The entrepreneurial mindset does not only belong to the owners of different enterprises but this quality can be present in many people related to different fields. Focusing on the entrepreneurial mindset, it is the characteristic which motivates the person to evaluate, exploit and discover opportunities. This characteristic is common in habitual entrepreneurs who are different from ordinary business managers as they are passionate in seeking new opportunities and bypass other unfruitful options in order to keep themselves safe from exhaustion. They are keen to concentrate on adaptive executions and they motivate their team members so that the common goal can be achieved (McGrath and MacMillan, 2000).

1. Exploration of
Entrepreneurial
Mindset
"An entrepreneur is someone
who jumps off a cliff and builds a
plane on the way down.“
Reid Hoffman
Author’s Name: Imran Imtiaz Butt
Date: 10/03/2018

2. Definition:
• “Entrepreneurial mindset states to a particular state of mind
which adjusts human conduct towards entrepreneurial
activities and outcomes. Individuals with entrepreneurial
mindsets are habitually drawn to innovation, opportunities
and new value creation” – Business Dictionary
• This characteristic is common in habitual entrepreneurs who
are different from ordinary business managers as they are
passionate in seeking new opportunities and bypass other
unfruitful options in order to keep themselves safe from
exhaustion (McGrath & MacMillan, 2000).

3. Characteristics of
Entrepreneurs:
• High need for Achievement (n-Ach).
• Risk taking capability.
• Strong internal locus of control.
• Self-reliance.
• Economic driver.

4. Are Entrepreneurs born or made?
Many researchers have given their statements on
whether entrepreneurs are born or made. In
literature, this topic has mixed views with clear
statements.
• Entrepreneurs are born:
According to Gartner (1989), he stated that “once an
entrepreneur, always an entrepreneur”..
• Entrepreneurs are made:
The characteristics of entrepreneurship can be
attained and every person can achieved the traits
through knowledge, skills and aptitude (Fayolle, 2003).

5. Situational and Personal Factors’
Influence on Entrepreneurship
• Motivation
• Culture
• Social Norms
• Family Orientation
• Educational Background

6. Factors that influence decision of
starting up new business
• Personal Characteristics
• Financial Support
• Family Backup
• Education of Entrepreneurship
• Experience

7. Benefits of Entrepreneurship
• Ultimate control:
• Rational Salary and income:
• Freedom of work:
• Self-Actualization:

8. Risk in Entrepreneurship
• Lack of Professionalism:
• Aggressive Competition:
• Limited Financial Resources:
• Trainings of Employees:

9. Conclusion
• It has become evident through research papers from different
authors that entrepreneurs possess special traits and characteristics
that allow them to be triumphant where others become
unsuccessful. These traits however, can be developed through the
influence of external factors such as motivation, education, societal
norms, culture or family support and can be naturally possessed by
some individuals who have charismatic personalities by birth. But
these theories are not universally viable as they all have some
limitations and exceptions. Entrepreneurship mindset has some
unique characteristics which differentiate it from a common
mindset. These characteristics are associated with the thirst of
curiosity, high need for achievement and internal locus of control.
Entrepreneurship ventures have provide both benefits and risks but
it is up to the entrepreneurs that how well they take decisions which
can become beneficial for their organizations.

10. Notes(Slide2):
• The entrepreneurial mindset does not only belong to the owners of different enterprises but this quality can be present in many people
related to different fields. Now the major companies are seeking, rewarding and fostering employees having entrepreneurial mindset
which are also known as “Intrapreneurs”. These companies nurture and encourage the employees having entrepreneurial mindset to the
extent in which their corporate culture can allow and sustain the entrepreneurial thoughts within the organization (Morris et. at., 2008).
Many authors have called entrepreneurship as a vital part in the growth of economy, terming it as a “game changing concept” for the
businesses competing and overtaking the competitors (Lewis, 2012).
• Focusing on the entrepreneurial mindset, it is the characteristic which motivates the person to evaluate, exploit and discover
opportunities. This characteristic is common in habitual entrepreneurs who are different from ordinary business managers as they are
passionate in seeking new opportunities and bypass other unfruitful options in order to keep themselves safe from exhaustion. They are
keen to concentrate on adaptive executions and they motivate their team members so that the common goal can be achieved (McGrath
and MacMillan, 2000).
• Many researchers have put forward their theories upon whether the entrepreneurs are made or born. However, there are major
differences between the attitudes of common person and entrepreneur but that does not prove that entrepreneurs have these
characteristics by birth.
• But theoretically, many researchers faced difficulty in finding out why some people have more entrepreneurial characteristics than
others as entrepreneurs have many traits which differentiates them from others (Cromie, 2000). There are many theories which explain
that some people are more enterprising than others. These theories are related to behaviour, personality, sociology and economy (Bridge
et al., 2003).
Notes(Slide3):
• High Need for Achievement (n-Ach):
The successful entrepreneurs are achievers who try to excel in their fields rather than power seekers or affiliation seekers. The need for
achievement (n-Ach) describes the desire to produce results that are near to perfection with high standard (McClelland, 1961). The trait of
high (n-Ach) in entrepreneurs mean that he/she is very much confident over his/her decisions and working, ready to take medium risks, self
accountable and continuously examines the external factors (McClelland, 1961).
• Risk taking capability:
Another trait of entrepreneurs is that they are calculated risk takers. They usually take risks based on the information exclusively available to
them rather than others, which shows that their risk taking capability is moderate (Drucker, 1985). The risks are taken only when the
opportunities are clearly examined with the pros and cons so that the risk can be minimized. The risk taking trait is essential when a person is
running an entrepreneurial venture as he/she must take risk in order to bring innovative product to the market by investing his/her capital on
unpredictable outcome.

11. • Strong Internal Locus of Control:
•
• The entrepreneurs are equipped with strong internal locus of control as they feel that the external factors can be controlled through
themselves rather than depending on the luck and fate (Rotter, 1966). The internal locus of control defines the belief upon oneself that
he/she can influence and design the desired outcomes through his/her skills, intelligence, self-determination and ability. This trait is
closely related to the entrepreneurial activity which is opposite to the external locus of control where a person attributes his/her success
and failure to external factors. Therefore, people with internal locus of control are more likely to be successful entrepreneurs because
their command and control over their business would be strong (Manimala, 1999).
• Self-Reliance:
•
• The individuals having entrepreneurial skills are more likely to shun restrictions and rely on their own decisions which make them self-
reliant. This characteristic is developed from the childhood where the individual experienced the psycho-social deprivations and
therefore develops a model of business where there should be less dependency on others. The driving forces for this characteristic are
desire for independence, frustration and self-sufficiency (Kets de Vries, 1977). Entrepreneurs are free minded people; they prefer to take
sole decisions based on the opinions of other rather than allowing external influence over their own decisions such as rules, societal
norms and procedures (Collins and Moore, 1970).
• Economic Driver:
•
• Entrepreneurs are considered to be the economic drivers as they try to put forward innovative methods and ideas that can benefit them
and their company with profitable gains. Their innovative thinking and opportunity seeking attitude along with foreseeing, self
confidence and proper judgement enables them to achieve economic gains in the form of increase in revenue or monetary profits
(Casson, 1982). The entrepreneurs turn their ideas into reality which benefits many people in the form of job creation, new innovative
product introductions and economical boost.

12. Notes(Slide4):
• Entrepreneurs are born:
By only discussing the traits mentioned above in this report, we can assume that some traits are directly related to the ones
personality which does not have a correlation with external factors. According to Gartner (1989), he stated that “once an
entrepreneur, always an entrepreneur”. This statement clearly defines that some of the features of the entrepreneurs are
naturally possessed in his/her self and the external environmental conditions do not affect the development or alteration in the
attitudes of entrepreneurs. Some researcher also proposed that the entrepreneurial traits are in genes of potential
entrepreneurs. The traits evolve in the early life of the entrepreneurs and the person start to cash opportunities (Andrews,
1998). The person cannot take decisions and risks in order to avail potential opportunities if he/she does not have the inborn
characteristics of entrepreneur (Cunningham & Lischeron, 1991).
• Entrepreneurs are made:
The statements of other researchers’ group on the contrary to the above views give the picture that entrepreneurs are made not
born. Many researchers believe that the entrepreneurial traits are not permanently possessed by the entrepreneurs but these
may vary venture to venture and time to time, which shows that the enterprising behaviour of entrepreneurs are deliberate
(Wickham, 2006). The characteristics of entrepreneurship are not instinctive but originate from the deprivation of emotional,
social and economic factors in a person (Flora, 2005). The characteristics of entrepreneurship can be attained and every person
can achieved the traits through knowledge, skills and aptitude. These traits can be developed in any individual if he/she goes
through proper entrepreneurial trainings and literature (Fayolle, 2003).
Notes(Slide5):
Many factors surrounding the individual play important roles in the making of entrepreneurs. These factors may decide whether
the individual will become an entrepreneur or not. Some of the situational factors involve socio-cultural attributes that drive the
entrepreneurial attitude among the people. Other personal factors include motivational factors and curiosity to create appetite for
initiating business ventures (Van de Ven, 1993).
• Motivation:
The major factor which makes an entrepreneur is motivation. Entrepreneurs are likely to be more motivated then managers.
High level of motivation is common in entrepreneurship roles as this factor gives the thirst to initiate business ventures and bring
innovation. Entrepreneurs are less constrained by organizational structure’s complexities and standardizations (Stewart and
Roth, 2007). Motivation gives entrepreneur to think beyond the earning of bread and butter for the family as they are highly
motivated to achieve self-actualization by growing their business more and more, which is not common in managers (Stewart
and Roth, 2007).

13. • Culture:
• The role of culture is essential for the nourishment of entrepreneur activity in the country as this factor act as a catalyst in
promoting awareness of innovative ideas and business start-up benefits. Through culture, the individual can transform his /
her behaviour and come up with novel ideas. Although, culture is the mental programming of the society the how the people
deal with day to day challenges. This mental programming can be different from culture to culture (Baughn & Neupert,
2003).
• Social Norms:
• Social norms are the unofficial rules of conduct of a group which impact the individual-level decision-making process. These
norms help the person in changing behaviour according to the external factors. These norms have great impact on the
behaviour of entrepreneurs due to the reason of unemployment, family pressure, expectations of close relatives and friends
as well as commitment to oneself for attainment of better future (Kennedy et al,. 2003).
• Family Orientation:
• The presumption emphasize that factors such as family background and orientation are basis for emergence of
entrepreneurs and entrepreneurial characteristics. The family orientation posited the role of the family in nurturing the
character of entrepreneurs. It is believed that the home atmosphere and values of an entrepreneurial family can provide a
great deal of developing and support for growth of entrepreneurial character or personality (Kuratko, 1989).
• Educational Background:
• The educational background presumption explains that educational development aids entrepreneurial appearance through
creation of attentiveness and new orientation and knowledge. It is asserted that societies with high level of education likely
to produce more entrepreneurs than societies with less educated persons. The advanced and developed nations are
referenced examples of such societies (Kuratko, 1989).

14. Notes(Slide6):
• Factors that influence decision of starting up new business:
• The personal and environmental factors play essential roles in the decision process of starting up new businesses and small
enterprises. The entrepreneurship is not a state of being but it is a process that requires skills and support from one self as
well as from other people (Bygrave, 1989). This process needs a lot of time to fully develop and become successful. Below
are some of the factors that can influence the decision of starting new business.
• Personal Characteristics:
• Personal attributes play major role in business start-ups as the individual must be equipped with self-confidence, good
decision making skills and determination in order to become a successful entrepreneur. It is evident that high level of self-
confidence has a positive impact upon the success of new business ventures (Kolveried, 1996).
• Financial Support:
• Every business start-up needs financial resources in order to get things done correctly in terms of buying of raw materials,
new investments, hiring of people, security deposits, transaction etc. This factor needs to be taken into consideration in the
form of bank loans, investors and other financial assistance. The amount of financial support can give the entrepreneur a
vivid idea that what type of business and on which scale the company should be started (Evans and Jovanovic, 1989).
• Family:
• Numerous examples of SMEs are present which describe that one person from the family takes initiative to start a business
and after some time he / she involves other family members in that business to grow it more. The support of such family
members plays a vital role for individuals to attain entrepreneurship activities (Bagheri & Pihie, 2010). The family members
and friends are the first source of information and informal advice for any entrepreneur when he / she is going to start the
new business (Greene & Saridakis, 2007).
• Education:
• Prior studies point out that entrepreneurship teaching can help individuals to be successful entrepreneurs. Entrepreneurship
education can give confidence to individual to set up their own businesses by giving them with business management skills to
integrate knowledge, skills and experience to initiate start-ups (Kirby, 2004). Courses regarding entrepreneurship also
increase awareness by providing individuals with broad information about entrepreneurial activities that makes them to
think of entrepreneurship as a profession and earning of bread and butter (Mazura & Norasmah, 2011).
• Experience:
• Every business start-up needs such type of person behind it who has some kind of experience related to the field.
Inexperienced person have little chance of acquiring successful business start-up. There are many examples of successful
business ventures which were started by those individual who have a vast experience of business or employment related to
the field of their business (Delmar & Davidsson, 2000).

15. Notes(Slide7):
• Benefits of Entrepreneurship:
Entrepreneurship has many benefits and rewards both in terms of non-financial or financial perspective. When considering non-
financial perspective, the entrepreneurship gives competitive advantages, autonomy in decision making, self actualization,
increased productivity and freedom of work (Hitt et al., 2001). While considering financial perspective, entrepreneurship
increases wealth, provide economical boost, multiplies profit, rational salary and job creation (Reynold et al,. 2004). Some of the
major benefits of entrepreneurship are as follows:
• Ultimate control:
Entrepreneurship gives power and strength to the entrepreneur regarding the ultimate control of the organization with
autonomy to take critical decisions for the betterment of the company.
• Rational Salary and income:
The entrepreneur can enjoy rational income upon the amount of hardwork and growth of the company. The more he / she gives
his skills and time to the business, the more financial reward he can get.
• Freedom of work:
Entrepreneurs can enjoy freedom of work and can easily maintain work-life balance. They can schedule their time with respect
to the priorities set by them.
• Self-Actualization:
Entrepreneurship can provide the entrepreneurs the state of self-actualization where they become self aware of their strengths
and weaknesses. In this stage, the individual become satisfied with all necessities of live and ready to meet bigger challenges that
can fulfill their appetite of thrill and adventure.

16. Notes(Slide8):
• Risk in Entrepreneurship:
Apart from benefits, there are also many risk factors associated with entrepreneurship venture. Business risks occur when there
is an uncertainty factor involves in the future outcomes from current decisions. This uncertainty factor can only be minimized if
proper analysis of market and appropriate decision making are implemented within the organization (Busenitz, 1999). Some of
the major risks in entrepreneurship are described as follows:
• Lack of Professionalism:
The major risk associated with business start-ups is lack of professionalism and responsibility. When the company is at its initial
stage, there may be high chances of occurrence of unprofessional decision making processes due to undeveloped managerial
system.
• Aggressive Competition:
The company could face fierce and aggressive competition in the market when it enters initially in business. In this case, the
management of the start-up should lower then margin in order to penetrate in the market or prove their uniqueness in their
products.
• Limited Financial Resources:
Most of the new business ventures face financial limitations during their initial stage because the company is not that much
matured in order to sustain the high overheads and financial setbacks.
• Trainings of Employees:
Most of the business start-ups require additional amount in order to provide additional training and development program to the
employees so that their employees can work efficiently.