Quite simply, it is the attitude of an individual entrepreneur or business owner toward success. An entrepreneurial mindset is a collection of skills that enable individuals to identify, seize and capitalize on opportunities, overcome hurdles, and succeed in various different settings. Research reveals that an entrepreneurial mindset is highly valued by most employers, promotes successful academic performance and achievement, and is essential for building new companies. Without one, many would-be entrepreneurs fail to realize their full entrepreneurial potential because they mistakenly believe that entrepreneurial success requires expert knowledge and training when actually it only requires a strong will and a clear set of goals and expectations.
Have growth mindset
In addition to having a powerful entrepreneurial mindset, another key ingredient for entrepreneurial success is a growth mindset. Businessmen with this kind of mindset become great leaders. The goal of a growth mindset is to maintain momentum after starting a new venture, as well as to continually assess the status of any current venture. Without a positive and proactive growth mindset, business owners easily get distracted by quarterly numbers and quarterly profits, as well as other financial concerns, and lose sight of what their true objectives are for the company and its employees. If you don’t have a growth mindset, it is easy to fall into a pattern of “analysis paralysis,” wherein you spend excessively long amounts of time analyzing less important aspects of your business rather than focusing on the more critical factors. This can seriously impede progress towards your business’s goals.
What is not part of the entrepreneurial mindset?
Not accepting criticism
Many entrepreneurs also have a limited ability to accept and understand criticism, which is the primary drawback of their entrepreneurial mindset. It is easy for entrepreneurs to focus too much on the negative aspects of every project, which can lead them to depression. On the other hand, a healthy appreciation for constructive criticism can help keep entrepreneurs inspired and determined. A healthy sense of gratitude is also essential for building a resilient business. Entrepreneurs must always remind themselves that no matter how many challenges they face, the opportunities are always there.
“Sponge” off the success of others
Another limitation of the entrepreneurial mindset is the tendency for entrepreneurs to “sponge” off the success of others. Too many business owners treat each other like “dawning glory,” and fail to see their own shortcomings and mistakes. Instead of viewing each other as an extension of the same inspiration and energy, successful business owners view each other as representatives of their unique skills and strengths. This not only fosters an environment of cooperation but also allows each entrepreneur to take responsibility for his or her own development. As a result, successful business owners are rarely bothered by the fact that other people are not as successful as they are.
Susceptible to cognitive biases
The third limitation of the entrepreneurial mindset occurs when it is susceptible to cognitive biases. Cognitive biases are the irrational tendencies that we have towards acting based on incomplete or inaccurate information. For example, the tendency to act in a way that increases our chance of getting what we want. This is known as the planning fallacy because those who claim that it is rational to intentionally put off goals to gain the prize later are actually using this cognitive bias to their advantage.
Limit themselves to a certain sphere of influence
The fourth limitation of the entrepreneurial mindset relates to the level of independence that is associated with the mindset. Some successful entrepreneurs limit themselves to a certain sphere of influence because they believe that they can better serve that sphere of influence if they remain within the entrepreneurial circle of influence. Although this may seem to be a noble cause, those who practice this limited self-rule often lack the interpersonal skills that would allow them to successfully move beyond their limited circle of influence and create successful social enterprises. Consequently, they have a hard time developing their entrepreneurial mindset to the extent that they become truly successful.
Resistance to change
Finally, the fifth limitation of the entrepreneurial mindset relates to resistance to change. As we have mentioned before, successful entrepreneurs are not immune from being persuaded by others. However, successful entrepreneurs also resist the change that is necessary to make their ideas a success. The difference between those who manage to embrace change and those who resist it can be the difference between a successful life and a life that is full of tragedy.
To sum up
Although it is easy to see the limitations of the entrepreneurial mindset, it is important to recognize its value. For, as Sam Walton pointed out long ago, those who possess the mindset “daisy in a field of sunflowers, grow up to be threshed wheat.” By developing the entrepreneurial mindset, those who possess it are able to realize their full entrepreneurial potential. After all, “nothing can stay still in the wind.”