ENTREPRENEURIAL

MIND
GEL24

Prepared by:
Mark Anjo R. Del Rosario
College Instructor
 ENTREPRENEURSHIP

• Refers to the economic activity of a person

who starts, manages & assumes the risk of a
business enterprise.
 ENTREPRENEURSHIP

• is the person who undertakes entrepreneurial

activities. -identifies an economic need, considers
offering a business solution, proceeds to assemble
the resources required, & assumes the risk of
either succeeding or failing
 THE ENTREPRENEUR’S
TASK

1. products & services for customers &

producers;
2. employment;
3. taxes;
4. demand for suppliers’ products & services;
and
5. training facilities for future entrepreneurs.
 THE ENTREPRENEUR’S
TASK
In the attempt to make profits, the entrepreneur
performs the ff. specific functions:
1. To supply the necessary capital;
2. To organize production by buying &
combining inputs like materials & labor;
3. To decide on the rate of output, in the light of
his expectation about demand;
4. To bear the risk inherent to the venture
THE ENTREPRENEUR’S
TASK
 ENTREPRENEURSHIP AND
INNOVATION
Innovation – defined as the introduction of a new
method, procedure, custom, device, among
others.
 ENTREPRENEURSHIP AND
INNOVATION
Innovation – defined as the introduction of a new
method, procedure, custom, device, among
others.
 ENTREPRENEURSHIP AND
INNOVATION
New product;
New process of production;
Substitution of a cheaper material in an unaltered
product;
Reorganization of production, internal function, or
distribution arrangement leading to increased
efficiency, better support for a given product, or
lower cost; or
 Improvement in instruments or methods of doing
innovation.
 ENTREPRENEURSHIP AND
INNOVATION
 Invention – refers to the discovery or
devising of new products and processes;
 Development – refers to the process by
which the ideas and principles generated from
the stage of invention are embodied in
concrete products and techniques;
Innovation – refers to the actual introduction
of a new product or process.
 ENTREPRENEURSHIP AND
INNOVATION
Examples of successful innovations are:
• Cellular phone
• Laptop
• Projector
• Laser treatment
• AutoCAD
 NEW VENTURE AND LONG-
TERM ENTERPRISE
TRANSITION
from new venture to successful long-term
enterprise, stages:
1. prestart-up stage;
2. start-up stage;
3. early growth stage; and
4. late growth stage.
 NEW VENTURE AND LONG-
TERM ENTERPRISE
TRANSITION
1. Prestart-up stage – question of feasibility of idea.
Start-up stage – activities:
2. Formation of the business;
• Generation of necessary capital;
• Purchase of facilities and equipment;
• Constructing prototype products; and
• Testing the market.
3. Early growth stage – follows after establishing the feasibility.
4. Late growth stage – final stage before the new venture matures
into a stable enterprise. Skills of entrepreneurs is taken over by
the skilled manager
 REWARDS FOR SUCCESSFUL
ENTREPRENEURSHIP FACTORS FOR
PRODUCTION

– things required for making a commodity, - land, labor, capital,

and entrepreneur
 REWARDS FOR SUCCESSFUL
ENTREPRENEURSHIP FACTORS FOR
PRODUCTION

– things required for making a commodity, - land, labor, capital,

and entrepreneur
 ENTREPRENEURSHIP AND
BUSINESS IDEA

To compete effectively (innovations):

1. Offering business services during
Sundays and holidays;
2. Manufacture and sale of new products;
and
3. Selling on a deferred payment scheme.
 DISTINCT CHARACTERISTIC OF
ENTREPRENEURS
1. Have the competence to organize factors of production.
- Entrepreneurs have the skills to mix the right amount of land,
labor, & capital in establishing an enterprise.
2. Know how to make business decision.
- They can easily answer the three basic economic questions.
3. Risk takers
- They have the ability & courage to face uncertainties involved in
business activities. E.g. Fortuitous event
4. Innovators.
- they have the ability to introduce or improve a product that
already exists in the market &/or create new ways of organizing
business
 ENTREPRENEURIAL MINDSET

What is Mindset?
➢ It is the established set of attitudes
held by someone.
➢ a person's way of thinking and their
opinions (Cambridge Dictionary)
TWO TYPES
 Fixed Mindset
Growth Mindset
 ENTREPRENEURIAL MINDSET

1. Fixed Mindset
people perceive their talents and abilities as set traits.
They believe that brains and talent alone are enough for
success and go through life with the goal of looking smart
all the time.
 They take any constructive criticism of their capabilities
very personally, and tend to attribute others’ success to
luck or some sort of unfair advantage
People with a fixed mindset will tell themselves they are
no good at something to avoid challenge, failure or looking
dumb
 ENTREPRENEURIAL MINDSET

2. Growth Mindset
People believe that their abilities can be developed
through dedication, effort and hard work.
They think brains and talent are not the key to
lifelong success, but merely the starting point.
People with growth mindset are eager to enhance
their qualities through lifelong learning, training and
practice.
They see failure as an opportunity to improve their
performance, and to learn from their mistakes
GROWTH MINSET & FIXED
MINDSET
 WHAT IS ENTREPRENEURIAL
MINDSET?
is a state of mind interested in the pursuit of
opportunity with scarce, uncontrolled resources.
The goal is to create user defined value at various
multiples of the existing competitive offering
through the deployment of innovation.
is the ability to quickly sense, take action, and get
organized under certain conditions. This also
includes the ability to persevere, accept and learn
from failure, and get comfortable with a certain
level of discomfort.
 ENTREPRENEURIAL MINDSET

1. Passion
It is the key source of energy, motivation and hard
work.
It is the driving force for every entrepreneur .
2. Perception
 is the organization, identification, and
interpretation of sensory information in order to
represent and understand the presented information
or environment.
 ENTREPRENEURIAL MINDSET

3. Potential
generally refers to a currently unrealized
ability.
 having or showing the capacity to become
or develop into something in the future.
latent qualities or abilities that may be
developed and lead to future success or
usefulness
 ENTREPRENEURIAL MINDSET

4. People
Every entrepreneur, leader or manager with a vision needs a
team that supports its vision to make it a reality. It is up to
the ability of entrepreneurs to find the right people, to
communicate the vision, to attract talent, to invest in building
and sustaining their skills set, their energy, attitude and
positivity.
5. Persistent Learning
It means learning anytime, anywhere from everyone.
Outstanding entrepreneurs are able to absorb valuable
information and knowledge for everyone.
 ENTREPRENEURIAL MINDSET

6. Permanent Change
means a change for an indefinite period of
time with an intent to relinquish the
original point of diversion, place of use, or
purpose of use.
Successful entrepreneurs are flexible, they
can adapt and change quickly. The ability
to perceive change as a positive thing, to
react and adapt to it is one of the most
powerful skills.
 ENTREPRENEURIAL MINDSET

7. Perseverance
continued effort to do or achieve something despite
difficulties, failure, or opposition.
 persistence in doing something despite difficulty or delay in
achieving success.
8. Proactiveness
tending to initiate change rather than reacting to events.
Successful entrepreneurs initiate - they see the bigger picture
and foresee the circumstances. They are proactive instead of
reactive, they play offense, instead of defense.
 CRITICAL THINKING SKILLS

is the ability to apply reasoning and logic to new or

unfamiliar ideas, opinions, and situations.
 the objective analysis and evaluation of an issue in
order to form a judgment.
 SKILLS INVOLVED ARE;

1. Open-minded Approach
Being “open-minded” is a large part of critical
thinking, allowing a person to not only seek out all
possible answers to a problem, but to also accept an
answer that is different from what was originally
expected
2. Rational Consideration
Rationality requires analyzing all known information,
and making judgments or analyses based on fact or
evidence, rather than opinion or emotion
 SKILLS INVOLVED ARE;

3. Empathy
Empathizing with a person usually involves a
thinker trying to put himself or herself in the place
of someone else.
 ANCILLARY SKILLS

1. Observation
2. Analysis
3. Reasoning
4. Judgement
5. Decision Making
6. Persuasion
 LEVEL OF CRITICAL THINKING
( HIGHER)

1. At the level of practical decision

making
2. At the level of meaningfulness
3. At the level of concept
 PRACTICAL DECISION MAKING

Critical thinking helps when

we are simply trying to deal
with ordinary tasks such as
how to study efficiently, decide
on what kind of clothes to buy.
 It is problem solving of the
most authentic kind.
 MEANINGFULNESS

Learning to think critically also helps people

deal with the much larger issues of living
their life. Examples: finding a life partner
or a new occupation, developing
reasonable attitudes towards self, towards
others, towards your values, etc.
 CONCEPT

We think in terms of concepts, and these

inevitably shape our life to a
considerable degree. Reaching a deep
level of critical thinking by examining
our concepts critically, becoming more
aware of the way individual concepts
help us or hurt us, limit us or free us.
are defined as abstract ideas or general
notions that occur in the mind, in
speech, or in thought.
 They are understood to be the
fundamental building blocks of thoughts
and beliefs.
Cognitive Strategies
are the ways in which people
solve problems such as
reasoning, analyzing,
experimenting and so forth.
Metacognition
is the way in which we
understand our own
performance or the process of
“thinking about thinking”.
WHAT IS PASSION?

• In the context of
entrepreneurship, passion can be
defined as an intense positive
emotion, which is usually related
to entrepreneurs who are
engaged in meaningful ventures
or tasks and activities, and which
has the effect of motivating and
stimulating entrepreneurs to
overcome obstacles and remain
focused on their goal.
 NEGATIVE PASSION

It is possible to become

blinded by passion and so
obsessed by an idea or new
venture that we fail to heed the
warning signs or refuse to
listen to negative information
or feedback. This type of
negative passion can actually
curb business growth and limit
the ability to creatively solve
problems.
NEGATIVE IMPACTS

1. Founder Misalignment
2. Missing the Market
3. Rose-colored Planning
(or none at all)
4. Unforgiving Strategies
5. Reality Distortion
6. Evaporating Runway
 1. FOUNDER MISALIGNMENT

This is a poor fit between the founder’s

skills and what the new venture requires.
More often than not, start-up founders fail
to honestly assess how well their capabilities
and motivations match up with what it will
take to successfully launch their idea
 They end up floundering in an ill-suited
role, and the idea doesn’t get the right mix of
talent around it to drive success.
 II. MISSING THE MARKET

Somewhere out there in the cosmos is a

massive graveyard of “great” business ideas.
One of the most common byproducts of
entrepreneurial passion is the founder’s
assumption – even certainty – that customer
demand is high when, in fact, little or none
exists. An idea isn’t great until the market
says it is
 III. ROSE COLORED PLANNING

• More often than not, strong belief in an idea

leads to overly rosy projections on the part of
the founding team. It’s very typical – even on
the part of seasoned entrepreneurs – to over-
estimate early sales and underestimate costs
and timelines. This leads to cash crises that
consume and distract founders at the worst
possible moment.
 IV. UNFORGIVING STRATEGIES

Over-confident founders sometimes put the

bulk of their resources into a single business
strategy, essentially putting all of their eggs in
one basket, rather than preserving flexibility
to experiment and iterating their way to
profitability
 V. REALITY DISTORTION

➢ Bad news is avoided or glossed over, and tough issues are

rarely tackled.
➢ We constantly interpret what goes on around us — what others do
or say, events we observe, and things we read in the newspaper or
see on TV.
➢ We also interpret things that have happened in the past, or which
may happen in the future
➢ In addition, we interpret our own actions, and even the physical
sensations and emotional changes happening inside us.
➢ By interpreting, we draw conclusions about what we think is
happening. Sometimes our interpretations are correct, but often they
are wrong