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:
control of 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 peoples money
Market Niche
One Last Myth
The key to success is a great idea
Good idea
Great plan
.Passion!
The keys are:
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
Calculated risk taking
Calculated risk takers
Do everything possible to get the odds in their favor
Tolerance for ambiguity
Easily deal with setbacks/changes confronting them
Thrive on the fluidity & excitement of such an ambiguous
existence
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
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 ventures growth and
development
Integrity & reliability
Find these two characteristics crucial to success
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.

Age
Most entrepreneurs initiate their entrepreneurial
careers between the ages of 25 and 45
Generally, Male entrepreneurs start their first
venture in their early 30s whereas women do so in
their mid 30s
Work History
Dissatisfaction with various aspects of ones job
such as lack of challenge, or promotional
opportunities, frustration, boredom etc. motivates
the launching of new venture

Entrepreneur Background
(Contd.)
Dark Side of Entrepreneurship
Entrepreneurs confrontation with risk
Typology of
Entrepreneur
ial 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
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
Dark Side of Entrepreneurship
(Contd.)


Are you a High Achiever?

Exercise
Comparison of Male & Female Entrepreneurs
Characteristic Male Entrepreneurs Female Entrepreneurs
Motivation Achievement-strive to make
things happen, Personal
independence, Job satisfaction
arises from the desire to be in
control
Achievement- Accomplishment
of a goal, independence-to do it
alone
Departure point Dissatisfaction with present job,
sideline in college, present job,
or outgrowth of present job,
discharge or layoff, opportunity
for acquisition
Job frustration, interest in and
recognition of opportunity in the
area, change in personal
circumstances
Sources of funds Personal assets & savings, bank
financing, investors, loans from
friends and family
Personal assets & savings,
personal loans
Occupational
background
Experience in line of work,
Recognized specialist or
achiever, competent in variety of
business functions
Experience in area of business,
Middle management or
administrative level experience
in the field, service related
occupational background.
Comparison of Male & Female Entrepreneurs
Characteristic Male Entrepreneurs Female Entrepreneurs
Personality
characteristics
Opinionated & persuasive, Goal
oriented, innovative & idealistic,
High level of self confidence,
Enthusiastic & energetic, Must
be own boss
Flexible & tolerant, goal oriented,
Creative & realistic, medium level
of self confidence, enthusiastic &
energetic, ability to deal with the
social & economic environment
Background Age= 25-35, father was self-
employed, college educated
(degree in business or technical
area)
Age= 35-45, father was self
employed, college educated
(degree in liberal arts), firstborn
child
Support groups Friends, professional
acquaintances(lawyers,
accountants), business
associates, spouse
Close friends, spouse, family,
womens professional groups,
trade associations
Type of
business
started
Manufacturing or construction Service related- educational
services, 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.

(dont know who said it)
Case Study
Thank you!
Thats all for today!