r-2-Entrepreneurial-Mindset-and-Opportunity-Recognition.pptx

ENTREPRENEURIAL
MINDSET
CHAPTER 2

LEARNING OUTCOMES
1. Compare fixed and growth mindsets;
2. Generalize characteristics and essentials of
entrepreneurial mindset;
3. Assess entrepreneurship as a habit;
4. Consider opportunity recognition using mindset;
5. Integrate structured strategies of forming ideas;
6. Propose pathways towards the identification of
opportunity;
7. Recommend ways on using information rightfully to
create impact; and,
8. Adapt the IDEATE model in opportunity recognition.

MINDSET AND ITS CHARACTERISTICS
AND ESSENTIALS
−Mindset is a belief that qualities like intelligence
and talent are fixed or changeable traits.
−A mindset of abundance will consider that there is
plenty of resources for everyone and that resources
will not run out because they are replaceable.
However, a mindset of scarcity shall think that
there is inadequate amount of things around, so
some people can either benefit or lose them.

MINDSET AND ITS CHARACTERISTICS
AND ESSENTIALS
−People with a fixed mindset perceive that
their talents and abilities are set.
−People with a growth mindset trusts that
traits can be changed, developed, and
strengthened by working on them.

MINDSET AND ITS CHARACTERISTICS AND
ESSENTIALS
Fixed Mindset Growth Mindset
I’m either good at it or I’m
not.
I can learn anything I want to.
When I’m frustrated, I give up. When I’m frustrated, I
persevere.
I don’t like to be challenged. I want to challenge myself.
When I fail, I’m no good. When I fail, I learn.
Tell me I’m smart. Tell me I try hard.
If you succeed, I feel
threatened.
If you succeed, I’m inspired.
My abilities determine
everything.
My effort and attitude
determine everything.

CHARACTERISTICS OF AN
ENTREPRENEURIAL MINDSET
1. Curiosity
- Leads to questions, and questions lead to
answers.
- Strengthens the ability to understand
things with a new standpoint.

2. Commitment
- Continuing to keep going and persist
amidst problems.
- Rejection and disappointments are
essential elements of an entrepreneur’s
life which needs to be endured.
- The focus should be on achievements.

3. Optimism
- Tough attitude towards challenges
makes up successful entrepreneurs.
- Entrepreneur should be hopeful in
exploring its many learning
opportunities.
- For a successful entrepreneur, there is
always a solution to every problem.

4. Flexibility
- Helps to be supple to deal with a series of
difficult situations, solve problems easily and
make progress from obstacles.
- Make a journal and timeline to overcome
difficulties.

5. Ownership
- Success comes from their own ability.
- The attitude to be responsible for the
things you do.
- Be confident that you can always fulfill
your dreams.

6. Leadership
- Guides, motivates, and empowers the
team.
- Through convincing communication and
involving his team, an effective
entrepreneur is able to attain his visions.
- Able to create visions by constantly
being the model of the team.

7. Connection
- Entrepreneurs must choose those people
that would form his collective links so
that he could breed his idea.
- There should be both emotional and
financial bonds.

8. Self-respect
- It’s vital to take care both of the body,
mind, and spirit.
- Taking care of oneself daily through rest,
exercise, and diet is essential.

ESSENTIALS OF THE
1. Passion first
• The best ways to be involved and
continue doing business during difficult
times is to have a sense of meaning and
purpose.
• This is the intention for starting
businesses according to the
entrepreneur’s passion.

ESSENTIALS OF THE
2. Everything is possible
• Believing that entrepreneurs are capable
of accomplishing unexpected results.
• They trust that an idea could be possible
to turn into reality.
• They examine first their goals and set
things bigger.

ESSENTIALS OF THE
3. 100% accountable
• The power to choose their responses to
any circumstance because they have this
100% Accountable mindset.
• They need to build a new start and form
a different conclusion.

ESSENTIALS OF THE
4. We are connected
• Entrepreneurs believe they can achieve
their dreams not by being alone though
they love to be independent.
• They take honor in competition because
they believe that working with, for, and
through others pushes their potentials.

ESSENTIALS OF THE
5. Live life to give
• As people in business profit more, they
tend to give more, or what is known as
corporate social responsibility
• They believe that life is a cycle, hence
those people with so much need to give
to people with less.

ESSENTIALS OF THE
6. Attitude of gratefulness
• Seldom do people give their attention to
their accomplishments and their present
experiences except for entrepreneurs.
• Even during problematic situations
which entrepreneurs recognized as
opportunities to learn and grow, they are
still grateful about these situations.

ESSENTIALS OF THE
7. The time is now
• Recognizing that all their powers exist in
the moment.
• They believe that they cannot change
history and the future is uncertain.
• It is best to take action than simply
waiting on a perfect plan which does not
exist.

ENTREPRENEURSHIP AS A
HABIT
• Habit is an unconscious behavior done often and
regularly.
• Good habits can be acquired using “habit loop”, a
process wherein the brain makes decision whether
to store or repeat such behavior.
• Rewarded behavior is most likely repeated.

THREE HABITS THAT REQUIRED MOST TO
BE NURTURED AND BE PRACTICED FOR
1. Self-Leadership Habit
• Practice of purposely influencing and
controlling one’s behavior, actions, thinking,
and feeling.
• Related to optimism, happiness,
consciousness, and emotional intelligence
among others.

HABIT
• 3 important strategies:
1. Behavior-focused
- Concerns enhancing self-awareness to
manage behaviors especially when dealing
with essential but not-so-good tasks.
- Ways to accomplish this include: Self-
observation, Self-goal setting, Self reward,
Self-punishment, Self-cuing.

HABIT
2. Natural Reward
- About making every tasks enjoyable by
emphasizing the positive aspects of each
task and its importance.
3. Constructive Thought
- Creating positive and productive means of
thinking that are advantageous to the
performance of entrepreneurs.

HABIT
2. Creativity Habit
• Creativity is the capacity of turning fresh ideas,
insights, inventions, products or artistic
objects that are considered to be unique,
useful, and of value to others into reality.
• Creative people are open to experiments and
do not fear to commit mistakes.
• Example: The Aristocrat, the famous
restaurant for its world-renowned Chicken
BBQ & Java Rice combination.

Dear God,
We thank You for the school that we have.
We pray to You that this may serve as a safe place
for all of us to learn, have fun, and build strong
friendships.
Thank you to the teachers who teach us.
Thank you for the friends –
the people we can learn new things with.
Thank you for giving us best school to help us
attain our Educational goals.
And thank you for the beautiful day you give us to
learn, to serve others, and to remember the Truth
of Your Glory! All these we ask through the
intercession of Mama Mary, our Patroness! AMEN

HABIT
3. Improvisation Habit
• Improvisation is the unstructured way of
creating something in the absence of planning.
• Entrepreneurs though start with good ideas
oftentimes possess limited resources,
unpredicted market situations or conflicts
inside the company that hinder them to realize
their initial plans.

OPPORTUNITY RECOGNITION USING
MINDSET
• Opportunity is a means to generate profits by
creating unique, innovative, and desirable products
or services which are not being found in the market
yet.
• Opportunity recognition is a process by which
individuals and businesses make use their
entrepreneurial mindset to establish new
businesses or ideas.

OPPORTUNITY RECOGNITION USING
MINDSET
• Entrepreneurs are able to see problems as
opportunities. They consider each problem,
frustration , or unmet need they face as a possible
opportunity.
• However, if the right mindset is not utilized, then a
missed opportunity is expected.

HOW TO START WITH IDEAS
1. Analytical
• Breaking a problem into details or looking at a
problem in a common way to produce ideas on
improving or innovating products or services.
• Only when thought analytically that
correlation of problems is seen.

2. Search
• Linking personal experiences that are
significant to the existing problem.
• Illustrates the ability to be resourceful in
looking for connections between objects that
appears to have no obvious relationship at
first.

3. Imagination-Based
• Interrupting doubts and dropping restrictions
to produce fantasies or make believe
situations.
• Sometimes, entrepreneurs need to be playful
in their minds so they can think of ways that
are impossible.

4. Habit-Breaking
• To explore a new perspective, entrepreneurs
should think of the opposite of something.
• The ideas of a person not part of a situation
could also be taken particularly those
admirable personalities.

5. Relationship-seeking
• Establishing a link between concepts
that are not usually connected.
• Intention is to fuel the mind into making
connectivity that seems to be unnoticed.

6. Development
• Employs the modification of existing concepts
to make improved choices and new potentials.
• One way to do this is to brainstorm.

7. Interpersonal
• Needs interaction with a group to generate
ideas.
• Brainstorming is also commonly used to
highlight creativity towards new
opportunities.

FOUR PATHWAYS TO OPPORTUNITY
IDENTIFICATION
• An opportunity could be in the form of a new
product and/or service, new found markets,
newly opened distribution channels, new ways of
production or supply or new methods of
organizing.

IDENTIFICATION
1. Find Pathway
• Assumes that opportunities exist independent
of entrepreneurs and are waiting to be found.
• Generally, an opportunity is found when the
entrepreneur sees a clear problem and
develops a solution.
• The problem is known to most, but the
entrepreneur is “the one who acts on the
potential solution”.

IDENTIFICATION
• This is the experience of Socorro Ramos, the
owner of National Bookstore. She opened
National Bookstore in Escolta with her
husband with a capital of P200, selling books
and school supplies to students. At that time,
Manila was under the control of the Japanese,
who imposed censorship on books and
periodicals. To augment their earning, she and
her husband resorted to selling other items
like candles and soaps.

IDENTIFICATION
FIND
SEARCH
EFFECTUATE
DESIGN
I saw a
problem
and
developed
a solution.
I knew what I
wanted to
start a
business, but
was unsure
what business
to start. I
intentionally
searched for
different
opportunities.
I thought
about what I
know, my
skills,
experiences,
and abilities
and developed
an idea that
matched ‘me’. I
created
something and
just started
testing it.
I wanted to create
something innovative. I
started looking around,
observed and talked to
some people and
identified new, unmet
needs. Then, I created
something to meet
these needs.

IDENTIFICATION
2. Search Pathway
• Used when entrepreneurs are not quite
definite what type of business they want to
jump in. Hence, they engage in an active search
to discover new opportunities.

IDENTIFICATION
• The story of Ragnarok by the company
LevelUp! is a good example. During a business
trip in Korea, Nonoy Colayco smelled the
opportunity of online gaming in the
Philippines. He knew very well that Filipinos
are fond of gaming. Through the help of his son
Ben Colayco, a person passionate with games,
the father and son team brought gaming to a
whole new level called Massively Multiplier
On-line Games (MMOG).

IDENTIFICATION
The Internet and gaming was really
progressing that time with Counterstrike as
the popular online game. They got the
publishing rights with Oz World and 3D Chat,
but it was with Ragnarok from Korea that
served as the accomplishment of LevelUp!

IDENTIFICATION
3. Effectuate Pathway
• Uses the entrepreneur’s skills, knowledge, and
abilities to unearth an opportunity that suits
him.
• Such opportunity comes from the experiences,
abilities, networks, and entrepreneur’s
confidence to make action especially during
times of uncertainty.

IDENTIFICATION
• With only 2 cake displays and 10 employees,
Milagros, Clarita, and Doris Leelin started
Goldilocks at a 70-sq-m building space in
Makati. Sisters Milagros and Clarita loved
baking and decided to pursue their passion
into business. With the help of their sister-in-
law Doris, the Leelin’s opened their first
branch.

IDENTIFICATION
In 1991, Goldilocks launched its franchising
program. As of 2015, the bakeshop chain had
almost 400 stores across the country, with
other branches in the USA, Canada, and
Southeast Asia. From the modest capital of
P66,000, Goldilocks is now a multi-million
food enterprise with more than 4,000
employees.

IDENTIFICATION
3. Design Pathway
• Most difficult yet the most-value creating pathway.
• By focusing on the unsatisfied need of the market
particularly the latent ones, the entrepreneur is able to
discover valuable opportunities
• Here the entrepreneur is really creating a new market
Latent needs- needs that customers do have but
do not know they have
.

IDENTIFICATION
• The craze for potato fries is everywhere now.
Perhaps, this craze evolved from the
Westernization of the Philippines through the
entry of foreign companies in the country
introducing American-style meals such as
burgers and fries. Seeing an opportunity for
success, a local entrepreneur developed an
idea instead of competing against these much
larger companies with the same product.

IDENTIFICATION
An entrepreneur of humble beginnings, Jose
Magsaysay Jr., is the current president of Potato
Corner. He worked at Wendy's as a dishwasher,
eventually climbing his way up to become a
district manager of Wendy's before opening his
first Potato Corner stall in 1992.
A unique selling proposition is what makes a
given product one of a kind like Potato Corners.
The factors inherent in Potato Corner's USP are
low costs and high efficiency.

IDENTIFICATION
What Potato Corner did in order to increase
sales and further expand the company was by
introducing franchising to the company. By means
of franchising, interested partners could help
expand the business by paying royalties, and this
in turn made Potato Corner an even more
publicly-recognized company. As a result, Potato
Corner became a 75% publicly-owned company
with franchisees from all over the globe.

ALERTNESS, PRIOR KNOWLEDGE AND
PATTERN RECOGNITION
Alertness
• Ability to easily pinpoint opportunities in the
environment.
• Information is everywhere and are just waiting to
be discovered. However, only entrepreneurs that
possess alertness could possibly do this thing.
• With their usual activities everyday, entrepreneurs
turn to be alert to existing opportunities.

• Like many travelers Mr. Jonathan Jay Aldeguer
has a natural impulse to purchase souvenirs.
With his entrepreneurial eye, he spotted the
universality and huge potential for a new
business with souvenirs. The souvenir
industry from his entrepreneurial lenses could
become a multi-billion-dollar industry given
the twist.

In the Philippines, the industry lacked
creativity in design, visual merchandising,
quality and branding. Filipinos are used to
the ethnic-looking designs which were the
norm. He showcased his products as a
unique experience of a locality that
highlighted his jump-off concept and his
dynamic personality, hence Island
Souvenirs was born. Today he has more
than 110 branches in the country.

Prior Knowledge
• Information gathered from the combined life
and work experiences.
• Studies show that entrepreneurs that have
knowledge about the industry and market in
combination with broad network are able to
recognize better the opportunities around
them.

PRIOR KNOWLEDGE
• Victoria Belo, more commonly known in the
Philippines as Dra. Vicki Belo, was a victim of
bullying in her childhood years. She was usually
pestered for being ugly and fat. This experience
made her all the more fascinated in the field of
beauty. She imagined herself of becoming
somebody who could make people feel gorgeous
and adored.

PRIOR KNOWLEDGE
This led her to be in the medical profession,
particularly in the field of dermatology. Hence,
she obtained a Diploma in Dermatology in
Bangkok, Thailand in 1990. It was in 1990-when
Dra. Belo established her first clinic at the Medical
Towers in Makati. The clinic was the first to make
known liposuction and lasers in the Philippines.

PRIOR KNOWLEDGE
The Dra. Belo's Belo Medical Group was also the
first recognized "ambulatory cosmetic surgi-
center in the Philippines" and certified by the
Department of Health (DOH). She is now the
noted dermatologist and "Doctor to the Stars". In
addition, Dr. Belo was hailed "Ambassadress of
Beauty" for the Philippines and tasked to endorse
the country as a world-class cosmetic surgery
destination.

Pattern Recognition
• Identifying relationships between seemingly
isolated things or occasions.
• Happens when people make connections of dots
to pinpoint and create opportunities.
• Often, when “connecting dots” there are
constraints that block the way. Real
entrepreneurs ignore these things and try to find
ways to look beyond constraints.

• Filipina scientist Aisa Mijeno is an example of
an entrepreneur that knows pattern
recognition. After resigning from her job in the
IT industry and volunteering with Greenpeace,
Mijeno was exposed to "off-grid" living
conditions. Once she had seen the restrictions
no electricity had on day-to-day living. Hence,
she decided to find a way to figure out how to
produce a light source that did not depend on
electricity, batteries or fuel to work.

In partnership with Philippine incubator,
Ideaspace Foundation, Mijeno was able to design
and create Sustainable Alternative Lighting or
simply SALt. The SALt Lamp is an environment-
friendly and viable alternative light source that
makes use of saltwater, making it appropriate to
those residing in coastline areas. It can also
function well in far-flung barrios. Using only two
table spoons of salt and one glass of tap water,
this ecologically designed lamp lights for eight
hours.

The concept of the SALt lamp is the chemical
conversion of energy. It uses the scientific process
behind the Galvanic cell. However, in place of
electrolytes, the SALt lamp utilizes saline solution,
thus it is harmless and non-toxic.

FROM IDEA GENERATION TO
OPPORTUNITY RECOGNITION
• In order for an idea to be feasible, it must be fresh
or inimitable or at least a twist from an existing
concept that will be acceptable and adoptable in
the market.
• The concept should be something of value to
consumers, because it is a need, a desire, useful
and has the capacity to earn profit. Not all idea
could be an opportunity.
• The best ideas are those that could be transform
into doable opportunity.

• The IDEATE Method is an ideation process
empirically proven to help budding
entrepreneurs recognize problems, cultivate
innovative solutions, and choose the best creative
entrepreneurial idea. This model follows the
process of Identify, Discover, Enhance, Anticipate,
Target, and Evaluate.

1. Identify
• Identifying problems that customers are trying to
solve, are spending money to solve, but still
unsolved to the satisfaction of customers.. This is
also about identifying solutions to this problem.

• After quitting his job, Brian Chesky drove to San
Francisco to crash with a college friend, Joe
Gebbia, who also recently quit his job. They were
both having trouble making the upcoming rent
payment. Then they realized that the 2007
Industrial Design Society of America conference
was coming up and that hotel rooms would be
hard to get.

2. Discover
• Actively searching for ideas in problem-rich
environment where there is social and
demographics change, technological change,
political and regulatory change and/ or change in
the industry structure.

FROM IDEA GENERATION TO OPPORTUNITY
RECOGNITION
• Gebbia, who had three air mattresses suggested
they turn their apartment into an "air bed and
breakfast."

3. Enhance
• Taking the ideas and expanding to new
applications or adding innovative twists. Or
simply enhancing existing ideas.

• After setting up a simple website
(airbedandbreakfast.com), they managed to
book out their whole apartment in three
days, solving their rent problem.

4. Anticipate
• Studying change and analyzing future
scenarios as they relate to social,
technological, and other global changes and
trends.

• The duo, who had met at college at the
Rhode Island School of Design, thought
acting as tour guides to designers would be
a fun way to make money.

5. Target
• Defining and understanding a particular
target market, validating new ideas with
early adopters.

• A customer for Airbnb is the one who adds
up to the company's revenue. He can be a
host who offers his space for rent and lists
it on the platform or he can be a traveler
who books a space.

A
C
T
I
V
I
T
Y
How Entrepreneurs Find
Opportunity
1. What was the observation of Poss about
the garbage problem? What was his
solution to this problem? Relate here.
2. What particular habit in the
entrepreneurial was used by Poss in this
situation? Discuss briefly.
3. Given the chance, with the same
garbage problem here in the
Philippines, how will you solve it the
entrepreneurial way? Tell your
solution/s.

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