Chapter 2 - The Entreprenerial Mindset

Question 1

Mayo and Hausler history of product innovation and entrepreneurship

Answer 1

3 stages

• Product orientated
• The market was considered the receptacle for products that emerged from a firms research and development efforts.
• Market led stage
• The market was the driver for innovation through research and development of consumer needs.
• Dual drive stage
• The combination of the two orientations where innovation is complex process that requires sound investment in research and development. The emergence of global competitiveness made competition more intense rigourous and aggressive than ever before.

Question 2

Developing an entrepreneurial culture in South Africa

Answer 2

Creating support structures for entrepreneurial failure and fostering a mindset that will motivate entrepreneurs who have failed in previous ventures to continue innovating.

South Africa need to support develop and embrace the group of high impact entrepreneurs in the country that determine the culture of entrepreneurship.

Creating a culture that allow South Africans to view wealth as infinite and not only monetary

South African needs to morph the cultural outlook of entrepreneurship in the country that will allow the individual to view entrepreneurship not only as a solo venture but a collective one as well

Question 3

Define the Entrepreneurial mindset

Answer 3

A specific state of mind that which orientates human conduct towards entrepreneurial activities and outcomes. These individuals are drawn to opportunities, innovation and new value creation.

Question 4

Characteristics of successful entrepreneurs

Answer 4

Resiliency: they learn from their failures and try again

Adaptability: They understand change is a certainty and try to adapt to it

Inspire: they motivate others and inspire them to achieve results

Learn: they are always willing to learn and
invest in their own personal development

Belief: they have strong belief in their ideas

Instinct: they are naturally good at making decisions

Risk taking: they are prepared to step outside of their comfort zone and take risks

Determination : they are committed hard-working and never give up

Passion: loving what they do by energising themselves through knowing this is what they are born to do

Courage: They have the courage to take on new challenges

Vision: Setting clear objectives and strategising planning and acting

Question 5

Bygrave and Zacharakis 10 D’s of entrepreneurial characteristics

Answer 5

Dream: Entrepreneurs have a vision of what the future looks like and have the ability to implement their dreams

Doers: They implement the course of action as quickly as possible

Decisiveness: they make decisions swiftly

Determination: they implement their ventures with total commitment by not giving up easily

Dedication: they are totally dedicated to their business sometimes to the detriment of their social lives

Devotion: the passion for their product or service makes them effective at selling it

Details: an entrepreneur must stay on top of the critical details.

Dollars: they perceive money as more of a measure of their success

Distribute: entrepreneurs distribute the ownership of their business with key employees who are critical to the success of the business

Destiny: they want to be in charge of their own destiny

Question 6

4 risks to an entrepreneur

Answer 6

Financial risk: the outcome of the success of the business is unknown to the entrepreneur so they must be willing to risk their financial inputs into the business

Career risk: critical failure of the business might ruin the reputation of current and future investors and might risk their career in their field of work

Family and social risk: being a successful entrepreneur takes a lot of time out of their social lives this could make it impossible to have a balanced life with friends and family when a business requires so much of their time

Psychological and physical risk: an entrepreneur must look out for their physical and psychological health because the stress of starting and maintaining a new business could have a negative effects on their overall health. This can be done by maintaining a healthy diet exercising regularly and maintaining a positive social circle