ENTREPRENEURIAL FEELINGS CHAPTER 3 ENTREPRENEURIAL FEELINGS n Entrepreneurs

ENTREPRENEURIAL FEELINGS CHAPTER 3

ENTREPRENEURIAL FEELINGS n Entrepreneurs come from a variety of back grounds, family situations & work experiences

LOCUS OF CONTROL n “an attribute indicating the sense of control that a person has over life” n Internal locus of control n n These people believe that they can control their own destiny & make decisions at their own. External locus of control n These people believe that their lives are controlled by outside forces & external forces influence their decisions.

Checklist for Feelings About Control 1. 2. 3. 4. Do you often feel “that’s just the way things are and there’s nothing I can do about it”? When things go right and are terrific for you, do u think, “its mostly luck”? Do you think you should go into e-business because everything you read these days is urging you in that direction? Do you know that if you decide to do something, you’ll do it and nothing can stop you?

Checklist for Feelings About Control 5. Even though it’s scary & risky to try something new, are you the kind who tries it? 6. Do you think it’s important for everyone to like you? 7. If u wants something, do you ask for it rather than wait for someone to notice you and “ just give it to you”? 8. Even though people tell you “it can’t be done, ” do you have to find out for yourself?

Checklist for Feelings About Control n Answering yes to Q’s 4, 5, 7, 8 indicates that you possess the internal control aspect of being an entrepreneur. n Answering yes to Q’s 1, 2, 3, 6 indicates that you are more geared towards external controls which may hinder your entrepreneurial tendencies.

Feelings About Independence and Need for Achievement n Need for independence n n “Being one’s own boss” – one of the strongest needs of an entrepreneur. Need for achievement n “An individual’s need to be recognized”.

Check list about Feelings About Independence 1. I hate to go shopping for clothes alone 2. If my friends won’t go to a movie I want to see, I’ll go by myself 3. I want to be financially independent. 4. I often need to ask other people’s opinions before I decide on important things 5. When I know I’m in charge, I don’t apologize; I just do what has to be done

Check list about Feelings About Independence 6. I’ll speak up for an unpopular cause if I believe in it 7. I’m afraid to be different 8. I want the approval of others

Check list about Feelings About Independence n Answering yes to Q’s 1, 4, 7, 8 indicate that you do not have a strong need for independence.

Risk Taking n n n Risk taking—whether financial, social, or psychological—is a part of the entrepreneurial process. Successful entrepreneurs are not gamblers They manage risks by transferring it to others (share financial & business risks)

n Partners n Venture capitalists n n professional investors Investing in business Angel investors n Wealthy private investors who invest in regional or local companies within their industry or area of professional expertise www. ventureworthy. com http: //tremu. gov. pk/forum/display_forum_topics. asp? Forum. I D=16 www. tplinc. com www. angel-investor-news. com n www. atrc. net. pk n n

Check list about Willingness to take Risk 1. 2. 3. 4. 5. If you are frightened of something, will you try to conquer the fear? Do you hesitate trying new foods, new places, and totally new experiences? Can u walk up a total stranger & strike up a conversation? Have you ever intentionally traveled an unfamiliar route? Do you need to know that it’s been done already before you’re willing to try it?

Check list about Willingness to take Risk n Answering yes to Q’s 2, 5 indicates that u need to develop a greater willingness to take risk.

Entrepreneur Background and Characteristics n The background areas explored include: Child hood family environment n Education n Age n Work History n Feed back n

Childhood Family Environment n Family environment of an entrepreneur includes Birth order n Parents Occupation n Social Status n Relationship with parents n

Education n Education is important in the upbringing of the entrepreneur. n The ability to deal with people and communicate clearly in the written and spoken word is also important in any entrepreneurial activity. n n Colonel Sanders Henry Ford

Age n entrepreneurial age (the age of the entrepreneur reflected in the experience) n In terms of chronological age, most entrepreneurs initiate their entrepreneurial careers between the ages of 22 and 45. n n Colonel Sanders Doris Drucker

Work History n n The past work experience of an individual Learn by doing

Feed Back n n Actively use & seek feed back Learning from mistakes & setbacks Excellent listeners & quick learners Not afraid of failing

Sources of Motivation

Role Models n Individuals influencing an entrepreneur’s career choice and style

Moral-Support Network n Individual who give psychological support to an entrepreneur

n friends provide honest advice n Relatives (spouse, children, parents, grandparents, aunts, and uncles) can also be strong sources of moral support, particularly if they are also entrepreneurs.

Professional–Support Network n n A mentor Business associates Trade associations Personal affiliations

A mentor n A coach, an advocate, who provides guidance - someone with whom the entrepreneur can share both problems & successes n Mentor finding process n n n Make a list of experts in various fields Identify the individual who can provide the most assistance Contact the individual

Business associates n Self employed individuals who have experience starting a business n Clients or buyers of venture product/service n Lawyers

Trade associates n n Trade associations keep up with new developments Provide over all industry data

Personal affiliations n Affiliations developed through Shared hobbies n Participation In sporting events n Clubs n School alumni groups n Online community Are excellent potential sources of referrals, advice & information n

A look at the non entrepreneurial mind n Personality types that have a difficult time in successfully creating & managing a new venture n n n n Invulnerability Machismo Anti-authoritarian Impulsivity Outer control Perfectionist Know it all Counter dependency

Invulnerability n n Nothing disastrous could happen to them Likely to take unnecessary chances & unwise risks

Machismo n n n People who try to prove that they are better than others and can beat them Exposing themselves to danger, taking large risks Foolish head-to-head competition & irrational takeover battles

Anti-authoritarian n Dislike control of their actions by any outside authority Do not tell me what to do!!, , no one can tell me what to do!! No feed back

Impulsivity n n n Taking decisions quickly Fail to explore the implication of their actions Do not review alternatives before acting

Outer control n n n Outer locus of control They feel that they can do little If things go well, they attribute it to good luck

Perfectionist n n Being a perfectionist & having high standards are not the same The time & cost implications of attaining perfection invariably result in the opportunity window being slammed shut by a more decisive & nimble competitor

Know it all n n Entrepreneurs who think they have all the answers usually have very few Fail to recognize, what they do not know

Counter dependency n Severe case for independence n Determined to accomplish things by themselves, without help from anyone