents, skills and abilities necessary to achieve your
goals? Can you coordinate people to achieve these efficiently and effectively? Strong project-
management skills are important, as are basic organization skills. And you'll need a coherent,
well thought-out business plan , and the appropriate financial forecasts .
 Decision making: Your business decisions should be based on good information, evidence, and
weighing up the potential consequences. Core decision-making tools include Decision Tree
Analysis, Grid Analysis, and Six Thinking Hats .

you need knowledge in many different areas when you're starting or running a business, so be prepared
for some serious learning!

Be sure to include:
  Business knowledge: Ensure that you have a working knowledge of the main functional areas of
a business: sales, marketing, finance, and operations. If you can't fulfilll all these functions
yourself, you'll need to hire others to work with you, and manage them competently.
 Entrepreneurial knowledge: How will you fund your business, and how much capital do you
need to raise? Finding a business model that works for you can require a long period
of experimentation and hard work.
 Opportunity-Specific Knowledge: Do you understand the market you're attempting to enter, and
do you know what you need to do to bring your product or service to market?
 Venture-Specific Knowledge: Do you know what it takes to make this type of business
successful? And do you understand the specifics of the business that you want to start?

SOCIO-ECONOMIC BENEFITS FROM ENTREPRENEURSHIP

The following are the benefits we get from entrepreneurship:

1. Entrepreneurship creates employment.
The existence of business activities influences employment. Business establishments need people to work
for them.
2. Entrepreneurship improves the quality of life.
People need to work in order to survive, attend to their needs, and satisfy their wants.
3. Entrepreneurship contributes to a more equitable distribution of income.
With more entrepreneurial activities provided to the people in the country sides, natives have more work
opportunities thus, discouraging them from resettling in other places.
4. Entrepreneurship utilizes resources.
We may use our own natural resources, and process and convert them to more useful things.
5. Entrepreneurship brings social benefits through the government.
The resources collected by the government are given back to the people in the form of services,
infrastructure projects, school buildings, and maintenance of peace and order.

ATTRIBUTES, QUALITIES AND CHARACTERISTICS OF AN ENTREPRENEUR

Who an Entrepreneur is?
- He is an individual or a person who owns and manages his own business, and he is engage in selling;
- A middleman who stands between buyer and seller.
- He is one who takes risks and makes innovations on the factors of production, an adventurer.
- He is an innovator who does new things or does things in a new way.
- He always searches for change, responds to it, and exploits it as an opportunity.
SELF-AWARENESS
- He knows he is, what he is good at, and what he likes to do. He starts a business that is based on his
expertise in a specific field, and focuses on his involvement in an area he thoroughly enjoys.
SELF-MOTIVATED
- Self-motivation is one of the most important personality traits of successful entrepreneurs.
- It is what gives him the tenacity and confidence to call on a potential client, even though he has heard
“No” three times.
COURAGE
- The willingness to take risk is a valuable trait when striving for success.
- The willingness to take the choice.
CONFIDENCE
- A confident attitude is one of the most appealing traits he exhibits to prospective clients, for let them
know that they will be getting the best their money can buy.
 - Confidence is achieved because of positive thinking.
POSITIVE THINKERS
- They think of success and bright sides.
- Wealth does not always come to the most intelligent or the most ambitious individuals, but to those
individuals who think money.
PATIENCE
- When one owns his business, there will be times that he feels like the roof is carving in, especially when
the customer’s demands seem to be unrealistic.
DECISIVENESS
- One should go with his intuition and trust that he is doing the right thing.
- A process of making one fast decision after another.
EXPERIENCE
- A primary reason some businesses fall within a few years to start-up is lack of business experience.
- Is directly related to business he is planning to start; it is a key component for growth.
KNOWLEDGE
- One has a better chance of succeeding by knowing about business basics, the product or services, the
industry he is entering, and customer markets.
INFORMATION-SEEKING
- To assure accomplishment goals, the entrepreneurs continuously seeks for relevant information regarding
the market, clients, suppliers, competitors, and consults experts’ advice on business and other technical
matters.
PERSEVERANCE
- Perseverance is 90% of the battle to succeed.
- If you are like the majority of new small business owners, the entire staff and support system for your
venture is probably you.
DRIVE
- One must believe in his goal and be determined to succeed.
- He does not view obstacles as problems, but rather as challenges.
RISK-TAKING
- They are not foolhardly as to undertake activities where they know nothing at all possibilities for success.
INNOVATIVE
- They love to explore the unknown, and to blaze new paths of progress.

OPPORTUNITY-SEEKING
- He will seize unusual opportunities to tap sources of financing, acquire equipment, land,
workspace, business information and assistance.
DEMAND FOR EFFICIENCY AND QUALITY
- Setting high, but realistic standards of excellence for himself.
- Always strives to find ways to do things better, faster, and at a lower cost.
SYSTEMATIC PLANNING AND MONITORING
- Sets what to be accomplished, and meticulously assesses how today’s activity can contribute to
the accomplishment of his long-term goal.
PERSUATION AND NETWORKING
- Easily establishes a network of personal and business contacts around him.
- Power is required to achieve his business objective.

“SUCCESS is not final. FAILURE is not fatal. It is the COURAGE to continue that counts.”
REFERENCES:

https://www.studocu.com/ph/document/velez-college/mtlbe/entrepreneurial-mind-lesson-1/21678164

https://www.mindtools.com/akrkkvp/entrepreneurial-skills

https://discover.hubpages.com/business/Socio-Economic-Benefits-from-Entrepreneurship

https://www.slideshare.net/kharl0612/attributes-qualities-amp-characteristics-of-an-entrepreneur