Developments of Entrepreneurial mindset

Overview of mindset
“Success and failure begins in your mind and it starts
today.” Robert van der Wolk
A mindset is the sum of your knowledge, including beliefs
and thoughts about the world and yourself in it.
Mindset can be:
•Fixed or
•Growth oriented.
While a fixed mindset assumes your talents and abilities
are set, the growth mindset believes your talents and
abilities can be developed. It is pointed out that a mindset
can change. Much of this occurs through developing a
greater awareness of your current mindset, and taking
steps to purposely start thinking and reacting in new ways.
By; Tolessa S. (MSc.)
1
Entrepreneurial mindset
• An entrepreneurial mindset is a set of beliefs, thought processes,
and ways of viewing the world that drives entrepreneurial
behavior.
• The mindset of successful entrepreneurs is different from mindset
of traditional workers in many ways. For example, if a traditional
worker needs to earn more money they’ll often brush up their
resume and look for a better paid job. However, someone with an
entrepreneurial mindset would look for ways to earn money by
starting or growing a business
• A positive mindset helps motivate entrepreneurs to focus on
desired activities and events and the results they hope to achieve.
The characteristics of the entrepreneurial mindset which are
common for all entrepreneurs are:
 They passionately seek new opportunities
 They pursue opportunities with enormous discipline
 They pursue only the very best opportunities and avoid
exhausting themselves
 They focus on execution specifically, adaptive execution
 They engage the energies of everyone
By; Tolessa S. (MSc.) in their domain 2
 The factors that help entrepreneurs to
develop a positive mindset
Are includes:
Focus on opportunities to learn from each experience.

Being involved in positive activities.

Choose work objectives that are achievable and have

an impact.
Make friends with other entrepreneurs.

Have successful entrepreneurs serve as role models

and mentors.
Avoid negative thoughts and ideas.

Take advantage of opportunities to improve your

situation, whether it is your personal life, work life or
By; Tolessa S. (MSc.)
life in the community. 3
 Distinguishing characteristics of
entrepreneurial mindset
Essential entrepreneurial mindset characteristics are:
 Independent: This is one of the most important aspects of the entrepreneurial
mindset. Entrepreneurs don’t follow the crowd or look to others to be given
instructions. Instead,
 Responsible: The independent mindset of successful entrepreneurs stems from
taking full responsibility.

Entrepreneurs don’t blame others for their life situation they empower themselves by
taking responsibility for improving it.
 Abundant: A key part of the entrepreneurial mindset is abundance. Entrepreneurs
know they can improve a situation, make more money and create new opportunity. The
sky is always the limit.
 Goal-Oriented: Entrepreneurial thinking is goal-orientated. In other words, successful
entrepreneurs don’t have wishes and dreams they have goals and plans.
 Not Afraid of Failure: Entrepreneurs don’t fear failure – they appreciate it. Each
“failure” is simply a stepping stone to learn from, helping to move you closer to
success.
 Growth-Oriented: Entrepreneurs believe that they can grow as people, learn new
By; Tolessa S. (MSc.) 4
things, and develop new skills.
 Cont.…,
 Feedback-Seeking: The most successful entrepreneurs aren’t
worried about looking cool they just want to succeed, and they
know that learning from feedback will help speed up the process
 Learning-Oriented: Most people spend their spare time seeking
entertainment, whether it’s social media, Netflix, gaming,
reading novels, or hanging with friends. However, entrepreneurial
thinking is more concerned with learning and development. For
example: Instead of watching TV, entrepreneurs may take an
online course to help them move toward their goals.
 Forward-Thinking: If you want to learn how to think like an
entrepreneur, you need to think long-term. Successful
entrepreneurs know that big goals take a long time to achieve.
So, they start with their goal and work backward, reverse-
engineering every step of the way. In other words, “If I want this,
I need to do that. But to do that, I need to do this,” and so on.
 Collaborative: Great businesses require teamwork after all
 Problem-Solving: Entrepreneurs look for problems and try to
find ways to solve them.
By; Tolessa S. (MSc.)
5
Understanding Entrepreneurial Competencies
& Environment
Identifying Personal Entrepreneurial competencies
(PECs)
 Competencies: are defined as a body of knowledge, a set of skills and a
cluster of traits.
 Knowledge: consists of a set or body of information stored, which may
be recalled at an appropriate time.
 Skill: is the ability to apply knowledge.
 Trait: is the total of peculiar qualities or characteristics that constitutes
personal individuality.
 Entrepreneurial competencies: refer to the key characteristics that
should be possessed by successful entrepreneurs in order to perform
entrepreneurial functions effectively.
Levels of competencies required by entrepreneurs
There are three levels of competencies, which all entrepreneurs need:
1. Personal competencies: Creativity, determination, integrity,
emotional balance and self-criticism.
2. Interpersonal competencies: Communication, engagement,
delegation, respect.
3. Business competencies: Business
By; Tolessa vision, resource management,
S. (MSc.)
networking, negotiating skills. 6
 Personal competencies
• Personal Entrepreneurial Competencies (PECs) are
specific characteristics/ traits that can be achieved through
education, hard work, and planning.
• There are ten most common Personal Entrepreneurial
Competencies, often called the 10 PECs, required by an
entrepreneur;
No
which can be grouped into threeCluster
Personal Entrepreneurial Competency
clusters as
follows:
1 Opportunity seeking and initiative

2 Persistence

3 Fulfilling commitments Achievement

4 Demand for efficiency and quality

5 Taking calculated risks

6 Goal setting
7 Information seeking Planning
8 Systematic planning and monitoring
9 Persuasion and networking
Power
10 Independence and self-confidence

By; Tolessa S. (MSc.)

7
 Assessing Entrepreneurial potential
Entrepreneurial potential is a set of attitudes,
motives and knowledge that enables entrepreneurial
activity.
A self-assessment (personal-assessment) is an
evaluation of your actions and attitudes.
Assessing your-self with professional self-
assessment tools can:
 Help you to understand how you perform your work,
so you can make appropriate changes.
 Help your employees to understand what are your
motivates and drives.
 Help you to recognize when you're in over your head
difficulties and need someone’s help.
 Help you to recognize your strengths and
8
weaknesses. By; Tolessa S. (MSc.)
 Understanding Entrepreneurship and
Environment
Business environment refers to the factors external to a
business enterprise which influence its operations and
determine its effectiveness.
Business environment may be healthy or unhealthy.
Classification of Business Environment
Business environment may be classified into two broad
categories; namely: external; and internal environment
1. External Environment
It is the environment which is external to the business and
hard to influence independently.
Are include;
– Economic environment
– Legal environment
– Political environment
– Demographic environment
– Socio cultural environment
By; Tolessa S. (MSc.)
9
2. Internal Environment

Internal environment is the environment which is

under the control of a given organization
Following are the components of internal
environment of a business:
1. Raw Material: It assesses the availability of raw
material now and in the near future.
2. Production/Operation: It assesses the
availability of various machineries, equipment, tools
and techniques that would be required for
production/operation.
3.Finance: It assesses the total requirements of
finance in terms start-up expenses, fixed expenses
and running expenses. It also indicates the sources of
By; Tolessa S. (MSc.)
finance that can be approached for funding.
10
4. Human Resource: It assesses the kind of human
 Identifying Environmental Factors Affecting
Entrepreneurship
• The following are some of the environmental
factors which hinder/delay entrepreneurial growth:
 Sudden changes in Government policy.

 Outbreak of war or regional conflicts.

 Political instability or hostile Government attitude

towards industry.
 Excessive of corruption among Government agencies.

 Ideological and social conflicts.

 Unreliable supply of power, materials, finance, labor and

other inputs.
 Rise in the cost of inputs
By; Tolessa S. (MSc.)
11
 Entrepreneurial Motivation and Decision

Entrepreneurial Motivation
 Motivation is the set of forces that cause people to do
something.
 It is an inner state that energizes and directs behavior toward
goals. So, motivation is the set of intangible forces that stimulate
someone to take a desired course of action.
 Thus, we can say that entrepreneurial motivation is the set of
forces that energizes, directs and encourages a person to take
initiative and carry out entrepreneurial activities.
 The entrepreneurial motivation is the procedure that activates
and motivates the entrepreneur to make use of higher level of
efforts for the accomplishment of his/her entrepreneurial goals.
Motivating Factors
Most of the researchers have classified all the factors motivating
entrepreneurs into internal and external factors as follows:
1. Internal Factors
Among many internal factors motivating entrepreneurs;
 Desire to do something By;
new Tolessa S. (MSc.) 12
 Become independent
 Cont..,
Achieve what one wants to have in life
Be recognized for one’s contribution
One’s educational background
One’s occupational background and experience in the
relevant field
2. External Factors:
Among many internal factors motivating entrepreneurs;
Government assistance and support
 Availability of labor and raw material
 Encouragement from big business houses
Promising demand for the product
Entrepreneurial Decision
As an entrepreneur, you must make different types of
decisions on the everyday basis. The decision-making
process is one of the most critical processes in your company.
Decision-MakingBy;Process
Tolessa S. (MSc.)
13
 Cont.…,

Decision-making process is one of the most critical processes

in your business.
The most common used approaching in the decision-making
process is according the following steps:
1. Recognize the problem/the gap
• Every decision-making process starts with the problem or
some discrepancy that exist between the desired and
current state.
• You have the desired state, and you have an existing state.
The difference between these two is the gap or problem
that you must solve through the decision-making process.
2. Analyze the problem
• After you find possible problems that require solutions you
can start with the analysis of already defined problems.
• How these problems impact on the achievements of your
small business?
By; Tolessa S. (MSc.)
14
 Cont.…,
• At the end of this step, you will need to have a list of
possible problems sorted by their urgency for the solution.
• In your analysis, you need to find causes and how the
problem impact on your small business.
3. Define possible solutions
• This is the step when you need to start brainstorming all
possible solutions for a given problem
• When you think about solutions, also think about the
causes of the problems.
4. Analyze all possible solutions
• Because in the third step you come to more than one
possible solution for a given problem, in this step you
need to analyze all proposed solutions to rank them and
make a decision that you will implement in the future.
• This step will need to give you the rankings of all possible
solutions from the bestBy; ones
Tolessa S. (MSc.)
15
 Cont.…,
5. Select the best solution for the application
• The final result from the decision-making process
is a selection of the best possible solution to the
problem.
6. Implement the decision
• You need to implement the solution and check the
results to see if the specific solution really solves
the identified problem.

By; Tolessa S. (MSc.)

16
End of the Slide

Thank You For You

Attention

By; Tolessa S. (MSc.)

17