Entrepreneurial Thinking and Mindset

This assignment examines the core principles of entrepreneurial thinking and mindset. It delves into the differences between entrepreneurial and causal reasoning, highlighting the importance of creativity, spontaneity, and risk-taking in entrepreneurial ventures. The text also explores how entrepreneurs leverage uncertainty to identify opportunities and drive action-oriented strategies for success, drawing upon insights from McGrath and MacMillan's 'The Entrepreneurial Mindset'.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the student:
Name of the university:
Author note

1ENTREPRENEURSHIP
Question 1
Entrepreneurial thinking involves getting into the stories of certain individuals and
realizes how they find the reason of specific problems to transform an idea into specific firm.
The entrepreneurial thinking lets an individual to talk to others and solve decision problems for
building a company based on the same product idea. Thorough analysis of gathered information
leads to several principles of teaching. When this set of principles is put together based on logic
to distinguish the rational form which can be recognized as entrepreneurial. The reasons that
become clear in such a way can be termed as entrepreneurial reasoning.
Entrepreneurial thinking is different from causal thinking as the latter one is a set of pre-
decided goal with given series of means to find out the suitable, fastest, cheapest and the most
effective way to achieve the target goal. Causal reasoning involves make vs. buy decision in
production or selection of the target market. Causal reasoning is also involves the making of
extra alternatives for attaining the target goal. Entrepreneurial thinking does not start with a fixed
target goal unlike causal thinking. Rather, it allows the goals to emerge gradually from
imagination and aspiration (Sarasvathy 2001, p. 2).
To be able to think like an expert entrepreneur is the best option for an individual. The
experts choose entrepreneurial reasoning over causal reasoning because it is effective in the
beginning of a new venture as most of the entrepreneurs do not do well with the growing of the
company which needs causal reasoning. It is essential for an entrepreneur to be creative so to
think like an expert entrepreneur is very relevant to the major field of study. It is mentioned in
the study that both causal and entrepreneurial reasoning requires skills and training for the
specific domain but entrepreneurial thinking demands more spontaneity, imagination,
innovation, improvisation along with salesmanship and risk taking. The relevance lies in the field
of study because the entrepreneurs begin the process of entrepreneurship with their own identity,
abilities, likes and what is their knowledge base along with the knowledge of their acquaintances.
These ways are used by the entrepreneurs to think and imply the feasible effects. This is because
they start with a meager means which are instantly available at a close distance and move
towards their target without much planning and plotting. Causal reasoning involves proper
planning and execution but entrepreneurial thinking involves only execution. (399 words)

2ENTREPRENEURSHIP
Question 2
About entrepreneurial mindset, the author has mentioned that uncertainty can be used for
the benefit of an individual to create a way of thinking about the business which grabs the
advantages of uncertainty. It is important to note in this book that if the entrepreneurial nature
becomes secondary then it will be easy to recognize the uncertain and potential opportunities in
the market which can be exploited with total confidence and speed. The author stated that at this
particular point, uncertainty gets the support of the individual instead of negligence.
The points mentioned in this book by McGrath and MacMillan (2000, p. 2) can be argued
that as the success of entrepreneurship is action- oriented therefore the contents of this book are
intended to give insights that can be put instantly to work even in uncertain situations. Again, it
can be argued that the concepts are made in such a way that they are easy and simple to describe.
With rapid movement, only confusion and delay is caused because of complexity. A role of an
entrepreneur is to solve complexity such that the colleagues can retain their self- confidence.
The major field of study is entrepreneurial mindset which grabs the individual when he
begins to think and act as the unusual people who are known as habitual entrepreneurs. These
individuals start their careers by making business, working in a business or starting independent
ventures. This book focuses on the observation carried out by these entrepreneurs, their thinking,
behavior and what is their actual ability. They mainly look into the factor of uncertainty to create
simplicity in those areas which are found complex by others and they also engage in adopting
learning taken from calculated risks. They are able to determine the passing opportunities which
can be expensive to be slow rather than be wrong. (299 words)

3ENTREPRENEURSHIP
Reference
McGrath, R.G. and MacMillan, I.C., 2000. The entrepreneurial mindset: Strategies for
continuously creating opportunity in an age of uncertainty (Vol. 284). Harvard Business Press.
Sarasvathy, S.D., 2001. What makes entrepreneurs entrepreneurial?.