Module 2 - Entrepreneurial Mindset

Republic of the Philippines
PHILIPPINE STATE COLLEGE OF AERONAUTICS

INSTITUTE OF LIBERAL ARTS AND SCIENCES
Piccio Garden, Villamor, Pasay City
____________________________________________________________________________________
Module 2
LEARNING MODULES
2nd SEMESTER, A.Y. 2022-2023
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Module 2 - Entrepreneurial Mindset
MODULE LEARNING OUTCOMES:
➢ Develop and demonstrate the mind-set and behavior of an

entrepreneur.
➢ Identify, assess, and evaluate entrepreneurial opportunities.
➢ Formulate and develop sustainable solutions to current problems and
issues.
TOPIC LEARNING OUTCOMES:
➢ Identify the different characteristics, mind-set, and behavior of an

entrepreneur.
➢ Acquire an opportunity seeking behavior.
Table of Contents:
TITLE PAGE TIME

ALLOTMENT
Introduction 3 3 mins.
Definition of Entrepreneurial Mind-set 3-4 10 mins.
Characteristics of Successful Entrepreneur 4-9 30 mins.
Behavior and Attitudes of an Entrepreneur 9-11 15 mins.
Entrepreneurial Background 11-12 8 mins.
How Entrepreneurs Think 13-14 20 mins.
Opportunity Seeking 14-15 20 mins.
Identification of Business Opportunity 15-16 15 mins.
Opportunity Recognition 16-17 10 mins.
Entrepreneurial Cognition 18 10 mnins.
The Dark Side of Entrepreneurship 19-21 30 mins.

Summary 22 3 mins.
Assessment 23 1.5 hrs.
Rubrics 25 -
References 26 -
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Introduction:
We all have a mind-set, yet often we are not consciously aware of it or the profound effect it has
on our lives. Our mind-set is the underlying mechanism that can expose opportunities and ignite
our ambition, engaging our faculties in ways that enable us to flourish and thrive. Yet, our mind-
set can also blind us to opportunities and hinder our ability to learn and grow, keeping us
tethered to familiar, yet unproductive patterns of thought and action.
What is an entrepreneurial mind-set?
A mind-set is a cognitive
belief system consisting of
interrelated beliefs,
assumptions, and
knowledge that we use to
process information,
inform our decisions, and
guide our behavior.
An entrepreneurial mind-
set is a specific set of
beliefs, knowledge, and
thought processes that
drives entrepreneurial
behavior. Those with an
entrepreneurial mind-set
tend to:
• believe in their ability to succeed and influence their own outcomes, empowering them
to take ownership of their lives;
• have compelling goals that keep them future-focused and intrinsically motivated, driving
them to be self-directed, action-oriented, and highly engaged;
• have an optimistic interpretation of adverse events and see problems as potential
opportunities, becoming highly resilient, resourceful, and solution-oriented even
within highly uncertain, resource constrained environments;
• be lifelong knowledge seekers with a focus on micro-experiments as learning
opportunities to test ideas, cultivating curiosity, creativity, and critical thinking;
• display a high-level of reliability, understanding that following through on simple
solutions can lead to unforeseen opportunity;
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• have a humanistic outlook, being other-focused and understanding that one creates
value by looking to solve problems for others; and
• surround themselves with an intentional community of positive influence and critical
guidance
It’s important to note that successful entrepreneurs are often touted as exceptional individuals; a
rare breed who seem to have been born with unique hereditary traits. But, the entrepreneurial
mind-set is most often acquired implicitly without conscious effort or awareness, which may
explain why it often appears to be a dispositional trait, even though it is not.
An entrepreneurial mind-set can be developed and enhanced through entrepreneurial

experiences. And to cultivate the entrepreneurial mind-set, we must create entrepreneurial
learning experiences within our classrooms, organizations, and communities.
What are successful entrepreneurship characteristics?
Being an entrepreneur requires much more than big ideas. A true entrepreneur possesses
a unique cocktail of skills and characteristics that enable them to beat the odds and go
after their dreams full throttle. But what are those attributes? What does an entrepreneur
need to succeed? It would be nice to have a handbook to tell us whether or not we have
the ‘E factor’ that makes a great entrepreneur. But the truth is, there’s no discernible
formula for success, but there are a few traits that successful entrepreneurs tend to have.
Some people may be born with the traits, but those who are not can often develop them.
Here are some of the personal characteristics that successful entrepreneurs have, with
tips along the way to help you develop them.
Entrepreneurs are goal-oriented
Entrepreneurs are all about setting goals

and putting everything they have into
achieving them. They’re determined to
make their business succeed and will
remove any obstacles that stand in their
way. They also tend to be strategic in
their game plans and have a clear idea
of what they want to achieve and how
they plan to do it.
How to become goal-oriented:
• Create short and long term goals for

your business. Short-term goals are those
you can complete in an hour, a day, or as
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long as a week. Long-term goals might take you a year or longer.
• Whenever you have a choice to make about what to focus on, choose the thing that will
help you make the most progress toward one of your goals.
Entrepreneurs are committed to their business
Entrepreneurs are not

easily defeated. In fact,
they view failure as an
opportunity for future
success. If they don’t
succeed the first time,
they’ll continue to try
until they do. Most
entrepreneurs don’t take
‘no’ for an answer.
How to remain
committed:
• Each time you run up

against an obstacle,
rather than thinking that
your idea won’t work or that you’ve failed, think about what you can learn from the
experience.
• Figure out another way to reach your goal from where you are.
• Remember that many successful entrepreneurs fail several times before they succeed.
Entrepreneurs are hands-on
Entrepreneurs are inherently proactive and know that if something needs to get done, they
should do it themselves. They are ‘doers’ and tend to have very exacting standards. They
view their business as an extension of themselves and like to be present in day -to-day
operations – even when they don’t have to be.
How to stay hands-on: Having a business that grows to the point where you can’t do
everything yourself is a good problem to have. But it’s still important to know how things
are being done. Consider:
• Spending some time with each of your key people at least once a month to make sure
you know how they’re doing their work.
• Filling in for people when they go on vacation just to keep your hand in it.
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Entrepreneurs thrive on uncertainty
Not only do entrepreneurs thrive on facing a new challenges, they remain calm in the face
of those challenges. Sometimes things go wrong in business, and when they do, it’s your
job as the head of the company to
keep your cool. Successful
entrepreneurs know this and flourish
in the wake of a challenge.
How to thrive on uncertainty: Manage

uncertainty in three steps.
• When the unexpected happens, stop

and take a deep breath.
• Think about how you can solve the

problem, and how you can learn from
it.
• Remember your goals. How can you

continue to move toward them despite
this uncertainty?
Entrepreneurs continuously look

for opportunities to improve
Entrepreneurs view every event

or situation as a business
opportunity, and they’re
constantly generating new and
innovative ideas. They have the
ability to look at everything
around them through the lens of
their goals, seeing opportunity
everywhere.
How to continuously
improve: Outside-the-box thinking
doesn’t come naturally to
everyone, but you can practice
it.
• Each time you do something – whether it’s ordering supplies, making a sales call, or
creating a new product – ask yourself if there’s a way you could do it better.
• If you have employees, reward them for making suggestions that lead to improvement.
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Entrepreneurs are willing to take risks
Most entrepreneurs don’t ask

themselves whether or not
they will succeed – they
believe they will. This innate
confidence allows them to
take risks because they firmly
believe those risks will pay
off.
How to practice taking risks:
• When deciding whether or

not to take a risk, ask yourself,
“What is the worst thing that
could happen?” and then, “How
likely is it that the worst thing
will happen?” The answers to
these two questions can inform your decision.
• If the worst possible outcome is not really that bad, or is extremely unlikely, it’s probably
a risk worth taking.
Entrepreneurs are willing to listen and learn
The most important part of learning is listening – and a good entrepreneur will do this in
abundance. They also know that they can learn something new from just about everyone
they meet, so they don’t hesitate to ask questions.
How to listen and learn:
• When talking to people about your business, make sure you’re asking more questions
than you’re answering.
• You should be trying to learn something from every interaction, whether it’s with a
customer, a supplier, an employee, or someone you just met.
Entrepreneurs have great

people skills Entrepreneurs
tend to have strong
communication skills, and this
strength, combined with their
passion for their product or
service, helps them to talk to
anyone and everyone about
their business. They’re also
natural leaders who can
motivate, inspire, and influence
those around them.
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How to develop people skills: This is another skill that many people think you need to be
born with, but it can be learned.
• Start by making an effort to strike up a conversation with someone you don’t know.
• Ask open-ended questions.
• Continue the discussion based on their answers to you questions.
• As long as you’re asking more questions than you’re answering, you’ll likely keep their
interest.
Entrepreneurs are
inherently creative
This is one trait that, due to

their nature, entrepreneurs
tend to have in abundance.
They can come up with
ingenious ideas and also
have the ability to turn
those ideas into profits.
How to harness your

creativity: People who don’t
consider themselves
creative can sometimes be
intimidated by those whose
creativity is apparent. But this trait can also be built by practice.
• When faced with a problem, start by writing down every possible solution.
• Make it a point to include solutions you think will never work – the more outlandish the
better.
• The one you settle on probably won’t be one of these, but it will get you into the habit of
considering every possible scenario.
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Entrepreneurs are
passionate and positive
Passion may be the most

important trait of the
successful entrepreneur.
They genuinely love what
they do and are willing to
put in the extra hours to
make their business grow.
They get a sense of
satisfaction from their work
that goes beyond making
money.
How to be passionate and

positive:
• Choose a product or service that you’re genuinely interested in.
• You must be convinced that your business solves a real need in a way that will improve
people’s lives.
• Once you are sure about that, it’s easy to be passionate and positive about what you
do.
7 themes of desirable and acquirable attitudes and behavior of an entrepreneur
Themes Attitude and behavior
▪ Determined and decisive, able to recommit/

commit quickly
▪ Intensely competitive in achieving goals
▪ Persistent in solving problems, disciplined
▪ Willing to undertake personal sacrifice
Commitment and Determination ▪ Immersed
▪ moral strength
▪ fearless experimentation
Courage ▪ intense curiosity in the face of risk
▪ Self-starter; high standards but not

perfectionist
▪ Team builder and hero maker; inspires
others
Leadership ▪ Treats others as you want to be treated
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▪ Shares the wealth with all the people who
helped create it
▪ Honest and reliable; builds trust; practices
fairness
▪ Not a lone wolf
▪ Superior learner and teacher; courage
▪ Patient and urgent
▪ Has intimate knowledge of customers’ needs

and wants
▪ Market driven
▪ Obsessed with value creation and
Opportunity Obsession enhancement
▪ Calculated risk taker

▪ Risk minimizer
▪ Risk sharer
▪ Manages paradoxes and contradictions
▪ Tolerates uncertainty and lack of structure
▪ Tolerates stress and conflict
Tolerance of Risk, Ambiguity and ▪ Able to resolve problems and integrate
Uncertainty solutions
▪ Nonconventional, open-minded, lateral

thinker
▪ Restless with status quo
▪ Able to adapt and change; creative problem
solver
▪ Quick learner
▪ No fear of failure
▪ Able to conceptualize and “sweat details”
Creative, self-reliance and adaptability (helicopter mind)
▪ Goal-and-results oriented, high but realistic

goals
▪ Drive to achieve and grow
▪ Low need for status and power
▪ Interpersonally supporting (versus
competitive)
▪ Aware of weaknesses and strengths
Motivation to excel ▪ Has perspective and sense of humor
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Core and Desirable Entrepreneurial Attributes
▪ Commitment and Determination

▪ Leadership
▪ Opportunity Obsession
▪ Tolerance of Risk, Ambiguity and
Uncertainty
▪ Creativity, Self-reliance, and
Adaptability
▪ Motivation to Excel
Core Attributes ▪ Courage
▪ Intelligence
▪ Creativity and Innovativeness
▪ Energy, Health, and Emotional Stability
▪ Values
Desirable Attributes ▪ Capacity to Inspire
▪ Outer control
▪ Invulnerability
▪ Knows it all
▪ Counter/dependency
▪ Being “macho”
▪ Perfectionist
▪ Impulsiveness
The Non-entrepreneurial Attributes ▪ Being anti-authoritarian
ENTREPRENEURIAL BACKGROUND
Only a few background characteristics have differentiated the entrepreneur from the general
populace or managers.
Childhood Family Environment
The impact of birth order and social status has had conflicting research results.
There is strong evidence that entrepreneurs, both male and female, tend to have self-employed
or entrepreneurial fathers. Having a father who is self-employed provides a strong inspiration in
the example of independence and flexibility of self- employment. This feeling of independence is
often further enforced by an entrepreneurial mother.
Education
Education appears important in the upbringing of the entrepreneur, in the level of education
obtained and in playing a major role in coping with problems.
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Although formal education is not necessary for starting a new business, it does provide a good
background.
In education, entrepreneurs experienced some disadvantage, with few having degrees in

engineering, science, or math.
The ability to deal with people and communicate clearly in written and spoken work is also
important.
Academic qualification is a barrier or facilitator in the way of entrepreneurship?
Age
Entrepreneurial age is the age of the entrepreneur reflected in the experience.
Entrepreneurial experience is one of the best predictors of success.
In chronological age, most entrepreneurs start their careers between ages 22 and 55.
Earlier starts in an entrepreneurial career seem to be better than later ones.
Generally, male entrepreneurs start their first venture in their early 30s, while women tend to do
so in their middle 30s.
Between 30-50 years old
Work History
Dissatisfaction with one’s job often motivates the launching of a new venture. (Gift within trouble)
Previous technical and industry experience is also important once the decision to start a business
is made.
Experience in the following areas is particularly important: financing; product or service

development; manufacturing; development of distribution channels; and preparation of a
marketing plan.
As the venture becomes established, managerial experience and skills become more important.
Entrepreneurial experience becomes increasingly important as the complexity of the venture

increases.
MOTIVATION
While motivations may vary, the reason cited most often for becoming an entrepreneur
independence-not wants to work for anyone else.
Other motivating factors differ between male and female entrepreneurs.
Money is the second reason for men’s starting a venture.
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Job satisfaction, achievement, opportunity, and money are the second order reasons for women
Here are some other factors that I believe makes entrepreneurs entrepreneurial and
identifies the mind-set that helps explain how they think:
• Entrepreneurs think by actions: The entrepreneurial minds set craves action,

so much so that they twist the age old maxim to read "Ready, Fire, Aim." Action
for the entrepreneur tests their hypotheses and so provides them with special
market intelligence regardless of the outcome. They are more interested in
establishing a 'proof of concept' via active iterations and pivots than they are in
developing the perfect theoretical plan. This 'Bird in Hand' entrepreneurial
principle starts actions with available means, before the perfect opportunity has
fully emerged.
• Entrepreneurs think in possibilities: Entrepreneurial thinking is not constrained

by the reality of the present. Entrepreneurs see the reality of possibilities that are
not yet evident to others. As HBS professor Howard Stevenson
explains: "Entrepreneurs pursue opportunities without regard to resources
currently controlled." Entrepreneurs don't need all the resources in place before
pursuing an opportunity ... just the important ones.
• Entrepreneurs can think in ambiguity: For the vast majority of people,

ambiguity means confusion, disorganization and debilitation. Not so for the
entrepreneur who can still function effectively and move forward decisively in the
world of conflicting views, uncertain outcomes, and unresolved issues that exists
as they craft and hone their opportunity from the evolving mass of possibilities.
The Lemonade entrepreneurial principle actually embraces surprises that arise
from this uncertainty and will adjust goals on the fly rather than be held by
previous ones.
• Entrepreneurial thinking embraces risk: While many money makers

implement risk avoidance strategies to create wealth, the entrepreneur knows
that opportunities are more likely to exist for them by embracing and managing
risk rather than simply avoiding it. It is in these risky areas that the established
players avoid, that contains the gold nugget opportunities. Entrepreneurs have
developed a whole host of risk management treatments to help them in this
regard like lean start-ups, customer development process, beta launches,
iterations and pivots, affordable loss experimentation, 'under the radar' launches,
embedded entrepreneurship, and beachhead strategies. The Affordable Loss
Principle drives entrepreneurial action based on the acceptable downside, more
than it does on the attractiveness of the predicted upside.
• Entrepreneurs think in patterns: Entrepreneurs are always looking for cause

and effect patterns in the world around them. Patterns help the entrepreneur to
not only understand the world they live in but it also helps them predict the future
and to see opportunities that most people miss. These patterns may be the ability
to see the logical extension of a change or the creative-disruptive force of
something new or the cross pollination ability of an innovation into new fields.
Entrepreneurs also know how to apply the concepts and patterns from existing
worlds to explain innovations in worlds as yet unseen.
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• Entrepreneurs think incessantly: There is no off button in the entrepreneur's
mind. They are incessantly curious, opportunistic, and optimistic. They train their
minds to problem-solve every issue that crosses their path. Every person they
meet is a potential resource, in every problem they encounter they seek a
solution and in every change they look for the new opportunity potential.
• Entrepreneurs think internally: Rather than let others and external factors
determine the value of outcomes, the entrepreneur uses their internal locus of
control to direct their destiny, to work for their achievements, to delay
gratification, and to plan with an eye for long-term benefits. Entrepreneurs never
think of themselves as victims. Everything they do has a personal development
focus, even when doing unappreciated work for others.
• Entrepreneurs think of value-add: Rather than singularly employ a 'business-

savvy' focus of extracting benefit by exploiting a market/customer weakness,
entrepreneurs focus primarily on creating new value for others (by increased
benefit or reduced cost) and then finding a way of securing a slice of that
increased value for themselves. This Crazy-Quilt entrepreneurial principle seeks
partnerships with committed people and organizations willing to jointly create the
future and are least concerned with traditional competitive analyses and strategic
planning approaches.
• Entrepreneurs think of making meaning: Entrepreneurs have an inherent

desire to make a difference and to make their world a better place. So, for the
entrepreneur, making money becomes a means to that end and not an end in
itself. As Richard Branson says: “Above all, you want to create something you
are proud of ... I can honestly say that I have never gone into any business
purely to make money … I’ve had to create companies that I believe in 100%.
These are companies I feel will make a genuine difference.”
What is opportunity seeking and initiative?

Opportunity-seeking and initiative
Entrepreneurs seek opportunities and

take the initiative to transform them
into business situations.
Consequently, what is an opportunity

seeking?
What is Opportunity seeking?
The ongoing process of considering,

evaluating, and pursuing market-
based activities that are believed to
be advantageous for the firm. Prior
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experience informs the process, but it may also limit it: opportunity seeking calls for continuous
reconsideration and adaptive learning.
Similarly, what is opportunity seeking screening and seizing? Entrepreneurs are

innovative opportunity seekers. They have an insatiable curiosity to discover new or different
ideas that will work in the marketplace. After screening several opportunities according to well-
defined criteria, the next step for the entrepreneur is to seize the chosen business opportunity.
Regarding this, what are the example of opportunity seeking?
Opportunity Seeking Examples – Innovation He innovated the suitcase with wheels. Rob Law
saw a similar opportunity when he noticed children travelling with their parents and saw the
possibility for a children's suitcase which they could sit on.
What is the importance of opportunity seeking?
If you actively seek opportunities, you will find new products for old markets or customers. The
successful entrepreneurs seek to find new ways to please old customers. Each new need or
new want exhibited by your market is an opportunity which you can take advantage of.
Identification of Business Opportunity: Idea Generation and Opportunity

Identification of Business Opportunity: Idea Generation and Opportunity!
In general sense, the term opportunity implies a good chance or a favourable situation to do
something offered by circumstances. In the same vein, business opportunity means a good or
favourable change available to run a specific business in a given environment at a given point of
time.
The term ‘opportunity’ also covers a product or project. Hence, the identification of an
opportunity or a product or project is identical and, therefore, all these three terms are used as
synonyms. The Government of India’s “Look East Policy” through North East is an example of
‘opportunity’ to do business in items like tea, handicrafts, herbals, turmeric, etc.
Opportunity identification and selection are like comer stones of business enterprise. Better the
former, better is the latter. In a sense, identification and selection of a suitable business
opportunity serves as the trite saying ‘well begun is half done.’ But, it is like better said than
done. Why? Because if we ask any intending entrepreneur what project or product he/she will
select and start as an enterprise, the obvious answer he/she would give is one that having a
good market and is profitable. But the question is how without knowing the product could one
know its market?
Whose market will one find out without actually having the product? Whose profitability will one
find out without actually selling the product? There are other problems, besides. While trying to
identify the suitable product or project, the intending entrepreneur passes through certain
processes.
The processes at times create a situation, or say, dilemma resembling ‘Hen or Egg’ controversy.
That is, at one point, the intending entrepreneur may find one product or project as an
opportunity and may enchant and like it, but at the other moment may dislike and turn down it
and may think for and find other product or project as an opportunity for him/her. This process of
dilemma goes on for some intending entrepreneurs rendering them into the problem of what
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product or project to start. Then, how to overcome this problem of product identification and
selection?
One way to overcome this dilemmatic situation is to know how the existing entrepreneurs
identified the opportunity and set up their enterprises. An investigation into the historical
experiences of Indian small enterprises in this regard reveals some interesting factors.
To mention the important ones, the entrepreneurs selected their

products or projects based on:
a. Their own or partners’ past experience in that business line;
b. The Government’s promotional schemes and facilities offered to run some specific business
enterprises;
c. The high profitability of products;
d. Which indicate increasing demand for them in the market?
e. The availability of inputs like raw materials, labour, etc. at cheaper rates;
f. The expansion or diversification plans of their own or any other ongoing business known to
them;
g. The products reserved for small-scale units or certain locations.
Now, having gained some idea on how the existing entrepreneurs selected products/projects,
the intending entrepreneur can find a way out of the tangle of which opportunity/product/project
to select to finally pursue as one’s business enterprise.
One of the ways employed by most of the intending entrepreneurs to select a suitable
product/project is to firstly generate ideas about a few products/ projects. Accordingly, what
follows next is a discussion idea generation about products.
Opportunity Recognition
So, what is opportunity recognition? Opportunity recognition is actually a process that's found
in the way that individuals and businesses with an entrepreneurial mind-set approach new
business ventures or ideas. In many ways, it is a constant brainstorming in which individuals
look for ''new and improved ways'' of addressing problems. It could be a brand new business
idea or even new products or services that fulfil customers' needs and expectations.
You've probably had a thought at some point and considered, ''Hey, I bet I could make money
doing this!'' That's an example of opportunity recognition. You recognize that you have an idea
or a capability that could be beneficial to a particular audience. Some people seize on these
ideas and turn them into new opportunities that drive business growth by creating new streams
of revenue.
Opportunity recognition is important because it helps a business stay relevant and be
successful long-term. What would have happened to Amazon if it had not embarked on digital
books, the buyout of Whole Foods and new ways of shipping to customers quickly, and instead
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focused solely on selling books on its website? It may not even still be around, and it certainly
wouldn't be as relevant of a player as it is in the retail environment.
To become an opportunity, an idea needs to be evaluated and acted upon.
To become a business opportunity, your idea needs to have a potential economic value:
• It needs to be able to create profit. There have to be customers willing to pay for the
product.
• It should also be new and innovative.
• It also needs to be attractive and desirable for people who want to buy it.
There are two ways to recognise opportunities:
• You can discover them or
• You can create them yourself and with others.
Entrepreneurs discover opportunities when they search for them in existing markets. This
means they observe technological, economic or social trends. Recognising opportunities is a
cognitive process. It relies on the ability of people to recognise patterns and connect the dots.
Entrepreneurs create opportunities when they engage with others in bouncing ideas back and
forth, and each time it becomes more specific what the user needs are and how they are going
to be solved. Creating opportunities is a social process. It relies on the ability of entrepreneurs
to interact.
Main take away message

There are two ways to recognise opportunities: discovering or creating. It is up to you as an
entrepreneur which way is most suitable for you and which actions to take to enable opportunity
recognition.
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Entrepreneurial cognition refers to the knowledge and skills used by a person for
making assessments and decisions that involves evaluation of opportunity and growth. It is the
way of identifying entrepreneurs' thoughts regarding their ventures and the work done by them.
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THE DARK SIDE OF ENTREPRENEURSHIP
Entrepreneurship is something that we have been talking about until now. Mostly from the
perspective of the advantages that it brings for you. But one of the points that have been missed
in its truer sense is that there is a dark side of entrepreneurship as well.
Yes, you have read it right — the dark side. Like anything else, the advantages and
disadvantages are two sides of the same coin, and entrepreneurship is no different. So, what
can you actually face when we say that there is a dark side of entrepreneurship as well? In this
article, we are going to share it with you.
WHAT SHOULD YOU EXPECT AS THE PART OF ENTREPRENEURSHIP PACKAGE?

Here is what you should expect as part of the entrepreneurial package:
1. YOU WILL NOT GET ENOUGH TIME FOR YOURSELF:

The general talks about taking some time out for yourself and enjoy life is good from the
conversation point of view, but being an entrepreneur does not provide you with enough time to
have some alone time or to get some spiritual or mental peace.
Being a small entrepreneur, you are stressed out with the problems that your business is having
or looking for new opportunities to expand. In such a situation, you cannot spare a minute for
yourself.
2. YOU WILL NO LONGER HAVE A SOCIAL LIFE:

You might make some new business friends with whom you could be talking about business all
day. But you won’t be able to get in touch with the existing social circle that you had in your life.
There would always be some last-minute issues from your side that would actually be hindering
your meetup plans. And even if you do, you might sound too entrepreneurial for your friends that
you won’t have the same fun anymore.
Additionally, when you are looking up to catch up with your plans or capitalize on a new
opportunity, then meeting friends would be like wasting some precious time, not doing business.
At the moment, you might not get this feeling, but as soon as you are on the entrepreneurial
boat, you’ll have to go through this.
3. YOUR DIET IS GOING TO SUFFER:

Being an entrepreneur, you won’t be able to take up your regular meals as 7ou can now. You’ll
just be eating to keep your energy level high, and that would be after several hours when your
energy would drain to zero.
Moreover, you won’t be able to cook your special dish or have it with sanity of mind while your
employee would be discussing some of the business issues on your phone, you’ll probably want
to add some water in the noodles and going with the lunch so that you can reach quickly to your
desk and resolve it.
4. YOU’LL HAVE TO BE READY FOR THE FAILURE.

Failure is not bad. We don’t even want to portray it in such a way, but you definitely need some
courage to deal with the situation. After the failure is your real test in which you would be
expected to get up and start again with the same motivation and zeal that was once part of your
personality.
Talking about it is easier, but when your idea has failed in the market, coming up with a new
idea or a new strategy isn’t that easy. It requires some mental strength and courage.
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5. YOU MIGHT HAVE TO LIVE WITHOUT MONEY:
Entrepreneurial ventures are started to make limitless money, which is the limitation of
employment. But with the high chances of success comes with a risk as well. The higher the
risk, the higher would be the income, and usually, the businessperson gets attracted to the high-
income point ignoring the risk factor.
Even successful business ventures might reach a level when they literally have no cash to
survive. So, in such a situation, you can’t expect to withdraw any of the money from the
business even for meeting your necessary expenditures, so, as a business owner, you should
be ready to reach such a situation and handle it without frowning. Ultimately, it is you who is
responsible for choosing business over fixed employment.
6. YOU’LL HAVE TO WAIT FOR MAKING MONEY:

Making money won’t be that easy, even if you have a multi-billionaire idea. Initially, it would be
you spending a lot of money on the expenditures. Even if your business would be generating
revenue that might go into meeting up the expenditures and balancing the books. So, if you
think that investing in the business idea would just generate income for you. Then you are totally
wrong. There are hundreds of expenditures waiting for you. So, getting money would actually a
long term process, and you’ll have to prove worthy of it.
7. THE RISK-TAKING PART COULD BE NERVE-WRACKING:

The risk involved in the business could be dependent on the nature of the business and the
industry you are entering. But if you are not a risk-taking individual, then this risk could nerve-
wracking. In some businesses dealing with high market volatility, you won’t even know that
there would be a profit unless you make it. So, while investing in the business, especially with
this high level of market volatility, you should be ready to take this risk for your nerve.
8. YOUR BODY CAN LITERALLY STRESS OUT:

With 15-18 hours of work daily in the initial years of your business, you can simply be stressed
out with some of the visible signals of stress. Pain in the muscles, constant headache, gastric,
and respiratory issues are amongst some of the major symptoms. The level of stress
determines if any or all of these issues exist in your life.
Some people can manage short-term stress levels very well, but the impact is seen in the later
stages. So, this is one of the prominent downsides of entrepreneurship that you should look
closely before making any investment in it. If you are sure you want to bear this level of stress,
only then should you expect to be a party to it?
20 | P a g e
9. NO TIME FOR EXERCISE:
No matter how much importance you give to the exercise and healthy body healthy mind
relationship, but the end result would be a lack of enough time to spare an hour or so from your
life for any sort of exercise.
Depending upon the nature of your business, you might have to sit long days working without
any breaks, that would not only make you lethargic but would lessen the muscle activity to zero.
The lack of muscle activity actually results in high stress and strain. And obviously, with higher
stress, getting other diseases is the common thing.
10. YOU CAN GET OBESE:

With constant stress, one of the disadvantages that you might have to bear is obesity. Stress
can enhance the risk of obesity. Moreover, the lack of activity is also quite prominent when it
comes to desk jobs and businesses that demand the use of analytics and strategy making. In all
such businesses, the risk of getting obese is increased to a considerable degree.
11. YOUR DECISIONS WOULD HAUNT YOU:

Don’t even expect that all the decisions that you are going to make for your company are going
to be great. Being a human, there are chances of making errors. Even the biggest companies of
their time, like Yahoo, have made mistakes, so they are simply inevitable.
But when you know that you are in full control of the situation and you are going to face the
consequences of your wrong decision, then decision-making won’t be that easy. Even the
decisions that would go wrong would haunt you all of your life. You’ll always be feeling that
things might have been different if you had done some things differently. So, be ready for this
guilt as well. Being the owner, you’ll be handling it too.
“One of the greatest skills of leadership is being unflappable. Anytime you do anything in the
world, there’s going to be criticism.” -Arianna Huffington, Co-found and editor-in-chief of
Huffington Post Media Group
You should include yourself in the list as well as ignoring others’ criticism is possible, but self-
consciousness or self-criticism still remains.
12. NO TIME FOR RELATIONSHIP:

We are not negating the fact that you can’t have the family life while doing business, but it would
require more effort from your partner to keep up the relationship in good terms. You would
actually be stressed and pissed off with everything, so that would shift the burden of home
responsibilities on your spouse. Make sure that they agree to fulfill those responsibilities.
Otherwise, the whole relationship could be in danger.
13. ANXIETY, STRESS AND DEMOTIVATION LEADING TO DEPRESSION COULD BE

WAITING FOR YOU:
You can’t expect yourself to be motivated every time. There are highs and lows in everyone’s
life. When dealing with business issues, you might get demotivated to a level that you won’t
want to continue your business. Sometimes, the disagreement or discouragement of the idea
could actually get over you. The lack of speedy growth or downturns could actually demotivate
you.
Any of these situations can also lead to serious depression, and you’ll have to deal with it as
well. Make sure you have it in mind as not all the startups get to the position they want.
Additionally, entrepreneurship is a process and actually continues; there is no end to it. So, if
you are considering it as a sort of retirement after a job plan, then you can be demotivated, and
its continuation for a long time can also lead to chronic depression.
21 | P a g e
“Don’t get distracted. Never tell yourself that you need to be the biggest brand in the whole
world. Start by working on what you need at the present moment and then what you need to do
tomorrow. So, set yourself manageable targets.” – Jas Bagniewski, Co-Founder of Eve Sleep
This quote could summarize the best practice that you should be following to keep yourself out
of this situation.
CONCLUSION:
Obviously, entrepreneurship is one of the best things you can do to get rich (if done properly).
But it does not come with its merits alone. There are some demerits that are part of an
entrepreneur’s life. You can definitely limit these restrictions or flaws with time. But initially, you
must be ready for all these consequences. Making an informed decision will help you in getting
closer to your ultimate objectives.
Despite these dark aspects of the entrepreneur, we would still advise you to choose the
business idea that you are passionate about and start your own business. Just like the
downside of entrepreneurship, there is a dark side of employment too. So, in any way, you
would be compromising something. However, the ultimate decision is yours.’
Summary:
Entrepreneurs are always told that they need to be passionate about their business. This is true,
but the glamour of passion often masks another element that is essential to an entrepreneur’s
success: commitment. While passion may lead you to start your own business, it is your
commitment that will keep you going and allow you to persevere through the difficult times
ahead.
With this in mind, as a prospective entrepreneur, you need to be able and willing to reach out to
those around you for emotional support and financial backing when you need to.
Entrepreneurs have a drive to succeed, and their high internal locus of control often makes it
difficult for them to admit errors or that they need help. To nurture your thinking and support
your ideas, you need to be sure that you have the space you need to work out solutions on your
own.
An environment that is accepting of failure is a huge support for most entrepreneurs. Being
surrounded by people who understand that business failure is not shameful, but rather
something to learn from and build on, will help you to persevere and try again.
22 | P a g e
Assessment for this Module:
1. Do you think you possess an entrepreneurial mind-set?

Why?
2. In your opinion, rank the 3 most important characteristics of an
entrepreneur, Explain.
3. What is Opportunity Identification and Opportunity Recognition? Cite
a concrete example each.
4. Upon knowing the dark side of entrepreneurship, are you still
deciding to become an entrepreneur someday? Why?
5. “Entrepreneurs think of making meaning” Explain and give a short
instances.
23 | P a g e
Academic Honesty Clause:
• Always practice Academic Honesty. Ideas, whether submitted in writing or

shared in class discussions are expected to be the student’s own. Students
should always ensure to make a distinction between their own ideas and
knowledge from information derived from sources (printed and online/or
information and opinions gained directly from other people).
• Follow the set deadline of submission. In the event of not meeting the due date
for any valid reasons, inform the instructor ahead of time.
• Follow the class schedule reflected in your Registration if you have any questions
or if you wish to have a consultation with your instructor.
• Always include your references. In text and a list of all references used at the last
part of your submitted file.
I affirm that I will not give or receive any unauthorized help on these module activities
and that all work will be my own understanding in each topic content and discussion.
_______________________
Signature over Printed Name
24 | P a g e
RUBRICS: ESSAY
CRITERIA 1 2 3 4 SCORE
Focus/ Main Point The essay The essay is The essay is The essay is
poorly focused on focused on the focused,
addresses topic topic and topic and purposeful, and
and includes includes few includes reﬂects clear
irrelevant ideas loosely related relevant ideas insight and
ideas ideas
Support Provides little or Supports main Supports main Persuasively
no support for point with some point with supports main
the main point underdeveloped developed point with well-
reasons and/or reasons and/or developed
examples examples reasons and/or
examples
Organization & Little or no Some Organizes Effectively
Format organization of organization of ideas to build organizes ideas
(Paragraphs, ideas to build ideas to build an argument to build a
Transitions an argument an argument logical,
coherent
argument
Language Use, Little or no use Some use of Appropriate use Effective and
Style & of elements of elements of of elements of creative use of
Conventions style style style elements of
(Sentence style to
structure, word Many errors in Contains Uses correct enhance
choice, grammar, grammar, frequent errors grammar, meaning
spelling, spelling, and in grammar, spelling, and
punctuation) punctuation, spelling, and punctuation Uses correct
makes reader’s punctuation with few errors grammar,
comprehension spelling,
punctuation
throughout with
very few errors
No Very little Sufﬁcient Distinctive
experimentation experimentation experimentation experimentation
Originality nor to enhance with language with language
(Expression of the enhancement concepts and usage to and usage to
theme in a of concepts enhance enhance
creative way Does not exhibit concepts concepts
No adherence creativity
to the theme Applies basic Applies higher
creative skills to order thinking
relay ideas and creative
skills to relay
complex ideas
25 | P a g e
References:
Kuratko, D. (2017). Entrepreneurship: Theory, Process, Practice 10th Edition. Melbourne, AU:
Cengage Learning
Hisrich, R., Peters, M., Shepherd, D. (2017). Entrepreneurship 10th Edition. New York, NY: Mc-Graw
Hill.
https://elimind-set.com/entrepreneurial-learning/what-is-mind-set/
https://www.hiscox.com/blog/10-important-personal-characteristics-entrepreneurs
https://www.forbes.com/sites/quora/2013/11/05/how-do-entrepreneurs-think/#2cd96d513905
https://askinglot.com/what-is-opportunity-seeking-and-initiative
https://www.yourarticlelibrary.com/business/identification-of-business-opportunity-idea-generation-and-opportunity/40732
https://www.raizcorp.com/developing-an-entrepreneurial-mind-set/
https://www.doersempire.com/the-dark-side-of-entrepreneurship/
26 | P a g e

Module 2 - Entrepreneurial Mindset

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Module 2 - Entrepreneurial Mindset

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Republic of the Philippines

PHILIPPINE STATE COLLEGE OF AERONAUTICS

➢ Develop and demonstrate the mind-set and behavior of an

TOPIC LEARNING OUTCOMES:

➢ Identify the different characteristics, mind-set, and behavior of an

TITLE PAGE TIME

The Dark Side of Entrepreneurship 19-21 30 mins.

What is an entrepreneurial mind-set?

An entrepreneurial mind-set can be developed and enhanced through entrepreneurial

What are successful entrepreneurship characteristics?

Entrepreneurs are goal-oriented

Entrepreneurs are all about setting goals

How to become goal-oriented:

• Create short and long term goals for

Entrepreneurs are committed to their business

Entrepreneurs are not

• Each time you run up

Entrepreneurs are hands-on

How to thrive on uncertainty: Manage

• When the unexpected happens, stop

• Think about how you can solve the

• Remember your goals. How can you

Entrepreneurs continuously look

Entrepreneurs view every event

Most entrepreneurs don’t ask

How to practice taking risks:

• When deciding whether or

Entrepreneurs are willing to listen and learn

How to listen and learn:

Entrepreneurs have great

• Ask open-ended questions.

• Continue the discussion based on their answers to you questions.

This is one trait that, due to

How to harness your

Passion may be the most

How to be passionate and

• Choose a product or service that you’re genuinely interested in.

7 themes of desirable and acquirable attitudes and behavior of an entrepreneur

Themes Attitude and behavior

▪ Determined and decisive, able to recommit/

▪ Self-starter; high standards but not

▪ Has intimate knowledge of customers’ needs

▪ Calculated risk taker

▪ Nonconventional, open-minded, lateral

▪ Goal-and-results oriented, high but realistic

▪ Commitment and Determination

Childhood Family Environment

In education, entrepreneurs experienced some disadvantage, with few having degrees in

Academic qualification is a barrier or facilitator in the way of entrepreneurship?

Entrepreneurial age is the age of the entrepreneur reflected in the experience.

Entrepreneurial experience is one of the best predictors of success.

Earlier starts in an entrepreneurial career seem to be better than later ones.

Between 30-50 years old

Experience in the following areas is particularly important: financing; product or service

Entrepreneurial experience becomes increasingly important as the complexity of the venture

Other motivating factors differ between male and female entrepreneurs.

Money is the second reason for men’s starting a venture.

• Entrepreneurs think by actions: The entrepreneurial minds set craves action,

• Entrepreneurs think in possibilities: Entrepreneurial thinking is not constrained

• Entrepreneurs can think in ambiguity: For the vast majority of people,

• Entrepreneurial thinking embraces risk: While many money makers

• Entrepreneurs think in patterns: Entrepreneurs are always looking for cause

• Entrepreneurs think of value-add: Rather than singularly employ a 'business-