ENTREPRENEURIAL

MINDSET 1
CHARACTERISTICS & PERSONAL
ENTREPRENEURIAL COMPETENCIES
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 Entrepreneurial Traits

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 Entrepreneurial Models

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 Execution
intelligence
Passion for
Business

Characteristics of
Successful
Entrepreneurs

Tenacity
despite
Product/Customer Failure
Focus

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 PASSION FOR REAL BUSINESS

• Stems from entrepreneur's belief that the business will positively

influence people’s lives.
• It is important to be enthusiastic about a business idea but it
also important to understand its potential flaws and risks.
• Entrepreneurs should understand the most effective business
ideas take hold when their passion is consistent with their
skills and in an area that represents a legitimate business
opportunity.
• Why people leave secure jobs to start their own firms (e.g. Bill
Gates, Michael Dell)

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 PRODUCT/CUSTOMER FOCUS

• Entrepreneur’s keen focus on products and customers typically

stems from the fact that most successful entrepreneurs are, at heart,
craft people.
• they are obsessed with making products that can satisfy a
customer’s need.

“The computer is the most remarkable tool we’ve ever built..but

the most important thing is to get them in hands of as many
people as possible”
- Steve Jobs

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 TENACITY DESPITE FAILURE

• Entrepreneur trying something new
rate of failure

high.(just like scientist)
• The ability to persevere through setbacks and
failures.
• Tenacity is important because it shows a potential
customer the degree of commitment that an
entrepreneur has to a new product or service.

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 EXECUTION INTELLIGENCE

• The ability to fashion a solid idea into a viable business key

• Developing a business model, putting together a new venture
team, raising money, establishing partnerships, managing
finances, leading and motivating employees.
• The ability to translate thought, creativity, and imagination into
action and measurable results.

“Ideas are easy. It’s execution that’s hard” – Jeff Bezos, the
founder of Amazon.

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 PERSONAL ENTREPRENEURIAL
COMPETENCY (PEC)
• The underlying characteristic of a person, in that it may be motive,
traits, skills, aspect of ones self-image, a body of knowledge, set of
skills and cluster of appropriate motives/traits that an individual possess
to perform in his business, which results in effective and/or superior
performance in a business venture.
• Research by McClelland and McBer, funded by USAID, has identified
13 personal entrepreneurial competencies (PECs) which appear to
characterize the behaviour of successful entrepreneurs.
• The study, conducted in India, Ecuador and Malawi, also found that
these PECs transcended culture, country and continent.

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 INITIATIVE

The entrepreneur should be able to take actions that go beyond

his job requirements and to act faster. He is always ahead of
others and able to become a leader in the field of business.

Examples
 Does things before being asked or compelled by the situation.
 Acts to extend the business into new areas, products or services

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 SEES AND ACTS ON
OPPORTUNITIES

An entrepreneur always looking for and taking action

on opportunities.

Examples
 Sees and acts on new business opportunities ahead of others
 Seizes unusual opportunities to obtain financing, equipment,
land, work space or assistance

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 INFORMATION SEEKING

An entrepreneur is able to take action on how to seek information to

help achieve business objectives or clarify business problems.

Examples
 Does personal research on how to provide a product or service
 Consults experts or experienced persons to get relevant information
 Seeks information or asks questions to clarify a client's or a supplier's need
 Personally undertakes market research, analysis or investigation
 Uses contacts or information networks to obtain useful information

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 CONCERN FOR HIGH QUALITY

An entrepreneur acts to do things that meet certain standards of

excellence which gives him greater satisfaction.

Examples
 States a desire to produce or sell a top or better quality product
or service
 Compares own work or own company's work favorably to that of
others

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 COMMITMENT TO WORK CONTRACT

An entrepreneur places the highest priority on getting a job

completed.

Examples
 Makes personal sacrifice or expends extraordinary effort to complete a job
 Accepts full responsibility for problems in completing a job for customers
 Pitches in with workers or works in their place to get the job done
 Expresses a concern for satisfying the customer

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 EFFICIENCY ORIENTATION

A successful entrepreneur always finds ways to do things faster or

with fewer resources or at a lower cost.

Examples
 Looks for or finds ways to do things faster or at less cost
 Uses information or business tools to improve efficiency
 Expresses concern about costs vs. benefits of some improvement,
change, or course of action

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 SYSTEMATIC PLANNING

An entrepreneur develops and uses logical, step-by-step plans to

reach goals.

Examples
 Plans by breaking a large task down into sub-tasks
 Develops plans that anticipate obstacles
 Evaluate alternatives
 Takes a logical and systematic approach to activities

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 PROBLEM SOLVING

A successful entrepreneur identifies new and potentially unique

ideas to achieve his goals.

Example
 Switches to an alternative strategy to reach a goal
 Generates new ideas or innovative solutions

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 SELF-CONFIDENCE

A successful entrepreneur has a strong belief in self and own

abilities.

Examples
 Expresses confidence in own ability to complete a task or meet a
challenge
 Sticks with own judgment in the face of opposition or early lack of
success

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 ASSERTIVENESS

An entrepreneur confronts problems and issues with

others directly.

Examples
 Confronts problems with others directly
 Tells others what they have to do
 Reprimands or disciplines those failing to perform as expected

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 PERSUASION

An entrepreneur can successfully persuade or influence others for

mobilizing resources, obtaining inputs, organizing productions and
selling his products or services.

Examples
 Convinces someone to buy a product or service
 Convinces someone to provide financing
 Convinces someone to do something else that he would like that person to do
 Asserts own competence, reliability, or other personal or company qualities
 Asserts strong confidence in own company's products or services

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 USE OF INFLUENCE STRATEGIES

An entrepreneur is able to make use of influential people to

reach his business goals.

Examples
 Acts to develop business contracts
 Uses influential people as agents to accomplish own objectives
 Selectively limits the information given to others
 Uses a strategy to influence or persuade others

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 PERSISTENCE

An entrepreneur is able to make repeated efforts or to take different

actions to overcome an obstacle that get in the way of reaching
goals.

Examples
 Takes repeated or different actions to overcome an obstacle
 Takes action in the face of a significant obstacle

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 Achievement Cluster
Opportunity Seeking and Initiative
• Does things before asked or forced to by events
• Acts to extend the business into new areas, products or
services
• Seizes unusual opportunities to start a new business,
obtain financing, equipment, land work space or
assistance
Risk Taking
• Deliberately calculates risks and evaluates alternatives
• Takes action to reduce risks or control outcomes
• Places self in situations involving a
Demand for Efficiency and Quality
• Finds ways to do things better, faster, or cheaper
• Acts to do things that meet or exceed standards of
excellence
• Develops or uses procedures to ensure work is
completed on time or that work meets agreed upon
standards of quality
Persistence
• Takes action in the face of a significant
obstacle
• Takes repeated actions or switches to an
alternative strategy to meet a challenge
or overcome an obstacle
• Takes personal responsibility for the
performance necessary to achieve
• goals and objectives
Commitment to the Work Contract
• Makes a personal sacrifice or expends
extraordinary effort to complete a job
• Pitches in with workers or in their place to
get a job done
• Strives to keep customers satisfied and
places long term good will over short term
gain

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 Planning Cluster

Information Seeking
• Personally seeks information from clients, suppliers or competitors
• Does personal research on how to provide a product or service
• Consults experts for business or technical advice
Goal setting
• Sets goals and objectives that are personally meaningful and challenging
• Articulates clear and specific long range goals
• Sets measurable short term objectives
Systematic Planning and Monitoring (Problem Solving)
• Plans by breaking large tasks down into time-constrained sub-tasks
• Revises plans in light of feedback on performance or changing circumstances
• Keeps financial records and uses them to make business decisions

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 Power Cluster

Persuasion and Networking (Use of Influence Strategies, Persuasion,

Assertiveness)
• Uses deliberate strategies to influence or persuade others
• Uses key people as agents to accomplish own objectives
• Acts to develop and maintain business contracts
Independence and self-confidence
• Seeks autonomy from the rules or control of others
• Sticks with own judgement in the face of opposition or early lack of
success
• Expresses confidence in own ability to complete a difficult task or meet a
challenge

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 Common Traits of Successful
Entrepreneurs
Seeking Internal
Flexibility
Initiative & Feedback Locus of Control
High
Responsibility Energy

High
Team
Commitment
Building

Opportunity
Ability to
Orientation
set Vision

Moderate
Tolerance
Risk Taker
to Failure

Confidence &
Drive to
Optimistic
Achieve
Creative and Skilled at
Independent
Innovative
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Organising
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Malaysia's Richest
#6 Lee Shin Cheng
Net Worth $5.2 Billion
Source of Wealth palm oil
Age 72
Marital Status Married, 6 children
His IOI Group is a palm oil and property
development giant. Owns refineries in the
U.S. and the Netherlands. Recently won
a $322 million bid for a 6-acre plot in
downtown Singapore where it plans to
build a residential project. Failed to win
certification from the palm oil
environmental group IOI helped set up,
causing Nestlé to temporarily stop buying
from it.
Internal locus of control
Entrepreneurs believe the success or failure of their venture
depends on themselves and their own efforts and
commitments
Creative and innovative
Enable entrepreneurs to produce unique goods and services for
customers. Creativity is not inherited, it can be learned.
Opportunity orientation
Focus and start on opportunities rather than on resources.
Begin with opportunities and let their understanding of them
guide other important issues.
Ability to set vision
Entrepreneurs know what they want to achieve. They have a
vision or concept of what their firm can be. Vision develops
over time as entrepreneurs begin to realize what the firm is
and what it can become.
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 Malaysia's Richest
#2 Ananda Krishnan
Initiative and responsibility
Net Worth $9.9 Billion
Source of Wealth telecom
Willingness to put oneself in situations where he/she Age 73
personally responsible for the success or failure of the Marital Status Married, 3 Children
operation. Entrepreneurs like to take initiative in solving
Malaysian tycoon Ananda Krishnan's shrewd
problems where no leadership exists. dealmaking boosted his fortune by $1.7 billion,
helping him retain status as country's second
richest person after Robert Kuok. He sold a
High degree of commitment small stake in listed telecom firm Maxis, his
Commitment helps entrepreneurs to overcome biggest asset. Reportedly a deal with Russia's
Sistema to sell his holding in Indian telecom
business-threatening mistakes and obstacles. outfit Aircel fell through. Last October, he
Entrepreneurs commitment to their ideas and ventures relisted the domestic business of pay -TV
operator Astro which he'd taken private in
they spawn determine how successful those ventures 2010, raising $1.5 billion. In separate deals, he
ultimately become. sold the power and gaming businesses of
privately-held unit Tanjong, for over $3 billion.
Seeking feedback Shares of his offshore services provider Bumi
Armada are up by nearly one-fifth since its
Entrepreneurs like to know what they are doing and 2011 listing. Graduated from Harvard
Business School
constantly looking for reinforcement. Actively seek and Got start as an oil trader
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 Independent
Malaysia's Richest
#1 Robert Kuok Like to accomplish tasks on their own way.
Doesn’t mean entrepreneurs make all decisions.
They want authority to make important decisions.

Chinese Malaysian tycoon Robert Kuok made his

money in sugar, palm oil, shipping and property. His
Creative and innovative
Kuok Group boasts a huge network of companies
under 3 main groups in Hong Kong, Singapore and
Enable entrepreneurs to produce unique goods
Malaysia. Kuok's net worth is up $100 million and services for customers. Creativity is not
compared with March 2012, thanks to newly- inherited, it can be learned.
discovered assets in China's leading meat
manufacturer, Yurun Food Group, and a slight rise in
the share price of Hong Kong-listed Shangri-la Hotels
and Kerry Properties. Biggest source of wealth is his
stake in Wilmar, the world's largest listed palm oil
Skilled at organizing
company. But the stock weakened during the past
twelve months as palm oil prices slumped. Wilmar is
Entrepreneurs must know how to put the right
run by his nephew, Kuok Khoon Hong, a Singapore people together to accomplish a task. Able to
citizen who's also a billionaire thanks to his 10% stake organize their resource in effective way so as to
in the company. Robert Kuok also controls the South
China Morning Post, once the world's most profitable
transform their visions into reality.
daily newspaper.
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 Moderate risk taker
Malaysia's Richest
#4 The Hong Piow
Entrepreneurs are not wild risk takers;
they are calculated risk takers. Avoid
taking unnecessary risks.
Founder of Public Bank, Malaysia's third largest
bank by assets, and its chairman for 46 years,
Teh Hong Piow saw his fortune rise as shares of
the bank touched a record high in December. A
banker for over six decades, he started his career
as a clerk with Oversea-Chinese Banking Corp. Confidence and optimistic
before founding Public in 1965. With 400
branches and 17500 employees, it has expanded
into Hong Kong, Vietnam, China and Cambodia. Tend to be optimistic about their chances
Other interests include a holding in insurance firm
LPI Capital. for success and usually their optimism is
based on reality.

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 Drive to achieve
Entrepreneurs are self-starters who internally have a strong
desire to compete, to excel, and to pursue and attain
challenging goals.
Tolerance for failure
Entrepreneurs do not become disappointed, discourage, or
depressed by failure, instead they learn from experience.
Team building
Most entrepreneurs have highly qualified, well-motivated teams
that help handle the venture’s growth and development.
High level of energy
Entrepreneurs are more energetic than the average person, in
order to cope with workload and stressful demands.
Flexibility
Entrepreneurs are not rigid in their venture, to adapt to the
changing demands of their customers and businesses.
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Malaysia's Richest
#5 Quek Leng Chan
Quek Leng Chan heads Hong Leong Group
Malaysia and gets biggest part of fortune
from its stake in Hong Kong listed
investment company, Guoco Group, which
he's trying to take private in a $1.1 billion
deal. His attempt to take investment banking
arm Hong Leong capital privately wasn't
successful as shareholders chose to hold out
for a better price. Gaming group Rank, listed
on the LSE but controlled by Quek through
Guoco, is planning to merge with former rival
Gala to become UK's biggest gaming
company. His other interests include
financial services, property development and
hotels across Southeast Asia. Shares control
of massive Hong Leong Group with
Singaporean cousin, Kwek Leng Beng, and
Kwek's family. Inherited fortune from his
father, one of 3 brothers who started a small
banking group in the 1920s.
 entrepreneur vs. businessman

Entrepreneur Businessman
Idea Generation Starts a business from his Starts a business from an
own unique idea or existing idea or concept
concept

Business Types Innovative and Traditional

revolutionary
Risk Propensity Risk taker and Stays safe
accountable
Market Orientation A market leader A market player
Strategic Role He gives life to his His business gives him a
business living

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 entrepreneur vs. manager

Entrepreneur Manager
Motive Set up own enterprise Renders his services in an
established enterprises
Status The owner of an enterprise The servant in the enterprise
owned by the entrepreneur
Risk-bearing Assumes all risks and Does not bear any risk
uncertainty involved involved
Objectives To innovate and create new To implement and create
offerings – Change Agent routine – Plan Implementer
Reward Uncertain income Fixed salary

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 entrepreneur vs. lecturer

Entrepreneur Lecturer
Motive Set up own enterprise Excellence/Self Actualization

Status The owner of an enterprise Employed by Public/Private

Institutions
Risk-bearing Assumes all risks and Assume moderate risk and
uncertainty involved uncertainty involved in new
frontier of knowledge
Objectives To innovate and create new
Objectives To innovate
offerings and create
– Change new
Agent To explore the unknown and
offerings – Change Agent unchartered frontier of
Reward Uncertain income knowledge
Reward Uncertain income Salary plus prestige &
recognition
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