How does the Entrepreneurial Mindset Add Value in the Business Environment - Assignment Example

How does the Entrepreneurial Mindset Add Value in the Business Environment March 28, Introduction The fast evolving pace of business environments demands a fundamental change in the manner in which business is conducted. Part of the fundamental change is represented by the entrepreneurial spirit, and it becomes an important factor when adjudging performance of businesses. In business psychology, entrepreneurial personalities share some given characters: a successful entrepreneur is highly motivated, creative, opportunistic and proactive. In the contemporary setting, the General Enterprise Tendency (GET) test can be used to assess and estimate entrepreneurial personality. This report discusses Entrepreneurial mindset Entrepreneurial mind sets are difficult to define, but they are within the realm of psychological dispositions which are entrenched in customs and worldviews. According to Dweck (2006), there is a distinction between a fixed mindset and a growth mindset, and personalities in the former believes that intelligence is inherent while the latter acknowledges that success and results depend on effort. In business, a growth mindset can bring more value than a fixated mindset, a mental tool that empowers one to initiate change. This is the entrepreneurial trait approach and according to this model, an entrepreneur is often defined within certain traits, often an interaction with the inner self manifest in the manner I which they control, plan, Set goals; take risk, decision making and independence. In literature, a focus on the difference between and an entrepreneur and one who lacks such skills have been brought to the fore. Brockhaus (1980) empirical study noted that an entrepreneur brings value addition to the business through risk taking propensity, a trait lacking in the majority of the population he studied. ChelL (2008) asserts that an entrepreneur is driven by the need for achievement, a locus of control, the social constructionism theory. With such a drive and push in the business environment, of priority to such a personality would to find innovative ways to bring change to the business. According to Storey (2011) optimism and chance theory best explains the mindset of an entrepreneur. According to the theory, entrepreneurs are not attracted to the conventional way of conducting normal business, rater they pounce on a chance to bring different perspectives to the normal ways of business. According to Mcgrath & Macmillan (2009) an entrepreneurial mind set typically goes for the goals and stops functioning by the ground rules. The writers distinguishes a manager from an entrepreneur and notes that the former merely conforms to administrative functions, while an entrepreneur sets target achievement intertwined in their traits. Characteristically defined by the manner in which they go about their activities. In the contemporary, the IT industry has seen an influx of entrepreneurs, breaking ground rules in their bid to soar their ventures into greater heights (The Observer, 2011). They typify the theoretical business, indeed the theoretical foundations of entrepreneurships are from practical real life scenarios. Kuemmerle (2002) lists of attitudes definitive for entrepreneurs are: comfort ability in stretching known rules, prepared to make powerful foes, patience, quick in making changes, eye for closing a deal. In normal conversation, it is not uncommon to read that such an individual is shrewd; perhaps this is the ordinary definition of an entrepreneur per excellence. Creating something that is within the general reach, but due to their combination of traits, they are able to combine the factors to realize something meaningful out of such movements (Stokes & Wilson 2010). When a business is operating within, normal bounds and an individual come a long that embodies such characters, then they become the fundamental difference between the stagnation and growth of the venture (Smallbone et al, 2010). Self Analysis I have always been intrigues by the wordings used to describe an entrepreneur. From the text above, the characterization demands that to be an entrepreneur, one must embody energy, imaginative, innovativeness, calculated risk taker and has the locus of control (Bridge, ONeill & Cromie 2003). Knowing that I have such traits would demand that I provide tangible evidence. Hugely successful entrepreneurs such as Sir Richard Branson hardly underwent psychometric test, but they have glaring evidence that indeed they fit within the bracket of the definition. My only option was to face the online psychometric tests to check my scores on the entrepreneurial spirit that I embody. The scores showed variations, scoring high in motivation average scores in creativity, calculated risk and drive, and finally scoring lowly in the need for autonomy. The table below explicitly provides my test score against the maximum score. Test My Score Average Score Maximum Score Need for improvement 8 9 12 Need for autonomy 2 4 6 Creative tendency 5 8 12 Calculated Risk 6 8 12 Drive and Determination 5 8 12 Total score 26 37 54 A high enterprising personality would be above average 38-54 A moderate enterprising personality would be about average 37 A low enterprising personality would be below average 0-36 From the above tests results and the interpretation procedure, the psychometric results have confirmed that I have low enterprising tendency potential. These tests focus on the phi-psychological conditions of my experiences, emotions; desires amongst others, from empirical research, the tests are standardized and may correctly predict the personality (BULSARA, GANDHI & POREY, 2010). While the psychometric test might have provided low hopes of being successful in the business, environment, I believe the real test would be to actually venture out and commit to a project and evaluate the success based on the test. Conclusion Success of a business is intricately linked to the personality traits of the owner or entrepreneur. Certain traits typically define an entrepreneur and include level of motivation, creativity, and independent minded, calculated risk taking. These qualities can shape business from simple village enterprises to bind blogging multinational corporations. In normal conversation, such individuals have been identified as shrewd, that is opportunistic, targeting certain moments to strike, thus bringing value to business. Business psychologists have identified instruments that can predict if a person embodies the traits of entrepreneurship and through the GET tests, tendency towards enterprising can be predicted, showing if such an individual were to venture in business, then the business may not achieve enough success as an entrepreneurial individual. Reference List BRIDGE, S., ONEILL, K., & CROMIE, S. (2003). Understanding enterprise, entrepreneurship, and small business. New York, Palgrave Macmillan. BROCKHAUS, R. H. (1980). Risk Taking Propensity of Entrepreneurs. Academy of Management Proceedings. 8, 457-460. CHELL, E. (2008). The entrepreneurial personality: a social construction. Hove, East Sussex, Routledge. BULSARA, H. P., GANDHI, S., & POREY, P. D. (2010). A Comparative Study of Enterprising Tendency with the help of Select Cases in India. International Journal of Trade, Economics and Finance. 392-399. DWECK, C. S. (2006). Mindset: the new psychology of success. New York, Random House. KUEMMERLE W. (2002). A test for the fainthearted. Harvard Business Review. 80, 122-7. MCGRATH, R. G., & MACMILLAN, I. C. (2009). Discovery-driven growth: a breakthrough process to reduce risk and seize opportunity. Boston, Mass, Harvard Business Press. STOREY, D. (2011). Optimism and chance: The elephants in the entrepreneurship room.International Small Business Journal. 29, 303-321. SMALLBONE, D. (2010). The theory and practice of entrepreneurship: frontiers in European entrepreneurship research. Cheltenham, U.K., Edward Elgar. STOKES, D., & WILSON, N. (2010). Small business management and entrepreneurship. Andover, Hampshire, South-Western Cengage Learning. The Observer. (2011). Britains new entrepreneurs: young guns go for it. http://www.theguardian.com/business/2011/mar/06/young-british-entrepreneurs Read More