The Nature of Entrepreneurship

1. ENTREPRENEURIAL
MIND-SET
WORKSHOP
By: Inas Afifah Zahra, S.E., S.Pd., S.Th.I., M.Si, CPR., CCM
Lecturer of Jakarta State Polytechnic

2. TABLE OF CONTENTS
The nature of
entrepreneurship
ROLE MODELS AND
SUPPORT SYSTEMS
01.
02.
04.
THE INTENTION TO ACT
ENTREPRENEURIALLY
05. SUSTAINABLE
ENTREPRENEURSHIP
03. ENTREPRENEUR BACKGROUND
AND CHARACTERISTICS

3. THE NATURE OF
ENTREPRENEURSHIP
01.

5. The Beginning of
Entrepreneurial Actions:
The Nexus of
“Lucrative
Opportunity”
An
Enterprising
Individuals
Knowledge &
Experience
Persistence &
Endurance
The
Philosophy

6. The nature of entrepreneurship
Entrepreneurial
Opportunities
Entrepreneurial
Action
Entrepreneurial
Thinking
02
01 03

7. Entrepreneurial Opportunities
• Situations in which new goods, services, raw materials, and organizing methods
can be introduced and sold at greater than their cost of production.
Examples:
❑ Creating “New Market”
❑ Creating “New Technological Product”
❑ Creating “New Product & New Market”
Require an “ENTERPRISING”
individual or group
to recognize, evaluate, and
exploit the situations
POSSIBLE OPPORTUNITIES
Action → “Entrepreneurial
Action”

8. Entrepreneurial Action
• Involves the creation of new products, new processes, and entry into new
markets → new organizations, and established organizations
ACT what they believe OPPORTUNITY
Generate/Create
HIGH
UNCERTAINTY DOUBT
SOLUTIONS???

9. Entrepreneurial Action
SOLUTIONS:
Individual’s Prior
KNOWLEDGE
Individual’s
MOTIVATION

11. Entrepreneurial Action
Individual’s Prior
KNOWLEDGE
Assessing the amount of
uncertainty in the surrounding
opportunity
Noticing the signals of
change in the external
environment that represent
“POSSIBLE
OPPORTUNITY”
DECREASING
UNCERTAINTY
DETERMINATING
OPPORTUNITY

12. Entrepreneurial Action
Individual’s
Motivation
Indicating a willingness to
bear uncertainty
Assessing opportunity
Strategy:
1. Desirable according
to Motivation
2. Feasible according
to Knowledge

13. Entrepreneurial Action
To be an Entrepreneur:
To act on the possibility that one has identified an
opportunity “WORTH PURSUING”
Involving → “Entrepreneurial
Thinking”

14. Entrepreneurial Thinking
• Individuals’ mental processes of overcoming ignorance to decide whether a
signal represents an opportunity for someone and/or reducing doubt as to
whether an opportunity for them specifically, and/or processing feedback from
action steps taken.
How
Entrepreneurs
Think??
“Think Differently”
OFTEN making decisions in
highly uncertain environments

15. Entrepreneurial Thinking
Think
structurally
ENGAGE IN
BRICOLAGE
EFFECTUATE
COGNITIVELY
ADAPT

16. Entrepreneurial Thinking
Think
structurally
OPPORTUNITY
Requires Creative Mental
Leaps
One’s Existing Knowledge
New Market
New Product
“The Source”
“The Destination”

17. Entrepreneurial Thinking
ENGAGE IN
BRICOLAGE
“OPPORTUNITY”
Combination of Resources
New
Problems
New
Opportunities
Experimenting, Tinkering, Repackaging
Making Do

18. Entrepreneurial Thinking
EFFECTUATE “Taking What They Have”
(Alternative Thinking)
Who They Are, What They
Know, and Whom They
Know
(Select Among Possible Outcomes)
“CREATING OPPORTUNITY”

19. Entrepreneurial Thinking
EFFECTUATE “CREATING OPPORTUNITY”
Entrepreneurial Mind-Set
Ability to: Sense, Act, and Mobilize Rapidly
→ Under Uncertain Conditions
Needs to Develop →
“Cognitive Adaptability”

20. Case 1: Do Entrepreneurs Benefit From Paranoia?

21. Entrepreneurial Thinking
COGNITIVELY
ADAPT
THE EXTENT TO
WHICH
ENTREPRENEURS
ARE:
Dynamic, Flexible, Self-
Regulating, and Engaged in
The Process of Generating
Multiple Decision
Frameworks
Sensing and
Processing
Changes
Acting on
Them

22. Entrepreneurial Thinking
COGNITIVELY
ADAPT
Entrepreneur’s Meta
Cognitive Awareness
The Ability to: Reflect Upon, Understand, and
Control One’s Thinking and Learning
“HIGHER ORDER COGNITIVE
PROCESS”

23. ACHIEVING COGNITIVE ADAPTABILITY
COMPREHENSION
QUESTIONS
Identify strategies that are
appropriate for solving the
problem or pursuing
opportunity
STRATEGIC
TASKS
Increase entrepreneurs’
understanding of the nature
of the environment
CONNECTION
TASKS
Stimulate entrepreneurs to think
about their understanding and
feelings as they progress through
the entrepreneurial process
REFLECTION
TASKS
Stimulate thinking about
similarities and differences of
current situations
ENTREPRENEURSHIP

24. Survey 1: How Cognitively Flexible Are You?

25. THE INTENTION TO ACT
ENTREPRENEURIALLY
02.

26. INTENTION
The motivational factors that influence behavior:
❖ How hard people are willing to try
❖ How much an effort they are planning to exert
The STRONGER INTENTION = The STRONGER
PERFORMANCE

27. c
THE INTENTION TO ACT ENTREPRENEURIALLY
FEASIBILITY
Entrepreneurial Self-
Efficacy
DESIRABILITY
Perceived Desirability
Personal capability to
do a particular job/set
of tasks
The Degree to which a potential
entrepreneurial outcome is
evaluated as favorable or
unfavorable

28. ENTREPRENEUR BACKGROUND
AND CHARACTERISTICS
03.

29. BACKGROUND AND CHARACTERISTICS
EDUCATION WORK HISTORY
AGE

30. EDUCATION AGE
• Education is IMPORTANT → helping entrepreneurs cope
with the problems they confront
• Formal Education:
→ Provide a GOOD background = Related to the field of
venture
→ Examples: Finance, Strategic Planning, Marketing,
Management
• General Education and Experience:
→ Provide: Knowledge, Skills, Problem-Solving Abilities
→ Larger opportunity
→ Adapt to new situations/different situations

31. AGE
• Entrepreneurial Age vs. Chronological Age
• Entrepreneurial Age:
→ based on Entrepreneurial Experiences
→ Best predictors of success (especially when new
venture is the same field as the previous business
experience)
• Chronological Age:
→ Entrepreneurial careers
→ 22 – 45 years old = Experience, Financial Support,
High Energy Level
→ Milestone ages every 5 years = Male: early 30’s,
Female: middle 30’s
AGE

32. • Past work experience of an individual
• Influence the decision to launch a new entrepreneurial
venture
• Managerial experience and skills
AGE
WORK HISTORY

33. ROLE MODELS AND SUPPORT
SYSTEMS
04.

34. ROLE MODELS:
INFORMATION ADVICE
GUIDANCE
“During and after” the
launch of a new venture
MENTORS
Individuals whose example an entrepreneur can aspire to and
copy

35. Support systems:
CONTACTS CONNECTIONS
NETWORK
Frequent, in-depth, and mutually
beneficial relationship
SOCIAL

36. ENTREPRENEURIAL ACTIVITY:
BUSINESS NETWORKS
NETWORK
NETWORKS OF INTERPERSONAL
RELATIONSHIPS Networks of
Interpersonal
Relationships
Common Interest Friendship Trust
Business Networks
Independent Firms
Linked by
Facilitates the
pursuit of
opportunities

37. SUSTAINABLE
ENTREPRENEURSHIP
05.

38. Sustainable entrepreneurship
LIFE SUPPORT COMMUNITY
PRODUCTS PROCESSES SERVICES
PRESERVING
NATURE
Gaining economic and non-economic benefits to individuals, the economy,
and society

39. Case 2:
An Organization’s
Code of Ethics

43. CREDITS: This presentation template was created by Slidesgo, and
includes icons by Flaticon, and infographics & images by Freepik
THANKS!
Inas Afifah Zahra
inasafifahzahra@gmail.com