Are you an entrepreneur

DISCOVERY STEP 1
DISCOVERING YOUR ENTREPRENEURIAL POTENTIAL

The first step is to look at what resources you already have to become an entrepreneur. Your principle and most important resource by a very long way will be you. The first thing to do, therefore, is to try and assess exactly what sort of entrepreneurial resource you already represent and what you may need to add, by way of self-development, or other people as partners.

Do you already have what it takes to be an entrepreneur? In this first step you can explore your personality traits and review your entrepreneurial capabilities.

What sort of attitudes and characteristics do entrepreneurs commonly have and how do you measure up against these?

Are you an entrepreneur?

Motivation
Entrepreneurs are highly motivated people. They (usually) have clear direction and are known to ‘pursue opportunities regardless of the resources they have to hand’. Even if you have all the necessary skills and behaviours to make yourself an ideal candidate for entrepreneurship on paper, this counts for nothing if you don’t really want to do create a new venture.

Here is a list of some of the most common reasons entrepreneurs give for starting a business. Most of these reasons revolve around personal satisfaction and a measure of personal independence:

Being my own boss
Satisfaction in own work
Being able to make one’s own decisions
Not able to get a job elsewhere
Making lots of money
Being able to develop specialised skills
Being able to work as and when required
Creating something that is ‘mine’
Changing the way things are done
Having a business to pass on to the next generation

Business case link

Drive and commitment can lead to great rewards, as the example of Meena Pathak, co-owner or Patak’s Food company proves.

Having loved everything about food since she was a child, Meena Pathak decided to study food technology in Bombay. When she came to England she started experimenting with traditional Indian recipes, grinding spices and preserving them in oil. At that time there were no authentic Indian sauces on sale in UK supermarkets and she believed there would be a market for her products. She stuck with her idea and 25 years on she is running a business with a turnover in excess of £50 million and exporting to 40 markets worldwide. See http://www.pataks.co.uk/

QUESTION 1
Drive and commitment

Looking back at the definitions of 'entrepreneurship' presented in the 'Introduction to Entrepreneurship Learning', outline why you think drive and commitment are such important qualities for the entrepreneur to possess?

Keep it personal

Throughout these steps, we would encourage you to explore the issues raised in relation to your own enterprise. Maybe you are thinking about setting up your own business or consultancy? Perhaps you have always wanted to turn a hobby into a small business? Whatever your particular goals and objectives – it is a good idea to try and relate what you read here to your own specific context. After all, entrepreneurs are not entrepreneurs seven days a week and 365 days a year…

QUESTION 2
Why do you want to be an entrepreneur?

If you plan to run your own business what would you want from it?

Entrepreneurial personality traits

Here is a useful checklist of 10 things that make a successful entrepreneur:

1. Passion

Are you totally passionate about your business idea? Do you absolutely believe in what you are selling, or the service you are providing? Have you got an in–depth knowledge of your product, your competition and the market you are entering? And, once you’ve got your venture up and running – do you have the passion and the energy to keep going when others are feeling tired and want to give up? Passion is an essential trait in any entrepreneur.

2. Innovation

While not necessarily ‘inventors’, entrepreneurs are highly innovative and creative individuals with the vision and insight to spot opportunities and act upon them. They have the ability to carve out a new niche in a market where others might not have seen it – and turn ideas into a solid business strategy.

3. Commitment

Have you got the commitment and determination to make your venture a success? Planning, setting up and running a business requires endless hard work and 100% of your time. Your family, friends and leisure activities may have to take a back seat, while you’ll have to give up security such as a monthly salary or a pension. Are you sure you’re willing to make this commitment?

4. Courage

A successful entrepreneur is prepared to make big decisions and take on tough challenges. There will be times when things are not going so well – when the sales aren’t coming in and bills are overdue – so you’ll need the courage to dig deep and not crack under the strain (no matter how much you feel like turning your back on it all!). Having courage also means making the right decisions for your business, no matter how unpopular they may seem at the time.

5. Ability to set goals

An entrepreneur will set specific and realistic goals and have a clear plan of how to achieve these. Your venture won’t be a success if you don’t do this as you won’t have specific targets to aim for or measure your performance against. Further, having clear goals will enable you to formulate a sound business plan.

6. Sound judgement

Contrary to popular belief, you don’t have to be a high risk-taker to be a successful entrepreneur. It’s more about knowing which risks to take – and when you should take them. You’ll need sound judgement about your market, competition and your customers (e.g. who are they and how best can you reach them?). You will also have to judge what needs your attention at a certain time and what doesn’t, and prioritise your focus accordingly.

7. Flexibility

The ultimate Jack-of-all-trades, an entrepreneur has to be flexible. Are you able to cope with the different roles and responsibilities that starting a business demands, such as making decisions on finance, marketing, research and legal matters? Can you secure sales deals and manage new staff? Flexibility also means recognising changes that may need to be made to your business if things aren’t going to plan - and learning from experiences (both good and bad).

8. Independence

One of the main drivers for starting a business is the desire to be your own boss. Entrepreneurs like control and want to be in charge of their own destiny. They want to make the decisions and are prepared to go it alone – especially in the early stages of starting up, before they have built a team around them. If you avoid making decisions or taking responsibilities, then starting up your own business may not be right for you.

9. Leadership skills

Once you have built up a team around you, your staff will be looking to you for strong leadership. This means setting employees realistic goals and targets and being clear about what you all need to achieve and how you can do this. Make sure your employees share your vision and that you are able to steer them through any tough times. Be honest with them and make sure you take responsibility for your actions - for example, if you something goes wrong – don’t blame other people.

10. Perseverance

Have you got the stamina and focus to keep going until you succeed? Are you able to face up to the challenges and not get discouraged when things initially don’t go to plan? Business requires time, effort and dogged determination, and perseverance is vital if you want to make your business a success.

For more useful checklists and other helpful advice on business start-up in London take a look at the Business Link 4 London web site.

Have you got what it takes?

There are a wide variety of self-tests you can undertake to get a better grip on whether you have what it takes to be an entrepreneur.

The following links and activities provide some good examples of the self-assessment tools that are around, so why not try out some self-evaluation?

Some self-evaluation links and activities . . .

Activity

Under three headings, make a quick list of your:

Talents: things that come naturally to you (e.g. ability to spot a bargain; good communicator with new people; eye for design; creative thinker)

Skills: things that you have learnt (e.g. speak a foreign language; programme in HTML; ability to do double entry book keeping)

Knowledge: things you are aware of through degree /experience (e.g. knowledge of pub and nightclub industry; knowledge of the health & fitness industry)

Draw from your degree modules, electives and any work experience as well as your personal/social life, hobbies, networks and interests.

Prospective entrepreneurship – a simple series of 16 statements designed to help you think about whether you have the right personal qualities to be a successful entrepreneur.

Prospective

Self-evaluation: Prospective entrepreneurship

Instructions: If the statement is ‘rarely true’, score 1; if ‘usually true’, score 2; and if ‘nearly always true’, score 3.

1. I know my personal and business objectives
2. I get tasks accomplished quickly
3. I can change direction quickly if market conditions alter
4. I enjoy being responsible for getting things done
5. I like working alone and making my own decisions
6. Risky situations don’t alarm me
7. I can face uncertainty easily
8. I can sell myself and my business ideas
9. I don’t take time off sick
10. I can set my own goals and targets and then get on with achieving them
11. My family are right behind me in this venture – and they know it will mean 12. long hours and hard work
13. I welcome criticism – there is always something useful to learn from other people
14. I can pick the right people to work with me
15. I am energetic and enthusiastic
16. I don’t waste time

A score of 30 plus is good; 20-30 is fair; below 20 is poor. A high score will not guarantee success but a low one should make you think seriously about whether you really have the right personal qualities to be a successful entrepreneur.

Source: Barrow, C., Burke, G., Molian, D., Brown, R. (2005) Enterprise Development: The Challenges of starting, growing and selling businesses, Thomson, London, p.27) Reproduced with permission.

You should also ask yourself – Do you have what it takes?

Starting a new business is unlike any other job - it's an enterprise, it's an adventure, it's a once in a lifetime decision. You will be in many new and often difficult situations. Your future will be in your own hands.

There's no single stereotype, but experience has shown that there are some things that successful self-employed people often have in common. Think for a moment what qualities might be important; then compare your list with this one.

Persistent, enduring, have loads of stamina
Aware
Positive, optimistic, enthusiastic
Tenacious
Logical, perceptive, organised, realistic, responsible, good at getting things done
Patient
Have a sense of humour
Willing
Creative, imaginative - always coming up with new ideas
Assertive
Out-going, confident, cocky
Flexible, adaptable
Open-minded - able to take advice
Forgiving
Sociable, approachable, good leader, can win people over instead of getting their backs up
Single-minded, decisive, independent
Communicator - able to get a point across
Opportunist, risk taker, ambitious
Hard working, committed, determined, 'get up and go' type
Self-motivated
Self-belief, individual, not afraid to stand out from a crowd, or of what others think
Recognise importance of quality

How do you compare?
How many of those qualities do you possess? You don't need all of them. You may discover that you do possess many of them but have never had to demonstrate it before. It's not easy to get a true picture of yourself. You have to work at it.

You need to:

Be Honest - You are not selling yourself to an employer. There's no point in conning yourself. Face up to what you really are, not what you wish you were. If you don't feel ready for self-employment now, perhaps you will in a few years time, with more experience and qualifications.

Get an Opinion - Different people have different views of you. Talk to someone who you know well, and trust. Get a good range of views. Try to sort out when they have a point (even if it makes you feel uncomfortable) and when they are just trying to make you fit in with an image that happens to suit them. Often, it's a mixture of both.

Prove It - Wherever possible, look for an example of the qualities that you have identified. If you think you are an organiser, what have you organised? Remember to look at all aspects of your life, not just work experience and qualifications.

Keep Notes - Everyone, young or old should have a file on themselves. It's useful for planning, as well as applying for jobs. The great thing about enterprise is that it helps you to grow and develop as a person. You need to keep tabs on yourself - what are your strengths and weaknesses? What do you need to learn?

A number of websites allow you to explore your personality type through quizzes and questionnaires such as personalitytype.com

Activity

Explore your individual capital against the following table which indicates the capital felt to be required by business support specialists to become a graduate entrepreneur.

Which areas do you need to develop?

Which areas have they not highlighted?

Your enterprise and you – a quick checklist

Even if you are right for the business, you will need to stop and ask yourself…is the business right for your life?

Your family and friends
Do you have the full support of your family and friends? It is going to be a difficult journey if you do not have those closest to you on your side right from the start.

The financial risk
Do you have sufficient funds to invest in your business? Can you afford to lose this investment? Which is more important to you – safeguarding the money or seeing your business grow?

Are you trapped in your current workplace?
Have you really understood whether you just want a change from your current working life, or whether you need to start your own business? When you create your own enterprise you will need to be 100% dedicated to it, and must be doing it because you wholeheartedly believe in it – not just because you think the change will do you good…

Are you feeling uncertain about the idea?
Don’t be afraid to put the brakes on and review your enterprise idea. It may be that the idea isn’t right, after all, in which case you can avoid putting all your effort in to something which isn’t going to work. If you are really uncertain, it could be that the potential isolation and independence of setting up your own business isn’t for you. But read on…

Business case link

The ‘Bumpas’ case study illustrates how much planning is usually needed to turn a good idea into a viable business proposition. Take a moment to review the Starting a business: ‘Bumpas’ case here.

e-tivity (1) – The Apprentice!

Imagine you are sitting opposite Alan Sugar in his boardroom as one of the final contestants in the TV programme The Apprentice. You have 1 minute to outline your particular strengths as a potential entrepreneur. What would you say to him?
Alan then asks you to outline your weaknesses – what do you think these are?
Taking the entrepreneurship challenge

By this point you should have a pretty good idea of whether you have the kind of entrepreneurial traits and capabilities that will stand you in good stead for the tasks ahead. If your self-checks reveal the entrepreneur within you – then you will no doubt be keen to press on with Step 2. If, on the other hand, you have found yourself to be lacking in some aspects of the entrepreneurial make-up, don’t despair. After all, it is the human capacity to change that underpins the process of entrepreneurship itself. It is also what makes learning worthwhile. So please also continue to Step 2.
Step 1: Further links & reading

Stokes, D., Wilson, N., and Mador, M. (2010) Entrepreneurship, Cengage Learning, Chapters 5, 6 and 7.

Stokes, D. and Wilson, N. (2010) Small Business Management and Entrepreneurship edition 6, Cengage Learning, Chapter 2.

smarta.com – a general website for entrepreneurs including advice, networking opportunities and finance, including videos of entrepreneurs

startups.co.uk – information on all aspects of business start up, including videos of entrepreneurs

Business Link factsheets – factsheets and information on all aspects of business start up and management including information on free seminars and support

Personality Type.com http://personalitytype.com/career_quiz - Offers a quiz to assess your personality type and gives responses about the type of person you are and what attracts you. i.e. what role you take

Keirsey.com – personality assessment site

Myers-Briggs type indicator – website that explains this well known personality typology that has evolved from Jung’s work

Mindtools.com – a coaching site but it’s not all free

Inland Revenue on start-up

Young Enterprise

Business leadership for entrepreneurs

The Art and Science of Leadership

Source: http://cws.cengage.co.uk/stokeswilsonmador/students/Edited%20Launching%20a%20new%20venture/Launching%20a%20new%20venture%20-%201.1.doc

Web site to visit: http://cws.cengage.co.uk

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Are you an entrepreneur

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