An Entrepreneurial Mindset Report - Final

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An Entrepreneurial Mindset

Report by Risky Business

13/9/2010

Karan Negi

Tim Fuller

Abhishek Chitale

Mohammad Faruq

Sherry Fang Fang Li

Mohit Gupta

AN ENTREPRENEURIAL MINDSET BY RISKY BUSINESS

EXECUTIVE SUMMARY

Scholars debate over whether entrepreneurial skills can be taught or are an innate ability. McGrath and

MacMillan (2000) take the former view and encourage potential entrepreneurs to develop an entrepreneurial

mindset to sense and act swiftly in uncertain conditions. Research was conducted among six different

successful entrepreneurs and intrapreneurs from Australia, India and Bangladesh to identify traits and

practices unique to an entrepreneurial mindset and to compare them with the theory.

Intrapreneurs are a subset of entrepreneurs and operate within the organisation. The signs of an

entrepreneurial mindset include seeking out new profitable opportunities, focusing on execution and

motivating others to work towards that goal. Habitual entrepreneurs can swiftly adapt to changes and predict

unknown territory.

For newcomers, an entrepreneurial strategy consisting of a goal oriented frame, keeping inventory of ideas,

focusing on the best opportunities, promoting adaptive execution, and entrepreneurial leadership, are all

factors contributing to success.

The group surveyed six entrepreneurs locally and abroad from a range of industries and from small, medium

and large organisations. Face to face, telephone and email was used, but one of the limitations was that the

sample size was small.

Clear objectives, leadership, recognizing and pursuing opportunities in a disciplined manner were on the top

of the list, followed by risk-taking and finally creativity receiving a very low score. The team concluded that

this may be due to the differences in size since larger organisations tended to be more creative, and hence

more creativity meant more growth in business.

Findings indicate that positive thinking, confidence, risk-taking, passionately seeking opportunities and

continuous improvement are essential to success.

Good business ideas, always keeping a look out for opportunities, right attitude, a more cautious risk-taking,

and breeding innovation through good employee relations were recommended.

Risky Business compared the learning from the survey, and reassessed their business plan. They confirmed

that Easy Park was a good business opportunity, with a well defined level of profit, strong leadership and an

open team culture was already present and action will be taken to continue this, and finally, since it seems

that entrepreneurs are more averse to risk than initially anticipated by the team, it was decided that an exit

strategy will be included as part of the business plan to counter the risk of the new business.

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TABLE OF CONTENTS

Table of Contents.............................................................................................................................................................................. 3

Introduction........................................................................................................................................................................................ 5

Aim.......................................................................................................................................................................................................... 5

Understanding entrepreneurship & different unique entrepreneurial mindset..................................................6

Understanding entrepreneurship & different unique entrepreneurial mindset..................................................6

Essentials ofentrepreneurial strategy.....................................................................................................................................7

Establishing the entrepreneurial frame........................................................................................................................7

Creating a well-stocked opportunity register............................................................................................................7

Focus on the best opportunities.......................................................................................................................................7

Promoting adaptive execution by discovery-driven planning............................................................................8

Entrepreneurial leadership................................................................................................................................................8

Methods................................................................................................................................................................................................. 8

Key findings and learning..............................................................................................................................................................9

Conclusion......................................................................................................................................................................................... 10

Recommendations......................................................................................................................................................................... 10

Implications for Risky Business...............................................................................................................................................11

References......................................................................................................................................................................................... 12

Appendices........................................................................................................................................................................................ 13

Interview Appendix 1..............................................................................................................................................................13

Interview with MR George varughese (Karan Negi).............................................................................................13

(GENERAL manager Melbourne Marriott hotel)....................................................................................................13


Interview with Michael Northwood (Tim Fuller)..................................................................................................15

((EX)cEO Super Alloy Pty Ltd, Property Developer).............................................................................................15


Interview with MISHU RAHMAN (Mohammad Faruq)........................................................................................20

(EDITOR OF PURPLE MAGAZINE)................................................................................................................................20

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Interview with Manmohan Gupta owner of textile firm in India (Mohit Gupta)......................................24


Interview with Tony Newport (Sherry Fang Fang LI).........................................................................................27

Owner, Newport and Wildman, Tasmania................................................................................................................27


Interview with Mr Justin Forrester (Abhishek Chitale)......................................................................................28

(Partner in Liberty Catering Concepts Australia)..................................................................................................28

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INTRODUCTION

For decades different authors, academicians and business students have tried to identify the factors leading to

a successful entrepreneurship. There is a general agreement that the role of the entrepreneur is the most

important of all the factors. However academicians and entrepreneurs have debated over whether

entrepreneurship is something that can be taught. Some argue that entrepreneurs are born and not made, and

that trying to teach someone to become an entrepreneur is a waste of time. Others argue that academicians

can introduce aspiring entrepreneurs to concepts that may positively affect entrepreneurial success. Rita

Gunther McGrath and Ian MacMillan (2000) represent the latter view in The Entrepreneurial Mindset.

According to the McGrath and Macmillan (2000), an entrepreneurial mindset is "a way of thinking about

your business that captures the benefits of uncertainty." They also stated that uncertainties gives rise to new

businesses, and only someone with an entrepreneurial mindset will be able to seize these opportunities and

use them to increase profitability. Scholars describe an ‘entrepreneurial mindset’ as the ability to sense, act,

and mobilize under uncertain conditions. (Ireland et al 2003). In order to understand and possibly learn more

about this concept, The Risky Business team has generated a questionnaire and interviewed six local and

international entrepreneurs.

AIM

The aim of this survey was to find out what is unique, different and special about “the entrepreneurial

mindset”. Interviews were conducted with various successful entrepreneurs and intrapreneurs from different

nationalities to learn about their practices

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UNDERSTANDING ENTREPRENEURSHIP & DIFFERENT UNIQUE ENTREPRENEURIAL MINDSET

A few definitions on the key terms of entrepreneurship and findings from prior research will help to have a

deeper understanding of the entrepreneurial mindset.

Entrepreneurs

An entrepreneur is someone with a vision who spots a new opportunity and is minded to act on it and start

something, willing to take risk in order to make a profit (John L. Thompson, 1999). An entrepreneur is a

great strategist and a master at getting other people involved and excited about their business. They are open

to uncertainty and view it as a competitive advantage to look into new markets, while at the same time

making the most of every opportunity (Janis, 2005).

Intrapreneurs

Intrapreneurs are, in very simple words, entrepreneurs operating within an organization. Antoncic and

Hisrich (2001, cited in Saetre 2001) identify four qualities of an intrapreneur – new business venturing,

innovativeness, self-renewal and pro-activeness. The authors reassert that it is critical for intrapreneurs to be

even more skilled at putting together and leading a team, since they must operate within the constraints of the

political environment of an organization. Although one of the respondents was an intrapreneur, since

intrapreneurs are a subset of entrepreneurs, for the purposes of this report, both types will be referred to as

the broader category of entrepreneurs.

Entrepreneurial mindset:

In order to develop the concept of “entrepreneurial mindset” McGrath & Macmillan (2000) based their

research on “habitual entrepreneurs” and defined 5 basic characteristics of an entrepreneurial mindset.

Passionately seek new opportunities

Pursue opportunities with great enormous discipline

Pursue only very best opportunities

Focus on execution

Engage the energies of everyone in their domain

Habitual entrepreneurs move quickly, and they also change direction quickly as opportunities evolve.

McGrath and MacMillan (2000) attempt to show how habitual entrepreneurs think by introducing an

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analytical process that is basically an entrepreneurial mindset checklist. This is critical because a successful

entrepreneur is the one who can quickly adapt to changes and predict the unknown territory. Having an

entrepreneurial strategy will assist entrepreneurs to assess a situation quickly, and in an organized manner.

ESSENTIALS OFENTREPRENEURIAL STRATEGY

McGrath and MacMillan (2000) recommend four different stages of developing an entrepreneurial strategy,

and stress the importance of having entrepreneurial leadership in all these stages. These concepts are

discussed below:

ESTABLISHING THE ENTREPRENEURIAL FRAME

The entrepreneurial frame defines goals, and serves as a lens for entrepreneurs to view a situation.

Entrepreneurs must set criteria about which opportunities they will pursue based on the level of value

addition to the business. The idea is to weed out initiatives that take up resources and add very little value or

do not go beyond mere incremental improvement to really make a difference.

CREATING A WELL-STOCKED OPPORTUNITY REGISTER

Within this framework, it is crucial to build an inventory of entrepreneurial ideas by developing an

opportunity register. McGrath and MacMillan believe that this register of opportunities can be developed in

many different ways. For example, analyzing every step of the consumption chain can redifferentiate

products and services. In another scenario, the market can be shaped by resegmenting existing markets or

totally reconfiguring markets to create new markets. Also, entrepreneurs can attempt to develop break

through competencies that significantly build competitive strengths relative to the competition.

Unfortunately in the practical field this methods are not been used widely by the entrepreneurs and this is the

reason why most of the small and medium enterprises (SME) fail on their 2nd year of operation (Bhide 2004).

FOCUS ON THE BEST OPPORTUNITIES

Once the opportunity register has been established, the entrepreneur must use ruthless discipline to focus on

only the best opportunities. This can be accomplished by identifying and prioritizing target areas (current and

new products) and allocating resources to these targeted opportunities. The final step, adaptive execution,

consists of formulating and implementing a business strategy by using discovery driven planning that

provide direction in a highly uncertain environment and redirect strategy as reality unfolds. To effectively

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develop an entrepreneurial mindset within an organization, the entrepreneur must continue to play a very

visible hands-on leadership role from beginning to end.

PROMOTING ADAPTIVE EXECUTION BY DISCOVERY-DRIVEN PLANNING

Discovery-driven planning allows real options reasoning by recommending an adaptive methodology (versus

conventional planning under more certain environments) for use in uncertain environments.

ENTREPRENEURIAL LEADERSHIP

Although uncertainty might cause many to freeze, good entrepreneurs use it to their benefit. Uncertain

situations are full of new opportunities. Our findings from accumulated individual interview shows that

successful businessman continuously identify high-potential business opportunities and exploit these

opportunities with speed and confidence. Thus, uncertainty can become ally, not enemy.

Entrepreneurial leaders are distinguished from other managers by their personal practices. These fall

into three categories: setting the work climate, orchestrating opportunity-seeking and moving particular

ventures forward personally.

Climate setting practices create a pervasive sense of urgency for everyone to work on new

business initiatives. Successful Entrepreneur dedicates a disproportionate share of their time,

attention and discretionary resources to finding and supporting new business models.

Orchestrating opportunity seeking involves removing uncertainty from peers or workers by

clearly specifying what type of entrepreneurial opportunities is wanted

Specific hands-on management practices recognize that the quest for insight is the single most

important source of competitive differentiation a management team can bring to an organization

Since the theoretical framework presented above was developed a decade ago, Risky Business decided to test

the relevance of the theory in today’s entrepreneurial environment to compare and confirm whether the

entrepreneurial practice still matches the academic theory. The following sections describe the methodology,

findings and learning from the survey conducted.

METHODS

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The group decided to interview entrepreneurs and intrepreneurs in Australia and abroad to get the better

insight of the entrepreneurial mindset around the world. We used various forms of interviewing methods

such as face to face, e-mail & telephonic. Our questions were based on the findings of an entrepreneurial

mindset by McGrath & Macmillan (2000). We have explored to what extent the entrepreneurs of today

have characteristics that are similar to the entrepreneurial mindset proposed by McGrath and Macmillan

(2000). One of the limitations of the research was the small sample size of only six organisations.

However, in order to get a more representative sample we have covered small, medium and large

organizations from a variety of business sectors (eg. manufacturing, media, hospitality and finance).

KEY FINDINGS AND LEARNING

Responses from the interviews were grouped into the six different categories recommended by McGrath

and Macmillan (2000). Table 1 summarizes agreement/disagreement with the theoretical construct

for each respondent.

Interview Number

Entrepreneurial Mindset

(McGrath and

MacMillan, 2000)

1 2 3 4 5 6 Total (%)

Opportunity

Orientation

Yes Yes No Yes Yes No 67

Discipline to pursue

opportunities

Yes Yes No Yes No Yes 67

Clear objective and

Best opportunities

Yes Yes Yes Yes Yes Yes 100

Execution and

adaptive execution

No No Yes No Yes No 33

Engaging people to

work as a team

Yes Yes Yes Yes Yes Yes 100

Table 1 – Comparison of collective data

All the respondents stated that they always had clear objectives and knew when to apply the strategic

frame. Another common ground between all the respondents was the entrepreneurial leadership – and all

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respondents were confident of their ability to act as a visionary and lead a team of talented people

forward. Four out of six respondents reported that they were able to recognize opportunities, and to

pursue them in a discliplined manner. However, the most surprising finding of all was that more than

half of the respondents (four out of six) admitted they did not practice adaptive execution. This was

compared with another set of data on key personality traits of the entrepreneurs. The data revealed that

while ambition and planning, followed by leadership qualities, received higher attention from the

entrepreneurs, risk taking (67%) and creativity (only 33%) are areas that seemed weak in comparison. It

is possible that the lack of creativity is a result of an inability or unwillingness to practice an adaptive

execution strategy. Although the sample size is small, the data indicate that small to medium enterprise

face more problems with adaptive execution.

CONCLUSION

Different academic theories confirm that mindset plays a very important role in the success of business

people. They also assert that successful entrepreneurs are positive thinkers and do not shy away from

uncertainty. Instead they embrace risk and try to turn risk into a profitable business initiative. Entrepreneurs

always seek opportunities with passion and discipline, are continuously trying to improve their situation and

have an almost insatiable hunger for success. Confidence is a trait that is essential for an entrepreneur.

RECOMMENDATIONS

In summary, in order to be a successful entrepreneur one must

Have a great business idea and research if the business idea is feasible.

Always strive to seek for opportunities and make the full use of it

Have the right attitude and must be in a positive frame of mind to lead a team

While risk taking is necessary, it comes second last on the list therefore signifying that

appropriate checks for risks must be there

Always try to innovate and have good employer-employee relationships to foster adaptive

execution and creativity as this will result in expanding the business and increased profitability

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IMPLICATIONS FOR RISKY BUSINESS

Research into existing entrepreneurial ventures has helped the team at Risky Business to identify

possible pitfalls in starting and running a new business, and to start to understand and cultivate an

entrepreneurial mindset among team members. The team used the recommendations as a checklist to

reassess their decision to go ahead with Easy Park. Discussions among team members confirm that:

Easy Park is a good business opportunity, with a satisfactory level of profitability

The team has strong leadership, is goal oriented and open discussions are encouraged to foster

creativity and innovation to achieve a higher degree of customer satisfaction. If necessary more

will be done to continue this culture

Risk taking had received a lower score in the survey than initially assumed. Hence, although an

exit strategy had not been proposed earlier, the team decided to include this as part of their

business plan

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REFERENCES

1. Ireland, M.A. Hitt and D.G. Sirmon, A model of strategic entrepreneurship: the construct and its

dimensions, Journal of Management (2003), pp. 963–990

2. Saetre, A. S 2001, Entrepreneurship: An exploratory study of select Norwegian industries, NTNU

Senter for Entreprenorskap, viewed 13 September 2010,

http://www.nec.ntnu.no/dokumenter/Intrapreneurship.pdf

3. McGrath, R.G. and MacMillan, I. 2000, The Entrepreneurial Mindset, Harvard Business School Press, Boston, Ma.

4. The Mindset of Entrepreneurs 2010, Entrepreneur, viewed on 13 September 2010 April 2010 http://www. youngentrepreneur.co.za/entrepreneur.

5. Osborne, RL 1995, ‘The essence of entrepreneurial success’, Management Decision, vol. 33, no. 7, pp. 4-9, viewed 01 August 2010.

6. Bhide, A 1994, ‘How Employers craft strategies that work’, Harvard Business Review, mar/apr 94 vol.72, no.2, pp. 150-161, Viewed on 11 September 2010, Business Source Premier.

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http://www.nec.ntnu.no/dokumenter/Intrapreneurship.pdf


APPENDICES

INTERVIEW APPENDIX 1

INTERVIEW WITH MR GEORGE VARUGHESE (KARAN NEGI)

(GENERAL MANAGER MELBOURNE MARRIOTT HOTEL)

WHAT MADE U WORK IN THIS BUSINESS & WHY?

As tourism & hospitality was one of the booming industries at that time. I am a kind of person who likes meeting new people & going to new places & being in this profession has helped me to achieve all that.

WHAT KEEPS YOU MOTIVATED WHILE MAKING NEW PLANS?

Motivation comes from giving our customers best service while keeping the standards as high as possible but also by achieving our goals & targets .success is one of the key motivators.

WHEN IT COMES TO MAKING DECISIONS ARE YOU A GUT PLAYER OR A CAUTIOUS PLANNER?

I think we need a bit of both while making decisions keeping our feelings & facts in mind. Take calculated risks.

WHAT IN YOUR MIND ARE THE TOP THREE SKILLS TO BE A SUCCESSFUL INTRAPRENEUR?

Top 3 skills which I think we need in a successful business are managing people, perseverance & realistic goals.

HOW WELL HAVE YOUR EMPLOYEES CONTRIBUTED TO YOUR SUCCESS & HOW DO YOU MOTIVATE THEM?

In my mind to be a successful company one needs huge contribution from its employees & it’s the same with us. The best way to motivate employees is by putting right people at right places, giving them respect & rewarding them for the job well done.

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HOW YOU PREVENT MISTAKES OR DO DAMAGE CONTROL?

In any business mistakes will happen but u can do is learn from them which will broaden your skills to work around those situations if they occur again. The best way is to acknowledge the problem while being open, transparent & look for the best possible solution.

WHAT IS THE MOST SUCCESSFUL FORM OF MARKETING FOR YOUR BUSINESS?

As one of the biggest name in hospitality as a company Marriott like to engage its customer make a relationship so the customers just don’t like the brand they love it & brings customer loyalty.

WHAT IS YOUR GREATEST ACHIEVEMENT?

My greatest would be help people around me grow in their respective fields & develop future leaders within the company.

WHO IS YOUR GREATEST INSPIRATION?

Ken Blanchard. He is one of the most influential leadership experts in the world

WHICH COMPETING BUSINESS DO U ADMIRE THE MOST & WHY?

In my mind Ritz Carlton for developing a philosophy or culture of service around business.

DO YOU THINK THERE IS A DEFINING FORMULA FOR SUCCESS & WHAT ADVICE WOULD U GIVE TO SOME TO BE A SUCCESSFUL INTRAPRENEUR?

There is not a formula for success as success can be defined by differently by different people but to be successful u should have realistic goals, u should know how to work through people & be passionate about whatever u do.

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INTERVIEW WITH MICHAEL NORTHWOOD (TIM FULLER)

((EX)CEO SUPER ALLOY PTY LTD, PROPERTY DEVELOPER)

INTRODUCTION QUESTIONS

WHAT IGNITED THE SPARK IN YOU TO START A NEW BUSINESS VENTURE OR TO MAKE SIGNIFICANT CHANGES IN AN EXISTING BUSINESS? HOW DID THE IDEA FOR YOUR BUSINESS COME ABOUT?

My youngest son (Chris Northwood) was employed as a small business adviser with one of the top three merchant banks in Australia and was looking for a new challenge in his business career.

With Chris’s interest in extreme sports such as kite surfing, surfing and snow

boarding and being exposed to world known Australian brands such as

Billabong, Quicksilver, Globe and other brands he felt there was an opportunity to build a brand management company directed at the skate boarding.

Chris came to me a we discussed the opportunity and agreed to support the

Business plan.

WHAT MOTIVATED YOU TO GO AHEAD WITH THESE PLANS?

We felt it was an opportune time to develop new technology into the skate board market place by introducing titanium material to the skate board truck (the truck is the part of the skate board that the wheels are attached to.)

I felt I could draw upon my experience as the founder and as director of Super Alloy Technologies P/L (SAT) to develop a complete new technology into the skate board market. SAT was a successful Australian titanium golf head manufacturer providing titanium driver heads to the major golf companies such as Callaway Golf Company etc.

None of the existing skate truck manufacturers had used titanium in there

Manufacturing process of skate trucks.

HOW DO YOU GENERATE NEW IDEAS?

Market research of the skate board category developed a direction of the

Business. Discussion with skater’s showed an interest in lighter stronger trucks

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SUCCESS QUESTIONS

HOW DO YOU DEFINE SUCCESS?

Introducing a new technology to a market category and changing the direction of manufacturing a skate board truck and becoming a major supplier of trucks internationally.

Growing the business opportunity to sell it at a trade sale or public listing on the Australian Stock Exchange.

WHAT WOULD YOU SAY ARE THE TOP THREE SKILLS NEEDED TO BE A SUCCESSFUL ENTREPRENEUR?

(a) Perception of an opportunity

(b) Persistence

(c) Identify and employ people with the correct skills.

TO WHAT DO YOU MOST ATTRIBUTE YOUR SUCCESS? WHAT WOULD YOU SAY ARE THE FIVE KEY ELEMENTS FOR STARTING AND RUNNING A SUCCESSFUL BUSINESS?

My success is having an idea/product that is needed in the market segment.

The five key elements for me are:

(a) Confidence in you ability to succeed.

(b) An achievable business plan

(c) Strong financial control with regular reviews.

(d) A well informed sales team that can achieve sales targets and budgets

(e) An ability to change direction quickly as the market moves looking for new

Products and ideas.

HOW IMPORTANT HAVE GOOD EMPLOYEES BEEN TO YOUR SUCCESS?

I can’t stress enough the importance of self motivated employees. Provide them direction and goals and a career path and reward them well.

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WHAT IS THE BEST WAY TO ACHIEVE LONG-TERM SUCCESS?

Long term success! Well a strong balance sheet and business plan tight financial controls and a group of young enthusiastic employees. I have had the notion that 60% of employees should be between 30 and 40 years old. Like a successful

Football team, always introduce youth to the team.

WHAT HAS BEEN YOUR MOST SATISFYING MOMENT IN BUSINESS?

What has been your most satisfying moment!!!!! Being successful.

CHANGES TO THE PAST QUESTIONS

IF YOU HAD THE CHANCE TO START YOUR CAREER OVER AGAIN, WHAT WOULD YOU DO DIFFERENTLY?

Nothing.

WHAT HAVE BEEN SOME OF YOUR FAILURES, AND WHAT HAVE YOU LEARNED FROM THEM?

I haven’t had too many failures to date.

HOW CAN YOU PREVENT MISTAKES OR DO DAMAGE CONTROL?

I have always tried to plan for an escape route when things go wrong.

Selling equity/ shares in the business to finance growth and succeed. I have

Always felt that 20% on a successful business in better than 100 % of a failed

business.

WHAT SACRIFICES HAVE YOU HAD TO MAKE TO BE A SUCCESSFUL ENTREPRENEUR?

Time, 60 to 80 hours a week.

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HOW HAS BEING AN ENTREPRENEUR AFFECTED YOUR FAMILY LIFE?

Being an entrepreneur hasn’t affected my family life at all. It’s made it more

interesting for the family. They have enjoyed the new challenges and the

successes.

WHAT IS YOUR GREATEST FEAR, AND HOW DO YOU MANAGE FEAR?

My greatest fear is poor health.

OPERATIONAL QUESTIONS

WHERE DID YOUR ORGANIZATIONS FUNDING/CAPITAL COME FROM AND HOW DID YOU GO ABOUT GETTING IT? HOW DID YOU OBTAIN INVESTORS FOR YOUR VENTURE?

The funding of this business from myself, family and friends of the

family. Additional funding came from a merchant bank that provided venture capital that took equity in the business.

Chris and I approached them with a sales and financial model and they showed interest, however it took time as it was in the middle of the world financial crisis.

HOW DID YOU DECIDE ON THE LOCATION FOR YOUR BUSINESS?

The USA has the largest skate board market. Over 10 million skaters.

That was the reason for Chris to live in the US and set up a marketing and

distribution there.

HOW DO YOU GO ABOUT MARKETING YOUR BUSINESS? WHAT HAS BEEN YOUR MOST SUCCESSFUL FORM OF MARKETING?

It was important to build a well known group of TEAM RIDERS that promote the brands. (Theeve Titanium Truck Company, Armourdillo and Sterio Skate Boards)

We singed the most famous Tony Hawk and Jason Lee plus others to endorse the brands.

The marketing includes taking full page ads in skate magazines, in store promotion

material, Utube, Twitter and skate Forums and the Web sites.

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PERSONAL VIEWS ON LIFE QUESTIONS

IF YOU COULD TALK TO ONE PERSON FROM HISTORY, WHO WOULD IT BE AND WHY?

Richard Branson, of Virgin. A person that is exciting and done the lot in life.

WHO HAS BEEN YOUR GREATEST INSPIRATION?

Bob Ansett, who said 5% of a successful business, is far better that 100 % of a failed company.

EXCLUDING YOURS, WHAT COMPANY OR BUSINESS DO YOU ADMIRE THE MOST?

Porsche AG. (for the technology advancements in the automotive industry)

WHAT IS YOUR FAVOURITE ASPECT OF BEING AN ENTREPRENEUR?

The challenge and excitement.

WHAT DO YOU FEEL IS THE MAJOR DIFFERENCE BETWEEN ENTREPRENEURS AND THOSE WHO WORK FOR SOMEONE ELSE?

The difference is an entrepreneur is prepared to take a risk.

IN ONE WORD, CHARACTERIZE YOUR LIFE AS AN ENTREPRENEUR.

Different.

WHAT ARE YOUR HOBBIES? WHAT DO YOU DO IN YOUR NON-WORK TIME?

Hobbies include restoring old Porsche cars, sailing and car racing. I like Formula

Ford, watching the 15 and 16 year olds trying to be Formula 1 drivers.

WHAT THREE PIECES OF ADVICE WOULD YOU GIVE TO UNIVERSITY STUDENTS WHO WANT TO BECOME ENTREPRENEURS?

You need to ask yourself, do you have the persistence, energy and endurance and have you the ability to identify a great idea and find people that you can engage with to encourage them to assist you in your goals. You also need the ability to manage the risk and stress of building

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INTERVIEW WITH MISHU RAHMAN (MOHAMMAD FARUQ)

(EDITOR OF PURPLE MAGAZINE)

Mishu Rahman, editor of Purple Magazine and also the CEO of Media Arts and Technology Ltd, a

communication research firm, has been selected as one of the 100 inspiring young entrepreneurs and social

change makers from 10 countries in Asia Pacific. She is also a popular Television Anchor in Bangladesh. I

am extremely lucky to know her since 2004, when I was working in Adcomm Ltd (A Leading Advertising

Agency in Bangladesh). Here is an email interview to look in to her success story as a young entrepreneur

and how she has rolled out Purple Magazine that attracted local audience as well as Non Residence

Bangladeshi.

1. WHAT IS THE VISION OF PURPLE MAGAZINE? WHY DO YOU THINK PURPLE IS

DIFFERENT?

PURPLE was started with a dire need to represent Bangladesh positively to a global audience in an exciting

way. Most Magazines in Bangladesh are catalogues of lifestyle shopping and those which offer good reads

are presented in a boring format, or else involves stale ideas and people repeating the same things across

various media platforms.

PURPLE dared to take a non-political, social research based trend tracking approach which we call tracking

“the Pulse of Bangladesh” The presentation in world class, language is international magazine standards and

interaction with readers happen at state of the art platforms. PURPLE gives ample space to new and fresh

ideas, avoids commercialization of issues and creates excitement about Bangladeshis and Bangladesh to a

global audience. The vision is to bring in international recognition of PURPLE as a platform to initiate

conversation on things affecting Bangladesh and the region. Already PURPLE has been distributed at a

Cambridge Leadership summit as a Pre-reading for a session on Global environment to 110 young global

leaders and our Agriculture Issue last November was distributed to all international dignitaries who joined

the World Food Summit in Rome as a complete perspective of work being done on Agriculture in

Bangladesh. These are small steps but we are getting there with each step.

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2. HOW DO YOU CLASSIFY YOURSELF I.E. LIFESTYLE MAGAZINE, LEISURE,

ENTERTAINMENT?

PURPLE’s mission is to enlighten, entertain, enrich inspire and interact and initiate. It celebrates the

Bangladeshi Spirit. We call ourselves a Contemporary issues magazine and we have various segments

catering to business, entertainment, lifestyle, culture and politics.

3. WHO IS YOUR TARGET AUDIENCE? WHY DO YOU TARGET THEM? HOW DO YOU

TARGET THEM?

Our target audience is anyone in Bangladesh who feel the need to be engaged with the times – and we

believe everyone needs to be, so that we our cumulative contribution to the development of our country can

be that much greater. We have seen that various cover stories of PURPLE appeal to different segments of the

society. For example one cover two years ago on the brash lives of urban school and college students from

wealthy backgrounds got a lot of urban parents writing to us asking for more details. On the other hand our

issue on Agriculture generated interest of a lot researchers and analysts from across the region. Even Hugh

Brammer from London who has worked in Bangladesh for over 35 years in agricultural development

emailed us a write-up as a follow-up of that issue. Another Cover story on Looking at Bangladesh 30 years

from now created a phenomenal participation of University students who will be middle aged citizens of

Bangladesh after 3 decades to get together in workshops and send us their dreams and aspirations. Our

Initiative in raising funds for the social victims raised a lot of interest among celebrities, artists and

development workers. So through various features we try to engage with different parts of society which

gives PURPLE an element of freshness and excitement

WHAT IS YOUR OPINION ON THE ENGLISH PUBLISHING SECTOR IN BANGLADESH

AND HOW PURPLE FITS IN THERE?

The English Publishing sector suffers from a dearth of readers. However, with a rising involvement of

various institutions and corporate houses, Universities and even the government in promoting the familiarity

with the language, the scenario may not be the same 5 / 6 years down the line. Today we as editors suffer

from a huge crisis of good writers/ reporters in English. And thus most magazines that look to become

‘English’ language magazines get away with mediocre articles downloaded plagiarized materials and no one

is the wiser.

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On the brighter side, English publications with insightful articles and engaging presentations can attract a

global conversation and has a wider appeal. PURPLE intends to lead in this arena over time. It has been in

Publication only since July 2007, so this has been so far experimental learning. We are ready to take on

bigger challenges in 2010.

5. DO YOU MAKE USE OF INTERNET, MOBILE PHONES, AND SOCIAL MEDIA TO

PROMOTE, INFORM, COMMUNICATE AND MOBILIZE YOUR READERS? HOW?

What are we today without social media? PURPLE’s facebook group gets a lot of our message across. The

online version is a large platform for non-resident Bangladeshis to experience PURPLE. We are aware that

as more Bangladeshis go online and use internet enabled phones, online and mobile versions will become

more popular. However, the print version will never really go extinct. If this was to be, then when TV came

in, the newspaper would have gone out of print!

6. WHAT SINGLE FACTOR WOULD YOU SAY HELPED YOU THE MOST IN GETTING

PURPLE WHERE IT IS TODAY?

Having a smart, driven, ambitious, reliable and forward-thinking staff. The true success of PURPLE is

because of the amazing dedication my staff has towards researching, connecting with, interviewing and

profiling the young professionals in the for-profit and non-profit communities. Every single member of our

staff is either a full-time student or full-time employee and yet they still find the time and energy to make

these articles come alive! I have to say that my staff and the people we profile each week definitely continue

to inspire me on a daily basis.

7. DID YOU WANT TO BE AN ENTREPRENEUR WHEN YOU WERE A CHILD?

No. I wanted to be an astronaut, ballerina, doctor and teacher. At that age, in my world, doing everything all

at once seemed possible. To some degree, I still believe I can still juggle multiple careers.

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8. IF YOU COULD GO BACK IN A TIME MACHINE TO THE TIME WHEN YOU WERE JUST

GETTING STARTED. WHAT BUSINESS RELATED ADVICE WOULD YOU GIVE

YOURSELF?

Network like crazy. I didn’t realize at the time of our launch that our website and set of magazines were

going to turn into an international platform for young professional networking. I’m sure it would have been

helpful to already be networked with the media publishing community as well as various ethnic communities

to be able to soak up and leverage the knowledge we would have learned then.

9. DO YOU THINK THAT ENTREPRENEURIALISM IS SOMETHING THAT IS IN YOUR

BLOOD? OR IS IT SOMETHING THAT CAN BE LEARNED?

I definitely believe that entrepreneurialism can be learned. Some individuals might just be natural at it, but

anyone that can take an idea to launch, be patient, look at the bigger picture, are driven and can realize the

importance of surrounding yourself with smarter people has the potential of becoming a successful

entrepreneur. The students have no history of entrepreneurialism but yet, with support and patience they have

all developed into very cool super young entrepreneurs. If they can be 15 years old and launching a company

that is making profit, I have a strong feeling most everyone can as well.

10. IS THERE ANYONE THAT YOU LOOK UP TO AND MODEL YOURSELF ON?

I look up to and constantly re-evaluate myself based on all the inspiring individuals I work with as well as

the amazing young professionals I am fortunate to come across in my career. I really feed off their

motivations, inspirations, drive and dedication towards progress. I ‘m most inspired by those young change-

makers in the non profit community that work around the clock to alleviate the worlds most pressing issues.

If I had to pick one person that I do look up to, I would say its recent Peace Prize winner and fellow

Bangladeshi Muhammad Yunus, the founder of the Grameen Bank (also called the Bank of the Poor). He

started the micro-credit revolution by lending money to a network of women who were struggling in poverty.

Now this economic model has spread and has been successful in other countries.

11. WHAT IS THE BEST ADVICE YOU HAVE EVER BEEN GIVEN?

Surround yourself with people smarter than yourself. It can only breed success.


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INTERVIEW WITH MANMOHAN GUPTA OWNER OF TEXTILE FIRM IN INDIA (MOHIT GUPTA)

QUESTIONS FOR INTERVIEW

1. HOW IS THIS BUSINESS ORGANIZED? (SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION

Business is basically a Joint Hindu family business.(It is a form of commercial organization where a business is owned by the members of a Hindu Family living jointly. When the business continues from one generation to another in a Hindu family it becomes a Joint Hindu Family Business. A business where a person becomes a member only by virtue of birth in the Hindu family is called Joint Hindu Family Business· The Joint Hindu Family Business is a distinct form of business organization existing only in India.)

2. HOW LONG HAS THIS ESTABLISHMENT BEEN IN BUSINESS?This establishment has been in business from 1985. It has been nearly 25 years and the business is

running smoothly and efficiently.

3. HOW WOULD YOU CHARACTERIZE YOURSELF? (ENERGETIC, RESPONSIBLE, ETC.)I would characterize myself as energetic, passionate and a responsible person. I’m basically a perfectionist who wants to do his work perfectly without any delays.

4. WHAT MADE YOU DECIDE TO GO INTO BUSINESS FOR YOURSELF?During 1984 I used to work as an employee in a textile firm but I soon realized there is no value of a worker so I decided to start my venture with my father.

5. WHO ARE YOUR COMPETITORS?Siyarams, S kumars, Bsl ltd and arvind.

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6. HOW HAVE YOUR PRODUCTS/SERVICES CHANGED OVER THE PAST 5 YEARS?We always keep making some changing in designs and patterns as consumers taste and demand keeps on changing.

7. DO YOU ADVERTISE? IF SO, WHAT MEDIA DO YOU USE?We advertise mainly through posters and occasionally through newspapers

8. HOW DID YOU DECIDE ON YOUR LOCATION?

We basically wanted a location which was cheap and where the raw-materials were available in plenty and a place which had least amount of government restrictions.

9. HOW MANY EMPLOYEES DO YOU HAVE? HOW MANY ARE FULL-TIME? HOW MANY ARE PART-TIME?

We are having around 240 employees out of that 170 would be full – time and 70 would be part - time.

10. WHAT EQUIPMENT DO YOU REQUIRE YOUR EMPLOYEES TO HAVE KNOWLEDGE OF?

Our employees should have basic knowledge of operating the looms but we even give some training to them, whereas all those who are in finance department should have knowledge of accounting and those who are in marketing should have a degree and should be smart enough for it.

11. WHAT DO YOU LOOK FOR IN EMPLOYEES WHEN YOU HIRE?

We basically look in an employee his dedication, knowledge, qualification depending on the nature of job and his commitment towards the company.

12. WHAT QUESTIONS DO YOU ASK IN AN INTERVIEW?

We basically ask questions which test their knowledge and confidence.

13. WHO MAKES OUT THE WORK SCHEDULE? HOW MUCH IN ADVANCE IS THE SCHEDULE MADE? HOW ARE CONFLICTS HANDLED? (SCHEDULING CONFLICTS)

All the directors of the company plan out the work schedule and it is made a week in advance. I handle scheduling conflicts by following ways –

Managers do all they can to prevent these problems from occurring, and if they do occur to resolve them as effectively as possible.

I try and have only one person responsible for scheduling because when too many people are involved there is more risk of mistakes.

I always see to it that none of the employees are overloaded with work and pressure. I always allow enough of a break between rotations from days to nights which keeps the employees

in good physical and mental health. 14. HOW ARE YOUR PRICES ESTABLISHED?

Prices are established on the basis of yarn cost, weaving cost and dyeing cost.

15. HOW DO YOU HANDLE DIFFICULT CUSTOMERS?

I don’t take it personally I ask customers what their problem is, and immediately agree with him that he has the right to feel

upset for what happened. I give respect for his situation which calms the customer down. I apologize for the inconvenience which would also appease the customer. I just recognize the problem, and then offer solutions and alternatives.

16. HOW DO YOU MOTIVATE EMPLOYEES WITH ABSENTEEISM/TARDINESS?

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I ask the employees why they were late as soon as possible after they finally arrive at work. I don't wait until lots of lateness piles up. They need to know you're concerned and have noticed the problem.

I ask the employees what they will do to come to work on time. I agree on a plan or steps the employee will take to improve their record but to a certain limit.

I keep monitoring attendance. I tell the employees when they improve and when they slip remind them of the potential consequences if they continue to be tardy.

If the employees do not improve I fire them as his tardiness is spreading negativity in the entire company.

17. WHAT SECURITY MEASURES DO YOU TAKE?

I have hired 2 security guards near the gate and installed CCTV cameras which cover the entire office area and 3 exit doors in case of fire emergency and all the machineries have been insured.

18. HOW OFTEN DO YOU CONDUCT INVENTORY? HOW MANY VENDORS DO YOU ORDER FROM?

A. We carry out inventory almost daily and we order from 4 – 5 vendors.

19. WHAT BENEFITS DO YOU OFFER EMPLOYEES?

A. I basically offer benefits which is -

Building employee morale and engagement Becoming and remaining a Preferred Employer Reinforcing their Employment Brand Attracting quality employees Building employee loyalty and retaining key talent Increasing their income after some period of time. Differentiating their employment offering.

20. WHAT WOULD YOU SUGGEST BEING TAUGHT IN THE HIGH SCHOOL THAT WOULD ENCOURAGE AND HELP STUDENTS TO OWN AND OPERATE THEIR OWN BUSINESSES?

A. Teaching in a high school will only help the students to some extent.

Students should basically take some work experience before starting their own venture.

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INTERVIEW WITH TONY NEWPORT (SHERRY FANG FANG LI)

OWNER, NEWPORT AND WILDMAN, TASMANIA

TONY NEWPORT IS THE OWNER OF NEWPORT AND WILDMAN IN TASMANIA. HIS COMPANY OFFERS COUNSELLING AND MEDIATION SERVICES

1. WHAT MOTIVATED YOU TO GO AHEAD WITH YOUR BUSINESS PLAN?I had the knowledge and the contacts in my industry. There were always new issues and challenges suited my personalities. I also had the desire to be self-employed.

2. WHAT IS YOUR QUALIFICATION- Bachelor of social work

3. WHAT ARE THE TOP 3 SKILLS THAT YOU THINK A SUCCESSFUL ENTREPRENEUR SHOULD HAVE?A successful entrepreneur should have the ability to build relationships and networks. Knowing your products and services that you are providing to the market is very important. Basic accounting knowledge, such as knowing how to read you financial reports, managing cash flow is vital to the succussed of the business.

4. IF YOU COULD TALK TO ONE PERSON FROM HISTORY, WHO WOULD IT BE AND WHY? Martin Luther king, because he said that you can’t be half hearted for the truth or what you believe, he was passionate about what he believed in. If you think you can do it, you are right; if you think you can’t do it, do are also right.

5. WHAT ARE YOUR HOBBIES? WHAT DO YOU DO IN YOUR NON-WORKING TIMES?My number one hobby is reading. I am also in to physical excise, such as walking, jogging.

6. WHAT 3 PIECES OF ADVICE WOULD YOU GIVE TO UNIVERSITY STUDENTS WHO WANT TO BECOME ENTREPRENEURS?Find someone you respect and let his/her inspire you, such as, a mentor.Enjoy what you do and be passionate for what you doHave some fun, it can’t be all work.

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7. HOW CAN YOU PREVENT MISTAKES AND HOW TO DO DAMAGE CONTROL?You can’t prevent mistakes; however, mistakes are along with opportunities. There are always two parts of mistakes. In terms of damage control, it depends on what kind of industry you are working in. For example, Tiger Woods, after what happened to him this year, what he did was telling the truth “I feel sorry for myself.” people respect honesty. If you are in the wrong, try to make good.


INTERVIEW WITH MR JUSTIN FORRESTER (ABHISHEK CHITALE)

(PARTNER IN LIBERTY CATERING CONCEPTS AUSTRALIA)

Abhishek: Good morning sir thanks for having me here and giving me your precious time for my research assignment.

Mr Forrester: No problem and thanks for choosing me. Where are you doing your MBA from?

Abhishek: sir I am doing my MBA from RMIT University. I will only take your 15 mins as I know you are very busy and you can choose not to answer anything that you are not comfortable with.

Mr Forrester: No worries Abhishek.

Abhishek: when and why did you decide to start Liberty Catering Concepts?

Mr Forrester: The idea was in my mind for some time and I decided to form this company in 2009 with my other two partners, and the reason I did this because I always wanted to work in the hospitality and after working for so many years I wanted to do it my way.

Abhishek: which venues are you providing the catering services to?

Mr Forrester: we are providing services to Zoos Victoria that is Melbourne Zoo and Werribee Zoo and we are working on a few other projects which you will hear in the near future. As we are a young company we want to move step by step

Abhishek: how do you find new opportunities and what measures do you take to finally decide on them?

Mr. Forrester: Abhishek, there is secret to this, you have to work hard and research a lot. Once you find something you go through the details again and again and then decide finally. That’s what I do with my partners.

Abhishek: how disciplined are you while looking at the new opportunities?

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Mr. Forrester: as I said before there is no substitute for hard work, once I find an opportunity I with my partners go through it a lot of times and then decide if the venture is viable.

Abhishek: what keeps you motivated?

Mr Forrester: my love for hospitality industry. I really believe in providing best quality service and I want to take the customer service to a whole new level.

Abhishek: what according to you are the top three skills for an entrepreneur?

Mr Forrester: I believe hard work, attention to detail and managing people are the three most important skills.

Abhishek: So do you believe that your employees play an important role in your success?

Mr Forrester: absolutely, I always want to keep my employees happy as they are the ones who provide the service to our customers. If an employee is working happily the standards automatically go up and that is the reason why we are making employee recreation area along with the other things which were never done in the Zoo before.

Abhishek: have u ever tested failure and if yes what are the reasons for it?

Mr Forester: yes I have tested failures, but I don’t see them as failures I see them as an opportunity to improve. The main reasons for it are unorganised planning, wrong strategy and sometimes it is just because the competitors were more efficient even though there is nothing wrong on your side.

Abhishek: what are the things that make someone a successful entrepreneur?

Mr Forrester: I believe passion, positive attitude, leading by example, motivate and look after your employees are the few basic things which can make you successful.

Abhishek: how much ownership do you give to your employees?

Mr Forrester: I strongly believe that it is my employees who put their hard work and efforts to help me achieve the maximum results, everyone here has the freedom of putting up his/her ideas and we always consider those ideas before taking any final decision.

Abhishek: any advice for the upcoming managers/entrepreneurs?

Mr Forrester: always remember hard work is the first thing, have a clear goal, hire qualified staff and trust them. Always keep yourself updated and alert of the external environment.

Abhishek: thank you very much sir, I really appreciate you taking out time for me.

Mr Forrester: no worries Abhishek good luck with Your MBA and I hope you will become a successful entrepreneur one day.

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An Entrepreneurial Mindset Report - Final

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Transcript of An Entrepreneurial Mindset Report - Final