The Entrepreneurial The Entrepreneurial MindsetMindset

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Lecture Outl ineLecture Outl ine

What is mindset? What is mindset? What is entrepreneurial mindset?What is entrepreneurial mindset? Mindset and behaviorMindset and behavior The importance of entrepreneurial mindsetThe importance of entrepreneurial mindset Characteristics of having the right Characteristics of having the right

entrepreneurial mindsetentrepreneurial mindset Building of an entrepreneurial societyBuilding of an entrepreneurial society Effective/Ineffective entrepreneurial mindsetEffective/Ineffective entrepreneurial mindset21-03-201521-03-2015

What is mindset?What is mindset?

Mind + SetMind + Set

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mindmind

The ability to think and imagineThe ability to think and imagine

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setset

Group of things Group of things

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What is mindset?What is mindset?

MindsetMindset– A A mindset mindset refers to a set of assumptions, refers to a set of assumptions,

methods or notations held by one or more methods or notations held by one or more people or groups of people which is so people or groups of people which is so established that it creates a powerful incentive established that it creates a powerful incentive within these people or groups to continue to within these people or groups to continue to adopt or accept prior behaviors, choices, or adopt or accept prior behaviors, choices, or tools. tools.

– This phenomenon of cognitive bias is also This phenomenon of cognitive bias is also sometimes described as sometimes described as mental inertiamental inertia, , "groupthink", or a "paradigm", and it is often "groupthink", or a "paradigm", and it is often difficult to counteract its effects upon analysis difficult to counteract its effects upon analysis and decision making processes. and decision making processes.

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What is mindset?What is mindset?

According to Dr. Carol Dweck* from According to Dr. Carol Dweck* from Stanford University, US, there are two Stanford University, US, there are two sets of mindset:sets of mindset:– A fixed mindsetA fixed mindset– A growth mindsetA growth mindset

*Source: Carol C. Dweck (2006), Mindset: The New Psychology of Success, Random House

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What is mindset?What is mindset?

In a In a fixed mindsetfixed mindset , people believe , people believe that their basic qualities, like their that their basic qualities, like their intelligence or talent, are simply fixed intelligence or talent, are simply fixed traits (rigid). They spend their time traits (rigid). They spend their time documenting their intelligence or talent documenting their intelligence or talent instead of developing them. They also instead of developing them. They also believe that talent alone creates believe that talent alone creates success—without effort.success—without effort.

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What is mindset?What is mindset?

In a In a growth mindsetgrowth mindset , people believe that , people believe that their most basic abilities can be developed their most basic abilities can be developed through dedication and hard work—brains through dedication and hard work—brains and talent are just the starting point. This and talent are just the starting point. This view creates a love of learning and a view creates a love of learning and a resilience that is essential for great resilience that is essential for great accomplishment. Virtually all great people accomplishment. Virtually all great people (including entrepreneurs) have had these (including entrepreneurs) have had these qualities. qualities.

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Faces of successful Faces of successful entrepreneursentrepreneurs

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Successful Successful entrepreneursentrepreneurs Bill Gates - MicrosoftBill Gates - Microsoft Richard Branson – Virgin AirlineRichard Branson – Virgin Airline Anita Roddick – Body ShopAnita Roddick – Body Shop Konosuke Matsushita - PanasonicKonosuke Matsushita - Panasonic Steve Job – AppleSteve Job – Apple Soichiro honda - HondaSoichiro honda - Honda Akio morita - SonyAkio morita - Sony others?.others?.21-03-201521-03-2015 1414

Successful Entrepreneurs Successful Entrepreneurs (Malaysia)(Malaysia)

Syed Mokhtar Al-Bukhari - Syed Mokhtar Al-Bukhari - TradewindsTradewinds

Lim Goh Tong – Genting GroupsLim Goh Tong – Genting Groups Tony Fernandez – Air AsiaTony Fernandez – Air Asia Ananda Krisnan – MaxisAnanda Krisnan – Maxis Others?Others?

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Faces of successful Faces of successful entrepreneurs - localentrepreneurs - local

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TONY FERNANDES – AIR ASIATONY FERNANDES – AIR ASIA

ANDIANA NABILAANDIANA NABILA

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Social EntrepreneursSocial Entrepreneurs

Professor Muhammad YunusProfessor Muhammad Yunus Founder of Grameen Bank, BangladeshFounder of Grameen Bank, Bangladesh

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Test Your MindsetTest Your Mindset

You are given a set of twenty You are given a set of twenty statements.statements.

Please respond freely to those Please respond freely to those statements.statements.

There is no right or wrong answer.There is no right or wrong answer.

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Test ImplicationsTest Implications

0 10 20

GrowthMindset

FixedMindset

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Can mindset be Can mindset be changed?changed? Although people may differ in every which Although people may differ in every which

way—in their initial talents and aptitudes, way—in their initial talents and aptitudes, interests, or temperaments interests, or temperaments BUTBUT everyone everyone can change and grow through application can change and grow through application and experience. and experience.

The passion for stretching yourself and The passion for stretching yourself and sticking to it, even (or especially) when it’s sticking to it, even (or especially) when it’s not going well, is the not going well, is the HALLMARKHALLMARK of the of the growth mindsetgrowth mindset . This is the mindset that . This is the mindset that allows people to thrive during some of the allows people to thrive during some of the most challenging times in their lives. most challenging times in their lives.

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What is Entrepreneurial What is Entrepreneurial Mindset?Mindset? Is a set of cognitive (thinking) Is a set of cognitive (thinking)

processes that triggers the individuals processes that triggers the individuals to act or to behave entrepreneurially. to act or to behave entrepreneurially. – Sometimes it is called entrepreneurial Sometimes it is called entrepreneurial

talent or mentalitytalent or mentality– This mindset, talent or mentality can be This mindset, talent or mentality can be

changed and modified over timechanged and modified over time– The basis for the individual behaviorThe basis for the individual behavior

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Entrepreneurial MindsetEntrepreneurial Mindset

Having the right attitude:Having the right attitude:– Able to work without supervisionAble to work without supervision– Able to self-motivateAble to self-motivate– Able to make quick decisionsAble to make quick decisions– Able to handle stressAble to handle stress– Open-minded and flexibleOpen-minded and flexible– FocusedFocused– PersistentPersistent– Patient, etc.Patient, etc.

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MotivationKnowledge

&Skills

Attitude

• Intrinsic•Intention•Spirit•Responsibility

• Extrinsic:•Role Model•Rewards

• Pro-active• Positive values• Propensity to take risk• Creative and innovative• Inquisitive mind• Pursuing excellence

• Functional knowledge

• Entrepreneurial skills

• Managerial skills

• Technical skills• Communication skills

• IT skills

Mindset and BehaviorMindset and Behavior

Mindset affects the individual behavior at all levels

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Mindset and BehaviorMindset and Behavior

MINDSETMINDSET(Tacit)(Tacit)

APTITUDEAPTITUDE(Implicit)(Implicit)

BEHAVIORBEHAVIOR(Explicit)(Explicit)

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The Importance of The Importance of Entrepreneurial MindsetEntrepreneurial Mindset To cope with the rapidly changing economy.To cope with the rapidly changing economy.

– Business/economic environment today has Business/economic environment today has become fuzzy, chaotic/messy, complex, become fuzzy, chaotic/messy, complex, uncertain and change very rapidly.uncertain and change very rapidly.

– To succeed in the mindst of this chaos and To succeed in the mindst of this chaos and uncertainty we require the uncertainty we require the agilityagility, , creativitycreativity, , flexibilityflexibility, , innovationinnovation, , interdependenceinterdependence and and visionvision of entrepreneurs and their enterprising units.of entrepreneurs and their enterprising units.

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The Importance of The Importance of Entrepreneurial MindsetEntrepreneurial Mindset To build an entrepreneurial societyTo build an entrepreneurial society

– Developing the right mindset at a very early ageDeveloping the right mindset at a very early age– Inculcation and acculturization process need to Inculcation and acculturization process need to

implemented through various programs and implemented through various programs and activitiesactivities

– Entrepreneurs as agents of change at every Entrepreneurs as agents of change at every level of the societylevel of the society

– Important contribution to entrepreneurial capitalImportant contribution to entrepreneurial capital– Entrepreneurship as a way of life Entrepreneurship as a way of life

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ACCULTURIZATIONACCULTURIZATIONPROCESSPROCESS

ENTREPRENEURIALENTREPRENEURIALSOCIETYSOCIETY

ENTREPRENEURIALENTREPRENEURIALCAPITALCAPITAL

ENTREPRENEURIALENTREPRENEURIALECONOMYECONOMY

ECONOMIC ECONOMIC GROWTHGROWTH

Building an Building an Entrepreneurial SocietyEntrepreneurial Society

-Changing the mindset-Building the culture

-Risk-taker-Innovative-Creative-Supportive

-Human-Knowledge-Intellectual-Physical-Financial-Social

-Vibrant-Sustainable-Added value-Job creation-Higher productivity

-Higher output-Higher income per capita-Higher standard of living-Full employment

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The Importance of The Importance of Entrepreneurial MindsetEntrepreneurial Mindset To spur/encourage innovation and growthTo spur/encourage innovation and growth

– From creative people, comes creative productsFrom creative people, comes creative products– Innovation creates and adds valueInnovation creates and adds value– Finding new source of economic growthFinding new source of economic growth– Change as process, not destinyChange as process, not destiny– Thinking “out of the box” becomes norms of the Thinking “out of the box” becomes norms of the

societysociety– Innovation in every part of the value chainInnovation in every part of the value chain

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Ineffective Entrepreneurial Ineffective Entrepreneurial MindsetMindset

Don’t care attitudeDon’t care attitude Not being meticulous/ takes thing for Not being meticulous/ takes thing for

granted)granted) Passing the buckPassing the buck Why should I care?/ Careless attitudeWhy should I care?/ Careless attitude

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Ineffective Entrepreneurial Ineffective Entrepreneurial MindsetMindset

Wait and seeWait and see Non-punctualityNon-punctuality Subsidy mentalitySubsidy mentality Ask more, give lessAsk more, give less

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Developing an Effective Developing an Effective Entrepreneurial MindsetEntrepreneurial Mindset Understand what motivates youUnderstand what motivates you Know what you loveKnow what you love Challenge yourselfChallenge yourself Reversal thinkingReversal thinking Change your habit (once in a while)Change your habit (once in a while) Always believe that you canAlways believe that you can Break away from normsBreak away from norms

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SummarySummary

We (entrepreneurs) must see things We (entrepreneurs) must see things from different perspectives, willing to from different perspectives, willing to try new ways of doing things, willing to try new ways of doing things, willing to tolerate a higher level ambiguity, do tolerate a higher level ambiguity, do not fear failure, seek and embrace not fear failure, seek and embrace new norms, and most importantly to new norms, and most importantly to realign our mental attitude – the realign our mental attitude – the mindsetmindset

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ConclusionConclusion

Four (4) categories of people:Four (4) categories of people:– Makes things happenMakes things happen– See things happenSee things happen– Wonder what happenWonder what happen– Do not know what happenDo not know what happen

Which category would you l ike to be in?Which category would you l ike to be in?