What does it take to be an entrepreneur? Super-project.eu Lecture 2

Skills, Abilities and Characteristics Contents Aims & Objectives 1 Common Myths 2 Skills, Abilities and Characteristics 3 Summary 4

Aims for the session By the end of the session, students will: Have discussed some common myths about entrepreneurs. Understand the differences between entrepreneurs and owner-managers, and how owner managers can remain entrepreneurial. Have considered the skills, abilities and characteristics exhibited by successful entrepreneurs.

Common Myths About Entrepreneurs Entrepreneurs are born not made Entrepreneurs are lucky to have special abilities/circumstances All entrepreneurs start off with an innovative cutting edge idea Entrepreneurs high risk takers You need money to become an entrepreneur Entrepreneurial skills can be improved Special circumstances are not enough, hard work is needed to succeed Many just notice problems and try to solve them, iterating as they go They are calculated risk takers Many entrepreneurs start with the resources they have at hand

When do we stop being an entrepreneur… ..and become an owner-manager?

Entrepreneur or Owner Manager? Initial Start Up Establishment and Management

Skills, abilities and traits?

Personal Characteristics

Self-awareness Self-efficacy Recognising and analysing your skills, abilities, strengths and weaknesses Self-efficacy Believing in yourself and in your ability to accomplish a set goal.

Motivation & Perseverance Staying focused and not giving up Having the determination, patience and resilience to put your ideas into action Not being deterred by obstacles and failures Examples Steve Jobs famously said ‘I'm convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.’ Sir James Dyson developed 5,126 prototypes of bagless vacuum cleaner that failed first.

Coping with uncertainty, ambiguity and risk The nature of the work requires tolerance to uncertainty and ambiguity. Having higher sense of purpose and belief in what you are doing helps to cope with uncertainty.

Accepting and coping with failure Failures in business are inevitable, up to 50 per cent of businesses close within 5 years of starting. Failure is a great learning process Many famous entrepreneurs and great minds failed many times Examples: Edison famously said ‘I have not failed. I’ve just found 10,000 ways that won’t work’. Richard Branson has launched many businesses that have failed, for instance, Virgin clothes, lingerie or bridal wear

Interpersonal Skills

Mobilising others Working with others Convincing, motivating and inspiring other people to support your idea. Bringing in other prople’s experience and perspectives, networks, resources to help implement your idea. Working with others Being able to cooperate and work with others such as: partners employees buyers suppliers investors other stakeholders. Being able to delegate tasks and trusting your team

Creativity Vision Thinking about alternative solutions Spotting problems, Having many different ideas Vision Thinking strategically and guiding action, Having imagination and using it to think about the future and plan accordingly.

Practical Skills

Valuing ideas Mobilising resources Taking initiative Evaluating ideas to see what potential is in them to create economic, social or cultural value Mobilising resources Obtaining outside support such as expertise and funding Convincing others to invest their resources into your project Having a sound business plan and good personal reputation Taking initiative Having a courage to implement your idea and take matters into your hands without expecting any instructions from others

Planning & Management Being able to assess where you are now and where you want to get (what is the goal of your project), Thinking of all tasks that must be completed, resources needed to complete them and strategies to achieve your goals. Writing a business plan and thinking about all aspects of your venture. It helps clarifying your idea, talking to investors, banks etc.

Learning through experience Being able to draw on your previous experiences and learning from failures Financial & Economic Literacy Knowing how markets work and how individuals make choices to manage resources, Ability to manage monetary resources effectively and develop projects in a sustainable way.

Summary 1) Many common myths exist around what an entrepreneur ‘looks like’. 2) After the initial frenzy of staring up your company you will become an owner-manager. 3) Not all owner-managers remain entrepreneurial but entrepreneurial owner-managers are always thinking about the next thing – how to grow the business, where to expand, new products/services, markets etc. 4) There are a number of skills, abilities and characteristics that are displayed by successful entrepreneurs. These can largely be worked on and actively developed.

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