Chapter 01 - The Entrepreneurial Mind-Set

Prepared by:
DEDE DARSONO, M.M.
THE ENTREPRENEURIAL PERSPECTIVE

CHAPTER 1
THE ENTREPRENEURIAL
MIND-SET
The Nature of Entrepreneurship
• Entrepreneur – An individual who takes initiative to bundle

resources in innovative ways and is willing to bear the risk and/or
uncertainty to act.
• Being an entrepreneur today:
• Involves creation process.
• Requires devotion of time and effort.
• Involves rewards of being an entrepreneur.
• Requires assumption of necessary risks.
• Entrepreneurial Opportunities – Situation in which new goods, services, raw

materials, and organizing methods can be introduced and sold at greater than
their cost of production.
• Entrepreneurial Action – Creation of new products/proceses and/or the entry

into new markets, which may occur through a newly created organization or
within an established organization.
• 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 someone in also
opportunity for them specially, and/or processing feedback from action steps
taken.
Opportunities
Entrepreneurial
Thinking Action
Aspects of the
Entrepreneurial Process
The Entrepreneurial Process
• Opportunity identification - The process by which an entrepreneur comes up

with the opportunity for a new venture.
• Market size and the length of the window of opportunity are the primary bases
for determining risks and rewards.
• Window of opportunity - The time period available for creating the new
venture.
• Business plan - The description of the future direction of the business.

How Entrepreneurs Think
• Entrepreneurs in particular situations may think differently when

faced with a different task or decision environment.
• Given the nature of their decision-making environment,

entrepreneurs need to sometimes:
• Structurally.
• Bricolage.
• Effectuation
• Cognitively adaptability.
How Entrepreneurs Think (Structurally)
• Superficial similarities – Exist when the basic (relatively easy to

observe) elements of the technology resemble (match) the basic
(relatively easy to observe) elements of the market.
• Structural similarities – Exist when the underlying mechanisms of

the technology resemble (or match) the underlying mechanisms of
the market.
How Entrepreneurs Think (Bricolage)
• Making do by applying combinations of the resources at hand to

new problems and opportunities.
How Entrepreneurs Think (Effectuation)
• Causal process
• Starts with a desired outcome.
• Focuses on the means to generate that outcome.
• Effectuation process
• Starts with what one has (who they are, what they know, and whom they
know).
• Selects among possible outcomes.
• Entrepreneurial mind-set involves the ability to rapidly sense, act,

and mobilize, even under uncertain conditions.
(Cognitive Adaptability)
• Cognitive adaptability describes the extent to which entrepreneurs are:

• Dynamic, flexible, self-regulating and engaged in the process of generating
multiple decision frameworks focused on sensing and processing changes in
their environments and then acting on them.
• It reflects in an entrepreneur’s metacognitive awareness.

(Cognitive Adaptability)
• Achieving cognitive adaptability
• Comprehension questions – Aids understanding of the nature of the environment before
addressing an entrepreneurial challenge.
• Connection tasks – Stimulates thinking about the current situation in terms of similarities
and differences with situations previously faced and solved.
• Strategic tasks – Stimulates thoughts about which strategies are appropriate for solving
the problem (and why) or pursuing the opportunity (and how).
• Reflection tasks – Stimulates thinking about their understanding and feelings as they
progress through the entrepreneurial process.
• Entrepreneurs who are able to increase cognitive adaptability have an improved ability to:
• Adapt to new situations.
• Be creative.
• Communicate one’s reasoning behind a particular response.
The Intention to Act Entrepreneurially
• Entrepreneurial Intentions – The motivational factors that influence individuals to pursue

entrepreneurial outcomes.
• Entrepreneurial Self-efficacy – The conviction that one can successfully execute the
entrepreneurial process.
• Perceived Desirability The degree to which an individual has a favorable or unfavorable

evaluation of the potential entrepreneurial outcomes.
Entrepreneur Background and Characteristics
• Education
• Provides a background about starting a business.
• Helps in the development of communication skills and problem-solving
skills.
• Provides individuals with a larger opportunity set.
• Does not determine whether an entrepreneur will create a new business to
exploit the discovered opportunity.
Entrepreneur Background and Characteristics
(cont.)
• Age
• Most entrepreneurs initiate their entrepreneurial careers between the ages of 22 and 45.
• Individuals are more inclined to start an entrepreneurial career at milestone ages every five
years (25, 30, 35, 40, and 45).
• Male entrepreneurs tend to start their ventures in their early 30s, while women entrepreneurs
do so in their middle 30s.
• Work history
• The decision to launch a new venture can be influenced by:
• Dissatisfaction with one’s job.
• Previous technical and industry experience.
• Managerial skills and entrepreneurial experiences are also important once the venture starts
growing.
• Previous start-up experience is a relatively good predictor of starting subsequent businesses.
Role Models and Support Systems
• Role Model – Individuals whose example an entrepreneur

can aspire to and copy.
• Can be parents, family members, or other entrepreneurs.
• Successful entrepreneurs are viewed as catalysts by potential
entrepreneurs.
• Role models can serve in a supportive capacity as mentors by providing
information, advice and guidance.
• Entrepreneurs need to establish connections and networks in the venture
formation process.
(cont.)
• Moral Support Network – Individuals who give

psychological support to an entrepreneur.
• It is important for entrepreneurs to have a cheering squad—individuals who
provide psychological support.
• Friends can provide honest advice, encouragement, understanding, and
assistance.
• Relatives can be strong sources of moral support, particularly if they are
also entrepreneurs.
(cont.)
• Professional Support Network – Individuals who help the

entrepreneur in business activities.
• Entrepreneurs need advice and counsel throughout the establishment of the
new venture which can be obtained from:
• Mentors.
• Business associates.
• Suppliers.
• Trade associations.
• Personal affiliations.
• Entrepreneurial activity is embedded in networks of interpersonal
relationships.
Tugas Kelompok
• Buat Kelompok dengan anggota 3-4 orang.

• Buat makalah terkait materi yang sudah ditentukan dalam bahasa
Indonesia.
• Presentasikan makalah tersebut oleh tiap anggota kelompok sesuai
jadwal yang telah ditentukan.
• INGAT:
• Makalah akan dinilai dan masuk ke dalam nilai tugas kelompok, jadi buat
sebagus dan selengkap mungkin.
• Presentasi perorangan di kelas akan masuk kedalam komponen nilai UTS per
individu, jadi silahkan presentasi sebaik mungkin.
• Makalah (printed) dan materi presentasi (file) dikumpulkan sebelum
presentasi. File dikirim ke email deda@stmik-amikbandung.ac.id.
Thankyou

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Prepared by:

DEDE DARSONO, M.M.

THE ENTREPRENEURIAL PERSPECTIVE

• Entrepreneur – An individual who takes initiative to bundle

• Entrepreneurial Opportunities – Situation in which new goods, services, raw

• Entrepreneurial Action – Creation of new products/proceses and/or the entry

• Entrepreneurial Thinking – Individuals’ mental processes of overcoming

• Opportunity identification - The process by which an entrepreneur comes up

• Business plan - The description of the future direction of the business.

• Entrepreneurs in particular situations may think differently when

• Given the nature of their decision-making environment,

• Superficial similarities – Exist when the basic (relatively easy to

• Structural similarities – Exist when the underlying mechanisms of

• Making do by applying combinations of the resources at hand to

• Entrepreneurial mind-set involves the ability to rapidly sense, act,

• Cognitive adaptability describes the extent to which entrepreneurs are:

• It reflects in an entrepreneur’s metacognitive awareness.

• Entrepreneurial Intentions – The motivational factors that influence individuals to pursue

• Perceived Desirability The degree to which an individual has a favorable or unfavorable

• Role Model – Individuals whose example an entrepreneur

• Moral Support Network – Individuals who give

• Professional Support Network – Individuals who help the

• Buat Kelompok dengan anggota 3-4 orang.

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