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Module 2. The Entrepreneurial Mind

Topic No. Topic Time/Duration

1 The Psychological theories of entrepreneurship 1.5 hrs.
2 How Entrepreneurs Think? 1.5 hrs.
3 Leadership and Management Skills - A Comparison 1.5 hrs.
4 Competencies, Themes of Desirable and Acquirable Attitudes and 1.5 hrs.
Behaviors

Learning Objectives

1. Recognizes the theory of entrepreneurial mind.

2. Discuss the way an entrepreneurs think and how it is essential in business.

3. Differentiate leadership and management skills.

4. Appreciate the competencies and attitudes of an entrepreneurs.

Introduction

Some people say that there is a specific psychological or motivational theory in entrepreneurship, but that is not true. However, some
entrepreneurs have different opinions in achieving a success in new ventures or enterprises such as talent and skills. There are several
issues about in the world of entrepreneurship. There are several myths about it, some of them will be tackled in this module.

Topic 1: The Psychological theories of entrepreneurship

Psychological theories of entrepreneurship put emphasis on the emotional and mental aspects of the individuals that drive their
entrepreneurial activities (Baum, Frese, & Baron, 2014). Three of the most popular psychological theories of entrepreneurship today
include:

• McCelland’s theory - explains the needs for achievement that often regulate the actions of an entrepreneur.

• Rotter’s locus of control theory - puts light on the locus of control whether internal or external that influence entrepreneurial
actions.

• Action regulation theory - the action regulation theory elucidates that the performance of entrepreneurs depends on their
actions.

David McClelland’s theory

David McClelland, a Harvard psychologist formulated the Theory of Achievement Motivation in 1967. McClelland through his theory
had tried to outline why few communities are more economically booming as compared to others. Furthermore, according to him,
entrepreneurs are classified on the basis of their need for achievement which is the driving factor for their economic growth (Miner,
Organizational behaviors 1: Essential theories of motivation and leadership, 2015).

This theory is accepted on entrepreneurial behavior. The theory states that people are motivated by three principal needs:

1. Need for Power - is an urge to control others: to be able to influence them and make them do things which perhaps they would
not have done if left to themselves.

McClelland identified four stages within the power orientation:

1. Drawing inner strength from others - being a loyal follower and serving the power of other people.

2. Strengthening oneself - trying to dominate situations.

3. Self-assertiveness - trying to manipulate situations so as to use other people to achieve one‘s own target.

4. Acting as an instrument of higher authority - identifying with some organizations and employing the methods learnt
in stages 2 and 3 but now being able to claim formal legitimacy.

2. Need for Affiliation - concerns the desire to be associated with specific people and groups, to have a greater sense of belonging
and place. It can play a role in variety of human interactions and in the formation of bonds and friendships. A low need of affiliation
can be part of a more independent personality. People who do not feel a strong desire to affiliate with others may have difficulty finding
support.

3. Need for Achievement - is the urge to excel, to accomplish in relation to a set of standards, to struggle to achieve success. The
individuals with high achievement needs are highly motivated by competing and challenging work. They look for promotional
opportunities in job. They have a strong urge for feedback on their achievement.

Furthermore, individuals possess these three dominant motivators irrespective of their age, gender, or culture. These three motivators
are directly proportional to life experiences and culture experienced by individuals (Khurana and Joshi, 2017). Entrepreneurs use these
motivators to influence the performance of employees by setting goals for them, offering motivation and rewards.
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Finally, McClelland concluded that individuals with a need to succeed are more likely to become entrepreneurs as they are not motivated
by money or other benefits and profits are just other sources to highlight their success.

Rotter’s locus of control theory

Rotter’s locus of control has garnered prominent attention amongst

personality theories of entrepreneurship (Lefcourt, 2014). This
theory was formulated in 1954 by Julian Rotter. Furthermore, locus
of Control offers people the belief that control resides within them
i.e., internally or can be created externally.

High internal locus of control: In this case, people believe that they
are in charge of their actions and fortune. Events would be
determined on the basis of their qualities and conduct.

High external locus of control: In this scenario, individuals believe

that outcomes are out of their control, and it completely depends on
external factors such as fate, change etc.

Individuals who have a high tendency towards risks are more likely
to become an entrepreneur (Bodill and Roberts, 2013). Furthermore,
risk-taking is the most elementary action that entrepreneurs do to
achieve high-level performance and success. Therefore, this theory
manages to explain that entrepreneurs with internals locus believe
that emergence of success is due to their capabilities and actions.
While entrepreneurs with external locus assume chances of success
or survival are driven by institutional and external forces.

Action regulation theory

Michael Frese outlines the application of Action theory with relation to entrepreneurship. It is elaborated as the meta-theory which
regulates the goal-directed behavior (Baum, Frese, & Baron, 2014). This theory explains how individuals control their cognitive behavior
with the help of cognitive processes which consist of selection and development, orientation, monitoring and planning and processing
feedbacks.

In order to examine human action according to this theory there are three dimensions:

• sequence highlights the path taken from goals to feedback.

• focus extends from activities to self and,
• structure outlines the level of actions which are often regulated.

The basic application of this theory to entrepreneurship is seen in terms of planning. In order to describe entrepreneurial planning
behavior, four action processes have been suggested; opportunistic, complete planning and review (Baum, Frese, & Baron, 2014). Based
on Frese’s theory, early-stage entrepreneurs are likely to observe a new task. Also, this occurs repeatedly, and this occurrence of the
action is likely to feature in the coming few years. Furthermore, it highlights the fact cognitive ability is much more crucial to
entrepreneurs. Compared to the other two theories, this theory is significantly less criticized.

Entrepreneurs base their self-determination not only on their values but also on natural inclinations, interests, and curiosities.
Entrepreneurs are thus said to be intrinsically motivated, that is, they behave as they do because the individual finds these behaviors
inherently interesting, enjoyable, or satisfying. Intrinsic motivation is the key ingredient for self-determined behavior.

II. How Entrepreneurs Think?

What is entrepreneurial thinking?

A “mindset” refers to the specific behaviors, attitudes, and thought

processes that prompt our decisions. It encompasses how we view
situations, obstacles, and our mental faculties.

Our thought processes can be positive, negative, or anywhere in

between. A negative mindset can blind you, clouding your judgment
with doubt and uncertainty, while a positive mindset opens your
mind to the possibilities of a situation. This gives you a more well-
rounded view of a situation, helping you adapt and approach things
creatively.

Entrepreneurial thinking is very much a positive and resilient mindset.

People with this mind frame see new opportunities where others only view risk.
They’re constantly generating ideas to solve everyday problems and are
unafraid of advocating for their views or pursuing their ideas on their own.
Though you may believe that this mode of critical thinking is exclusive to
business professionals, anyone can benefit from adopting such a perspective.

5 characteristics of an entrepreneurial mindset

Many qualities define the mindset of an entrepreneur. Here are some of the
most prominent ones:

1. Independence

Self-directed learning is necessary to achieve any goal, whether private or

professional. You’re your best cheerleader and your best asset when the time
comes to act.
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It’s wise to partner with others and get support from those who can provide it. But a certain level of independence and faith in your own
abilities is necessary to keep moving forward.

2. Accountability

Taking ownership of your triumphs and errors is a trait of any good entrepreneur. This empowers you and allows you to reflect on how
your actions impact yourself and others, what you’ve learned from your mistakes, and everything you’ve accomplished.

3. Goal-oriented

The best entrepreneurs are focused individuals who prioritize their goals and follow an action-oriented trajectory to achieve them.
Knowing what you want to do is the first step to achieving success.

4. Resilience

Mistakes and failures come with the territory of taking risks and having an entrepreneurial spirit. Bouncing back and moving forward
despite challenges and adversity will help you grow, learn, and build your problem-solving skill set.

5. Willingness to experiment

Playing it safe, though a solid option, only takes you so far. People with an entrepreneurial mindset don’t shy away from failure.

Even when experiments don’t have ideal outcomes, it’s still meaningful. Testing out different business plans or management methods,
gathering feedback, and making tough decisions are all a part of this process. Sometimes you need to know when to shift your focus to
another project or angle you hadn’t considered before.

How to develop an entrepreneurial mindset

Anyone can cultivate the right mindset. Seeking out like-minded individuals, new ventures, and experiences and continuing to grow
your knowledge of this particular realm is a great place to begin.

Here is a list of tips to help you develop an entrepreneurial mindset:

1. Set clear goals

Manifesting your dreams on paper or out loud can be the spark you need to start. Outlining where you plan to go can act as a visual
reminder of your goals. It can also encourage you to reflect on your accomplishments and direction.

These goals could apply to your business, career, or personal life. Entrepreneurial success usually applies to business owners, but your
entrepreneurial skills will help any of your ambitions.

2. Practice being decisive

Entrepreneurs, students, parents, and everyone in-between must make decisions daily. It's an all but mandatory life skill. If you can’t
make up your mind, you won’t make progress.

Fortunately, it's an easy task to practice — you can start small, like ordering at a restaurant, and then work your way up to significant
moments.

3. Redefine failure

You can’t avoid failure, and life is full of them. All you can do is face challenges head-on and turn them into learning experiences.

While it does take time, exhibiting a conscious effort to alter your mindset will dramatically benefit you in the long run. Mental wellness
will improve your performance and lead to self-love, and you’ll forget what failure ever meant.

4. Face your fears

Fear is inevitable in your professional and personal life. Engaging with situations outside of your comfort zone helps you grow.
Addressing and analyzing what worries you will get you one step closer to achieving your goals. Remember: vulnerability is healthy.

5. Remain curious

Let your inner child run free and wonderous. Always be curious about your competition, current trends and events, new technologies,
new people, and new business ideas. Sign up for webinars and listen to podcasts about your industry. Before you know it, you’ll be
among the successful businesses you’ve heard about.

The benefits of an entrepreneurial mindset in the workplace

Encouraging an entrepreneurial mindset can do wonders to your workplace. A work culture based on entrepreneurism is:

• More resilient. Everyone is willing to try new things and learn from their mistakes. This means your team is ready to adapt to
rapidly changing work environments.

• Collaborative. Entrepreneurial people are curious, ask a lot of questions, and know how to ask things of others. Stack your team
with people like this, and they’ll work together like a fine-tuned machine.

• Solutions-oriented. No problem is insurmountable. An entrepreneurial work culture thrives on a good challenge.

• High performing. These people are on the cutting edge. With an entrepreneurial mindset, your team will constantly expand
their skills so they can rise to new heights.
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Examples of entrepreneurial behavior in the real world

What does entrepreneurship look like in the real world? Here are some examples to inspire you.

1. Thomas Edison

A historical example of entrepreneurial behavior is Thomas Edison. He modeled creativity and adaptability when he invented the
lightbulb. He saw a need for a small enough lighting solution for the home that used very little electricity. This product didn’t exist yet
— so he made it happen. It took him over a year to make his product work, despite his plan to have it done in three to four months.

A lot of people would give up after month six. But, to quote the man himself, “I have not failed. I’ve just found 10,000 ways that won’t
work.” Talk about positivity.

2. Steve Jobs

Another example of the entrepreneur mindset in action is Steve Jobs.

After being fired from Apple — the company he started — he could have given up. But he instead became the co-founder of Pixar
Animation Studios, changing the face of animated filmmaking.

Then, upon his return to Apple, he spearheaded the creation of the iPod and the iPhone — products that brought the company back from
the brink and made it the juggernaut we know today.

Jobs’ story adds weight to one of his favorite quotes of his: “It’s impossible to fail if you learn from your mistakes. Don’t give up.”

3. Nelson Mandela

It takes an entrepreneurial spirit to enter politics — even more so if it means opposing a system bent on curtailing human rights.

Such was the case for Nelson Mandela. Early in his adult life, he became a leader of a youth equal rights group, opposing the Apartheid
policies of the South African government. He would go on to become President of South Africa, where he implemented policies that
would help heal and unity his country.

This is entrepreneurship in a different sense. Mandela saw the potential for a better future and set about building it — something we can
all do in our everyday lives.

As Mandela put it, “One of the most difficult things to do is not to change the society but to change yourself.”

4. J. K. Rowling

If entrepreneurship requires creativity, creative fiction is very much an entrepreneurial endeavor. J.K. Rowling embodied this sentiment
when she created the popular Harry Potter book series, inspiring a generation of kids with her writing.

But sometimes a good idea isn’t good enough. Her first book in the series was rejected by 12 different publishing houses before someone
accepted it. Had she given up after the first letter, the world would have never experienced the magic of Hogwarts.

Speaking vicariously through Ginny, a character in her book, Rowling reminds us, “Anything's possible if you've got enough nerve."

5. William Henry “Bill” Gates III

Born on October 28th, 1955, William Henry “Bill” Gates III is an American business magnate, investor, philanthropist, and author. In
1975, Gates with Paul Allen co-founded Microsoft with a vision to be a successful and famous Entrepreneur of all time. They never
knew their fortune and their hard work would enlist them in the world’s largest Personal Computer software company. In recent years
Bill Gates has devoted more time to philanthropic activities.

Bill Gates has been always ranked in the Forbes list of the world’s wealthiest people since 1987, and he was the wealthiest entrepreneur
from 1995 to 2007, then again in 2009, and then from 2014 to 2017. Bill Gates is the most famous entrepreneur and holds the Guinness
World record for inventing "World's First Microcomputer" in 1980.

III. Leadership and Management Skills - A Comparison

Leaders have been characterized as inspiring or charismatic, but one rarely hears of inspiring or charismatic managers. In the minds of
many, management is associated with words such as efficiency, planning, procedures, control, and consistency. Leadership is associated
with words such as vision, creativity, dynamism, change, and risk-taking. But are there real differences between managers and leaders?
Between leadership and management?

According to A. D‘Souza, here are some distinctions:

1. Managers are concerned with the present. Leaders look to the future.
2. Managers make sure details are taken care of. Leaders set broad purposes and directions.
3. Managers exercise control to make sure that things work well. Leaders create commitment that things may work better.
4. Managers solve today‘s problems by addressing difficulties caused by changing events. Leaders create a better future by seizing
opportunities stimulated by changing events.
5. Managers focus on the process. Leaders focus on the product.
6. Managers focus on problem behavior and try to improve it through counseling, coaching, nurturing. Leaders focus on what is
right and praise it.
7. Managers make sure people put in an honest day‘s work for their pay. Leaders inspire people to do their best.
8. Managers organize and plan to meet this year‘s objective. Leaders create a vision of the years down the road.
9. Managers create efficient policies and standard operating procedures. Leaders go beyond the need for standard procedures and
create a more efficient system.
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10. Managers focus on efficiency. Leaders focus on effectiveness.

In his Seven Habits of Highly Effective People, Stephen Covey stated:

“Management is bottom-line focus: How can I best accomplish certain things? Leadership deals with the top line: what are the
things I want to accomplish? Management is efficiency in climbing the ladder of success; Leadership determines whether the
ladder is leaning against the right wall.“

Most current thinking seems to suggest that all managers should become more leadership oriented. Managers should not be
required to become more like leaders, nor leaders should come to value and emphasize the unique strengths of each other in order to tap
the natural tension between them to produce a “one plus one equals three“ outcome. This requires blending strong management and
strong leadership into one integrated whole where the strengths of leaders combine with, rather than clash with, the strengths of
managers, thereby minimizing the weaknesses of both.

Leadership and Management Skills – When compare

Both leadership and management skills are needed to build a successful

organization. It is also important to realize that the way situations are viewed
depends on whether it‘s from the leadership or the management perspective. The
best advice is to look at situations from both perspectives so that all aspects are
understood.

The comparison that follows is presented by Anthony D‘ Souza, to assist

with the understanding of these two separate functions. In this way the best
possible attributes from both perspectives can be used, and a multiple viewpoint
will become the rule rather than the exception:

1. Leaders gain power through their actions and personal relations. Managers have positional power on which to rely.
2. Leaders are found throughout an organization. Managers are found in the organization‘s higher echelons.
3. Leaders have followers who desire to be on the team. Managers have subordinates who have been assigned to them
4. Leaders depend on people for success. Managers depend on the system for success.
5. Leaders provide vision in terms of “the real benefit to you“. Managers use the “this is your job.“ approach.
6. Leaders have self-conceived goals to better the organization. Managers attempt to meet tbe goals provided by the organization.
7. Leaders strive to change the organization to best meet needs as they perceive them. Managers work to maintain the organization‘s
status quo.
8. Leaders often view rules and procedures as bureaucratic red tape. Managers view rules and procedures as necessary controls to
provide order.
9. Leaders work for results. Managers follow directives.
10. Leaders work through their people. Managers work with charts and on the computer print-out

Effective leaders build a climate of trust where people can freely express their ideas and concerns. Such an atmosphere requires
sensitive leaders who are secure in their own knowledge, skills, and relationships rather than feel threatened by differences or resistance.
If used creatively without resentment or suppression, resistance and differences of viewpoint can become a source of new ideas by
forcing re-examination of objectives, plans, and implementation.

Effective leaders are not only skilled in the dynamics of planned change and goal-achievement; they also empower others. Without
shared vision there would be no common direction. Without empowerment of others, there would be no excellence in performance.
Leadership is the simultaneous provision of direction and empowerment.

IV. Competencies, Themes of Desirable and Acquirable Attitudes and Behaviors

Commitment and Determination

Entrepreneurial behavior is primarily self-determined behavior, that

is, individuals decide for themselves what courses of action they will
follow. Self-determination of its own accord is insufficient to support a
claim that an individual is behaving entrepreneurial. An individual could
act in a self-determined way for any number of behavioral roles and reasons
which can be easily identified through the individual‘s dedication to ask
and conviction to principle.

Determination identified by four essential qualities:

1. The individual acts autonomously - central to the construct of self-

determination is the notion of autonomy which is defined by
Stainton as; ‘the capacity to formulate and pursue plans and purposes which are self-determined.‘ Thus, the person‘s recognized
position or status within any given context or role determines whether they are able to decide unilaterally on a course of action.

2. Their behavior - the individual needs the requisite knowledge, skills, and experiences to implement their decision.
Entrepreneurial behavior relies quite heavily on the individual‘s perception of themselves as being autonomous as well as having
the confidence and competence to behave entrepreneurially.

3. Self-regulated - is include self-management strategies, goal setting and attainment behaviors, problem-solving behaviors, and
observational learning strategies, all of which the individual needs to be entrepreneurial. Self-regulation furthermore enables the
protection of the entrepreneurial opportunity by controlling the flow of confidential information to others and timing opportunity
exploitation for maximum affect.

4. The individual acts in a self-realizing manner - they use a comprehensive and reasonably accurate, knowledge of themselves and
their strengths and limitations to act in such manner as to capitalize on their liabilities. It is also influenced by evaluations from
significant others, reinforcement, and their beliefs in themselves regarding their own behavior.
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Entrepreneurs base their self-determination not only on their values but also on natural inclinations, interests, and curiosities.
Entrepreneurs are thus said to be intrinsically motivated, that is, they behave as they do because the individual finds these behaviors
inherently interesting, enjoyable, or satisfying. Intrinsic motivation is the key ingredient for self-determined behavior.

Leadership

Leadership and communication are constantly growing together, being

intertwined into one another to help develop an organization. To be an
effective leader, communication has to be defined in the organization for it to
be successful.

Leadership in Entrepreneurship can be defined as “process of social

influence in which one person can enlist the aid and support of others in the
accomplishment of a common task.“ in “one who undertakes innovations,
finance and business acumen in an effort to transform innovations into
economic goods.“ This refers to not only the act of entrepreneurship as
managing or starting a business but how one manages to do so by these social
processes, or leadership skills.

Entrepreneurship, in itself, can be defined as “the process by which individuals, teams, or

organizations identify and pursue entrepreneurial opportunities without being immediately
constrained by the resources they currently control“. This leads us to see that an
entrepreneur must have leadership skills or qualities in order to see potential opportunities
and act upon them. An entrepreneur, at the core, is a decision maker. Such decisions often
have an impact on an organization as a whole, which is representative of their leadership
amongst the organization.

According to Fisher, there are four phases of decision making:

1. Orientation Stage - is where the members involved are becoming aquatinted both with themselves as well as the problem at
hand.
2. Conflict Stage - is where the problem is analyzed with several possibilities presented to resolve problem.
3. Emergence Stage - decision is made about which solution is to be used.
4. Reinforcement Stage - is the supportive of the decision.

With the growing global market and increasing technologies throughout all industries, the core of entrepreneurship, the decision
making, has become an ongoing process rather than isolated incidents. This becomes knowledge management which is “identifying and
harnessing intellectual assets“ for organizations to “build on past experiences and create new mechanisms for exchanging and creating
knowledge“. This belief draws upon a leader past experiences that may prove useful. It is a common mantra for one to learn from their
mistakes, so leaders should take advantage of their benefit.

In cultural differences, the success and failures of entrepreneurs can be traced to how leaders adapt to local conditions. With the
increasingly global environment, a successful leader must be able to make these adaptations and have insight into other cultures.
Corporate visions, in response to the environment are becoming transnational in nature due to the changes an organization must make
in order to operate or provide services or goods for other cultures.

Opportunity Obsession

One interpretation of entrepreneurial behavior suggests that is characterized

by a ‘proactive search for opportunities within a market and the propensity to take
risks in order to achieve a certain goal‘. One of a goal of entrepreneurial behavior
is the recognition of an opportunity, then there is a need for a closer examination
of what constitutes opportunity identification. In order for there to be
entrepreneurship there needs to be an opportunity which is either discovered or
created.

Entrepreneurial opportunities are therefore perceived to be discovered,

created or both. It is what motivates the individual to actively seek out
opportunities or to create them that is under investigation. Entrepreneurial
opportunity recognition by one individual differs from opportunity recognition
through collaboration with others for two reasons. First, some individuals have
better access to information about the possibilities of an entrepreneurial
opportunity. Access to key information comes about as a result of a number of
factors such as job, experience, searching capability, social networks and the
individual‘s absorptive capacity. Second, some individuals are simply better than
others at processing the same information because they have a better equipped
cognitive capability. The ability to process and categorize that information
efficiently and effectively relies primarily on an individual‘s capacity and
motivation to think entrepreneurially as well as their self-efficacy.

Entrepreneurs are obsessed with opportunity. Having an entrepreneurial

mindset would help established businesses to successfully identify and exploit
opportunities. Entrepreneurs look for changes in the political, economic, social,
and technological environment that disrupt the equilibrium in the marketplace and
consequently create new business opportunities. Similarly, customers‘
dissatisfaction with the ability of existing products and services to meet their
needs indicates an opportunity that begs for exploitation.
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A company should look for an opportunity that meshes well with its core competency. For an entrepreneur, personal expertise is an
excellent source for a new opportunity. While an entrepreneur may have no shortage of “ideas“ and may think passionately about those
ideas, it pays to assess an opportunity before spending the time and effort to start a business only to see the idea fall flat with target
customers.

Tolerance of risk, Ambiguity, and Uncertainty

Entrepreneurship means risk. The risk of walking away from

security and career path to create something new. The risk of taking
yourself and your family into an unfamiliar storm of stress and
uncertainty. The risk that you‘ve miscalculated an opportunity, or your
own internal resources as you plunge into a new venture.

To seriously consider taking the entrepreneurial leap already sets a

person apart from the vast majority of men and women, who will never
come close to actually leaving the world of wages. But even for the brave-
of-heart, the reality of risk that comes with that leap when the last
paycheck is left behind and life is reduced to a single do-or-die mission.
It is the most naked moment in a working life. It can be a powerful
energizer. It can also be overwhelming if you are not, at some level,
prepared.

Here‘s the tips for facing the storm of risk that accompanies launching a new venture:

1. Assess your tolerance for risk before you dive in - serious entrepreneurship is not blind adventuring. But even when you‘ve done
everything you can to minimize risk, it will still show up, alarmingly, at some point in your effort. Imagine how you are likely
to respond. You may misjudge, but a tough exercise in self-awareness is good preparation.

2. Brace your home life - the pressures of a new venture are nearly impossible to compartmentalize. Despite your best efforts, they
are almost certain to roll into your home, your family, your love life. Loved ones deserve a big heads-up, and your
acknowledgement that to no small degree they are being drafted into your dream. Their support will be critical. Their alienation
could cost you more than a new business.

3. Don’t take the entrepreneurial leap simply for money - entrepreneurs want to be successful but follow a real passion in your
venture, whatever it may be. That passion will carry you through the days when risks and obstacles seem insurmountable.

One important aspect of entrepreneurial behavior is the willingness to

take risks. Many theoretical models have therefore assumed that
entrepreneurs are less risk averse than non-entrepreneurs. However,
empirical evidence regarding risk propensity has produced inconclusive
results. One reason for these different results might be that most studies
consider risk propensity as an individual trait that should be stable over time.

How about ambiguity and uncertainty? Entrepreneurs need vision. If

you want to become a successful entrepreneur, you need to be able to say:
“See that hill? That‘s an important hill. We need to take that hill!“ And you
need to say it with enough conviction that people will join with you. But if
you have the instincts of an entrepreneur, what you‘ll do next is surprising.
As soon as your merry band sets off toward the hill, you‘ll say to yourself:
“That‘s probably not the right hill. I bet I‘m wrong. I need to be looking for
clues that we need to change course.“

The ability to hold this illustration, to commit to charging ahead while looking for evidence to prove you are wrong, shows a high
“tolerance for ambiguity.“ It‘s an entrepreneur‘s willingness to paint a compelling vision and charge ahead that creates order out chaos
one step at a time. It‘s a willingness to be open to new information and make mid-course corrections that mitigates risk. The ability to
do both of these at once, in the face of great uncertainty, is a tolerance for ambiguity that sets an entrepreneur apart from the rest of the
world.

The best way to develop a tolerance for ambiguity is to make mistakes early, cheaply, and often. To learn that failure is a blessing
if it helps you grow. To learn that failure in pursuit of a worthy goal is noble and that questions are more important than answers.

In essence, learning to know is important but only if it helps you learn to do and learn to be. Life is a matter of becoming who you
were meant to be by using your gifts to do something that matters to you and others. That‘s the real hero‘s journey of a principled
entrepreneur.

Resolve now to seek out small challenges towards a greater vision and to steel yourself to welcome the small failures that make
you stronger. Begin to increase your personal tolerance for ambiguity, and you‘ll be well on your way to strengthening that rarest of all
entrepreneurial traits.

Creativity, Self-reliance, and Ability to Adapt

The seed of entrepreneurship is the ability to see things differently.

Whether it‘s with new products or new processes, entrepreneurs are driven
by the uncanny knack to see holes in the marketplace and devise
innovations to fill them. Though it‘s not the only essential quality to
success, creativity may be the foundational mental skill. Entrepreneurs ask
the “what ifs“ that drive inquisitiveness, and they‘re able to let go of what
they already know to source fresh information and new ways of thinking
about a problem.
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Some business owners however have a hard time adjusting to

change and are reluctant to adapting to new technology or even new
internal changes needed for increased sales and growth. The world of
business is full of surprises and unforeseen events. Using the habit of
adaptability allows business owners to respond to circumstances with the
ability to change course and act without complete information.

Motivation to Excel

What is your motivation? Regain your motivation by understanding

the big “why“ behind what you do. To be fully engaged in your life, you
must have bigger and bolder goals. Why do you do what you do? Do you
really know? Do the people around you know?

Comparison between individuals whose motivation is authentically

self-generated and those who are externally motivated typically reveal that
the former, relative, to the latter, have more interest, excitement, and
confidence. Intrinsic motivation flourishes when circumstances permit.
Thus, an individual who identifies an entrepreneurial opportunity will act
on it when they perceive conditions are favorable to its exploitation

Entrepreneurial behavior is not, however, exclusively intrinsically motivated. There will be occasions when entrepreneurial behavior
will be the result of a combination of both intrinsic and extrinsic motivation. In other words, an individual will engage in entrepreneurial
behavior because they are intrinsically motivated to do so as well as for the potential extrinsic rewards, they stand to gain from doing
so.

Values are consequently antecedent to intrinsic motivation and provide the individual with a sense of control over how they think
and act. Individuals subjected to a more controlling approach not only lose initiative but operate less effectively, especially when the
work they are doing requires conceptual and creative processing capability. The individual‘s focus to their best and to be more excelled.

So, can everyone have an entrepreneurial mind? Probably not. But with time and practice, you can begin to think more like
entrepreneurs. You can start to make subtle shifts in old, reflexive thinking that keeps us from exploring a new idea or taking the leap
and launching your own business. Entrepreneurial thinking may be less of destination and more of a journey as you push your own
boundaries and explore exactly what you‘re capable of.