The Entrepreneurial Mindset

It is a competitive world out there. A positive start-up mentality parallels innovation and flexibility in a constantly shifting business environment. In other words, it is a state of mind that continually challenges business norms, always thinking outside the box with a healthy work attitude.

A start-up state of mind is desirable not only in small but in large businesses as well. Sadly only a few managers wanted these people. Can we develop a new mindset? Fortunately, yes, we can. But first, let us identify the opposite of an entrepreneurial mindset; it is a fixed mindset. The fixed mindset believes that individual talents and abilities are already set, while the start-up mindset assumes that we can still develop new skills and abilities. Increasing awareness and acting purposely to think and react uniquely and better grow a start-up mindset.

From a cognitive perspective, the mindset gains support from the organization theory, which states that as human beings, we have inherent limitations to absorb and processing information. Hence the immediate environment serves challenges due to its ambiguity, complexity, and dynamism. Through filtration, we choose things we want to absorb and biased things to interpret. In other words, a mindset is just a cognitive filter. An individual mindset does not evolve in a vacuum; instead, it is a product of interaction with our environment. To a greater degree, we interpret new information based on our current mindset, reinforcing that mindset.

Over time, new information appears that is contrary to the existing mindset. If this happens, an individual either rejects or changes their mindset to accommodate the new idea. The possibility that an individual changes their mindset wholly depends on their consciousness in their present mindset. But the higher the personal cognitive filters are hidden and subconscious, the higher the fixed mindset. Therefore our intentional awareness can shape our mindset, but at the same time, our experience also drives our mindset.

The creation of value is the principal objective of an entrepreneur. However, over the years, the aim of an entrepreneur regularly changes. For instance, Joseph Schumpeter revealed that an entrepreneur's aim is "creative destruction." The term focused on the role of entrepreneurs to introduce something "new" in terms of innovation, product, service, or process. According to Schumpeter, the role of an entrepreneur is to exploit invention and technologies to produce a new product

Several decades ago, Howard Stevenson emphasized that entrepreneurs are resourceful and considered them as individuals who pursue opportunity without consideration for resources presently controlled. Typically, entrepreneurs begin with a limited set of resources. They operate with less and have to seek ways to organize external resources. Since adopting new ideas, they assume a higher risk when allocating resources. The level of risk and uncertainty wholly depends on the product's market acceptance, technological viability, business feasibility, and available finances.

Peter Drucker pointed out that not all small businesses are entrepreneurial. Also, profit is not always the goal of an entrepreneur, and they claim that an entrepreneur's mindset is also present in the public sector. Mr. Drucker added that there is much confusion in the definition of entrepreneurs. But he emphasized that at the heart of all entrepreneurial activity is innovation. He continued to highlight that entrepreneurs always seek a better change, respond to these changes, and take advantage of these opportunities.

Presently the success of business much depends on the mindset of the people behind the organization. It does not matter whether the organization has almost unlimited access to resources, or it is in dire need of additional capital what matters most are the people inside with an entrepreneurial mindset. They can always seek to create a product that is successful in the market, recommend processes to promote efficiency, and innovate to move the organization from good, to better, and best.