Entrepreneurship Mindset, Motivation and Behaviour

Entrepreneurial mindset
Entrepreneurial mindset is a set of skills that enable people to identify and make the most of
opportunities, overcome and learn from setbacks, and succeed in a variety of settings.
Entrepreneurial mindset has five factors. They are high need for achievement, individualism, locus of control
focus, and optimism.
Need for achievement
It’s defined as having a preference for challenge, an acceptance of personal responsibility for
outcomes, and a personal drive for accomplishment.
Individualism
It means that entrepreneurs need less support or approval from others. High individualism is
associated with an emphasis on individual initiative and achievement. Often results in entrepreneurs
needing less support or approval from others.
Control
It has two segments which are autonomy and locus of control. Autonomy is an individual’s belief
about their level of freedom from the influence of others. Locus of control is an individual’s belief that
they can influence the environment in which they are found. People with higher levels of autonomy
and an internal locus on control are more likely to discover an entrepreneurial opportunity.
Focus
Successful entrepreneurs are able to focus attention on a single task and see it through to completion.
This leads selected individuals to react and to become successful entrepreneurs.
Optimism
Optimism enables entrepreneurs to try new things and attempt difficult tasks, optimism may also
present negative impacts. Optimism leads entrepreneurs to frequently make judgments on subjective
positive factors.
Entrepreneurial Motivation
Entrepreneurial motivation includes the factors by which goal-directed behavior is initiated,

energized, and maintained. For entrepreneurial strategic decision making, three factors are
highlighted
Self-Efficacy
Self-efficacy is defined as one’s belief in one’s ability to accomplish a specific task. Self-efficacy differs
as it is task dependent. In improving one’s self-efficacy, there are different approaches like increasing
mastery, having a role model , verbal encouragement from coach or mentor, and exhibiting a positive
mood and high energy.
Cognitive Motivation
Cognition is the process of thought. Individuals exhibiting a high need for cognition tend to seek,
acquire, think, and reflect on relevant information. In other words their brain is active in thinking for
solutions all the time.
Tolerance for Ambiguity
Tolerance for ambiguity is defined as the tendency to figure out ambiguous situations as desirable
rather than threatening. Entrepreneurs make complex decisions in ambiguous situations and desire
them. It is a necessary factor for entrepreneurs based on dynamic nature of markets and competition.
Entrepreneurial Behavior
Entrepreneurial mindset and motivation can only translate into action if entrepreneurial behaviors
exist. While there are many behaviors that may be described as entrepreneurial, we’ll focus on the
four behaviors most critical to entrepreneurial opportunity analysis and action:
Confidence
It is important for entrepreneurs to believe in themselves and their abilities, balanced by the reality of
the tasks at hand. It may require them to go against the norm, and against popular opinion and advice
of friends and family. They need to address their self-doubts.
Risk
Entrepreneurs need to addresses their willingness to accept risk, perceive risk differently, consider
the risk-reward balance, and their potential to return to the status quo.
Interpersonal Skills
These seven types of interpersonal skills entrepreneur should have which will helps in succeeding.
Verbal communication.
Non-verbal communication.
Listening skills.
Negotiation.
Problem-solving.
Decision-making.
Assertiveness.
Social Capital
Entrepreneurs should be rich with Social capital because people with rich social capital are better
informed, more creative, more efficient, and better problem solvers. With the right networks, people
save time because they know where to get the information they need. They can also foster cooperation
and collaboration.
Entrepreneurship
Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit
by taking several risks in the corporate world. Simply put, entrepreneurship is the willingness to start a new
business.
Types of Entrepreneurship
Small and Medium Enterprises (SME)
An SME stands for a small-medium sized enterprise which has a smaller team than bigger firms and they are
quite independent.
Innovation Driven Enterprises (IDE)
An IDE is defined as an enterprise that pursues global opportunities based on introducing consumers to new
innovations that have a clear competitive advantage and high growth potential.
Difference Between AND IDE AND SME
The primary difference between IDEs and SMEs is their purpose: IDEs seek to bring innovations to global
markets, while SMEs seek to build traditional and well-understood businesses that serve local demand. Both
start off small and require an entrepreneur with the drive and persistence to make their business a success.
Both have the potential to create jobs. But the paths that they will take and their ultimate goals vary greatly
ENTREPRENEURS QUALITIES
• Smartest and high achieving
• Individuals
• Born not made
• Love risk
• Charismatic
• Undisciplined
• Unstructured and chaotic
• Need allot of Luck!

ROLE OF INNOVATION
Innovation is important in entrepreneurship. In the highly competitive world that we live in, innovative ideas
are what will separate you from the rest. ... In order to create an outstanding product, strong brand and to build
your customer network, you need to innovate.
TYPES OF INNOVATION
Incremental Innovation
Incremental Innovation is the most common form of innovation. It utilizes your existing technology and
increases value to the customer (features, design changes, etc.) within your existing market. Almost all
companies engage in incremental innovation in one form or another.
Disruptive Innovation
Disruptive innovation, also known as stealth innovation, involves applying new technology or processes to your
company’s current market. It is stealthy in nature since newer tech will often be inferior to existing market
technology.
Lateral Innovation

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Entrepreneurial mindset

Need for achievement

Entrepreneurial motivation includes the factors by which goal-directed behavior is initiated,

Tolerance for Ambiguity

Small and Medium Enterprises (SME)

Innovation Driven Enterprises (IDE)

Difference Between AND IDE AND SME

• Smartest and high achieving

• Born not made

• Unstructured and chaotic

• Need allot of Luck!

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