What is an Entrepreneur ENTREPRENEURSHIP Insane perseverance in

What is an Entrepreneur? ENTREPRENEURSHIP Insane perseverance in the face of total rejection. 1

What Is An Entrepreneur? ENTREPRENEUR A vision-driven individual who assumes significant personal and financial risk to start or expand a business. 2

What Is An Entrepreneur? ENTREPRENEURSHIP The pursuit of opportunity through innovation, creativity and hard work without regard for the resources currently controlled. 3

Entrepreneurship • Entrepreneurship: a way of thinking, reasoning, and acting that is: – opportunity obsessed – holistic in approach – and leadership balanced (This definition of entrepreneurship has evolved over the past two decades from research at Babson College and the Harvard Business School and has recently been enhanced by Stephen Spinelli, Jr. , and John H. Muller, Jr. , Term Chair at Babson College. ) 4

Entrepreneurs: Born or Made? • Is there inborn talent required? • Assume that the answer is YES: – then we can identify the main characteristics – if we have them, fine - no others need to apply! – we could start spotting talent in kindergarten – we could "stream" these people – we could discourage people without these talents 5

Entrepreneurs: Born or Made? • Assume the answer is NO: – then schools could teach anyone – would be a "profession" like law or medicine – companies could establish "nurseries" for them – government "incubators" would be successes • The real answer lies somewhere in-between – Talent and education is the way 6

Who is an Entrepreneur? Situational more than personality Flexibility Age Distribution for Starting Company 20 25 30 35 40 45 Age 7

Who is an Entrepreneur? Manager’s Opportunities Future Goals Possible Change Status Quo Entrepreneur Satisfied manager Frustrated manager Classic bureaucrat Perceived Capability Blocked 8

Burch's Entrep. Personality Traits 1. A desire to achieve • Conquer problems, create successful venture 2. Hard work • Their workload is very hard to match 3. Nurturing quality 4. Acceptance of responsibility • Morally, legally and mentally accountable 5. Reward orientation • Want be rewarded for their efforts 9

Burch's Entrep. Personality Traits 6. Optimism • Anything is possible 7. Orientation to excellence • Pride in something first class 8. Organization • They are wholly "take charge" people 9. Profit orientation • Profit primarily a gauge of performance 10

Failure? So what! • Failure seen differently in America & Europe. – In Europe it is a major set-back – U. S. expected (required even!) – Canada - in between but tending to U. S. • “Our” System: – Many entrepreneurs had been "blue collar" – Many come from families of entrepreneurs – Many are immigrants or their children – But, there are no "rules" that ensure success • Universally, entrepreneurs shake off failure! 11

Failure as “Learning Process” • Ignore it, then start again – Some find it easy to blame someone else • In public, always optimistic – Especially with funders – Agonise over what went wrong in private • Willingness to disregard the rules – Start from first principles. • Ability to "bend, not break" rules of life 12

Classic Entrepreneurship: The Startup • Raw startup company—an innovative idea that develops into a high growth company • Qualities of a startup company – Strong leadership from the main entrepreneur – Complementary talents and outstanding teamwork of team members – Skill and ingenuity to find and control resources – Financial backing to chase opportunity 13

Desirable and Acquirable Attitudes and Behaviors • • Commitment and determination Leadership Opportunity obsession Tolerance of – Risk – Ambiguity – Uncertainty • Creativity, self-reliance, and adaptability • Motivation to excel 14

The Entrepreneurial Process • It is opportunity/market driven • It is driven by a lead entrepreneur and an entrepreneurial team • It is resource parsimonious and creative • It depends on the fit and balance among these • It is integrated and holistic 15