{"id":33591,"date":"2020-03-04T18:34:51","date_gmt":"2020-03-04T23:34:51","guid":{"rendered":"https:\/\/www.myedme.com\/login\/?p=33591"},"modified":"2020-03-04T18:34:57","modified_gmt":"2020-03-04T23:34:57","slug":"entrepreneurship-mindset","status":"publish","type":"post","link":"https:\/\/myedme.com\/login\/entrepreneurship-mindset\/","title":{"rendered":"Entrepreneurship Mindset"},"content":{"rendered":"\n

Entrepreneurship takes many forms (see Table 1.1<\/a>), but entrepreneurs share a major trait in common: An entrepreneur\n is someone who identifies an opportunity and chooses to act on that \nopportunity. Most business ventures are innovative variations of an \nexisting idea that has spread across communities, regions, and \ncountries, such as starting a restaurant or opening a retail store. \nThese business ventures are, in some ways, a lower-risk approach but \nnonetheless are entrepreneurial in some way. For example, Warby Parker, a profitable startup founded by four graduate students at Wharton, disrupted a major incumbent (Luxottica)\n by providing a more convenient (online initially), affordable, and \nstylish product line for a large segment of consumers. In this sense, \ntheir innovation is about creating something new, unique, or different \nfrom the mainstream. Yet they attracted an existing, and in some ways \nmature, sector of an established industry. In a different way, McDonalds,\n which is 90 percent owned by franchisees, introduced an \u201call day \nbreakfast\u201d menu in 2017 that was hugely successful; it also targeted a \nlarger segment (in part younger consumers) and brought back consumers \nwho had chosen other options. In summary, many entrepreneurs start a new\n venture by solving a problem that is significant, offering some value \nthat other people would appreciate if the product or service were \navailable to them. Other entrepreneurs, in contrast, start a venture by \noffering a \u201cbetter mousetrap\u201d in terms of a product, service, or both. \nIn any case, it is vital that the entrepreneur understand the market and\n target segment well, articulate a key unmet need (\u201cpain point\u201d), and \ndevelop and deliver a solution that is both viable and feasible. In that\n aspect, many entrepreneurs mitigate risks before they launch the \nventure.<\/p>\n\n\n\n

Being aware of your surroundings and\n the encounters in your life can reveal multiple opportunities for \nentrepreneurship. In our daily lives, we constantly find areas where \nimprovements could be made. For example, you might ask, \u201cWhat if we \ndidn\u2019t have to commute to work?\u201d \u201cWhat if we didn\u2019t have to own a \nvehicle but still had access to one?\u201d \u201cWhat if we could relax while \ndriving to work instead of being stressed out by traffic?\u201d These types \nof questions inspired entrepreneurial ventures such as ride-sharing \nservices like Uber, the self-driving vehicle industry,21<\/a><\/sup> and short-term bicycle access in the free bike-sharing program in Pella, Iowa (Figure 1.10<\/a>).22<\/a><\/sup><\/p>\n\n\n\n

\"Photo<\/figure>\n\n\n\n

Figure 1.10 A\n bike-sharing program in Pella, Iowa, allows users to access bikes at a \nvariety of locations. (credit: \u201cCorral of VeoRide Dockless Bike Share\u201d \nby \u201cpaul.wasneski\u201d\/Flickr, Public Domain)\n\n<\/p>\n\n\n\n

These ideas resulted from having an entrepreneurial mindset,\n an awareness and focus on identifying an opportunity through solving a \nproblem, and a willingness to move forward to advance that idea. The \nentrepreneurial mindset is the lens through which the entrepreneur views\n the world, where everything is considered in light of the \nentrepreneurial business. The business is always a consideration when \nthe entrepreneur makes a decision. In most cases, the action that the \nentrepreneur takes is for the benefit of the business, but sometimes, it\n helps the entrepreneur get ready to adopt the appropriate mindset. The \nmindset becomes a way of life for the entrepreneur. Entrepreneurs often \nare predisposed to action to achieve their goals and objectives. They \nare forward thinking, always planning ahead, and they are engaged in \n\u201cwhat if\u201d analyses. They frequently ask themselves, \u201cWhat if we did \nthis?\u201d \u201cWhat if a competitor did that?\u201d\u2014and consider what the business \nimplications would be.<\/p>\n\n\n\n

Most people follow habits and traditions without\n being aware of their surroundings or noticing the opportunities to \nbecome entrepreneurs. Because anyone can change their perspective from \nfollowing established patterns to noticing the opportunities around \nthem, anyone can become an entrepreneur. There is no restriction on age,\n gender, race, country of origin, or personal income. To become an \nentrepreneur, you need to recognize that an opportunity exists and be \nwilling to act on it. Note, however, that the execution of the \nentrepreneurial mindset varies in different parts of the world. For \nexample, in many Asian cultures, group decision-making is more common \nand valued as a character trait. In these regions, an entrepreneur would\n likely ask the advice of family members or other business associates \nbefore taking action. In contrast, individualism is highly valued in the\n United States and so many US entrepreneurs will decide to implement a \nplan for the business without consulting others.<\/p>\n\n\n\n

Entrepreneurial Spirit and Passion<\/h3>\n\n\n\n

An entrepreneurial spirit\n allows entrepreneurs to carry a manner of thinking with them each day \nthat allows them to overcome obstacles and to meet challenges with a \ncan-do attitude. What does it mean to have an entrepreneurial spirit? \nFor the purposes of this discussion, it could mean being passionate, \npurposeful, positive, bold, curious, or persistent.<\/p>\n\n\n\n

The founders of Airbnb\n have a passion for supporting individual rights to rent out unused \nspace. Why should the established model of hotels prevail? Why shouldn\u2019t\n an individual homeowner have the freedom to rent out unused space and \nleverage that space into an income? Airbnb has succeeded in creating \nmore flexible and affordable options in the space of the rapidly growing\n “sharing” economy. At the same time, some states and municipalities \nhave raised issues about the regulations monitoring ventures like this. \nWhile entrepreneurial spirit is partly about fighting for individual \nrights and freedoms, there should be a balance between economic freedom \nand consumer protection. The entrepreneurial spirit involves a passion \nfor presenting an idea that is worthwhile and valuable, and a \nwillingness to think beyond established patterns and processes, while \nstill keeping in mind local laws and regulations, in the quest to change\n those established patterns, or at least to offer alternatives to those \nestablished patterns.<\/p>\n\n\n\n

Passion is a critical component of the \nentrepreneurial process. Without it, an entrepreneur can lose the drive \nto run the business. Passion can keep an entrepreneur going when the \noutside world sends negative messages or less-than-positive feedback. \nFor example, if you are truly passionate about starting an animal \nshelter because of your love of animals, you will find a way to make it \nhappen. Your internal drive to help animals in need will spur you on to \ndo whatever it takes to make the shelter become a reality. The same is \ntrue of other types of startups and owners with similar passions. \nHowever, passion needs to be informed by the entrepreneur\u2019s vision and \nmission\u2014passion of the sake of passion is not enough. A clear mission statement\u2014which\n details why the business exists and the entrepreneur\u2019s objectives for \nachieving that mission\u2014will guide an entrepreneur\u2019s passion and keep the\n business on track. Passion, vision, and mission can reinforce each \nother and keep the entrepreneur on the right track with next steps for \nthe business.<\/p>\n\n\n\n

Some ideas might seem small or insignificant, \nbut in the field of entrepreneurship, it\u2019s important to recognize that \nfor every new startup, someone else may recognize a spin-off idea that \nexpands upon the original idea. The opportunities for identifying new \npossibilities are endless. Review your work in creating spinoff ideas \nfor Angad Darvani\u2019s projects, or Kevin F. Adler\u2019s Miracle Messages \nventure. Or consider possible spin-off ideas around the technology used \nin agriculture. Creating spin-off ideas fits well with our discussion of\n divergent thinking and brainstorming. Through these processes, we can \ndiscover new uses for existing technology, just as Ring did by using video technology to add security by allowing customers to see who is at the door without opening it.<\/p>\n\n\n\n

An Entrepreneurial Mindset in Your Discipline or Field<\/h3>\n\n\n\n

Within your industry of interest or area of \nstudy, what are the challenges that create frustration? How can these be\n turned into opportunities? Earlier in this chapter, we discussed Evernote,\n a company that focuses on expanding our memories by storing and \norganizing information. Let\u2019s look at some other examples of \nentrepreneurial endeavors in specific industries to help you plan your \nown venture in your own industry.<\/p>\n\n\n\n

In the agriculture industry, insects, weeds, \nweather conditions, and the challenges of harvesting crops are all ripe \nfor entrepreneurial activities. The move toward organic produce has also\n affected this industry. From an entrepreneurial perspective, what \nproducts could you invent to support both organic farming and the \nproblems of insects that damage or destroy crops? The old method was to \nuse chemical sprays to kill the insects, but today, the growing demand \nfor organic foods and increased awareness of the impact of chemical \nsprays on our environment are changing this scenario. One new idea to \nsolve this problem combines a vacuum cleaner with an agriculture \nproduct.<\/p>\n\n\n\n

Link to Learning<\/h3>\n\n\n\n

Watch this video on the creation of a crop vacuum that sucks up insects and bugs<\/a> to learn more.<\/p>\n\n\n\n

A bug vacuum is an example of how using \ndivergent thinking contributed to the solution of removing bugs from \ncrops without using chemicals. In the group activity of creating \ndivergent ideas, this idea may not have been received well. However, in \nthe incubation stage, the idea must have come forward as a viable \nsolution. Entrepreneurs frequently face the challenge of pressure to \nconform to established habits and patterns within industries.<\/p>\n\n\n\n

Often, the entrepreneurial mindset\n includes futuristic ideas that shake up the normal, conventional \nprocesses that are grounded in experience over time. Tried-and-tested \nprocesses and products that have a proven history of success can be a \nformidable obstacle to new ideas. A new idea may even appear as \nimpossible or outlandish, perhaps even an embarrassment to the steady \nand predictable practices established within an industry. This can \ncreate a dilemma: Do we try something new and unproven that lacks \ndocumented research? Sometimes, we must disregard our past successes and\n research to be open to new possibilities for success and failure. An \nentrepreneurial mindset includes creativity, problem-solving skills, and\n a propensity to innovation.23<\/a><\/sup>\n Open-mindedness is one characteristic that supports creativity, problem\n solving, and innovation. Taking the time to explore new ideas, dream, \nreflect, and view situations from a new perspective contribute to the \nentrepreneurial mindset. Some innovations can lead to disruptions within\n the industry, or even create a new industry.<\/p>\n\n\n\n

The innovator\u2019s dilemma was presented by Clayton Christensen to explain disruptive technology,\n which are technologies that, once introduced, displace established \npatterns, processes, and systems previously accepted as normal or \naccepted. One example of a disruptive technology is Airbnb,\n a company that threatens the established hotel industry by connecting \npersonal resources to people who desire those resources. If you have a \nspare bedroom that you aren\u2019t using, why not sell that space to someone \nwho wants and needs the space?<\/p>\n\n\n\n

Airbnb has become a significant threat to the \nestablished hotel industry\u2019s business model of building large hotels and\n renting rooms within those hotels to their customers. Airbnb has \nreconfigured that model, and since its 2008 launch, 150 million \ntravelers have taken advantage of 3 million Airbnb listings in more than\n 191 countries. Airbnb has raised more than $3 billion (plus a $1 \nbillion credit line) and is considering selling stocks to support \nsignificant expansion. The value of Airbnb is approximately $30 billion.\n Compare this market value to Hilton\u2019s market capitalization of $19 billion and Marriott\u2019s\n of $35 billion. If you were the CEO of Hilton or Marriott, would you be\n worried? The hotel industry recognized Airbnb as a threat, and in 2016,\n began a campaign to create legislation to rein in Airbnb\u2019s growth and \npopularity. From the hotel industry\u2019s perspective, Airbnb is not playing\n by the same rules. This is the definition of disruptive technology, the\n focus on creating a new idea or process that negates or challenges \nestablished process or products.24<\/a><\/sup><\/p>\n\n\n\n

Sometimes disruptive technologies result from not<\/em>\n listening to customers. Customers don\u2019t always know what they want. \nCustomer groups might need to be redefined by the entrepreneurial team \non the basis of better models, knowing when to invest in developing \nlower-performance products that promise lower margins while still \nsatisfying the need, and knowing when to pursue small markets at the \nexpense of larger or established markets. Basically, disruptive \ntechnologies occur through identifying new and valuable processes and \nproducts.<\/p>\n\n\n\n

The founders of Airbnb recognized that some \npeople have unused resources, bedrooms, that other people need. We can \napply this idea to other unused resources such as vehicles and motor \nhomes. We see this model reproduced in short-term car rental and \nbike-sharing programs.<\/p>\n\n\n\n

Footnotes<\/h3>\n\n\n\n