A2 Mindset of the Entrepreneur
A mindset is the combination of a person’s attitudes, values and ways of thinking that influence how they approach various aspects of life. Setting up a business is challenging, requires a variety of skills and hard work and is riddled with risk and uncertainty. Entrepreneurs who choose this path rather than the security of working for somebody else tend to share a similar mindset.
The mindset of an entrepreneur is the set of beliefs, values, attitudes and behaviours exhibited by people who drive the success of an enterprise. Entrepreneurs think creatively to explore career options outside of traditional employment routes. This often involves taking risks and living without the job security involved in working for somebody else.
Some characteristics of an entrepreneurial mindset include;
Creativity is the ability to generate new and original ideas through questioning existing thinking and preconceptions. Creativity allows entrepreneurs to develop new products, overcome obstacles, adapt to changing customer needs, spot opportunities that may be missed by others and ultimately gain a competitive advantage.
In 2008, Brian Chesky and Joe Gebbia disrupted the travel industry when they founded Airbnb. They encouraged hosts to think creatively about how they could use their homes to generate revenue.
Confidence is a person’s strong belief in their abilities, ideas and potential. It empowers entrepreneurs to take risks, make decisions and pursue their goals with conviction in the face of the risks and challenges of starting a business.
Elon Musk demonstrated confidence in the development of Tesla. In the face of scepticism around electric cars, Musk continued to pursue his goals of revolutionising the automotive industry.
Positivity is a mindset that is characterised by optimism, resiliency, and a positive outlook. Positive entrepreneurs are better equipped to overcome challenges, motivate their people, and deal with the ups and downs of establishing and operating a firm.
When Sara Blakely, founder of Spanx, struggled to find a manufacturer to produce her product, she didn't let it discourage her. Instead, she remained optimistic and resourceful. Blakely eventually found a hosiery mill that was willing to work with her to create the prototype for Spanx.
Motivation is the internal drive, desire, or reason that pushes people to pursue their goals and overcome obstacles to succeed. It is the driving force that pushes and sustains entrepreneurs on their path.
Jan Koum, WhatsApp's co-founder, grew up in a low-income family in Ukraine facing significant financial hardships. A desire to eliminate communication hurdles drove Koum's inspiration to create WhatsApp. During the development of WhatsApp, Koum faced various technical and financial problems. His motivation and belief in the transforming impact of his product, on the other hand, kept him going.
Initiative is somebody’s ability to make decisions on their own and drive ideas forward. It involves being proactive, seizing opportunities and taking measured risks to achieve desired goals. Initiative is an important trait for entrepreneurs as it drives them to creatively find solutions to drive their ideas forward and achieve their goals.
Jessica Alba founded The Honest Company which sells eco-friendly and non-toxic household and baby products/ When she became a parent, she realised there was an opportunity to sell safer products and took the initiative to fill the gap in the market.
Self-belief refers to the confidence and conviction that a person has in themselves and their abilities to succeed. It is a deep-rooted belief that they possess the necessary skills, knowledge, and determination to overcome challenges and achieve their goals. Self-belief is an important trait for entrepreneurs to maintain a positive mindset when faced with the setbacks and challenges they face in setting up their business.
When Ben Silbermann, Paul Sciarra and Evan Sharp co-founded Pinterest, they faced a lot of scepticism from industry experts. Their self-belief empowered them to persevere with their idea despite negative feedback to create one of the most widely used social media platforms.
Discipline refers to the ability to maintain focus, self-control, and consistency in one's actions and behaviours. It involves remaining focused, having good time management, self-control, financial discipline and the mindset of continuous learning. Entrepreneurs are faced with stresses, challenging times, changing environments and difficult decisions which can create distractions from the business goals if the entrepreneur does not exhibit discipline.
Elon Musk is known for his discipline in his approach to his enterprises. He has been known to work up to 80 hours a week, sleep in his office, strictly adhere to deadlines and continually expand his knowledge and skills through reading and learning.
Drive is the combination of passion and determination that enables entrepreneurs to seize opportunities and make their vision a reality. Drive is the intrinsic, long-term trait that fuels motivation and the pursuit of goals.
TOMS, founded by Blake Mycoskie, is well-known for its "One for One" business strategy, in which one pair of shoes is given to a kid in need for each pair sold. Even though there were difficulties in the beginning, Blake persevered and created a socially conscious company that has donated millions of pairs of shoes and expanded its product line to include eyewear and coffee.
Adaptability and flexibility is the ability to adjust efficiently and effectively to changing conditions. This requires an open-minded approach to embrace new ideas and ways of working. This trait allows entrepreneurs to respond to expected and unexpected changes in the market to stay relevant and competitive.
The Virgin Group's founder, Richard Branson, is renowned for his capacity to adapt to shifting market conditions. Beginning with a mail-order record company, Branson gradually diversified into industries like music, aviation, telecommunications, and space tourism.
Intuition is the capacity to make quick and insightful decisions based on instinct, experience, and a thorough awareness of the business environment that allows a subconscious processing of information to guide decisions. It requires sharp judgement and the ability to trust one's instincts even in the face of uncertainty or inadequate information.
Steve Jobs, one of the co-founders of Apple Inc., was well known for his innate awareness of customer wants and his foresight into emerging market trends. Jobs had an instinctive awareness of the shortcomings of the current generation of portable music players, including their bulk, poor user interfaces, and small storage capacities. Early in the 2000s, he introduced the iPod, changing the market's trajectory.
Persuading is the skill of convincing others to agree with a vision or viewpoint or take action through effectively communicating and presenting arguments. Entrepreneurs often have to persuade others to access finance, make sales, secure supplier contracts and collaborate on decision-making with partners during the early stages of business where the future is still uncertain.
Former Gatorade and Equinox Fitness president Sarah Robb O'Hagan demonstrated outstanding persuasion abilities. The sports drink company was dealing with rising competition and stagnant growth when she joined the company. She was successful in repositioning Gatorade as a sports performance brand by clearly outlining the advantages of its merchandise and highlighting how it may improve athletic performance and speed up recovery.
Imagination is the ability to visualise something that does not yet exist. This allows a person to generate new ideas, scenarios and outcomes. Entrepreneurs can use their imagination to invent new products, make changes to existing products, plan to solve future problems and meet any unmet customer needs.
Dean Kamen is well known for his inventive and cutting-edge ideas. The Segway is one of his most noteworthy creations. Kamen had an idea for an advanced kind of personal transportation that would be quick, eco-friendly, and simple to use. The Segway is an electric self-balancing vehicle with a distinctive design that makes use of sensors and gyroscopes to keep its balance while moving.
The desire to succeed and grow is an intrinsic trait where a person has the drive to continually improve themselves, and their accomplishments and to make their life meaningful. This may lead to learning new skills, changing roles in work to learn about different areas and making connections to learn and benefit from other people. Entrepreneurs often have a desire to succeed which leads them to setting up their venture despite the challenges and risks involved.
Jack Ma, the founder of Alibaba, faced numerous challenges and setbacks on his road to success including obtaining finance. His unyielding belief in his venture and his desire to succeed and row propelled him to create one of the largest e-commerce enterprises in the world.
Vision is a forward-thinking perspective where a person has the foresight to predict how things will turn out in the future. Vision allows entrepreneurs to anticipate future trends, opportunities and threats to inform their strategic decision-making.
James Dyson, an inventor and founder of Dyson, had a vision to change how vacuum cleaners operate. He spent several years refining his invention despite several rejections before launching the Dyson vacuum cleaner. Dyson is now one of the top names in the household appliance market.
The capacity to inspire is the ability of one person to motivate or influence. It involves creating a compelling vision and fostering enthusiasm and excitement in others. Inspirational people can communicate their vision in a way that resonates with people, thereby encouraging them to contribute to achieving it.
Pat Brown, founder of Impossible Foods, is well-known for his plant-based meat substitutes. Brown's goal is to develop tasty and environmentally friendly plant-based alternatives to animal agriculture to reduce negative environmental effects. Brown has encouraged both businesspeople and consumers to reevaluate their dietary preferences and look into more environmentally friendly options.
Focus is the ability to concentrate on a specific goal or task which increases productivity and chances of success. Entrepreneurs have limited time and a variety of responsibilities so must prioritise how they allocate their time and attention. They use focus to direct their attention on specific aspects of a business by avoiding unnecessary distractions.
Reed Hastings, co-founder of Netflix, had the vision of transforming Netflix from a DVD rental company to streaming digital content. This involved a major overhaul in business operations but his focus on his belief that the transformation in how people consume entertainment led to Netflix having first mover advantage in the entertainment streaming market.
