Understanding Entrepreneurship: Types, Traits, and Frameworks
Understanding Entrepreneurship
Definition: Any action, activity, or function associated with an opportunity and the creation of an organization to pursue it.
Entrepreneurial Framework
Culture & norms, financial resources, government policies, R&D transformation, human resources, training and education, physical resources, internal market openness, commercial & legal aspects.
The Entrepreneurial Iceberg
Skills: Ability to do something well. Knowledge: Information a person uses (communication, negotiation, problem-solving, decision-making).
Social Role: Pattern of behavior. Self-Image: A person’s view of themselves (expert, innovator, leader, visionary, adventurer).
Trait: Typical aspect of a person’s behavior (passion, persistence, self-confidence, risk-taking, curiosity). Motive: (Money, control, legal independence).
Successful Entrepreneurial Traits
Passion: Belief that the business will positively influence people’s lives.
Resilience Despite Failure: Ability to persevere through failure.
Product/Customer Focus: Entrepreneurs’ keen focus on products and customers typically stems from the fact that most entrepreneurs are craftspeople.
Execution Intelligence: Ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs.
Types of Entrepreneurs
Visionary: (Imagination, egotism, seeing the big picture, brilliant followers attraction) Example: Steve Jobs.
Adventurer: (Bravery, energy, tenacity, work hard/play hard culture) Example: Donald Trump.
Opportunist: (Spotting gaps, speed of execution, cost to market) Example: Alan Sugar.
Asset Allocator: Puts existing resources to a more productive use for profit (valuation, number crunching, curious) Example: Warren Buffett.
Systematizer: (Strategy, logic, attention to details, employee management) Example: Henry Ford.
Specialist: Turns love and aptitude for a field or product into something we can rely on (dedication, motivation, knowing themselves) Example: Bill Gates.
Small Business Person: (Flexibility, personal relations, stamina) Example: Corner shop near you.
Spare Room Entrepreneur: Thanks to the internet (desire, time management, caution) Example: Everywhere.
Case Study: Scott – A Social Entrepreneur
Type of entrepreneur Scott is: Social Entrepreneur. Started as Visionary and turned into Adventurer.
Skills and competencies Scott had: Network, Communication, Passion, Resilience, People-focused, Embracing adventures.
Did experience matter? Even though Scott wanted to forget his old life and start a new one, he did use past experiences and skills unconsciously.
Was he successful? YES. Successful in applying his communication and network skills to raise money and organize events. However, he did not pay enough attention to details.
Did he innovate? Yes, using videos/GPS to promote their cause and branding his business in social media.
Social Entrepreneur
Social Entrepreneur: Primarily motivated by a deep desire to improve upon prevailing and detrimental socio-economic, educational, environmental, or health conditions. Driven to engage in certain activities not by the promise of possible profit.
Examples: water.org, Scholly, Barefoot College, Charity: Water, Tech Change.
Intrapreneur
Intrapreneur: It is the practice of entrepreneurship by employees within the organization. A person within an existing organization who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation (product champion, skunk works, new venture division, rewards for innovation).
TEA (Total Early-Stage Entrepreneurial Activity)
TEA: Total early-stage entrepreneurial activity: a major indicator of entrepreneurial activity. Represents the percentage from 18 to 64 population that are nascent entrepreneurs or owner-managers of new businesses.