Entrepreneurial Mindset Tool, get ready and relevant for the future
Entrepreneurs aren’t born but bred. Although some successful entrepreneurs claim that entrepreneurship runs through their veins and an Entrepreneurial Mindset Tool should be a blood test, research has finally proven them wrong. By comparing children of biological and adoptive Swedish parents with and without small businesses, they evince that genes play a minor and minimal role. Nurture is the overall winner when it comes to becoming a successful entrepreneur.
The effect of post-birth factors is approximately twice as large as the effect of pre-birth factors. So, nurture wins over nature. Children who have entrepreneurial parents – biological or adoptive – have about 60% more chance to become start a business of their own than children who don’t have an entrepreneurial upbringing. So, role models and teaching entrepreneurship does play an important role.
Apart from parental role modeling, the research doesn’t specify what kind of upbringing the entrepreneurial parents gave their – biological or adoptive – ‘offspring.’ In this blog, we demonstrate the type and effect of growing an entrepreneurial mindset through teaching entrepreneurship and entrepreneur coaching.
- What is an entrepreneurial mindset?
- The Entrepreneurial Mindset Tool
- Entrepreneurial Mindset Growth
- Tips to grow an entrepreneurial mindset
What is an entrepreneurial mindset?
The entrepreneurial mindset is a state of mind. A way of entrepreneurial thinking and motivation that makes someone entrepreneurial. It doesn’t necessarily mean owning or starting a business of your own. Within (public) organizations, some employees demonstrate entrepreneurial behavior. So, they don’t hold a company or run a business, yet are very entrepreneurial by nature (or nurture 🙂).
Someone with an entrepreneurial spirit and motivation you can detect by the following three entrepreneurial skills:
Provided that everyone sees opportunities, not everybody recognizes it as a possibility. For example, someone is passing an empty building in a busy shopping district. Some see it as a vacant store and nothing more, while others start creating ideas about what to do with this blank space. However, a worker can also observe an option for change in the company they work for. For example, a manager recognizes an opportunity to do the same work in half the time.
Yet, seeing opportunities is not even half the work. The real challenge is the action. It is as with innovation and creativity: 10% inspiration and 90% transpiration. So, it is hard work. If you don’t take action, someone else will, or nothing will happen at all. So, to know if the chance is worth the effort, you need to explore it in more detail to find out if the perceived opportunity is possible and viable. Yet, many stop at this point, convincing themselves it is too hard, too costly, too time-consuming, and so on.
Once someone has done the hard work of checking and analyzing the perceived chance and marked it as a viable option, it is time to make it happen. Rolling up the sleeves, and begin the required activities. And that’s demands persistency and consistency, which is difficult. That’s why many initiatives – no matter how good – fail. In the case of the empty store, begin filling the shopping space and start making money. Or, in the case of the manager, start the new way of working and check how much time (and money) actually is being saved.
An entrepreneurial mindset recognizes opportunities, explores them, and finds ways to create value. Value is much more than money alone. Entrepreneurial success is adding value to the lives of others.Dr. Martijn Driessen
The Entrepreneurial Mindset Tool
How to measure the Entrepreneurial Mindset accurately?
There are many free tests on the internet, but they lack reliability and a solid foundation and underlying theory. The main reason for these simple tests is to get traffic to their website. However, the better and more serious tests that have a foundation in science miss out the practical use and relevance. With more than 1,000,000 users, the E-Scan proves to combine practical use and solid scientific validation.
The Entrepreneur Scan, in short E-Scan, is based on the scientific Entrepreneur Competence Model.
The Assessment Tool
This scientific yet practical assessment tool, E-Scan, measures the following competencies and personality characteristics:
People with the right mindset want to work to the best of their abilities in everything they do, and always try to do better than the last time.
Enterprising people can resist the influence of others and make their own decisions
Entrepreneurs know what they want and how they can influence others to reach their goals. In the process, they believe their opinion is generally accepted.
Someone with an entrepreneurial mindset knows how to give attention to others, because he or she understands that people are needed to help them to reach their goals.
People with an entrepreneurial mindset believe that they can reach their goals, even if they have no clue how to make it happen.
Entrepreneurial people never give up. They keep working on tasks that have to be done today, and keep their eyes on the goals for the far future.
Venturous people are able to cope with uncertainties and accept that they could lose. Even if the risks are high, they believe it will turn out well.
Enterprising persons with this thinking style have an active imagination, often see the whole picture before them, and easily spouts ideas or has that brilliant business idea.
People with this thinking style love being around people and they focus on building relationships. They often rely on their feelings, more than on facts.
An entrepreneurial mindset with this thinking style keeps an overview and ensures that short-term goals are achieved. They strive for order and control.
Entrepreneurial persons with this thinking style are well aware of all developments in their area of interest. Based on facts, they independently and logically come to a precise analysis of what is going on and needs to be done.
An entrepreneur knows the needs of people and how to link them to their company.
Creativity and innovation
An entrepreneurial mindset possesses the ability to stay open for ideas, innovation and think of new solutions; creative thinking.
An entrepreneurial mindset has the ability to adapt to all sorts of changes, without giving in on their goals.
Entrepreneurial people understand that their role is a leading one and they are happy to help others perform to the best of their abilities.
Entrepreneurial people give others space and confidence they need to give their best for a shared goal.
Someone with an entrepreneurial mindset can assess and organize their work and that of others well in terms of time and quantity.
An entrepreneurial mindset understands the importance of keep a good balance between expenses and revenues.
Entrepreneurial Mindset Growth
Multiple studies (OECD, 2014) show significant growth in the entrepreneurial mindsets of entrepreneurship students, startups, and business owners with staff using the E-Scan as the Entrepreneurial Mindset Tool. Learning is at its core.
Students grow an entrepreneurial mindset
Entrepreneurship education is most served with a fictional student company program. It is the best lesson to learn and experience entrepreneurship. With the right help and qualitative coaching of teachers, young people grow an entrepreneurial mentality. The entrepreneurial traits – see above – grew with about 27,4%. The entrepreneurial qualities or capabilities, which are easier to develop, grew with 31,7% on average.
Startups improve their entrepreneur mindset and increase their chances of survival
A small business entrepreneurship program, where almost 3,000 startup founders participated, shows an enormous increase in their entrepreneurial mindsets and skill. The results are:
- Networking +96%
- Self-confidence +76%
- Marketing and sales +68%
- Finance and cash-flow control +48%
- Growth and strategical thinking +37%
Growth of net profit was achieved in half of the companies that were running their own business at the start of this entrepreneurship program. Note: not every participant had a business growth goal or change of business model as a success for this program.
After five years, a follow-up study shows a significant increase in their survival rate by up to 89%. The average survival rates in the EU and in the USA after five years are around 50%.
Business owners increase their entrepreneurial mindset through 1-on-1 coaching
In another program aimed at developing the regional economy, about 1,000 business owners were given the opportunity to receive entrepreneurial coaching. By measuring the difference between the first and last E-Scan with a feedback report, the entrepreneurial mindset index grew by 17 points. Hence, a growth of 40.4%.
Tips to grow an entrepreneurial mindset yourself
- Tips to grow your Need for Achievement
- Tips to grow your Need for Autonomy
- Tips to grow your Need for Power
- Tips to grow your Social Orientation
- Tips to grow your self-belief
- Tips to grow your perseverance
- Tips to grow your risk taking
- Tips to grow your market orientation
- Tips to grow your creativity
Keep reading: Read more about the entrepreneurial personality.