No, Not Really...
Regardless of popular opinion, only some that are in business are entrepreneurs.
Setting up Bob’s Machine Shop or Mary’s Stitching Palace is not entrepreneurship. Furthermore, despite ubiquitous self-labelling, neither are those who think up a Mobile App. Do they show initiative? Absolutely, but is it entrepreneurship? Usually not!
So, what is entrepreneurship, and who's an entrepreneur? And why is it important to know? The short answer is that compared to traditional business management, there is much to be gained from an entrepreneurial versus traditional approach. In this Blog and future posts, we will address what this means, exploring the possibilities, the 'how 2s' and 'why-nots'.
I didn’t know what it was, and ‘now I are one'! Well, maybe. Although so accused a number of times, I was never comfortable with 'entrepreneur' as a label. Initially, it represented 'promoters' of 'global renown', and I certainly didn't qualify, and then everyone and anyone seemed to have adopted it. So I never took it up.
However, having practiced entrepreneurship for some time [Note 1] and more recently having studied the phenomenon at length, I came across a sufficiently accurate definition provided by Harvard's Professor Emeritus Howard Stephenson [Note 2]. In 1981 he defined entrepreneurship as:
"The pursuit of opportunity beyond resources controlled!"
'Entrepreneurship' is, therefore, a method that finds a way. As detailed in our previous "What is Entrepreneurship" post, it embraces the creativity of harnessing all that is available as a business management model. It is interesting because it can create something from nothing (See: *It was 1973, same Post). Whether you are just starting out or operating a long-entrenched business, there are many advantages, especially in a Post COVID world.
[1] Visit Web Page: https://www.entrepreneurialize.com/success-stories [2] Howard Stevenson: Sarnoff-Rock Baker Foundation Professor Emeritus, former Senior Associate Dean, Director of Publishing, and Chair of the Harvard Business Publishing Company board)
Briefly, the difference:
The Entrepreneurial vs. Administrative Approach to Business Management
When an Entrepreneurial Approach is adopted, it is typically in pursuit of a new opportunity and market creation. Attention centers entirely on what is needed, not 'what is'. This is the opposite of traditional business administration, which focuses on managing what exists. Instead, the entrepreneurial alternative is to look beyond existing resources (or lack thereof) to a process that creates solutions, no matter the challenge. Entrepreneurialism identifies what could be and determines how best that opportunity is realized.
By contrast, traditional business management utilizes proven commercial methods, administering resources organized for such purpose. Whether it is to buy a business or start a new one, when conventional business practices are applied, resources are put in place, a plan is executed, disciplines are set, and assets are administered pursuant to a routine.
Considering the "entrepreneurial character traits'' involved, you have the energetic promoter at one end of this spectrum − well assured of their ability to harness the opportunity being considered, regardless of available resources. At the other end is the range is the "Administrator/Custodian," who will not proceed without having the necessary resource base already established.
So, although the term "entrepreneur'' is highly overused, almost to where anyone who thinks of a venture earns the moniker, it doesn't change the fact that as an approach to business, entrepreneurialism offers a powerful, solution-gaining approach. What it is, how it works, and the many benefits to be realized will be the subject of ongoing posts. These posts will also revisit some of the lessons I've learned. Together we can review these, examining their progress and the setbacks.
Inviting open discussion, I trust we will also be able to explore similar opportunities and challenges as hopefully presented by many of you.
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