ENTREPRENEUR THINKING TRAITS BORN OR MADE WHO ARE
ENTREPRENEUR THINKING TRAITS: BORN OR MADE?
WHO ARE ENTREPRENEURS Entrepreneur "Entrepreneurship is about coming up with an idea, wanting to take it somewhere and against all the odds making it happen (exponentially and with profit), that's what entrepreneurs do” Lord Bilimoria www. entrepreneur-thinking. com
ENTREPRENEUR ACTION AIMS & OBJECTIVES Aims: § Consider the scope of entrepreneurship & intrapreneurship Outcomes: ▸Who is an entrepreneur? ▸Characteristics of an entrepreneur ▸Planning to be an entrepreneur ▸Growth pressures, managing a family business, and ▸Corporate intrapreneurship www. entrepreneur-thinking. com
Demystifying the mystics ENTREPRENEURSHIP Entrepreneurs hit the headlines all the time so we want to find out how they do what they do, how they think? ‣ Who is an entrepreneur? ‣Characteristics of an entrepreneur ‣Planning to be an entrepreneur ‣Growth pressures, managing a family business, and ‣Corporate intrapreneurship www. entrepreneur-thinking. com
Altruistic Employees? ENTREPRENEURS, YES! BUT INTRAPRENEURS? ‣Entrepreneurs are familiar to us but not many people have heard of Intrapreneurs. ‣Entrepreneurs are people that notice opportunities and take the initiative to mobilise resources to make new goods and services. ‣Intrapreneurs also notice opportunities and take initiative to mobilize resources, however they work in large companies and contribute to the innovation of the firm. ‣Intrapreneurs often become entrepreneurs. www. entrepreneur-thinking. com
Learning organisations encourage intrapreneurship: INTRAPRENEURSHIP Organisations want to form: ‣ Product Champions: People who take ownership of a product from concept to market. ‣ Skunk works: A group of intrapreneurs kept separate from the rest of the organisation. ‣ New Venture Division. Allows a division to act as its own smaller company. ‣ Rewards for Innovation. Link innovation by workers to valued rewards. www. entrepreneur-thinking. com
Small Business Owners SME’S ‣ Small business owners are people who own a major equity stake in a company with fewer than 500 employees. ‣ There are over 20 million small businesses in the United States. ‣ 47% of people are employed by a small business. www. entrepreneur-thinking. com
Are employees satisfied, if not what’s wrong? EMPLOYEE SATISFACTION SURVEY ‣ Small companies with less than 50 employees – Satisfied employees 49% ‣ In companies with 50 to 999 employees – Satisfied employees 33% ‣ Businesses with over 1000 employees – Satisfied employees 18% ‣ In larger businesses employees seem to be less satisfied than in smaller businesses. Are people feeling valued? www. entrepreneur-thinking. com
HAPPY EMPLOYEES DRIVE OUR BUSINESSES Up to 50 Up to 999 Over 1000 Employee Satisfaction 18% 33% 49% Employees more satisfied in smaller companies www. entrepreneur-thinking. com
Employees in a small business may feel more valued because. SMALL BUSINESS ADVANTAGES FOR EMPLOYEES ‣ More responsibility ‣ Greater opportunity to get rich through stock options ‣ Feel more important ‣ Feel more secure ‣ Comfort Level ‣ More idea of how they fit in ‣ More communication about high level decisions www. entrepreneur-thinking. com
Some disadvantages of working in a small business include SMALL BUSINESS LIMITATIONS ‣ Lower guaranteed pay ‣ Fewer benefits ‣ Expected to have many skills ‣ Too much cohesion ‣ Hard to move to a big company ‣ Large fluctuations in income possible ‣ Poor promotion prospects www. entrepreneur-thinking. com
Who are entrepreneurs? WHAT’S THE ENTREPRENEUR OPTION? Common traits Common Traits ‣ Original thinkers ‣ Self employed parents ‣ Risk takers ‣ Firstborns ‣ Take responsibility for own ‣ Between 30 -50 years old ‣ Feel competent and capable ‣ Well educated: ‣ Set high goals and enjoy ‣ 80% have college education actions working toward them and 30% have a graduate level degree www. entrepreneur-thinking. com
Football players are football players win or lose, they are still football players! ENTREPRENEURS ARE ENTREPRENEURS SUCCESSFUL UNSUCCESSFUL § Creative and Innovative § Poor Managers § Position themselves in § Low work ethic § Create new products § Inefficient § Create new processes § Failure to plan and shifting or new markets § Create new delivery prepare § Poor money managers www. entrepreneur-thinking. com
www. entrepreneur-thinking. com KEY ATTRIBUTES OF WINNING ENTREPRENEURS Results Rewards Personal Characteristics Intrapreneurs Entrepreneurs Strong Business Competencies Scale Focus on Sales! & Industry Knowledge Leverage Customer Service Innovation Brand Loyalty
Nothing just happens, it takes hard-work! Easy Money is the Hardest Money You Ever Earn! HAPPY ACCIDENT! ‣ Develop personal skills ‣ Develop business skills ‣ Develop industry knowledge ‣ Think leverage & scale ‣ Focus on results & rewards ‣ Focus on customers, loyalty, brand, service, sales ‣ Continually innovate www. entrepreneur-thinking. com
Entrepreneurs are Made, Not Born! ENTREPRENEURS ARE MADE!!!!! ‣ Many of these key attributes are developed early in life, with the family environment playing an important role ‣ Entrepreneurs tend to have had self employed parents who tend to support and encourage independence, achievement, and responsibility ‣ First-borns tend to have more entrepreneurial attributes because they receive more attention, have to forge their own way, thus creating higher self-confidence www. entrepreneur-thinking. com
Entrepreneur Careers SERIAL ENTREPRENEURS The idea that entrepreneurial success leads to more entrepreneurial activity may explain why many entrepreneurs start multiple companies over the course of their career Corridor Principle: ‣ Using one business to start or acquire others and then repeating the process Serial Entrepreneurs: ‣ A person who founds and operates multiple companies during one career. Often because of tax breaks on investments such as roll-over relief. www. entrepreneur-thinking. com
Need for Achievement DRIVEN TO ACHIEVE ‣ A person’s desire either for excellence or to succeed in competitive situations ‣ High achievers take responsibility for attaining their goals, set moderately difficult goals, and want immediate feedback on their performance ‣ Success is measured in terms of what those efforts have accomplished ‣ Mc. Clelland’s research www. entrepreneur-thinking. com
Desire for Independence AUTONOMOUS ‣ Entrepreneurs often seek independence from others ‣ As a result, they generally are not motivated to perform well in large, bureaucratic organisations ‣ Entrepreneurs have internal drive, are confident in their own abilities, and possess a great deal of self-respect www. entrepreneur-thinking. com
Self-Confidence OOZING CONFIDENCE ‣ Because of the high risks involved in running an entrepreneurial organization, having an “upbeat” and self-confident attitude is essential ‣ A successful track record leads to improved self-confidence and self-esteem ‣ Self-confidence enables that person to be optimistic in representing the firm to employees and customers alike www. entrepreneur-thinking. com
Self-Sacrifice DENY SELF GRATIFICATION ‣ Essential ‣ Nothing worth having is free ‣ Success has a high price, and entrepreneurs have to be willing to sacrifice certain things www. entrepreneur-thinking. com
Technical Competency SAVVY ‣ Many entrepreneurs demonstrate strong technical skills, typically bringing some related experience to their business ventures ‣ For example, successful car dealers usually have lots of technical knowledge about selling and servicing automobiles before opening their dealerships ‣ Especially important in the computer industry ‣ NOT ALWAYS NECESSARY www. entrepreneur-thinking. com
Proper, Prior, Preparation, Precedes, Profitable, Productivity PLANNING Business Plan ‣ A step-by-step outline of how an entrepreneur or the owner of an enterprise expects to turn ideas into reality. ‣ Can be formal ‣ Is often informal www. entrepreneur-thinking. com
Consider your options ASK QUESTIONS ‣ What are my motivations for owning a business? ‣ Should I start or buy a business? ‣ What and where is the market for what I want to sell? ‣ How much will all this cost me? ‣ Should my company be domestic or global? www. entrepreneur-thinking. com
Motivations Money or Benefit Mankind PERSONAL DRIVERS Deciding your motivations will direct you toward the type of business fits you best. Type of venture: ‣ Lifestyle Venture ‣ Smaller Profit Venture ‣ High Growth Venture www. entrepreneur-thinking. com
Really a job that pays a wage, or £m’s LIFESTYLE ‣ Small company that provides its owner independence, autonomy, and control. ‣ Is often run out of household ‣ Provides flexibility (hours, meeting places, attire) ‣ Aligns your personal interests and hobbies with your desire to make a profit. www. entrepreneur-thinking. com
Low Structure, Low Innovation SMALLER PROFIT VENTURE ‣ Small company not concentrated on pushing the envelope and growing inordinately large. ‣ Making millions of dollars not important. ‣ Content with making a decent living. ‣ Ex. Mom and Pop Stores www. entrepreneur-thinking. com
Scale and Leverage Opportunity for Exponential Growth – High Structure HIGH GROWTH VENTURES ‣ Goal is maximum profit and growth. ‣ Focus is on returns and growing as large as possible. ‣ Focus on innovation ‣ Large Capital Investment www. entrepreneur-thinking. com
Want or need a business? STARTUP OR BUY READY MADE BUSINESS Startup ‣ cheapest, but very difficult ‣ requires most planning/research Buy ‣ expensive – may be out or reach ‣ requires less planning and research Franchise (middle ground) ‣ a business run by an individual (the franchisee) to whom a franchiser grants the right to market a certain good or service. www. entrepreneur-thinking. com
Market analysis is strategic management, Entrepreneurs see beyond markets MARKET ANALYSIS However: ‣ Planning & Research essential to reduce risk ‣ Extensive market surveys (family, friends, neighbors…) ‣ Magazines and Polls offer some information on the market ‣ Industry associations ‣ Test, Test and test! www. entrepreneur-thinking. com
In the mix GLOCAL? LOCAL OR GLOBAL? • Drawbacks to Global – more research and less accessible connections in startup phase, more travel time required, more considerations. • Advantages to Global – more human resources, more demand, more financing, easier to start global than go from domestic to global. www. entrepreneur-thinking. com
PRESSURE of growth GROWING PAINS ‣ Entrepreneurs often find that as their business grows, they feel more pressure to use formal methods to lead their organisations. ‣ Although this formalisation process may compromise some entrepreneur’s spirit, it often leads to more focus, organisation, and greater financial returns. ‣ Basically, it’s a movement from a “seat-of-the-pants” operation to a more structured, legitimate and recognisable business model. www. entrepreneur-thinking. com
Entrepreneurs, Companies and growth pressures FETTERED OR NOT Entrepreneur & Formal organisations differ in six business dimensions: ‣ Strategic orientation ‣ Commitment to opportunity ‣ Commitment to resources ‣ Control of resources ‣ Management structure ‣ Compensation policy www. entrepreneur-thinking. com
Business Dimension Entrepreneur Organisation Formal Organisation Strategic orientation Seeks opportunity Controls resources Commitment to opportunity Revolutionary Short duration Evolutionary Long duration Commitment to resources (capital, people, equipment) Lack of stable Systematic needs and resource planning systems bases Control of resources Lack of commitment to permanent ventures Power, status, financial rewards for maintaining status quo Management Structure Flat Many informal Clearly defined authority and responsibility
Going Global…. INTERNATIONAL MULTPLYING XXXXX ‣ From domestic to worldwide expansion, ‣ globalization can be extremely rewarding for entrepreneurs. ‣ THINK: Money and Business Exposure ‣ However, it is a huge undertaking. ‣ Adapting your business to operate in the global market can lead to a decrease in ownership, and a forced focus on raising money to keep your business alive. ‣ THINK: Selling out, Private to Public (Initial Public Offering, IPO) www. entrepreneur-thinking. com
THE BUSINESS OF FAMILY BUSINESS ‣ Why not dream up a plan and go into business with your family or friends? § Over 50% of the U. S. Gross Domestic Product (GDP) is generated from family business. § 12% of CEOs on the Inc. 500 list describe their company as a family business. www. entrepreneur-thinking. com
Two reasons not to go into business with your family or friends. … FIGHTING FOR POWER, CONTROL & MONEY ‣ Families fight ‣ Friends fight. ‣ Mostly fight over money. So a business environment could breed arguments, disagreements, and feuds. ‣ Fighting can occur during early stages when hours are long, pay is low and pressure is high. Or, after success. www. entrepreneur-thinking. com
Six steps to help lead you to a successful Family Business: A FAMILY FRIENDLY FRAMEWORK ‣ Clear job responsibilities ‣ Clear hiring criteria ‣ Clear plan for management transition ‣ Agreement on whether and when to sell business ‣ Commitment to resolving conflicts quickly ‣ Outside advisors are used to mediate conflicts. ‣ Clarity is key…. but NO GUARANTEE. www. entrepreneur-thinking. com
Operational vs. Survival Issues…. WORK TO SURVIVE OR DIE Operational Issues ‣ Decisions about the economics of the business and how to balance that with rational and family obligation criteria. ‣ THINK: Day-to-day grind. Survival Issues ‣ Develop out of a lack of attention on the operational issues within the business. ‣ THINK: Festering problems; ultimately compromise livelihood. www. entrepreneur-thinking. com
Relationships don’t just happen! We must work on them WEAK & TIRED RELATIONSHIP BREAKDOWN Feuds Severed relationship s Divorce Poor Low morale, business motivation performanc e www. entrepreneur-thinking. com
Intrapreneurs drive organisational progress and survival INTRAPRENEURS & ENTREPRENEURS ‣ Intrapreneur is someone in an existing organization who turns new ideas into profitable realities. ‣ Not every employee has the ability to become a successful intrapreneur. It takes well-developed strategic action, teamwork and communication abilities. www. entrepreneur-thinking. com
INTRAPRENEURS ADVANTAGES Organisations that reposition through innovation have: ‣ Commitment from senior management ‣ Flexible organization design ‣ Autonomy of the venture team ‣ Competent, talented, entrepreneur type people ‣ Incentives and rewards for risk taking ‣ Appropriately designed control system www. entrepreneur-thinking. com
Skunkworks R&D IS LONG-TERM THINKING ‣ In order to for this type of forward thinking to reap long-term benefits, top management must allow it to flourish in the day-today operations of the business… ‣ This is known as “skunkworks” ‣ Skunkworks = Islands of entrepreneur activity within an organisation ‣ Note: On the island, formal rules and policies of the organisation often Do NOT apply. www. entrepreneur-thinking. com
Summary STORY OF AN ENTREPRENEUR: SUMMARY ‣ What is an entrepreneur? ‣ Characteristics of an entrepreneur ‣ Planning to be an entrepreneur ‣ Growth pressures, managing a family business, and corporate intrapreneurship www. entrepreneur-thinking. com
TRAITS: BORN OR MADE CONCLUSION ▸ The conclusion that can be drawn from www. entrepreneur-thinking. com
BE WHAT YOU WANT TO BE ENTREPRENEUR OVERVIEW & THE ENTREPRENEUR § Three www. entrepreneur-thinking. com
TRAITS: BORN OR MADE? EXERCISE ▸ What type www. entrepreneur-thinking. com
WHO ARE ENTREPRENEURS? ADDITIONAL RESOURCES ▸ More resources at www. entrepreneur-thinking. com
ENTREPRENEUR THINKING ENTREPRENEUR OVERVIEW
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