BABSON COLLEGE

The Entrepreneurial Mindset

 BABSON COLLEGE

It’s About Attitude, Character and Vision

Entrepreneurial mind:
• Does not reside in a particular
personality, age, race or gender

• Seeing the world as a set of

opportunities, not obstacles

• Seeing problems to be solved,

not barriers that limit

• Being driven to create value for

a broad set of stakeholders

• Lifting the human condition

 BABSON COLLEGE

Mindset of the Entrepreneur Stevenson &

Gumpert, 1985,
The Heart of
Entrepreneurship,
HBR

Administrator/Trustee Asks: The Entrepreneur Asks:

What resources do I control?
What structure determines our
organization’s relationship to its
market?
How can I minimize the impact of others
on my ability to perform?
What opportunity is appropriate?
Where is the opportunity?
How do I capitalize on it and
create value?
How do I gain control over
resources?
What structure is best?
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Who is the Entrepreneur?

High

INVENTOR ENTREPRENEUR

Creativity
&
Innovation
MANAGER/
PROMOTER
ADMINISTRATOR
PROMOTER
Low
Low High
General mgmt skills, business know-how, networks
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Making Mistakes
IT IS EASIER TO FAIL!
to make mistakes and
to recover from them

I try to specialize
In making new mistakes

ESTHER DYSON, CHAIRWOMAN, EDVENTURE HOLDINGS

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Opportunities: The Focus of

the Entrepreneurial Process

Any opportunity that just

comes to us we do not
consider an opportunity.

You do not have a strategy

until you are saying “no” to
lots of opportunities.

DEAN RHODES, FOUNDER AND CHAIR, WORLDMARK, INC.

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Opportunity Recognition
I have a lot of great ideas –
which is the best opportunity?
1 What is the process of identifying an opportunity?

Why are some people more likely to identify

2 opportunities than others?

How can you improve chances

3 of success in executing the opportunity?
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Opportunity Recognition
Passive Search
• Fortuitous discovery
• Objective opportunities exist, but opportunity is discovered through accidental means
• A flash of creativity as an objective reality and future possibility connect

Active Search
• Analytical approach to studying markets, industries and technologies to identify gaps

Opportunity as Creation
• Imagination and the individual can create opportunity from almost nothing
• The opportunity resides in the individual’s mind

DeTienne & Chandler, 2004

It All Starts With a Clear Vision
Vision has a clear and
compelling imagery that offers
an innovative way to improve. It
recognizes and draws on
traditions and connects to
actions that people can take to
realize change. It taps people’s
emotion and energy; properly
articulated, it creates
enthusiasm.
NUTT & BACKOFF, 1997
Vision
• An expression of the future of the
venture that can motivate the
entrepreneurial team
• Foundation for venture culture,
practices, and policies
• Engages stakeholders
• Helps them to “understand and
see the future of the venture”
• Provides a direction for growth
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Entrepreneurial Strategy
Screen Out the Losers
1 • Weed out those opportunities that show little promise
• What are the objectives of the venture? (Niche?
Large enterprise? Enduring? Quick profit?)
• Leverage external change/market development
• Develop proprietary assets

Integrate Action and Analysis

2 • Analysis and execution occur concurrently
• Plug holes quickly

Plan Prudently
3 • Avoid overanalyzing
• Be willing to accept some uncertainty
• Standard checklist approaches don’t work
Bide, 1994
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Components of Vision

1 Pattern for a future

2 Values

3 Mental image

4 Purpose

5 Can be communicated, inspires others

6 Process

7 Content
 BABSON COLLEGE

It All Starts With a Vision

If you have a teensy

weensy vision, you will
only have a teensy
weensy company
ANITA RODDICK, THE BODY SHOP
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