1. The EntrepreneurialThe Entrepreneurial
MindsetMindset

2. 22
Lecture OutlineLecture Outline
 What is mindset?What is mindset?
 What is entrepreneurial mindset?What is entrepreneurial mindset?
 Mindset and behaviorMindset and behavior
 The importance of entrepreneurial mindsetThe importance of entrepreneurial mindset
 Characteristics of having the rightCharacteristics of having the right
entrepreneurial mindsetentrepreneurial mindset
 Building of an entrepreneurial societyBuilding of an entrepreneurial society
 Effective/Ineffective entrepreneurial mindsetEffective/Ineffective entrepreneurial mindset
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3. What is mindset?What is mindset?
Mind + SetMind + Set
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4. mindmind
The ability to think and imagineThe ability to think and imagine
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5. setset
Group of thingsGroup of things
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What is mindset?What is mindset?
 MindsetMindset
– AA mindsetmindset refers to a set of assumptions,refers to a set of assumptions,
methods or notations held by one or moremethods or notations held by one or more
people or groups of people which is sopeople or groups of people which is so
established that it creates a powerful incentiveestablished that it creates a powerful incentive
within these people or groups to continue towithin these people or groups to continue to
adopt or accept prior behaviors, choices, oradopt or accept prior behaviors, choices, or
tools.tools.
– This phenomenon of cognitive bias is alsoThis phenomenon of cognitive bias is also
sometimes described assometimes described as mental inertiamental inertia,,
"groupthink", or a "paradigm", and it is often"groupthink", or a "paradigm", and it is often
difficult to counteract its effects upon analysisdifficult to counteract its effects upon analysis
and decision making processes.and decision making processes.

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What is mindset?What is mindset?
 According to Dr. Carol Dweck* fromAccording to Dr. Carol Dweck* from
Stanford University, US, there are twoStanford University, US, there are two
sets of mindset:sets of mindset:
– A fixed mindsetA fixed mindset
– A growth mindsetA growth mindset
*Source: Carol C. Dweck (2006), Mindset: The New Psychology of
Success, Random House

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What is mindset?What is mindset?
 In aIn a fixed mindsetfixed mindset , people believe, people believe
that their basic qualities, like theirthat their basic qualities, like their
intelligence or talent, are simply fixedintelligence or talent, are simply fixed
traits (rigid). They spend their timetraits (rigid). They spend their time
documenting their intelligence or talentdocumenting their intelligence or talent
instead of developing them. They alsoinstead of developing them. They also
believe that talent alone createsbelieve that talent alone creates
success—without effort.success—without effort.

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What is mindset?What is mindset?
 In aIn a growth mindsetgrowth mindset, people believe that, people believe that
their most basic abilities can be developedtheir most basic abilities can be developed
through dedication and hard work—brainsthrough dedication and hard work—brains
and talent are just the starting point. Thisand talent are just the starting point. This
view creates a love of learning and aview creates a love of learning and a
resilience that is essential for greatresilience that is essential for great
accomplishment. Virtually all great peopleaccomplishment. Virtually all great people
(including entrepreneurs) have had these(including entrepreneurs) have had these
qualities.qualities.

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13. Faces of successfulFaces of successful
entrepreneursentrepreneurs
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14. SuccessfulSuccessful
entrepreneursentrepreneurs
 Bill Gates - MicrosoftBill Gates - Microsoft
 Richard Branson – Virgin AirlineRichard Branson – Virgin Airline
 Anita Roddick – Body ShopAnita Roddick – Body Shop
 Konosuke Matsushita - PanasonicKonosuke Matsushita - Panasonic
 Steve Job – AppleSteve Job – Apple
 Soichiro honda - HondaSoichiro honda - Honda
 Akio morita - SonyAkio morita - Sony
 others?.others?.21-03-201521-03-2015 1414

15. Successful EntrepreneursSuccessful Entrepreneurs
(Malaysia)(Malaysia)
 Syed Mokhtar Al-Bukhari -Syed Mokhtar Al-Bukhari -
TradewindsTradewinds
 Lim Goh Tong – Genting GroupsLim Goh Tong – Genting Groups
 Tony Fernandez – Air AsiaTony Fernandez – Air Asia
 Ananda Krisnan – MaxisAnanda Krisnan – Maxis
 Others?Others?
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16. Faces of successfulFaces of successful
entrepreneurs - localentrepreneurs - local
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17. TONY FERNANDES – AIR ASIATONY FERNANDES – AIR ASIA
ANDIANA NABILAANDIANA NABILA
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18. Social EntrepreneursSocial Entrepreneurs
Professor Muhammad YunusProfessor Muhammad Yunus
Founder of Grameen Bank, BangladeshFounder of Grameen Bank, Bangladesh
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Test Your MindsetTest Your Mindset
 You are given a set of twentyYou are given a set of twenty
statements.statements.
 Please respond freely to thosePlease respond freely to those
statements.statements.
 There is no right or wrong answer.There is no right or wrong answer.

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Test ImplicationsTest Implications
0 10 20
Growth
Mindset
Fixed
Mindset

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Can mindset beCan mindset be
changed?changed?
 Although people may differ in every whichAlthough people may differ in every which
way—in their initial talents and aptitudes,way—in their initial talents and aptitudes,
interests, or temperamentsinterests, or temperaments BUTBUT everyoneeveryone
can change and grow through applicationcan change and grow through application
and experience.and experience.
 The passion for stretching yourself andThe passion for stretching yourself and
sticking to it, even (or especially) when it’ssticking to it, even (or especially) when it’s
not going well, is thenot going well, is the HALLMARKHALLMARK of theof the
growth mindsetgrowth mindset. This is the mindset that. This is the mindset that
allows people to thrive during some of theallows people to thrive during some of the
most challenging times in their lives.most challenging times in their lives.

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What is EntrepreneurialWhat is Entrepreneurial
Mindset?Mindset?
 Is a set of cognitive (thinking)Is a set of cognitive (thinking)
processes that triggers the individualsprocesses that triggers the individuals
to act or to behave entrepreneurially.to act or to behave entrepreneurially.
– Sometimes it is called entrepreneurialSometimes it is called entrepreneurial
talent or mentalitytalent or mentality
– This mindset, talent or mentality can beThis mindset, talent or mentality can be
changed and modified over timechanged and modified over time
– The basis for the individual behaviorThe basis for the individual behavior

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Entrepreneurial MindsetEntrepreneurial Mindset
 Having the right attitude:Having the right attitude:
– Able to work without supervisionAble to work without supervision
– Able to self-motivateAble to self-motivate
– Able to make quick decisionsAble to make quick decisions
– Able to handle stressAble to handle stress
– Open-minded and flexibleOpen-minded and flexible
– FocusedFocused
– PersistentPersistent
– Patient, etc.Patient, etc.

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Motivation
Knowledge
&
Skills
Attitude
•Intrinsic
•Intention
•Spirit
•Responsibility
•Extrinsic:
•Role Model
•Rewards
•Pro-active
•Positive values
•Propensity to take risk
•Creative and innovative
•Inquisitive mind
•Pursuing excellence
•Functional
knowledge
•Entrepreneurial
skills
•Managerial
skills
•Technical skills
•Communication
skills
•IT skills
Mindset and BehaviorMindset and Behavior
Mindset affects the individual
behavior at all levels

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Mindset and BehaviorMindset and Behavior
MINDSETMINDSET
(Tacit)(Tacit)
APTITUDEAPTITUDE
(Implicit)(Implicit)
BEHAVIORBEHAVIOR
(Explicit)(Explicit)

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The Importance ofThe Importance of
Entrepreneurial MindsetEntrepreneurial Mindset
 To cope with the rapidly changing economy.To cope with the rapidly changing economy.
– Business/economic environment today hasBusiness/economic environment today has
become fuzzy, chaotic/messy, complex,become fuzzy, chaotic/messy, complex,
uncertain and change very rapidly.uncertain and change very rapidly.
– To succeed in the mindst of this chaos andTo succeed in the mindst of this chaos and
uncertainty we require theuncertainty we require the agilityagility,, creativitycreativity,,
flexibilityflexibility,, innovationinnovation,, interdependenceinterdependence andand visionvision
of entrepreneurs and their enterprising units.of entrepreneurs and their enterprising units.

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The Importance ofThe Importance of
Entrepreneurial MindsetEntrepreneurial Mindset
 To build an entrepreneurial societyTo build an entrepreneurial society
– Developing the right mindset at a very early ageDeveloping the right mindset at a very early age
– Inculcation and acculturization process need toInculcation and acculturization process need to
implemented through various programs andimplemented through various programs and
activitiesactivities
– Entrepreneurs as agents of change at everyEntrepreneurs as agents of change at every
level of the societylevel of the society
– Important contribution to entrepreneurial capitalImportant contribution to entrepreneurial capital
– Entrepreneurship as a way of lifeEntrepreneurship as a way of life

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ACCULTURIZATIONACCULTURIZATION
PROCESSPROCESS
ENTREPRENEURIALENTREPRENEURIAL
SOCIETYSOCIETY
ENTREPRENEURIALENTREPRENEURIAL
CAPITALCAPITAL
ENTREPRENEURIALENTREPRENEURIAL
ECONOMYECONOMY
ECONOMICECONOMIC
GROWTHGROWTH
Building anBuilding an
Entrepreneurial SocietyEntrepreneurial Society
-Changing the mindset
-Building the culture
-Risk-taker
-Innovative
-Creative
-Supportive
-Human
-Knowledge
-Intellectual
-Physical
-Financial
-Social
-Vibrant
-Sustainable
-Added value
-Job creation
-Higher
productivity
-Higher output
-Higher income per capita
-Higher standard of living
-Full employment

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The Importance ofThe Importance of
Entrepreneurial MindsetEntrepreneurial Mindset
 To spur/encourage innovation and growthTo spur/encourage innovation and growth
– From creative people, comes creative productsFrom creative people, comes creative products
– Innovation creates and adds valueInnovation creates and adds value
– Finding new source of economic growthFinding new source of economic growth
– Change as process, not destinyChange as process, not destiny
– Thinking “out of the box” becomes norms of theThinking “out of the box” becomes norms of the
societysociety
– Innovation in every part of the value chainInnovation in every part of the value chain

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Ineffective EntrepreneurialIneffective Entrepreneurial
MindsetMindset
 Don’t care attitudeDon’t care attitude
 Not being meticulous/ takes thing forNot being meticulous/ takes thing for
granted)granted)
 Passing the buckPassing the buck
 Why should I care?/ Careless attitudeWhy should I care?/ Careless attitude

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Ineffective EntrepreneurialIneffective Entrepreneurial
MindsetMindset
 Wait and seeWait and see
 Non-punctualityNon-punctuality
 Subsidy mentalitySubsidy mentality
 Ask more, give lessAsk more, give less

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Developing an EffectiveDeveloping an Effective
Entrepreneurial MindsetEntrepreneurial Mindset
 Understand what motivates youUnderstand what motivates you
 Know what you loveKnow what you love
 Challenge yourselfChallenge yourself
 Reversal thinkingReversal thinking
 Change your habit (once in a while)Change your habit (once in a while)
 Always believe that you canAlways believe that you can
 Break away from normsBreak away from norms

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SummarySummary
 We (entrepreneurs) must see thingsWe (entrepreneurs) must see things
from different perspectives, willing tofrom different perspectives, willing to
try new ways of doing things, willing totry new ways of doing things, willing to
tolerate a higher level ambiguity, dotolerate a higher level ambiguity, do
not fear failure, seek and embracenot fear failure, seek and embrace
new norms, and most importantly tonew norms, and most importantly to
realign our mental attitude – therealign our mental attitude – the
mindsetmindset

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ConclusionConclusion
 Four (4) categories of people:Four (4) categories of people:
– Makes things happenMakes things happen
– See things happenSee things happen
– Wonder what happenWonder what happen
– Do not know what happenDo not know what happen
Which category would you like to be in?Which category would you like to be in?