INDIVIDUAL ENTREPRENEURIAL
MINDSET & PERSONALITY
Lecture # 2
Agenda for Today…
Some myths…
Entrepreneurial mindset
Common characteristics
Background
Comparison of male and female entrepreneurs
Tipping points
Some Myths
Myth #1
Get Rich Quick!
Truth is
Life as an entrepreneur is not about money
Success rarely happens overnight
It's about what you want to do with your life
Myth # 2
Entrepreneurs are born, not made
(Trait theory)
Truth is:
Some of the most successful entrepreneurs are the most
unlikely
It is a lifestyle choice, not an accident
Myth # 3
Entrepreneurs are doers, not thinkers
Truth is:
Although entrepreneurs tend towards action, they are also
thinkers
Methodical people who plan their moves carefully
Combination of thinking & doing makes an entrepreneur
Myth # 4
"I'll have all this free time…"
Truth is entrepreneurs work many hours
Advantages are:
controlof time
variety of tasks
Myth # 5
It gets easier
Truth is, it gets more challenging
One must work faster, smarter & longer
One must enjoy the battle
Myth # 6
Entrepreneurs are academic & social misfits
Truth is
This misunderstanding is a result of some business owners
having started successful enterprises after dropping out
of school
Today the entrepreneur is considered a hero – socially,
economically, and academically
Myth # 7
All entrepreneurs need is luck
Truth is “luck happens when preparation meets
opportunity!”
Prepared entrepreneurs who seize the opportunity often
seem lucky
What appears to be luck is actually preparation,
determination, desire, knowledge and innovativeness
Myth # 8
Entrepreneurs are extreme risk takers
Truth – Entrepreneurs are calculators
Studies show entrepreneurs take calculated risks only
Most entrepreneurs plan & prepare to minimize the risk
involved & gain better control
Myth # 9
You have to have a great idea
Truth is
Your idea must be good
Your idea must be doable
Your idea must be wanted or needed
Your idea must be priced right
Myth # 10
It takes a lot of money
Truth – Over 50% start for under $10,000
Also look for
Certain business types
Turn-around situations
Possibility of using other people’s money
Market Niche
One Last Myth
The key to success is a great idea
The keys are:
Good idea
Great plan
….Passion!
The Entrepreneurial Mindset
Common Characteristics Associated
with Entrepreneurs
Commitment, determination, & perseverance
•Total dedication to success can overcome obstacles & setbacks
•Sheer determination & unwavering commitment to succeed
Drive to achieve
•Self-starters; Internally driven by a strong desire to compete
•They examine a situation, determine how to increase the odds of
winning, and then push ahead
Opportunity orientation
•Focus on opportunity rather than on resources, or structure
•Constant awareness of opportunities that exist in everyday life
Initiative & responsibility
•Effective entrepreneurs actively seek & take initiatives
•Willingly put themselves in situations where they are personally
responsible for success or failure of an operation
Common Characteristics Associated
with Entrepreneurs
Persistent problem-solving
•Not intimidated by difficult situations
Internal locus of control
•Do not believe that the success/failure of their venture will be
governed by fate, luck, or similar forces
•Accomplishments/Setbacks are within their own control
Tolerance for ambiguity
•Easily deal with setbacks/changes confronting them
•Thrive on the fluidity & excitement of such an ambiguous existence
Calculated risk taking
•Calculated risk takers
•Do everything possible to get the odds in their favor
Common Characteristics Associated
with Entrepreneurs
Tolerance for failure
•Use failure as learning experiences; Realistic enough to expect
difficulties
Creativity & innovativeness
•New ventures often possess a collective creativity that emerges
from the joint efforts of the founders and personnel and produces
unique goods and services
Vision
•Know where they want to go; Have a vision of what their firm can
be
•This vision, at times, also develops over time as the individual
realizes what the firm is and what it can become
Common Characteristics Associated
with Entrepreneurs
Self-confidence & optimism
•Maintain confidence during down periods
Integrity & reliability
•Find these two characteristics crucial to success
Independence
•Desire for independence is a driving force behind most
entrepreneurs
•Not all decisions, but they do want to make the important ones
Team building
•Most successful entrepreneurs have highly qualified, well-motivated
teams that help handle the venture’s growth and development
Entrepreneur Background
Education
Formal education is not necessary for starting a new
business
Research shows education provides a good background,
although majority of successful venture owners like Henry
Ford, Bill Gates were college dropouts
Others do have relevant degrees in engineering, science,
etc.
Entrepreneur Background (Contd.)
Age
Most entrepreneurs initiate their entrepreneurial careers
between the ages of 25 and 45
Generally, Male entrepreneurs start their first venture in
their early 30’s whereas women do so in their mid 30’s
Work History
Dissatisfaction with various aspects of one’s job such as
lack of challenge, or promotional opportunities,
frustration, boredom etc. motivates the launching of new
venture
Dark Side of Entrepreneurship
Entrepreneur’s confrontation with risk
Typology of
Entrepreneurial
Styles
Dark Side of Entrepreneurship (Contd.)
Entrepreneurs face a number of different types of
risks:
Financial risk – In most new ventures, an individual puts
a significant portion of his or her savings or other
resources at stake
Career risk – Major concern for managers with a secure
job with a high salary and good benefit package
Family and social risk
Psychic risk – Psychological impact in case the venture
fails
Dark Side of Entrepreneurship (Contd.)
Stress and the entrepreneur
Sources of Stress:
Loneliness– Often isolated from people; Long working
hours prevent them from seeking counsel from
friends/family
Immersion in business – Most are married to business
People problems – Have to deal with different kind of
people including bankers, employees, customers
Need to achieve
Dark Side of Entrepreneurship (Contd.)
Six ways to cope with entrepreneurial stress:
Networking
Getting away from it all
Communicating with employees
Finding satisfaction outside the company
Delegating
Exercising rigorously
Dark Side of Entrepreneurship (Contd.)
Entrepreneurial Ego – Negative effects of an
inflated ego
Overbearing need for control
Sense of distrust
Overriding desire for success
Unrealistic optimism
Exercise
Are you a High Achiever?
Comparison of Male & Female Entrepreneurs
Characteristic Male Entrepreneurs Female Entrepreneurs
Motivation Achievement-strive to make things Achievement- Accomplishment of a
happen, Personal independence, Job goal, independence-to do it alone
satisfaction arises from the desire to
be in control
Departure point Dissatisfaction with present job, Job frustration, interest in and
sideline in college, present job, or recognition of opportunity in the
outgrowth of present job, discharge area, change in personal
or layoff, opportunity for acquisition circumstances
Sources of funds Personal assets & savings, bank Personal assets & savings, personal
financing, investors, loans from loans
friends and family
Occupational Experience in line of work, Experience in area of business,
background Recognized specialist or achiever, Middle management or
competent in variety of business administrative level experience in
functions the field, service related
occupational background.
Comparison of Male & Female Entrepreneurs
Characteristic Male Entrepreneurs Female Entrepreneurs
Personality Opinionated & persuasive, Goal Flexible & tolerant, goal oriented,
characteristics oriented, innovative & idealistic, Creative & realistic, medium level of
High level of self confidence, self confidence, enthusiastic &
Enthusiastic & energetic, Must be energetic, ability to deal with the
own boss social & economic environment
Background Age= 25-35, father was self- Age= 35-45, father was self
employed, college educated employed, college educated (degree
(degree in business or technical in liberal arts), firstborn child
area)
Support groups Friends, professional Close friends, spouse, family, women’s
acquaintances(lawyers, accountants), professional groups, trade
business associates, spouse associations
Type of business Manufacturing or construction Service related- educational services,
started consulting or public relations
Set a big dream and put your
time and thinking into chasing it,
your painful memories will have
no room to bother you again.
(don’t know who said it)
Case Study
That’s all for today!
Thank you!
