The Entrepreneurial Mindset

The Entrepreneurial Mindset
E.O.Masinde
Who is an Entrepreneur?
• An entrepreneur can be described as “one who creates a new business in
the face of risk and uncertainty for the purpose of achieving profit and
growth by identifying significant opportunities and assembling the
necessary resources to capitalize on them” (Zimmerer & Scarborough,
2008, p. 5).
• An entrepreneur is a person who sets up a business with the aim to make a
profit.
• This entrepreneur definition can be a bit vague, but for good reason. An
entrepreneur can be a person who sets up their first online store on the
side or a freelancer just starting out.
• The reason why they’re considered entrepreneurs, though some disagree,
is because where you start out isn’t necessarily where you’ll end up.
Who is an Entrepreneur?
• An entrepreneur is someone who starts a side hustle that can
eventually create a full-time, sustainable business with employees.
Same with the freelancer. If your entrepreneurial mindset is focused
on creating a profitable business, you fit the entrepreneur definition.
• But the entrepreneur meaning involves much more than being a
business or job creator.
• Entrepreneurs are some of the world’s most powerful transformers.
From Elon Musk sending people to Mars to Bill Gates and Steve Jobs
making computers part of every household, entrepreneurs imagine
the world differently.
• And the entrepreneur definition rarely ever talks about the enormous
impact these thought leaders have on the world.
Entrepreneurs see possibilities and
solutions where the average person
only sees annoyances and
problems.
The Entrepreneurial Mindset
• Entrepreneurs help bolster economic development, create jobs, and invent
products or services that can make the world a better place. Being a
successful entrepreneur requires outside-the-box thinking and larger-than-
life ideas. Anyone can come up with a new idea, but building a successful
business around it is the entrepreneurial challenge. The entrepreneurial
mind-set is unique in that one must be creative, communicative, and highly
motivated to succeed, yet open to risk and failure.
• The key word for Entrepreneurship is RISK
• Often times, the success or failure of an entrepreneurial venture is
determined by the characteristics of the entrepreneurs themselves.
• Suffice it to say that there is no magical formula to succeed in business (if
so, Harvard Business School would have patented it). However, there are
certain characteristics which all aspiring entrepreneurs should cultivate to
dramatically boost their own odds for success.
1. A Positive Mental Attitude
Why is a Positive Attitude Important for Entrepreneurs?
• A positive attitude and outlook is a must for successful entrepreneurs.
The mindset of the head of the company sets the tone for the rest of
the company and influences corporate culture.
• Negative thoughts undermine forward motion and the progress of the

company, not to mention the management’s ability to lead staff and
motivate employees. Part of what gives entrepreneurs the fortitude
to weather the business downturns is positivity.
1. A Positive Mental Attitude
How Can You Cultivate a Positive Attitude for Business?
• Part of relinquishing negativity is realizing that your own negative
thoughts as a company leader waste energy, time and money.
• Being positive is something which, like all life skills, can be learned.
Becoming an entrepreneur is not for the faint-hearted. The long hours
and erratic demands of heading up your own company can negatively
impact both your personal life and mental outlook.
2. A Creative Mindset
• Think of Steve Jobs and the iPhone. Edison and the light bulb. The
Wright Brothers and the airplane. Each of these ground-breaking
inventions would not have come to fruition were it not for healthy
doses of creative gumption.
• Defining Creativity: Creativity is the act of turning new and
imaginative ideas into reality. Creativity is characterised by the ability
to perceive the world in new ways, to find hidden patterns, to make
connections between seemingly unrelated phenomena, and to
generate solutions. Creativity involves two processes: thinking, then
producing.
2. A Creative Mindset
• Creativity is just connecting things. When you ask creative people how
they did something, they feel a little guilty because they didn’t really
do it, they just saw something. It seemed obvious to them after a
while. That’s because they were able to connect experiences they’ve
had and synthesize new things.” – Steve Jobs
How Can You Cultivate a Creative Mindset for Business?

• Most entrepreneurs are inherently creative thinkers; otherwise, they
would not be inspired to take the innovative leap to create their own
business. That said, we can all learn to be more creative and to tap
into our inherent talents.
3. Persuasive Communication Ability
• The best entrepreneurs are persuasive individuals. The power of
persuasion can help you negotiate, close a sale, or score a lower price
on your inventory. Not to mention, persuasive people tend to be
inspiring leaders, ergo they tend to be stellar bosses.
How Can You Cultivate Persuasiveness for Business?

• While some people are more naturally persuasive than others,
persuasive communication skills can be learned and practiced.
Learning to communicate and present your ideas will make you a
better entrepreneur—no matter what your industry is.
Reciprocate
• Psychological research has shown the “reciprocity rule” can be very
effective in business. The basics of the rule in plain language is that
when a person does you a favor, you must provide a favor in return.
Try to make your persuasive case by “giving” something to the person
you’re trying to persuade. You may just close the deal or make the
sale.
Look to Others
• Social proof is the concept that people look to others for how to
behave in social settings. Social proof can be used as a persuasive tool
in business. If you’re trying to sell one of your products, showing how
the product has been successful for others can help make that sale.
Reciprocate
• Psychological research has shown the “reciprocity rule” can be very effective in business.
The basics of the rule in plain language is that when a person does you a favor, you must
provide a favor in return. Try to make your persuasive case by “giving” something to the
person you’re trying to persuade. You may just close the deal or make the sale.
Look to Others
• Social proof is the concept that people look to others for how to behave in social
settings. Social proof can be used as a persuasive tool in business. If you’re trying to sell
one of your products, showing how the product has been successful for others can help
make that sale.
Use Labels
• Appealing to one’s reputation is a powerful persuasive tool. You can use this mode of
persuasion by indicating that they should act in a way which is consistent with a label.
For example, say, “Your restaurant is a fine French restaurant and good French
restaurants stock our wine.”
4. Intrinsic Motivation and Drive
Why is Intrinsic Motivation Important for Entrepreneurs?
• One of the top entrepreneurial characteristics is intrinsic motivation,
meaning you are self-motivated as opposed to looking to others to
push you to do things or hold you accountable. Broadly speaking,
those who own their own businesses are incredibly motivated to
succeed.
How Can You Cultivate Intrinsic Motivation for Business?

• Focus on the end game
• Goal Setting, KPI’s monitoring: Basically, high-quality goals are clear,
achievable, and manageable.
5. Tenacity and an Ability to Learn from Failure
Why Is Learning From Mistakes Important for Entrepreneurs?
• When you’re starting a business, you hope that your business will be
a wild success. It’s true that success is wonderful, but failure is where
growth and change happen. The key to learning from failure is to
actually learn and embrace your mistakes so they make your better,
not break you.
How Can You Cultivate Tenacity and Embrace Growth from Failure in
Business?
• Failure is inevitable, but your reaction to your failure is what you
make of it. Here’s how to cultivate that and use your failure to come
out even more successful in long-term.
Don’t Be Ashamed of Your Setback
• Don’t attach judgment or blame when you fail. Business failure should not make you feel
ashamed or embarrassed. Do your best to remove the emotion from mistakes you make as an
entrepreneur so you can logically explore how to better yourself and your company. Turn off your
negative self-talk and learn to say “Now I know better for next time!” instead.
Use Tough Times to Learn From Adversity
• Let times of adversity lead you to strength. Failure can be your best chance to learn how to do
something right. As a start-up new business owner and entrepreneur, you’re going to face many
firsts—first client, first business lease, first employee hire. Some of these firsts are bound to not
work out; that’s okay and expected. Use these setbacks to develop ideas and tactics for how you
want to run your business in the future.
Share Your Experiences With Others
• Failing at something is human, which means that others have forged that path before you. Share
your experiences with others you trust, whether it’s your mentor, colleagues, or staff—to gain
some outside perspective. Sharing that experience can help you collaborate to reach an even
better solution for how to handle a tricky problem in the future.
Don’t Be Afraid to Change Course and Reset
• Even the best-laid plans will sometimes go awry. That’s the nature of
life, as well as business. There will come a time when you may realize
that something simply is not working. You may have to adjust your
planned course, reset, and start over.
Never Give Up!
• One of the most important keys to success in entrepreneurship is to
never give up. Perseverance will get you through the tough times. Be
tenacious about working toward your dreams. With determination
and grit, you’ll achieve them; it just may not be overnight!

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The Entrepreneurial Mindset

• Negative thoughts undermine forward motion and the progress of the

How Can You Cultivate a Creative Mindset for Business?

How Can You Cultivate Persuasiveness for Business?

How Can You Cultivate Intrinsic Motivation for Business?

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