Entrepreneurial Mind

Notes and Reviewer ni Liyooo | 1st Year BS in Accountancy

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..Entrepreneurial Mindset.. Difference between Mindset and Behavior?

• Behavior - the way in which one acts or conducts oneself,
Entrepreneur (Investopedia) especially toward others.
• A person who used land (raw material), labor (human • Mindset – a habitual or characteristic mental attitude that
resources), and capital (machineries) to come up with a new determines how you will interpret and respond to situations.
product or service. • Aptitude - a natural ability to do something.
• He/she is an individual who creates new businesses, bearing
most of the risk and enjoying most of the reward. Entrepreneurial Mindset
• People who have the skills and initiative necessary to • It refers to a specific state of mind which orientates human
anticipate current and future needs and bring good new ideas conduct towards entrepreneurial activities and outcome
to market

Mindset
• Mind - ability to think and imagine
• Set - group of things
• Set of assumptions, method of notations held by a group of
people which is so established that it creates a powerful
incentive within these groups to continue to adopt or accept
prior behaviors.
Entrepreneurial Mindset (2013 Raft/Nadzrul)
3 Essential Entrepreneurial Mindset (Abouelnaga)
1. “This is the right direction” mindset • Knowledge and Skill
2. “No doesn’t mean no, it just means not now” mindset ⤷ Functional – knowledge
3. “I was wrong” mindset ⤷ Entrepreneurial skills
⤷ Managerial skills
According to Dr. Carol Dweck from Stanford University, US, ⤷ Technical skills
there are two sets of mindset: ⤷ Communication skills
⤷ IT skills
1. Fixed mindset - students believe their basic abilities, their • Motivation
intelligence, their talents, are just fixed traits. They have a ⤷ Intrinsic is defined as the doing of an activity for
certain amount and that's that, and then their goal becomes to its inherent satisfaction rather than for some
look smart all the time and never look dumb. separable consequence.
2. Growth mindset - people believe that their most basic ⤷ Extrinsic is when someone feels motivated to do
abilities can be developed through dedication and hard something to gain a reward or avoid a punishment.
work—brains and talent are just the starting point. This view • Attitude
creates a love of learning and a resilience that is essential for ⤷ Proactive
great accomplishment, writes Dweck. ⤷ Positive values
⤷ Propensity to take risk
⤷ Creative and innovative
FIXED MINDSET GROWTH
⤷ Inquisitive mind
Static Intelligence Developing ⤷ Pursuing excellence

Avoid Challenges Embrace 5 Characteristics of the Entrepreneurial Mind

• Creative - ability to see things differently, “what ifs”
Give up Obstacles Fortitude • Suspicion of Predictors - tend not to labor under the
assumption that data is the sole predictor of an outcome “gut
No point Effort Hard work
feeling”
Deflect Criticism Learn • Comfort with Uncertainty - it is the very essence of
entrepreneurship, “experimentation, revision, and testing.
Feel threatened Success of others Celebrates
 Entrepreneurial Mind
Notes and Reviewer ni Liyooo | 1st Year BS in Accountancy
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• Willingness to Experimentation - removing expectations and • Economic Growth

letting the results lead you in completely new directions, ⤷ Higher Output
“experimentation can truly be experimental. ⤷ Higher Income per Capital
• Functional Humility - generate and promote new ideas but ⤷ Higher Standard of Living
they think and act collaboratively and are staunchly solution ⤷ Full Employment
focused. “Ego can destroy the best ideas (Kentin Waits –
Marketing Specialist based in Portland).” 5 Tips for Growing an Entrepreneurial Mindset
1. Revisit your vision on a daily basis
Importance of Entrepreneurial Mindset 2. Always be in motion: provide value
• To build an entrepreneurial society 3. Read on a daily basis
⤷ Developing the right mindset at a very early age 4. Approach problems from all aspects
⤷ Inculcate and acculturation process need to 5. Put yourself in a challenging situation
implement through various programs and activities
⤷ Entrepreneurs as agents of change at every level of ..Social Networking..
the society
⤷ Important contribution to entrepreneurial capital What is the use of Social Media to Entrepreneurs
⤷ Entrepreneurship as a way of life • Social media is now an essential tool for every business,
even if they’re in the business of changing society.
Developing an Effective Entrepreneurial Mind
• Understand what motivates you 5 Reasons Why Entrepreneurs Need to use Social Media
• Know what you love • Monitor leads and potential prospects
• Challenge yourself ⤷ Action step: Login to Twitter and type in a
• Reversal thinking competitor's name with the keyword complaints and
• Change your habit (Once in a while) see what people are saying.
• Always believe that you can • Create connections to make a huge business impact
• Break away from norms ⤷ Find and follow the top potential business partners,
investors, and customers in your industry and start
Ineffective Entrepreneurial Mind conversations with them on social media.
• Don't care attitude • Find a supportive entrepreneurial community
• Nothing meticulous/Takes things for granted ⤷ Find people who actively seeks out and supports
• Passing the buck entrepreneurs, focusing on internal business and
• Why should I care?/Careless altitude Wait and see economic development as opposed to industrial
• Non-punctuality recruitment, which seeks to attract enterprises from
• Subsidy mentality outside the community.
• Ask more, give less • Get the world to know you exist
⤷ Action step: Research the top social channels your
Building an Entrepreneurial Society audience is on and create social media accounts on
• Acculturation Process those networks
⤷ Changing the mindset • Get quick feedback on your products and services
⤷ Building the culture ⤷ Action step: Post a comment on Facebook, Twitter,
• Entrepreneurial Society or Instagram asking your online community for
⤷ Risk-taker​ ⤷ Crealive feedback on something you're working on
⤷ Innovative ​ ⤷ Supportive • Monitor leads and potential prospects
• Entrepreneurial Capital ⤷ Action step: Login to Twitter and type in a
⤷ Human​ ⤷ Intellectual​ ⤷ Financial competitor’s name with the keyword complaints and
⤷ Knowledge​ ⤷ Physical​ ⤷ Social see what people are saying.
• Entrepreneurial Economy • Create connections to make a huge business impact
⤷ Vibrant​ ⤷ Job Creation ⤷ Find and follow the top potential business partners,
⤷ Sustainable​ ⤷ Higher Productivity investors, and customers in your industry and start
⤷ Added Value conversations with them on social media.
 Entrepreneurial Mind
Notes and Reviewer ni Liyooo | 1st Year BS in Accountancy
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• Find a supportive entrepreneurial community 6. Satisfy Your Customers

⤷ Find people who actively seeks out and supports • Monitoring conversations to see if your customers are talking
entrepreneurs, focusing on internal business and about your brand and in what context.
economic development as opposed to industrial • Broadcasting important messages, announcements, and
recruitment, which seeks to attract enterprises from offers to customers via a social media platform such as
outside the community. Twitter.
• Offering prompt customer service to customers who are
5 Major Characteristics of Social Media facing genuine problems or need some help with the product
1. User-based – user populate the network with conversation or service.
and content (anyone) can take part in the discussion • Holding regular question & answer sessions with customers
2. Interactive – it’s a way to connect and have fun to understand their concerns, get real feedback, and see how
3. Community-driven – people share commonalities (beliefs things can be improved.
and hobbies) to reconnect and discover new friends • Connect and build a relationship with power users or
4. Relationship – contract-subcontract, it can proliferate out customer advocates so that they can help serve other
across the network customers.
5. Emotion over content – emotional security and a sense that 7. Enhance Brand Loyalty
no matter what happens, their friends are within reach • Having a Solid Social Media Strategy
• Sharing Value-Oriented Content
Top 10 Social Networks for Entrepreneurs • Being Consistent
(CP Communications) • Responding to Queries
1. Facebook​ 6. Snapchat • Show the Human Side
2. YouTube​ 7. Pinterest
3. Instagram​ 8. Reddit ..Entrepreneurial Process..
4. WhatsApp​ 9. Twitter
5. TikTok​ 10. LinkedIn • It is a set of stages and events that follow one another.
• Its stages are: the idea or the conception of the business, the
The Importance of Social Media in Business event that triggers the operations, implementation, and growth.
(Lyfe Marketing)
Steps in the Entrepreneurial Process
1. Leverage social advertising • Discovery – generates ideas (hobbies/skills), recognize
• Lower ad costs: opportunities (consumer needs/wants), studies market
• Targeted Reach (conduct survey demographics) (Innovation/Opportunity)
• Real-Time Performance Analysis • Concept Development – develop business plan (Code of
2. Boost Brand Awareness ethics/Mission statement/Location/Legality required)
• Find Your Audience​ • Measure Your Efforts • Resourcing – identifies and acquires financial, human, and
• Use Visuals​ ​ • Build Authority capital resources (Identify potential investors, hire employees,
• Create Conversations apply for loans and grants)
3. Increase Inbound Traffic • Actualization – operates business and utilizes resources
• Inbound marketing is one of the most effective ways to (Grand opening/day to day expenses)
generate targeted traffic to your website. • Harvesting – future growth, development and demise (Plan 5
• By putting in more effort into social media promotion, you to 10 years)
create a whole new channel to draw in laser targeted inbound
traffic and get more inbound links. ..Creative Problem Solving..
4. Improve Search Engine Optimization
• Higher Chances to be Found via Web Search Creative Problem Solving Profile
• Ability to Reach More People Via Social Media • Problem Formulation
SearchMeasure Your Efforts ⤷ Problem finding – Which to solve
5. Increase Conversion Rates ⤷ Fact finding – Research
• Use It for Social Proof ⤷ Problem definition – Define what is it?
• Use it for User-Generated Content
 Entrepreneurial Mind
Notes and Reviewer ni Liyooo | 1st Year BS in Accountancy
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• Solution Formulation MOST Analysis

⤷ Idea finding – brainstorm • is used to improve internal processes and company culture
⤷ Evaluate select – one that works best by analyzing the organization’s internal environment.
• Solution Implementation
⤷ Plan – a well-planned strategy
⤷ Acceptance – show you ideas with conviction
⤷ Action – get on with it

SWOT Analysis
• A tool that can help you to analyze internal and external
factors that might affect your business.

CATWOE
• A tool that provides a framework for defining and analyzing
business stakeholder perspectives.

PEST Analysis
• It helps organizations recognize and capitalize on
opportunities offered by existing conditions in the business
environment.
• PEST analysis can also be used for identifying current or
possible future challenges.
• A tool that helps businesses understand and anticipate Special Risks in Emerging Markets
external factors that could impact their performance and 1. Political risk
revenue. 2. Social risk
3. Information problems
4. Liquidity

“When everything seems to be going against you, remember

that the airplane takes off against the wind , not with it.”
- Henry Ford, Founder of Ford Motor Company

“The secret of change is to focus all your energy not on

fighting the old but on building the new.”
- Socrates

“Every failure is a step to success.”

- Malcolm Forbes

“If you would persuade, you must appeal to interest rather

than the intellect.”
- Benjamin Franklin
 Entrepreneurial Mind
Notes and Reviewer ni Liyooo | 1st Year BS in Accountancy
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“Creativity is just connecting things, when you ask creative Professional Corporation
people how they did something, they fell a little guilty because • A corporation organized by one or more licensed individuals
they didn't really do it, they just saw something. It seems such as doctor, lawyer or accountants especially for the
obvious to them after a while. That’s because they were able to purpose of providing professional services and obtaining tax
connect experiences they’ve had and synthesize new thing.” advantages
- Steve Jobs
Business Corporations
..Corporation.. • Public - one in which stock is widely held or available for
wide public distribution through such means as trading on a
• An artificial being by operation of law national or regional stock exchange. Its managers, if they are
• Rights of Succession also owners of stock, usually constitute a small percentage of
• Powers, attributes, and properties expressly authorized by the total number of shareholders and hold a small amount of
law stock relative to the total shares outstanding. Few, if any,
• A legal entity that is separate and distinct from its owners shareholders of public corporations know their fellow
(shareholders). That can enter into contracts, loan and borrow shareholders.
money, sue and be sued, hire employees, own assets, and pay • Private - By contrast, the shareholders of the closely held
taxes. corporation are fewer in number. Shares in a closely held
corporation could be held by one person, and usually by no
Classifications of Corporations more than thirty. Shareholders of the closely held corporation
often share family ties or have some other association that
Nonprofit Corporations permits each to know the others.
• It may be formed under this law for charitable, educational,
civil, religious, social and cultural purposes, among others. How to Form a Corporation
• One of the four major classifications of corporations is the 1. Choose a business name
nonprofit corporation (also called not-for-profit corporation). 2. Check availability of name
It is defined in the American Bar Association’s Model 3. Register a DBA name
Nonprofit Corporation Act as “a corporation no part of the 4. Appoint directors
income of which is distributable to its members, directors or 5. File your article of incorporation
officers.” Nonprofit corporations may be formed under this 6. Write your corporate bylaws
law for charitable, educational, civil, religious, social, and
cultural purposes, among others. Continuation
1. Draft a shareholder’s agreement
Public Corporations 2. Hold initial board of directors
• It is often called a municipal corporation. 3. Issue meeting
• These corporations are not organized for profit, do not have 4. Obtain business permit and licenses
shareholders, and operate under different statutes than do 5. Register with IRS and state and local tax agencies
business corporations. 6. Open corporate bank account
• The true public corporation is a governmental entity. It is
often called a municipal corporation, to distinguish it from the 2 Major Organization Structures
publicly held corporation, which is sometimes also referred to
as a “public” corporation, although it is in fact private (i.e., it 1. Profit
is not governmental). Major cities and counties, and many • An organizational structure that operates with the goal of
towns, villages, and special governmental units, such as sewer, making money.
transportation, and public utility authorities, are incorporated. 2. Non-Profit
These corporations are not organized for profit, do not have • An organizational structure that is dedicated to a particular
shareholders, and operate under different statutes than do cause.
business corporations.
 Entrepreneurial Mind
Notes and Reviewer ni Liyooo | 1st Year BS in Accountancy
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Business Types ⤷ Disadvantages: Greater government regulations to

adhere to; and restrictions on number and type of
1. Sole Proprietorship shareholders.
• Most common business structure type and is owned and
operated by one person 6. Franchise
⤷ Advantages: Easy and inexpensive to create, • A method of distributing products or services involving a
flexibility and control to your linking, few franchisor, who establishes the brand’s trademark or trade
government regulations, tax advantages if struggling, name and a business system, and a franchise, who pays a
and profit taxed once. royalty and often an initial fee for the right to do business
⤷ Disadvantages:Unlimited liability, meaning under the franchisor’s name and system
business debts are personal debts; limited source of ⤷ Advantages: Superior training and systems offered;
financing, and limited resources. guidance on marketing advertising, financing,
accounting, etc; and franchise networks to share
2. Limited Liability Company experiences (great knowledge base)
• A legal entity that gives business owners added benefits ⤷ Disadvantages: One-time franchising fee for
compared to a sole proprietorship or general partnership and owning a franchise location; recurring royalty fees as
helps protect owners’ personal assets. a percentage of sales or profits; tight restrictions that
⤷ Advantages: Simple to organize and operate; limit control; purchases must be made from specific
flexible in nature; and taxed as a partnership suppliers; contributing to marketing fund, but having
⤷ Disadvantages: Generally only available to a group no control over it; and selling franchise location
of professionals such as lawyers or accounts. requires approval from the franchiser.

3. Partnership (General/Limited Partnership) .7. Cooperative

• Business that two or more individuals own and operate • A cooperative or co-op is a business structure that is owned
together. and democratically controlled by its member-owners who
⤷ Advantages: Easy to organize; combined utilize its services.
knowledge, sills, and resources; few government ⤷ Advantages: Democratic control; limited liability;
regulations, and taxed once. and equal profit distribution.
⤷ Disadvantages: Unlimited liability for some ⤷ Disadvantages: Longer decision making process;
partners; possible conflict development between participation of all members required; conflict
partners; and shared profits. possibility between members; and extensive record
keeping required.
4. Corporation
• A corporation is a legal business entity that protects its ..Opportunities..
owners from personal liability for the company's actions and
debts. How to Maximize Opportunities and Manage Risks in
⤷ Advantages: Limited liability; and easier to raise Emerging Markets
capital due to greater sources of funding. 1. Do your homework
⤷ Disadvantages: Being taxed twice (as a legal entity 2. Use intermediaries or advisors
and as an owner); greater government regulations to 3. Diversify your investments
adhere to; more expensive to set up; and extensive
record keeping required. 7 Opportunities for Entrepreneurs
1. Invest in Multiple Businesses
5. S Corporation ⤷ at startup/simultaneously
• A type of business entity that functions like a corporation, ⤷ limiting risk but not profit opportunity
but is taxed like a partnership It may only issue common stock 2. Angel Investors
max of 100 shareholders-must be a citizen or permanent ⤷ Wealthy businessmen
residence of the country. ⤷ No payment/collateral
⤷ Advantages: Limited liability; greater credibility ⤷ Just like to help due to belief on the business/can
for financing; and no double taxation be co-owner
 Entrepreneurial Mind
Notes and Reviewer ni Liyooo | 1st Year BS in Accountancy
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3. Crowdfunding The Entrepreneurial Mindset

⤷ Look for financial assistance to many
people/contributions in small amounts Donald F. Kuratko
4. Startup Incubators • It is a dynamic process of vision, change, and creation
⤷ They help startups through training • Requires an application of energy and passion towards the
management/provide full place for starting businesses creation and implementation of new ideas and creative
5. Quality content solutions.
⤷ Quality words and essence/impact • Is the vision to recognize opportunity where others see chaos
- Angle contradiction and confusion
- Theme
- Distribution “Everything is always possible before it works! This is what
6. Social power of the internet the entrepreneurial mindset is all about encouraging people to
⤷ Social networking do what is impossible.”
7. Foreign market
⤷ Aligned Mandate
⤷ Connect your business internationally • Extend entrepreneurial education throughout the world as a
potential source of innovation, employment, and economic
Defining Excellence growth
1. Clarity • Advance entrepreneurship as the world’s engine of economic
2. Focus growth and job creation: the underpinning of political stability
3. Connection • Empowers women and youth
• Entrepreneurial firms are now part of the international
..Myths-Mindset-Mandate.. market

Myths of Entrepreneurship • Social entrepreneurship – combining social values, profit

1. Big risk takers – gambler motives, and global focus
2. All you need is luck • “There is no development strategy more beneficial to society
3. Most entrepreneurial initiatives fail as a whole – as women and men alike – than the wine which
4. All you need is money involves women as a central player.”
5. Entrepreneurs are born, not made • Prof. Euclid Cezar – entrepreneurship is a character-based
skill more than an intellectual ability
Business Myths
• You need to know everything. 10 of the Most Common Entrepreneurship Myths
• You can’t start a business when you have a very detailed
boss. Keith Krach
• You need to have a lot of money to start a business. 1. Entrepreneurs are born that way.
• You need to have a lot of business experience. 2. The only requirement is a good idea.
• You need to put up a costly website. 3. Starting a new business guarantees freedom and often
• You need to have a really nice office to impress the client. requires great sacrifice.
• Businesses can take care of themselves. 4. Launching a company quickly leads to wealth.
5. Only money motivates employees.
Debunking Myths 6. Businesses either flourish or fail/
7. All responsibility falls on the entrepreneur.
“It’s not magic, it’s not mysterious, and it has nothing to do 8. There’s a secret “silver bullet” key to success.
with genes. It’s a discipline, and like any discipline, it can be 9. Businesses need someone with an MBA at the helm.
learned.” 10. Quitting is for losers.
- Peter Drucker
 Entrepreneurial Mind
Notes and Reviewer ni Liyooo | 1st Year BS in Accountancy
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..Time-Saving Entrepreneurial Skills.. 4. Help your customers improve their lives – be

people-oriented (educate your customers)
10 Time-Saving Hacks for Busy Entrepreneurs 5. Create good and lasting relationship – build trust and
confidence
Angela Ruth
1. Plan your day the night before. With their business stockholders
2. Take breaks. 1. Be just to your partners and co-owners
3. Wake up earlier. 2. Be honest in reporting
4. Handle the most difficult task first. 3. Be a responsible debtor
5. Set timers. 4. Be a conscientious tax payer
6. Banish your smartphone. 5. Be a fair business competitor
7. Try an audiobook during your commute.
8. Get rid of multi-tasking With the world
9. Batch small tasks. 1. Protect our own planet
10. Stop being a perfectionist. 2. Uphold morality and right conduct
11. Make decisions right away. 3. Give to the poor
4. Help the economy grow
..Ethics of Entrepreneurship.. 5. Change the world

• Being a good entrepreneur takes more than a creative idea Corporate Social Responsibilities
and a superior work ethic. It also requires understanding the • Is a type of international private business self regulation that
importance of ethical business practices, giving back to your aims to contribute to societal goals of a philanthropic , activist,
community, and running your business in a way that or charitable nature or by engage in or support volunteering or
minimizes harm to others and the environment. ethically oriented practices
• Company’s self regulating social accountability to itself, the
Socially Responsible Business (Victorina Abrugar) stakeholder and the public

Within Yourself ..Legal Parameters of Entrepreneurship..

1. Know yourself – listen to yourself
2. Have a great purpose – define a greater personal purpose RA 10679 – Youth Entrepreneurship Act
3. Achieve inner peace – initiates peace and real happiness • The policy of the state to promote the sustained development
within him of young Filipinos whose aptitude and skill in the field of
4. Continue learning – to continue providing the world with finance and entrepreneurship shall be encouraged and honed
new things through education and specialized training programs. (August
5. Be an example – motivate others 27, 2015)
• An act providing for a national competition policy
Inside the workplace prohibiting anti-competitive agreements, abuse of dominant
1. Hire the right people – best employee position and anti-competitive mergers and acquisition.
2. Train your workers well Establishing the Philippine Competition Commission and
3. Compensate your employees well appropriating funds therefore.
4. Help them improve their lives
5. Make them really happy List of Business Laws in the Philippines (Victorina Abrugar)
1. Tax Reform Act of 1977 (RA 8424)
With your customers 2. The Local Government Code of the Philippines (RA 7160)
1. Provide quality products or services – be different, stand, 3. Labor Code of the Philippines (PD 442)
and fight for quality 4. The Corporation Code of the Philippines (BP 68)
2. Give extra customer care – make your customer really 5. Civil Law of the Philippines (RA 386)
happy 6. Civil Law of the Philippines (RA 386)
3. Be honest in advertising – do not suffer from lies 7. Social Security Act of 1997 (RA 8282)
8. National Health Insurance Act of 1995 (RA 7875)
 Entrepreneurial Mind
Notes and Reviewer ni Liyooo | 1st Year BS in Accountancy
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9. Home Development Mutual Fund Law of 2009 (RA 9679)

10. Food and Drug Administration (FDA) Act of 2009 (RA
9711)
11. The Philippine Fisheries Code (RA 8550)
12. The Animal Welfare Act of 1998 (RA 8485)
13. Securities Regulation Code of the Philippines (RA 8799)
14. Financing Company Act of 1998
15. Truth in Lending Act of 1998 (RA 8556)
16. Consumer Act of the Philippines (RA 7394)
17. Electronic Commerce Act of 2000 (RA 8792)
18. The Magna Carta for Micro, Small, and Medium
Enterprises (MSMEs) as amended by RA 9501
19. Barangay Micro Business Enterprise (BMBEs) Act of
2002 (RA 9178)
20. Insurance Act of the Philippines
21. Foreign Investment Act of 1991 (RA 7042)
22. Foreign Investment Act of 1991 (RA 7042)
23. Philippine Cooperative Code of 2008 (RA 9520)
24. Anti-money Laundering Act of 2001 (RA 9160)
25. The Anti-Red Tape Act of 2007 (RA 9485)