It is important toresearch the entrepreneurial mindset in order to understand how entrepreneursthink and what drives them. As well asthe challenges entrepreneurs face and how they can overcome them.The entrepreneurialmindset has aspects of, targeting the best opportunities, employing adaptiveexecution, and exercising entrepreneurial leadership (McGrath,G, R, & MacMillan, C, I. 2000).1.
What is the entrepreneurial mindset A mindset refers to a setof assumptions, methods or notations held by one or more people or groups ofpeople which is so established that it creates a powerful incentive withinthese people to continue to adopt or accept prior behaviors, choices, or tools(Saunders, N, K M, Skinner. D, Dietz. G, & Gillespie. N, 2010).This phenomenon ofcognitive bias is also sometimes described as mental inertia, “groupthink”, or a “paradigm”, and it is often difficult tocounteract its effects upon analysis and decision-making processes (Saunders, N, K M, Skinner.
D, Dietz. G, & Gillespie. N, 2010). Entrepreneurs think differently, where most people see a problem they see an opportunity. Entrepreneurs are determined, driven and have the energy to see things through.
They believe that they are in control and that the success or failure of their venture depends entirely on themselves. Mitchell et al. define entrepreneurial cognition as the knowledge structures that people use to make assessments, judgements, or decisions involving opportunity evaluation, venture creation, and growth. Entrepreneurs use simplifying mental models to piece together previously unconnected information that helps them to identify and invent new products or services, and to assemble the necessary resources to start and grow businesses (Mitchell, J, R & Mitchell, K, R, & Randolph-Seng, B, 2014). The entrepreneurial mindset is a state of mind which alignsconduct towards entrepreneurial activities. Sometimes it is called entrepreneurial talent or mentality. Thismindset can be changed and modified over time through experience andapplication people can change and grow. They must have the drive to continue topush themselves through the tough times this is the signature of the growthmindset.
This allows people develop and flourish in difficult times in theirlives.Entrepreneurial mindset isabout having the right attitude. Such as the ability to work withoutsupervision, self-motivate, handle stress, be open-minded and flexible. As wellas opportunistic, vision, creativity, strong networking skills, passion, anddetermination.2. Types of entrepreneursThere are two types of entrepreneurs the opportunity-drivenentrepreneurs and the necessity-driven entrepreneurs.
Opportunity-driven entrepreneurs: Most entrepreneurs have a strongdesire to be independent. Some, from an early age, seek autonomy. For othersit’s because they find it unfulfilling to work on another person’s dreams andhelp them become rich.
Ultimately, they want to be their own bosses and jobsatisfaction, achievement, opportunity and money are often thought to beprimary motivations (Frederick,H., O’Connor, A., & Kuratko, D. F. 2016).Necessity-driven entrepreneurs: Their decision to start a business comesout of some kind of adversity such as their job being made redundant. Aroundthe world, economic dislocation push people to become entrepreneurs, those whohave no better choice for work than to become an entrepreneur. Sometimesentrepreneurs emerge from minority or marginal classes of society (Frederick, H.
, O’Connor,A., & Kuratko, D. F. 2016).Entrepreneurs come from avery wide demographic. Some start youngas children selling lemonade others are late starters in their 60’s also knownas ‘seniorpreneurs’ (Frederick, H., O’Connor,A., & Kuratko, D.
F. 2016).Social entrepreneurship has emerged over the past several decades as a way toidentify and bring about potentially transformative societal change. A hybridof government intervention and pure business entrepreneurship, social venturescan address problems that are too narrow in scope to spark legislative activismor to attract private capital (Martin L. R& Osberg R. S, 2015).BartWeetjens, who had kept rats as childhood pets, realized they could be put towork detecting land mines. The rodents are trainable and weigh so little thatthey wouldn’t detonate the mines.
His organization, APOPO, has since used ratsto help clear more than 8 million square meters of land of some 1,000unexploded bombs. The rats have also identified more than 7,000 tuberculosispatients, many of whom were initially deemed free of the illness by their localclinics. This enabled the replaceof a key high cost technology with a low cost one. As the greatest hurdle toclearing the land mines and diagnosing was the high cost of the technology (Martin L. R& Osberg R.
S, 2015).An example of an opportunity-driven entrepreneur is George Lucas. When the firstseries of Star Wars movies was released in the late 70’s and early 80’s, mostpeople saw only a pop culture phenomenon. The string of successful filmscreated a whole new market for science fiction and fantasy.But creator and filmmaker George Lucas saw so muchmore. To him, the first trilogy of films and the three additional movies thatfollowed became a powerful brand.
That brand became a spring board tolucrative licensing deals for everything from toys, to video games, tomemorabilia and live attractions.In 2012, Lucas sold Lucasfilm and the StarWars franchise that went with it to Disney for $4.05 billion.In the meantime, Lucas clearly hasn’t lost hisinterest in powerful and profitable brands.
He recently invested $10 million inthe successful Starbucks cafe chain (Hessinger., S., 2015).3. The dark side of entrepreneurship mindsetEntrepreneurs are trueopportunists, unfortunately there are some that are too opportunistic. Theywill try to sell a product that they don’t have or meet unrealistic targets anddeadlines. Entrepreneurs often growthe business to stiffly without a strategic plan of growth and as a result thebusiness can fail.
Even sound business ideasfail as a result of a flawed execution strategy. This often leaves theentrepreneur the seeming incompetent. Some continually fail in business despitethis keep trying out of the sheer determination to succeed. Others arecontroversial and dishonest who will stop at nothing to make a profit.
4.1 Entrepreneurial risk taking Entrepreneurs are inherentrisk takes they have been know to fund their ventures by mortgaging their homesor using their last dollar. They feel comfortable to leave well-paid securejobs to start their venture. They take social risks bysacrificing quality time with their loved ones. Which places strain or thebreakdown of marriages and relationships with family. Other risks are psychologicalrisks such as mental wellbeing and the stressfulness of running a business. Entrepreneurs also takecalculated risks by recognising the risks are unrealistic and do not outweighby the benefits. 4.
2 Entrepreneurial StressEntrepreneurs oftensuffer highly stressful lives and have to take up excessive amounts ofresponsibility. They have limited resources thus, they are unable to delegateleaving them spread too thin.Personality has a factorin stress some personality types handle stress better than others. The A typepersonality is one often attracted to the life of an entrepreneur. Their traitsare as follows:· Chronic and severe sense of time urgency.
· Constant involvement in multiple projects subjectto deadlines. · Workaholics and a tendency to take on excessiveresponsibility. Often combined with the feeling that “I am the only one capableof taking care of this matter”. · Explosiveness of speech such as ranting andswearing when upset. This often results inpoor health and stress related illnesses.4.3 Entrepreneurial EgoSome successfulentrepreneurs may over time develop an over inflated ego.
They are oftenoverbearing with the need for control. This can produce control freaks andmicromanagers. Some entrepreneurs have a distrust of other people and adifficulty in delegating. Entrepreneurs have astrong need for success and can look down of less successful people as inferioror lacking. In some cases, they areexcessively optimistic which results in a surreal view of the world withunrealistic expectations.4. The Importance of the Entrepreneurial Mindset The entrepreneurialmindset has become increasingly more important to enable the flexible to copewith the rapidly changing economy.
The business and the economic environmenthas developed into a chaotic, complex, and often an uncertain one.Greater success can be achievedwith the implemented of the entrepreneurial mindset in this complex environment.Thus, ensuring the agility, flexibility, creativity, interdependence, andinnovation required to achieve stronger results. There is a need for the visionof entrepreneurs and their enterprising units. Many CEOs have limitedentrepreneurial qualities and therefore struggle to perform the role of anentrepreneur. This behavioral deficiency can be called as entrepreneurialmind-set crisis in enterprises.
This is not limited to small and mediumenterprises but also includes large enterprises. The crisis is about,no-availability of a person designate to run the enterprises withentrepreneurial skills and abilities (Putta., S.
, S., 2014).Non-availability ofproper entrepreneurial mind-set person in the organization or enterprise eitherto replace the original entrepreneur or support the original entrepreneur iscalled as “entrepreneurial mind-set crisis in enterprise” (Putta., S.
, S.,2014). The existing owner-entrepreneur also needs to invest time and money tofind, develop and groom the upcoming successor to eliminate the crisis in thefuture (Putta., S., S., 2014).When it comes to preparing for the digital future, we need to lookbeyond technology.
There is a shift towards a more entrepreneurial mindset isnot just for new entrants into the workforce. Disruption will require workersat all levels and industries to adapt and evolve their skillsets (AGSM, 2017).5. Building an EntrepreneurialSociety Entrepreneurship can be away of life. Society must build an entrepreneurial mindset amongst its peopleby developing it at a very early age. There is a need for inculcation and acculturationprocess need to implemented thru various programs and activities. Entrepreneursare able to act as agents of change at every level of the society. This is an importantcontribution of entrepreneurial capital.
Entrepreneurshipeducation has generated considerable interest in recent decades, largelyattributable to the evidence of the positive impact of small and medium-sizedenterprises on economic growth, job creation, innovation and wealth generation.The relationship betweenthe impact of entrepreneurship education and teaching methods has not reallybeen understood, but there is general agreement that active methods such ascase studies, group discussions, business/computer game simulations, rolemodels, business plan development or guest speakers are likely to be moreappropriate for fostering entrepreneurial behaviour among students (Bennett,2006; Mwasalwiba, 2010), (Krueger., N., 2015).The idea that entrepreneurslearn from experiences has had the most influence on the content and pedagogyof entrepreneurial training and education (Cope and Watts, 2000; Fayolle,2013).
By allowing prospective entrepreneurs without experience to faceuncertainty and critical events, they not only learn from the event, butdevelop the ability to think, act, and learn as an entrepreneur (Cope andWatts, 2000; Pittaway and Thorpe, 2012), (Lindh., I, 2017). Figure 1. The components to and Dynamics of EntrepreneurialLearning Entrepreneurshipliterature suggests that the entrepreneurial mindset is comprised of alearner’s cognitive adaptability, such that the learner is dynamic, flexibleand self-regulating during cognition and uncertain tasks (Haynie et al., 2010).This is echoed in entrepreneurial education and training literature, whichsuggests that development of an entrepreneurial mindset relates to anindividual’s ability to recognize opportunities and threats, and react to themrapidly, even in uncertain situations (Ireland et al, 2003 ; McGrath , 2000). This dissertation suggests that critical eventrecognition—the cognitive process by which individuals conclude that they areconfronted with a critical learning point that demands a change in theirthoughts and actions (Lindh and Thorgren, 2015a)—is critical both for learningto occur in the entrepreneurial process, and to development of entrepreneurialmindsets (Lindh., I, 2017).
National culture plays alarge role in shaping the values, beliefs, and assumptions of people raised ina given culture.The results of this studyshow that culture may play an important part in the entrepreneurial success ofa county (Saunders, N, K M, Skinner. D, Dietz.
G, Gillespie. N, 2010).Adjustment theory (oradaptive behavior) proposes that specific forms of retail institutions emergein response to changing environmental circumstances (Lowry 1997). Blizzard(1976), as mentioned by Brown (1987; 1988), suggests that these circumstancesinclude economic, political, and legal systems; demographic conditions; socialstructure; value system; technology; and competition (Robinson., S., 2011).The entrepreneur mindsetis a vital source to spur the innovation and growth for the economy. This surgecomes from the creative people and creative products in which innovation is a byproduct.
Innovation adds value to every part of the value chain, by change old processesto find new sources of economic growth. With the entrepreneurmindset becoming the norm of society there is a possible increase in economicgrowth. The benefits could be ahigher output and higher income per capita. This would result from a higher participation rate of the populationactively taking up entrepreneur ventures.
Another benefit is the higherstandard of living, and full employment. 6. ConclusionThis has been a brief insightinto the entrepreneurs’ mind, how they think, their strengths and theirweaknesses.There are importantbeneficial aspects of the entrepreneur mindset that one can implement intotheir tool box of knowledge. By learning to see things from a differentperspective, and willing to try new things. One must be tolerant of the higherlevels of ambiguity in the business environment.
The dark side ofentrepreneurship needs to be avoided and to minimise the risks one is exposedas well as the stress of entrepreneurial life.By studying theentrepreneurial mindset, we can teach ourselves valuable skills that can beimplemented in the workplace and everyday life. Which can enrich our way oflife.