1. Entrepreneurial Mindset 1.The entrepreneurial Company in the new millennium: The pace and magnitude of change will continue to accelerate in the new millennium. Having the evolution and transformation of entrepreneurial firms match this pace will be critical. Innovation and entrepreneurial thinking are essential elements in the strategies of growing ventures. It has been noted that entrepreneurs (1) perceive an opportunity (2) pursue this opportunity, and (3) believe that success of the venture is possible. This belief is often due to the uniqueness of the idea, the strength of the product, or some special knowledge or skill the entrepreneur possesses. These same factors must be translated itself as the venture grows. 2. The Entrepreneurial Mindset: It is important for the venture’s manager to maintain an entrepreneurial frame of mind. The following figure

2. illustrates the danger of entrepreneurs evolving into bureaucrats who in turn stifle innovation. Future Goals Change Status Quo Possible Entrepreneur Satisfied manager Perceived Capability Blocked Frustrated manager Classic bureaucrat

3. The table provides a delineation of the differences between a managerial versus an entrepreneurial mindset from the perspective of decision-making assumptions, values, beliefs, and approaches to problems. Success will affect an entrepreneur’s willingness to change and innovate. This is particularly true when the enterprise has developed a sense of complacency and the entrepreneur likes this environment. The person does not want to change. In fact, some entrepreneurs will create a bureaucratic environment where orders are issued from the top to down and change initiated at the lower level is not tolerated. As a result, no one in the venture is willing or encouraged to become innovative or entrepreneurial because the owner-founder stifles such activity. The entrepreneur directly affects the firm’s growth orientation as measured by profitability, product/market, HR, and flexibility goals. If he wants to maintain the climate that helped launch the venture, specific steps must be taken.

4. Managerial Mindset Entrepreneurial Mindset Decision-making The past is the best A new idea or insight from a assumptions predictor of the future. unique experience is likely Most business decisions to provide the best estimate can be quantified of emerging trends. Values The best decisions are New insights and real-world those based on experiences are more highly quantitative analyses. valued than results based on Vigorous analyses are historical data. highly valued for critical decisions. Beliefs Law of large numbers: Law of small numbers: Chaos and uncertainty A single incident or several can be resolved by isolated incidents quickly systematically analyzing become pivotal for making the right data. decisions regarding future. Approach to Problems represent an Problems represent an problems unfortunate turn of opportunity to detect events that threaten emerging changes and financial projections. possibly new business Problems are solved opportunities. analytically.

6. The Transition From an Entrepreneurial Style to a Managerial Approach: The transitions between stages of a venture are complemented or retarded by the entrepreneur’s ability to make a transition in style. A key transition occurs during the growth stage of a venture when the entrepreneur shifts into managerial style. Among the different transitions that are possible, probably the most difficult and also the most important for organizational development is that of moving from a one-person, entrepreneurially managed firm to one run by a functionary organized, professionally management team. A number of problems occur during transition, if the entrepreneur is characterized by factors such as 1. A highly centrally decision-making system 2. An overdependence on one or two key individuals, 3. An inadequate repertoire managerial skills and training 4. A paternalistic atmosphere

7. These characteristics inhibit development during the growth stage. In order to bring about the necessary transition, the entrepreneur must carefully and then gradually implement the process. The key factor in this process is found initially: the entrepreneur. Entrepreneurial self-management is the major area of concern. Balancing the Focus(Entrepreneur and Manager): Remaining entrepreneurial while making the transition to some of the more administrative traits is vital to the successful growth of a venture. Comparison of the entrepreneurial and administrative characteristics is related to five major factors: (i) Strategic orientation (ii) Commitment to seize opportunities (iii) Commitment of resources (iv) Control of resources (v) Management structure Each of these five areas is critical to the balance needed for

9. The Self-Management Concept: To help entrepreneurs manage the growth stage better, a self-management concept has been proposed by a group of researchers. The major focus of this approach is the concept of “self” applied to the action part of the process. The key steps in this process are: 1. Self-observation 2. Self-established goals 3. Cueing strategies 4. Rehearsal 5. Self-applied consequences Entrepreneurs can apply the self-management concept to improve their management abilities. It is the way for entrepreneurs to analyze their managerial styles, to realign behaviors and time allotments, and to reinforce effective management techniques. Self-management can be specially useful for entrepreneurs whose enterprises are in growth stage.