But what is an entrepreneur? Ironically, I was asked this question on a recent online job application, where I offered the following definition in 150 words or less:
An entrepreneur is someone driven so strongly to create a successful business that they will risk the security of a traditional career to pursue that dream. An entrepreneur values mistakes as the greatest learning opportunities, but only with an understanding that the difficult process leads to successful execution of the business plan, economic freedom, and hopefully great financial and experiential wealth.It was a somewhat hurried response, primarily because this wasn't a job that I'm dying to get (I even offered a somewhat ego-driven and tepid response when asked why I would want to work for the company, because I'm not sure that I do, and recession be damned, I don't believe that talented people should sell themselves out at the first site of an opportunity). But I felt comfortable enough to throw it out there as a mostly fitting definition and a great discussion starter. What do you think an entrepreneur is?
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On a semi-related subject, here's a great article about whether entrepreneurship is a learned process or not: http://tcrn.ch/a6vPfy. I'm a little torn on the subject, having earned a college degree in entrepreneurship that was partly funded and inspired by the Kauffman Foundation (cited in the article), but knowing that I have the entrepreneurial bug anyhow.
ReplyDeleteI think both sides are right: people with a traditional business background can utilize their skill sets and consistent work ethic to build a great business, while others can deliver the passion needed to take a huge leap and then figure it all out. But then, this perspective includes all types of entrepreneurs, whereas groups like Kauffman are more interested in those that can scale their concept (and often fit the venture model, which can certainly fill in gaps where needed).
As a developer being an entrepreneur boils down to idea->code->learn->repeat. It's what I do. If you're not a developer replace code with 'make baskets' or 'create widget'. Of course there are many skills that I need to learn to do this, like product usability, design, marketing, sales and basic business operations. I like all of it, but at the core is this loop of taking my idea, myself really, and pushing it through the filter of the real world over and over, taking the results and doing it again and again.
ReplyDeleteAs far as I can see, the biggest difference between an artist and an entrepreneur is the last step -- learning. I'm striving to build something that makes money. An artist can create and publish and then ignore criticisms. As an entrepreneur, you have have to learn from the right criticisms and then try something slightly different. I think maybe full-time writers go through this process nearly exactly, except they aren't entrepreneurs because they aren't creating businesses.
Taking risks and being motivated by a dream of making tons of money, well, I guess I'm half way with you on both points. I take risks with my personal credibility, my time and to some extent my money. If I needed a big infusion of cash, there's no way I'd use my own and I would never quit my job without some serious runway and sales under my belt. I'm pretty risk averse, but I don't think that disqualifies me from being an entrepreneur. As for motivation, of course my goal is to make money. But that's one of many motivations and realistically, if I wanted financial independence there are much more predictable and easy paths to that particular goal. I wouldn't include motivations in the definition of entrepreneur, because it's different from person to person.
A more concise version of my last statement.
ReplyDelete"Creation is a skill. No matter what you're creating, it has a cyclical nature to it, and handling that cyclical nature—moving through the steps progressively, typing up loose ends, and bringing it around full circle—is a skill."
via http://yearofhustle.com/amy
Entrepreneurship is the act of applying this skill to creating a business.
More about entrepreneurship (motivations included): http://blogs.hbr.org/cs/2010/02/should_you_be_an_entrepreneur.html
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ReplyDeleteAnd another recent article on the subject, covering motives for starting a business: http://bit.ly/aasZTF.
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