Introduction To Entrepreneurship
Chapter 2
The Individual Entrepreneurial Mind-Set
Rupee Group : 02
INDEX NO
NAME OF THE MEMBER
REG: NO
PERSONTAGE OF
PARTICIPATION
01
A.C.C.W.W.M.R Koswatte
17226
100%
02
U.H De Silva
17230
100%
03
G.G.N.M.L.K Nawarathna
17253
100%
Chapter Objectives
• To describe the entrepreneurial mind-set.
• To present the major sources of information useful in profiling the entrepreneurial
mind-set
• To identify and discuss the most commonly cited characteristics found in successful
entrepreneurs
• To discuss the “dark side” of entrepreneurship
• To identify and describe the different types of risk entrepreneurs face as well as the
major causes of stress for these individuals and the ways they can handle stress
• To examine entrepreneurial motivation
Who Are Entrepreneurs?
Entrepreneurs normally defined as risk
takers in new venture creations, are
uniquely optimistic, hard driving, committed
individuals who derive great satisfaction
from being independent.
The Entrepreneurial Mindset
● Entrepreneurial Mindset
○ Describes the most common characteristics associated with
successful entrepreneurs as well as the elements associated
with the “dark side” of entrepreneurship.
● Who Are Entrepreneurs?
○ Independent individuals, intensely committed and determined to
persevere, who work very hard.
○ They are confident optimists who strive for integrity.
○ They burn with the competitive desire to excel and use failure as
a learning tool.
Sources of Research on Entrepreneurs
Sources of Research on Entrepreneurs
● Publications
○Technical and professional
journals
○Textbooks on entrepreneurship
○Books about entrepreneurship
○Biographies or autobiographies
of entrepreneurs
○Compendiums about
entrepreneurs
○News periodicals
○Venture periodicals
○Newsletters
○Proceedings of conferences
○The Internet
● Direct Observation of
Practicing Entrepreneurs
○ Interviews
○ Surveys
○ Case studies
● Speeches, Seminars,
and Presentations by
Practicing Entrepreneurs
Common Characteristics of Entrepreneurs
● Commitment, determination,
and perseverance
● Drive to achieve
● Opportunity orientation
● Initiative and responsibility
● Persistent problem solving
● Seeking feedback
● Internal locus of control
● Tolerance for ambiguity
● Calculated risk taking
● Tolerance for failure
● High energy level
● Creativity and Innovativeness
● Vision
● Self-confidence and optimism
● Independence
● Team building
Characteristics Often Attributed to Entrepreneurs
1.Confidence
1.Intelligence
1.Pleasant personality
2.Perseverance, determination
2.Orientation to clear goals
2.Egotism
3.Energy, diligence
3.Positive response to
3.Courage
4.Resourcefulness
challenges
4.Independence
5.Responsiveness to
suggestions and criticism
6.Time competence, efficiency
7.Ability to make decisions
quickly
8.Responsibility
9.Foresight
10.Accuracy, thoroughness
11.Cooperativeness
12.Profit orientation
13.Ability to learn from
mistakes
14.Sense of power
4.Imagination
5.Ability to take calculated risks
6.Dynamism, leadership
7.Optimism
8.Need to achieve
9.Versatility; knowledge of
product, market, machinery,
technology
10.Creativity
11.Ability to influence others
12.Ability to get along well with
people
13.Initiative
14.Flexibility
5.Perceptiveness
6.Toleration of ambiguity
7.Aggressiveness
8.Capacity for
enjoyment
9.Efficacy
10.Commitment
11.Ability to trust
workers
12.Sensitivity to others
13.Honesty, integrity
14.Maturity, balance
The Entrepreneurial Journey
● Entrepreneurs
○ Create ventures much as an artist creates a painting
○ Are formed by the lived experience of venture creation
● Experiential Nature of Creating a Sustainable Enterprise
○ Emergence of the opportunity
○ Emergence of the venture
○ End emergence of the entrepreneur
The Dark Side of Entrepreneurship
Level of Personal Risk
Low
Low
Risk avoiding
activity seeking
High
Risk accepting
activity seeking
Level of Profit
Motive
High
Risk avoiding
Profit seeking
Risk accepting
activity seeking
Stress and the Entrepreneur
Stress and the Entrepreneur
The extent to which entrepreneurs’ work demands and expectations
exceed their abilities to perform as venture initiators, they are likely to
experience stress.
Causes of
Entrepreneurial Stress
Loneliness
Immersion
in business
People
problems
Need to
achieve
Type A Personalities
 Chronic and severe sense of time urgency.
 Constant involvement in multiple projects subject to deadlines.
 Neglect of all aspects of life except work.
 A tendency to take on excessive responsibility, combined with the
feeling that “Only I am capable of taking care of this matter.”
 Explosiveness of speech and a tendency to speak faster than most
people
Dealing with Stress
•
•
•
•
•
•
Networking
Getting away from it all
Communicating with employees
Finding satisfaction outside the company
Delegating
Exercising Rigorously
Overbearing need for
control
Sense of distrust
Entrepreneurial Ego
The Entrepreneurial Ego
Unrealistic optimism
Overriding desire for
success
Entrepreneurial Motivation
• The quest for new-venture creation as well as the
willingness to sustain that venture.
• Personal characteristics, personal environment, business
environment, personal goal set (expectations), and the
existence of a viable business idea.
A Model of Entrepreneurial Motivation