Entrepreneur (n)
Business person who attempts to make a profit by risk and initiative
(Collins English Dictionary, 2006)
Background
The concept of successful or failure as an entrepreneurial practice is to be considered as one of an evolving nature, affected by changing perspectives as society adapts to new market forces and environments. It has been suggested that the advancement of social media as a means for communication is arguably one of these contributing factors (Charles Leadbeater, We Think- mass innovation not mass production, 2009).
Historically, the definition of successful entrepreneurship was dominated by economic theory and good practice. However, new interpretations are suggested to offer alternative perspectives for consideration (David Rae, Entrepreneurship, 2007, P24)
The economic thinking approach applies observable evidence- it is claimed that this is not sufficient when used alone (Rae 2009)
Human dynamics and social science are increasingly relevant areas for further consideration.
Ideally, it is important to remember the role that human dynamics play in the social context when considering the definition of successful entrepreneurship.
Note the danger of economics- based theory alone; recent written work (Steyart and Hjorth, 2003) is aiming to offer consideration for alternatives that were previously dominated by historic (American) economics-based theory of successful entrepreneurship.
Cause and effect are argued to be limiting evidence factors that overshadow the success of an entrepreneurial interpretation. Simple facts of improvement measures delivered should perhaps also offer consideration to the effect that multiple possibilities are also contributing factors for success or failure.
Q: Who or What is an Entrepreneur?
The successful delivery of an entrepreneurial practice, or the social standing of a successful entrepreneur has historically been dictated by economic success, with the credibility and notoriety of the entrepreneur being perceived to be the figurehead of a financially successful activity or organisation.
In more recent years, it is argued that an entrepreneur can also be a person with character traits, methodology and practice that encompass foresight, imagination, initiative, will, drive, determination, and most importantly intuition (Schumpeter, 1934). An entrepreneur with the aforementioned skills and characteristics draws heavily from past experience and consideration for long term market forces and social change.
Conversely, consideration has been offered that an entrepreneur is one who is an ‘alert opportunist’ looking for short term opportunities that bring rapid profit gain, where sharp decision making and immediate action take advantage of market sector gaps or failings amongst the competition (Kirzner, 1973).
The rapid growth of successful capitalisation offers greater evidence to substantiate Kirzner’s claim. Complimenting this, the long term strategies employed by the suggested definition of an entrepreneur by Schumpeter, draw more on the successful maturity of the characteristics of one that is seen to be entrepreneurial for social integration, growth and acceptability by society.
In more modern times, one example of a successful entrepreneur for consideration is Richard Dyson. His vacuum design was innovative, yet based around an existing product. His solution and technology deployed proved to not only be the basis for a financially astute business model, but also, his method of marketability was to take advantage of social trends, understanding, appreciation and exploitation of a market shortfall, and planned execution with simplicity and usability by his target audience.
If combined consideration for both definitions is taken, the answer to the question is offered to be one that has a flexible and intuitive, researched approach to the exploitable market forces, processes, and behaviours of the potential client, customer or business opportunity.
Q: Are Opportunities discovered or created?
To comprehensively address this question, consideration should be given to how people become regarded as entrepreneurs, and what roles do the influences of learning, experience, intuitive approaches, action and personality play in the entrepreneurial activity.
A definition of desirable and acquirable attitudes, behaviours and characteristics employed by successful entrepreneurs are (Timmons, 1999) ‘commitment and determination; leadership; opportunity obsession; tolerance of risk; ambiguity and uncertainty; creativity, self-reliance and ability to adapt; motivation to excel’
Gibb (1987) also adds “initiative, strong persuasive powers and high belief in control of one’s destiny” amongst others.
However, simply listing similar traits as above has been suggested and criticised to be somewhat lacking consistency, without displaying consideration for the ability to connect such similar characteristics to the performance of the entrepreneurial activity itself (Gray 1998 and Bridge et al, 2003).
There is however, synergy amongst past research results and written works, where the aforementioned characteristics and traits are present in many entrepreneurial processes and activities.
The ability of a successful entrepreneur to capitalise on previous learning and experience, such as an apprenticeship in an entrepreneurial workplace or company is suggested (Gibb, 2001) to be one route to maximising the benefits for an entrepreneur. By learning from professional experience, working in a dynamic environment whilst focusing on supporting the development of enterprising behaviours, skill and attributes (Gibb 2001), the potential benefits for both the entrepreneur and the business organisation are suggested to be appropriate routes.
Taking the above into consideration, without the combination of personal and professional development and learning, experience and initiative to maximise the foreseen opportunity, and the intuition to act effectively for maximum benefit, any possible opportunity to deploy an entrepreneurial activity will be negated.
The realisation that an opportunity exists in the first instance is suggested to be derived from a combination of background knowledge, experience, intuition and self-realisation. This allows for the initial entrepreneurial discovery of the opportunity.
The ability to act decisively and promptly, based around prior learned experience, combined with inbuilt entrepreneurial character traits, self-reliance and motivation lead to the successful delivery and maximum gain of the created opportunity itself.
NPD.
But what when none of the above characteristics are either built in, learned, experienced, or founded on any form of learning experience? What if a person is simply bumbling along, hanging onto the coat tails of desperation, purely to make a fast buck and follow the latest trend for no other reason than to make immediate false claims, based on their own misguided self-beliefs?
I argue that the term entrepreneur should be used in the 3rd person, always. It’s a hook, a tag, a category that says something immediately about the person, and should not be used by the person themselves when describing what they are, or what sort of business person they are pretending to be. The word ‘entrepreneur’ is a noun, after all- a title given as a description about another.
Jealousy and a misguided (if not diagnosable) mental state could possibly be the answer to this- please allow me to explore and expand a little more…
What if the person is a self-proclaimed entrepreneur, but following a simple internet check, a somewhat dubious past history emerges, no credentials and record to substantiate their claims, and the only definite character trait that is presented is one of eccentricity- one which is all about ‘me, me, me’ on such a grand level, that it automatically raises doubts about the honesty, integrity and qualifications for their claim.
If all the praise is self-proclaimed, with the “I’m so good at” – “I’m well respected for…” or, “Throughout my years in business, I have a wealth of experience in…” – tread very carefully!
Ask yourself: “Why is this person talking about themselves so much?” Your feeling of suspended animation – almost mental imprisonment- and need to exit the conversation is possibly immediate at this stage. Act on your instinct, and get out of there as fast as possible. This person is dangerous, a liability.
If the meeting continues, there is an argument that you may feel that this person is on God’s right hand, with overall power to command any possible scenario. A psychoneurotic tic may become present, with the word ‘I’ in almost every sentence being used by this person. Now is a good time to reach for your mobile phone, and pretend to take a call.
The self-centred nature of this persons’ focus is possibly displaying the misguided beliefs of self-importance, and coupled with arrogance and the need for appreciation, very soon, this person will wrongly assume that you actually believe what is being said, simply because you are still there listening to this bullshit.
If the conversation continues past this stage, you have only yourself to blame. You have been warned.
The medical term for this is Narcissistic Personality Disorder. Go look it up.
There is a HUGE difference between an entrepreneur and an eccentric madman- the real skill is knowing the difference between the true inspirational, entrepreneurial business person, the Snake Oil salesman, and the one that should be in a straight jacket.