FM20731 Executive Leadership

Introduction to Entrepreneurship
Week 1 October 5, 2004

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

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

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

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.)

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
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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
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Who is an Entrepreneur?
Situational more than personality
Flexibility

Ability
Age
Distribution
for
Starting Company

20

25

30

35

40

45

Age

Who is an Entrepreneur?
Managers Opportunities
Future Goals

Possible

Change

Status Quo

Entrepreneur

Satisfied
manager

Frustrated
manager

Classic
bureaucrat

Perceived
Capability
Blocked

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

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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

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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!

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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

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Classic Entrepreneurship:
The Startup
Raw startup companyan 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

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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

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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

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The Timmons Model of the

Entrepreneurial Process
Communication
Opportunity
(2)
Ambiguity

Creativity

Business Plan
Fits and gaps
Team
(3)

Uncertainty

Resources
(4)
Exogenous forces

Leadership
Capital markets

Founder
(1)

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Enlightened Serendipity

Being in the right place

At the right time,
Recognizing it, and
Acting upon it,
APPROPRIATELY and
PASSIONATELY!!!
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