Entrep 1 Part 3

Levels of Critical Thinking
 Practical Decision:
Critical thinking helps when we are simply trying to deal with ordinary tasks such as how
to study efficiently, decide on what kind of clothes to buy. It is problem solving of the
most authentic kind.
 Meaningfulness
Learning to think critically also helps people deal with the much larger issues of living
their life. Examples of which are finding a life partner or a new occupation, developing
reasonable attitudes towards self, towards others, towards your values, etc.
 Concepts
We think in terms of concepts, and these inevitably shape our life to a considerable
degree. Reaching a deep level of critical thinking by examining our concepts critically,
becoming more aware of the way individual concepts help us or hurt us, limit us or free
us.
Mindset
What is Mindset?
The established set of attitudes held by someone. It is a good description of how our
mindset operates. Depending on our mindset, we will choose one path or the other.
2 Types of Mindset:
 Fixed
 Growth
In fixed mindset, people perceive their talents and abilities as set traits. They believe
that brains and talent alone are enough for success and go through life with the goal of
looking smart all the time. They take any constructive criticism of their capabilities very
personally, and tend to attribute others’ success to luck or some sort of unfair
advantage. People with a fixed mindset will tell themselves they are no good at
something to avoid challenge, failure or looking dumb.
In growth mindset, people believe that their abilities can be developed through
dedication, effort and hard work. They think brains and talent are not the key to lifelong
success, but merely the starting point. People with growth mindset are eager to
enhance their qualities through lifelong learning, training and practice. They see failure
as an opportunity to improve their performance, and to learn from their mistakes.
An entrepreneurial mindset is the ability to quickly sense, take action, and get organized
under certain conditions. This also includes the ability to persevere, accept and learn
from failure, and get comfortable with a certain level of discomfort.
Cognitive strategies are the ways in which people solve problems such as reasoning,
analyzing, experimenting and so forth. Metacognition is the way in which we understand
our own performance or the process of “thinking about thinking”.
What is Passion?
In the context of entrepreneurship, passion can be defined as an intense positive
emotion, which is usually related to entrepreneurs who are engaged in meaningful
ventures or tasks and activities, and which has the effect of motivating and stimulating
entrepreneurs to overcome obstacles and remain focused on their goal.
What is Negative Passion?
It is possible to become blinded by passion and so obsessed by an idea or new venture
that we fail to heed the warning signs or refuse to listen to negative information or
feedback. This type of negative passion can actually curb business growth and limit the
ability to creatively solve problems.
6 Negative Impacts of Entrepreneurial Passion:
 Founder Misalignment- this is a poor fit between the founder’s skills and what the
new venture requires. More often than not, startup founders fail to honestly
assess how well their capabilities and motivations match up with what it will take
to successfully launch their idea. They end up floundering in an ill-suited role,
and the idea doesn’t get the right mix of talent around it to drive success.
 Missing the Market- somewhere out there in the cosmos is a massive graveyard
of “great” business ideas. One of the most common by-products of
entrepreneurial passion is the founder’s assumption – even certainty – that
customer demand is high when, in fact, little or none exists. An idea isn’t great
until the market says it is.
 Rose-colored Planning (or none at all)- more often than not, strong belief in an
idea leads to overly rosy projections on the part of the founding team. It’s very
typical – even on the part of seasoned entrepreneurs – to over-estimate early
sales and underestimate costs and timelines. This leads to cash crises that
consume and distract founders at the worst possible moment.
 Unforgiving Strategies- over-confident founders sometimes put the bulk of their
resources into a single business strategy, essentially putting all of their eggs in
one basket, rather than preserving flexibility to experiment and iterating their way
to profitability.
 Reality Distortion- bad news is avoided or glossed over, and tough issues are
rarely tackled.
 Evaporating Runway- some or all of the above dangers can lead to a rude
awakening for founders who are caught in the passion trap. What was assumed
to be a lengthy startup “runway” evaporates quickly as the venture runs out of
cash and time.

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Levels of Critical Thinking

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