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The Entrepreneur and the Entrepreneurial Mind-SetFrancescA TAMBURINI– IFOM TRAINER

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Activity• WhoisanEntrepreneurinyouropinion?

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The Entrepreneur

• Entrepreneur– Anindividualwhotakesinitiativetobundleresources ininnovativeways andiswillingtobeartherisk and/oruncertainty toact.

• Beinganentrepreneurtoday:• Involvescreationprocess.• Requiresdevotionoftimeandeffort.• Involvesrewardsofbeinganentrepreneur.• Requiresassumptionofnecessaryrisks.

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Entrepreneurship• Entrepreneurialaction - Behaviorinresponsetoajudgmentaldecisionunderuncertainty aboutapossibleopportunityforprofit.

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The Entrepreneurial Mind-Set• EntrepreneurialMind-Set

• Describesthemostcommoncharacteristicsassociatedwithsuccessfulentrepreneurs

• Successful entrepreneurs are:• Independent individuals,intenselycommitted anddeterminedtopersevere,whoworkveryhard.

• Theyareconfident optimists whostriveforintegrity.

• Theyburnwiththecompetitive desiretoexcel andusefailure asalearningtool.

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• Determinationandperseverance

• Drivetoachieve• Opportunityorientation• Initiativeandresponsibility• Persistentproblemsolving

• Internallocusofcontrol• Toleranceforambiguity

• Creativityandinnovativeness

• Vision• Passion• Calculatedrisktaking• Seekingfeedback• Highenergylevel• Optimism

• Independence• Teambuilding

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The Entrepreneurial Mind-Set

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The Entrepreneurial Experience• Entrepreneurs

• Createventuresmuchasanartistcreatesapainting.• Areformedbythelivedexperienceofventurecreation.

• ExperientialNatureofCreatingaSustainableEnterprise• Emergenceoftheopportunity• Emergenceoftheventure• Endemergenceoftheentrepreneur

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the Entrepreneurial Approach

2–8

Imagination

FlexibilityWillingness to accept

risks

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the Entrepreneurial Process

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The Entrepreneurial Process• Opportunityidentification - Theprocessbywhichanentrepreneurcomesupwiththeopportunityforanewventure.

• Marketsizeandthelengthofthewindowofopportunityaretheprimarybasesfordeterminingrisksandrewards.

• Windowofopportunity- Thetimeperiodavailableforcreatingthenewventure.

• Businessplan- Thedescriptionofthefuturedirectionofthebusiness.

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How Entrepreneurs Think• Entrepreneursinparticularsituationsmaythinkdifferentlywhenfacedwithadifferenttaskordecisionenvironment.

• Giventhenatureoftheirdecision-makingenvironment,entrepreneursneedtosometimes:• Deliver• Becognitivelyadaptable• Learnfromfailure

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• Cognitiveadaptabilitydescribestheextenttowhichentrepreneursare:• Dynamic,flexible,self-regulatingandengagedintheprocessofgeneratingmultipledecisionframeworksfocusedonsensingandprocessingchangesintheirenvironmentsandthenactingonthem.

How Entrepreneurs Think

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• Achievingcognitiveadaptability• Comprehensionquestions– Aidsunderstandingofthenatureoftheenvironmentbeforeaddressinganentrepreneurialchallenge.

• Connectiontasks– Stimulatesthinkingaboutthecurrentsituationintermsofsimilaritiesanddifferenceswithsituationspreviouslyfacedandsolved.

• Strategictasks– Stimulatesthoughtsaboutwhichstrategiesareappropriateforsolvingtheproblem(andwhy)orpursuingtheopportunity(andhow).

• Reflectiontasks– Stimulatesthinkingabouttheirunderstandingandfeelingsastheyprogressthroughtheentrepreneurialprocess.

How Entrepreneurs Think

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Achievingcognitiveadaptabilitymeans:

• understandingthecontext beforeaddressinganentrepreneurialchallenge.

• Analyzingthesituationaccordingtosimilaritiesanddifferenceswithpreviouschallenges

• Thinkingaboutwhichstrategies areappropriateforsolvingtheproblem(andwhy)orpursuingtheopportunity(andhow).

• Thinkingaboutmyunderstandingandfeelingsduringtheentrepreneurialprocess

Entrepreneurswhoareabletoincreasecognitiveadaptabilityhaveanimprovedabilitytoadapttonewsituations,becreativeandcommunicateone’sreasoningbehindaparticularresponse.

How Entrepreneurs Think

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• LearningfromBusinessFailure• Uncertainty,changingconditions,andinsufficientexperiencecancontributetofailureamongentrepreneurialfirms.• Anentrepreneur’smotivationisnotsimplyfrompersonalprofitbutfrom:• Loyaltytoaproduct.

• Loyaltytoamarketandcustomers.

• Personalgrowth.

• Theneedtoproveoneself.

Dealing with failure

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• Lossofabusinesscanresultinanegativeemotionalresponsefromtheentrepreneur.

• Itcaninterferewith:• Entrepreneur’sabilitytolearnfromthefailure.• Motivationtotryagain.

Dealing with failure

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• RecoveryandLearningProcess• Emotionalrecoveryfromfailurehappenswhenthoughtsabouttheeventssurrounding,andleadinguptothelossofthebusiness,nolongergenerateanegativeemotionalresponse.• Primarydescriptionsoftheprocessofrecoveringare:

• Loss-orientation.

• Restoration-orientation.

Dealing with Failure

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Dealing with Failure

• LossOrientation• Involvesfocusingontheparticularlosstoconstructanaccountthatexplainswhythelossoccurred.

• RestorationOrientation• Involvesbothdistractingoneselffromthinkingaboutthefailureeventandbeingproactivetowardssecondarycausesofstress.

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• Loss-Orientation• Involvesworkingthrough,andprocessing,someaspectofthelossexperienceand,asaresultofthisprocess,breakingemotionalbondstotheobjectlost.

• Thisprocessgraduallyprovidesthelosswithmeaningandeventuallyproducesachangedviewpoint.

• Involvesconfrontation,whichisphysicallyandmentallyexhausting.

• Characterizedbyfeelingsofreliefandpainthatwaxandwaneovertime.

Dealing with Failure

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• Restoration-Orientation• Basedonbothavoidanceandaproactiveness towardsecondarysourcesofstressarisingfromamajorloss.

• Involvessuppression,whichrequiresmentaleffortandpresentspotentiallyadverseconsequencesforhealth.

• Providesanopportunitytoaddresssecondarycausesofstress.

• Mayreduceemotionalsignificanceoftheloss.

Dealing with Failure

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• ADualProcessforLearningfromFailure• Thedualprocessofoscillatingbetweentheloss-orientationandrestoration-orientationenablesapersonto:• Obtainthebenefitsofeach.

• Minimizethecostsofmaintainingonefortoolong.

• Thisdualprocessspeedstherecoveryprocess.

Dealing with Failure

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• Practicalimplicationsofthedualprocess:• Knowledgethatfeelingsandreactionsbeingexperiencedarenormal.

• Realizingthatpsychologicalandphysiologicaloutcomescausedbythefeelingsoflossare“symptoms”canreducesecondarysourcesofstress.

• Thereisaprocessofrecoverytolearnfromfailure,whichofferssomecomfortthatcurrentfeelingsoflosswilleventuallydiminish.

• Recoveryandlearningprocesscanbeenhancedbysomedegreeofoscillation.

• Recoveryfromlossoffersanopportunitytoincreaseone’sknowledgeofentrepreneurship.

Dealing with Failure

T e a c h e r t r a i n i n g s . e uTraining courses for education staff 2–24

Source: ThomasMonroyandRobertFolger,“ATypologyofEntrepreneurialStyles:BeyondEconomicRationality,”JournalofPrivateEnterpriseIX(2)(1993):71.

Entrepreneurial risk styles

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The Dark Side of Entrepreneurship• TheEntrepreneur’sConfrontationwithRisk

• Financialriskversusprofit(return)motivevariesinentrepreneurs’desireforwealth.

• Careerrisk—lossofemploymentsecurity

• Familyandsocialrisk—competingcommitmentsofworkandfamily

• Psychicrisk—psychologicalimpactoffailureonthewell-beingofentrepreneurs

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The Entrepreneurial Ego• Self-DestructiveCharacteristics

• Overbearingneedforcontrol• Senseofdistrust• Overridingdesireforsuccess• Unrealisticexternalizedoptimism

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Jack MA

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Jack MA• FounderofAlibaba,formerenglish teacher

• 10applicationtoHarward refused

• NothiredbyKFCrestaurant

• Determination

• Enthusiast

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Steve JObs

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Steve JObs• Lost almost everything

• Greatvisionary capacity

• Realitydistortion field

• Very skilled publicspeaker

• Poor teamwork

• Perseverance

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Elon Musk

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Elon Musk• Founder of Paypal,SpaceX,Tesla,Solarcity

• Greatvisionary capacity

• Optimist

• Riskingit all

• Keepig fighting against impossible

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Jeff bezos

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Jeff bezos• Founder of Amazon,kindle,blue origin,richestmanintheworld

• It’salways day one

• Kill our marker

• Highspeed velocity

• Disagree andcommit