The Golden eGG

A scientific approach on how to become a

successful entrepreneur

A scientific approach on how to become a

successful entrepreneur

Dr. Martijn Driessen

Over 60,000 copies sold in the Netherlands

2

Ind

ex

ISBn/eAn : 978-90-811019-6-7Title : The golden eggSubtitle : Ascientificapproachonhowtobecome

asuccessfulentrepreneur.Author : Driessen,MartijnIllustrator : Houdijk,MarjolijnTranslator : denHolder,GreetjePublisher : EntrepreneurConsultancyBVnUR-code : 800NUR-description : GeneralbusinessEdition : FirsteditionIllustrations : JPages : 12,91,4Language : EnglishAppearance : Eboek:Epub,digitalwatermark,download/online

www.entrepreneurscan.com

Copyright©2014MartijnDriessen

PublishedbyEntrepreneurConsultancyDesignandlayout:MarjolijnHoudijkbyLijntjes.nl

Nopartofthispublicationmaybereproducedand/orpublishedbyprint, photocopy,microlforanyothermeanswithoutpriorwrittenpermission ofEntrepreneurConsultancyBV.

Whilethisbookwaswrittenwithgreatcare,neitherauthornorpublisheraccept anyliabilityfordamagesarisingfromanyerrorsand/orinconsistenciesinthisbook.

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Index

Preface

The Golden Egg in a eggshell: how to become a successful entrepreneurEntrepreneurship is HOT!Practical examples• Self-employedAlfonso• BusinessownerDirk• EntrepreneurAndré• EntrepreneurBettine

1 What is entrepreneurship? 2 When are you an entrepreneur? 3 What is a competence? 4 What constitutes the entrepreneurial competence? 4.1 Motivation: What do you really want? 4.1.1Entrepreneurialmotives:whydoyouwanttobeanentrepreneur? 4.1.2Whatmatters:Doesitcomefromtheinsideortheoutside?4.2 Personal characteristics: Who are you truly? 4.2.1Characteristics:Whatdefinesyou? 4.2.2Thinkingstyles:Whichdoyouprefer?4.3 Qualities: What can you do well? 4.3.1Thephasesofacompany 4.3.2Theearlyphase:Whenyouhavejuststarted 4.3.3Thematurephase:Whenyourcompanyhasgrown4.4 Knowledge: Do you know what other people know? EntrepreneurScan Abouttheauthor Feedback

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PREFACE

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Preface

Thisbookdiscussesentrepreneurship.Whatisentrepreneurshipandwhatdoyouneedforit?Entrepreneurshipisasubjectthatfascinatesmeandkeepsmebusy.Over17yearsago,Itookmyfirststepsintoentrepreneurshipwithmyfirstproduct:theEntrepreneurScan,inshort:E-Scan.IwasobsessedwiththeideathenandIstillamtoday.Theideadoesnotwanttoletgoofme.Itismymission:developingentrepreneurship.Thisbookisaconcreteproductofthat.Withthisbook, Ichallengeyourentrepreneurship.

WhenIrecallmyentrepreneurship,bothsuccessesandfailures, Isimultaneouslygetgoosebumpsandshiversdownmyspine. Ithasbeenawonderfultime:notalwaysfun,butcertainly educational.Irecallallthepeoplewhohavehelpedme,butalsoallthepeoplewhohaveopposedme.Ithasmademestronger.Withthisbook,Ihopetohelpyouwithyourentrepreneurshipandtoshowyouhowyoucandevelopityourself.

Manypeoplehavehelpedmewritethisbook. Iamgratefultoallfortheirtimeandeffort inthecreationofthisbook.

MartijnDriessenHolland,2014

Who do you see in the mirror?

vision

Challenges

Inspiration

Myself

knowledge

Power

pioneerPersonality

Flexibility

Enthusiasm

Qualities

Motivation

vision

Challenges

Specialism

Inspiration

Myself

knowledge

Power

Enthusiasm

In a nuTshell...

8

INANUTSHELL

The Golden Egg in a eggshell: how to become a successful entrepreneur

Entrepreneurshipisseeingandexploitingopportunitiesthroughone’sowncompanyorwithina(larger)companywithwhichyoucreatevalue,foryourselfaswellasforothers.Valueentailsmuchmorethanjustmoney.Itisabouthowsatisfiedthecustomersare.Creatingvaluedoesnotnecessarilymeanthatyouhavetostartandrunyourownbusiness.Creatingvalueisalsopossiblewhenyouworkwithinacorporation–wecallthisintrapreneurship.

Ifyourunabusinessonyourownaccountandrisk,youareabusinessowner.Ifyougenerateyourownincomeandhavenofurtherambitiontogrowortoberesponsiblefortheincomeofothers,youareself-employed.However,ifyoudohavetheambitiontogrow,totakeonchallengesandtotakeothersalongfortheride,youareanentrepreneur,or“solopreneur.”

Beinganentrepreneurorsolopreneurimpliesanatureofbeingentrepreneurial–havingandshowingasetofcompetenciesthatsupportyourdreamsandsuccess.Youcanusecompetencieslikemarketawareness,creativity,flexibility,theabilitytotakerisks,dominanceandperseverance,forexample,tosatisfyyourselfandyourcustomers. Therefore,themostimportantquestionthatyouneedtoansweris‘areyou entrepreneurialenoughforthesuccessyoudesire?’

In short, you need to follow four steps to become a successful entrepreneur:

Step oneThefirstandmostimportantstepistobemotivatedtobecomeasuccessfulentrepreneur,whateversuccessfulmaymeantoyou.Itallhastodowithyourinnermotivationtobecomewhatyouhavealwaysdreamedofbecoming.Whatdrivesyou?Whatmakesyoutick?Whatisyourinnerpassion?Whateveryouwant,youmusthaveaclearvisionandaconstantlyburningfiretoachievethatgoal.

Step twoThesecondstepistostartenvisioninghowtoachieveyourgoal.Atleastthinkofwhatyourfirststepwillbe.Donotthinktoolong.Evenifyoucannotseethewholeroadyet,startwiththefirststep.Everylongjourneystartswithafirststep.Sogetgoing,andkeepgoing,asyouplanyournextstep(s)alongtheroad.

Step threeTherearemanypathstosuccess,becauseyouareuniqueandsoisyourpathtosuccess.ThebesttipthatIcangiveyouistofindyourownpath.Keepyoureyesandearswideopen,butalwayskeepyourfocusonthegoal.Listentopeople–especiallytoyourcustomers–andtrytoletthatbenefityourbusiness.Bemarket-awareandbecreativeinmeetingtheirchangingdemands.Beflexible,butalwaysstayincontrol,andkeepyourindependenceforwhatmatterstoyou.Staytruetoyourinnerbeliefs,butgethelpwhereothersoutperformyourweaknesses.

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Step fourThefourthstepisthemostdifficultstep.Manydiversions,distractions,pitfalls,setbacksanddisappointmentswillariseonyourwaytosuccess.Thehardestpartispersevering.Tomaintainconfidenceinyourselfandyourendeavors,takeriskswhenyoudoubtyourwayforward,daretogethelp,andmeetpeoplewhocanandwillhelpyoucommunicateyourvision.Believeme;setbackswillhityou(too).Toovercomethese,youwillneedtogobacktostepone.Rememberwhyyouaredoingthis,becauseifyoudonot,nooneelsewill!

Forapopulartelevisionprogramcalled100%entrepreneur,wehavetestedmorethan8,000businessownersviawww.entrepreneurscan.com.Insummary,thefollowingpicturearose:

The 100% entrepreneur:Usesone’spowersofmanipulationCreatesvisionIs(too)criticalWorkspurposefullyLikestoorganizeSeesproblemsaschallengesTakescriticismpersonallyGetsonwellwithpeopleWantstobetheleaderofateamKnowshowtomakeothersenthusiasticIsatone’sbestwhenthingsrunsmoothlyandorderlyIsapain-in-the-asswhenthingsdonotrunsmoothlyContinuouslythinksaboutthegoalstoreach

Inshort,anentrepreneurisadreamer,whoputs visionintopractice.

Entrepreneurship is about seeing opportunities (eyes open), reflecting upon them (eyes closed) and exploiting them (euro sign), not only by creating value for yourself, but also for others; that is the big smile of entrepreneurship

Dr.MartijnDriessen

that hill

climb up

enTrepreneurshIp Is hoT!

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ENTR

EPREN

EURSH

IPISHOT! Entrepreneurship is hot!

Theworldisincreasinglymoreinterestedinentrepreneurship.Theideaofbecominganentrepreneurisappealingtoagrowingnumberofpeople.AglobalreportoftheGeneralEntrepreneurshipMonitor2012showsthatroughlytwooutofthreepeopleseestartingabusinessastheperfectcareerswitchandthestatusofsuccessfulentrepreneursisoverallhightoo.

TheimportantpartthatSMEsplayintheprovisionofjobsishighlighted.SMEsareacountry’semploymentengine.Theroleoftheentrepreneurinacompany’ssuccessisincreasingandsoisresearchintothattopic.

Whatfactorscontributetothesuccessofacompanywhenitcomestothepersonalityandbehavioroftheentrepreneur?Thisquestionisworthconsidering,notjustfortheentrepreneurorthepersonwhowantstobecomeone,butalsofororganizationsandcompaniesfocusingonentrepreneurs.

Banksassessa(starting)entrepreneuronone’sbusinessplan.Theentrepreneurwillalsobeassessed,whichisusuallydoneusingthatelusive“gutfeeling”though.Besidesyour“visible”businessplan,youwillbetestedonyour“invisible”entrepreneurship.Withoutadoubt,doingbusinessisamatteroftrust.Ifthingsdonotclickbetweenyouandthefinancier,thereisnobasisformutualtrust.Thesameistrueforyourcustomersandsuppliers.

Whenitcomestofinancing,startingentrepreneursareatadisadvantagecomparedwithmoreestablishedentrepreneurswithyearsofexperience.Astarterisabiggerriskfinancially,asonehasnoproventrackrecord.Forpersuadingyourbank,itisthereforeessentialthatyouhaveentrepreneurialskillsatyourdisposal.

Evenifyoudonotintendtousebankfinancing(about20%ofstartingentrepreneursuseabankloan),itisimportanttoknowhowtopersuadethosearoundyou.Youcanonlydothatifyouarepreparedtoassessyourownbehavior.Thatisjustastrueforastartingentrepreneurasforanexistingbusinessowner.

Ingeneral,thepersonaldevelopmentofanentrepreneurisnotthesameasthe (business)developmentofthecompany.Theweaknessesoftheentrepreneurarethe potentialpitfallsforthedevelopmentofthecompany.Hence,recognizingand understandingyourpersonalweaknessesisimportantforthegrowthofyourcompany.Acceptingtheseweaknessesmaypreventyourcompanyfromprogressinginthewrongdirection.Onlythen,youcandetermineasuccessfulstrategythatcomplementsorcompensatesforyourweaknesses.

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Know Yourself!Inordertocomplementyourentrepreneurialskills,itisessentialtoknowyourself.Themainquestionis:howdoyougettoknowyourselfandfindoutwhetherentrepreneurshipsuitsyouifyouhaveneverbeforesetupabusiness?About50%ofallpeoplewhosetupabusinessquitwithin5years,eitherbecauseofbankruptcyorbecausetheydecidetodiscontinuethecompany.Apparently,beinganentrepreneurhasnotgiventhemwhattheywanted.Bankruptenterprisescosttaxpayerslotsofmoney.Thisgivesevenmorereasontothinkaboutyourentrepreneurshipcarefully,whetheryouarejuststartingorhavestartedsometimeago.

Entrepreneurshipisfantastic.Thisfascinatingtopicisthesubjectofmanybooks.Manybooksdealwiththebusinessside,toofewwiththepersonalsideofentrepreneurship–themanorwomanconcerned:theentrepreneur.Asanentrepreneur,youwillhavetoliveuptotheideasinyourhead.Youwillhavetoachievewhatyouhavewritteninthatperfectbusinessplan.Youarethemostimportantsuccessfactor.Therefore,knowingwhatyourweaknessesandstrengthsareisessentialtoyourenterprise,notjustforyourselfbutforothersaswell.Evenifyoustartasaone-manband,youstillneedotherstohelpyouwithyourenterprise.Youcannotdoeverythingyourself.Makesurethatyoupicktherightpeopletohelpyou.Canyoudevelopyourentrepreneurialskillsorcanothershelpyouwiththat?Howwillyoudothat?Howdoyourecognizesomeoneelsehavingtheskillsthatyoulackandwillyoucontinuetoworktogetherinthelongrun?Manyentrepreneursstartingouttogetherquitafterawhile,becausevariousfactorsmakeitimpossibleforthemtoworktogether.

Thisbookisforstartingentrepreneurs,existingbusinessownersandthosewhowanttobecomeentrepreneurs,suchasstudentsoremployees.Ofcourse,thisbookoffersnewandpracticalinsightsforcareeradvisors,bankmanagers,teachers,policymakers,etc.Inshort,thisbookisforanyoneinterestedinentrepreneurship,inhowtotestit,andinhowtodevelopyourskills.Withthisbook,youwillgetaninsightintothepsychologyoftheentrepreneurandthepersonalskillsneededforsuccess.Thedepthsofthesouloftheentrepreneurareunraveled.Youcancheckforyourselfwhetheryouareanentre-preneur.Furthermore,thedefinitionofentrepreneurshipandthedifferencebetweenabusinessownerandanentrepreneuraredescribedindetail.

Thisbookshowswhatbusinessisallaboutwhenyoulookatthepersonalsideofit:entrepreneurialcompetence.Youarethegoldenegg.Thesecrettosuccess.Itcoverswhoyouhavetobe,whatyoucando,whatyouneedtoknow,howyouevaluateand,finallyyetimportantly,howyoupresent

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ENTR

EPREN

EURSH

IPISHOT! yourselfwhileevolvingintoanenterprisingentrepreneur.Furthermore,retired

entrepreneursexplainhowtheyhaveconqueredinbusiness,theirsuccessesand failures,howcompetenttheyare,howtheyhavebenefittedfromtheirstrongerandweakercompetences,whatqualitieshavemadethemsuccessful,andwhatqualitieshavenot.

The core of this bookThecoreofthisbookisbasedontheextensivedoctoralresearchIhaveconducted attheUniversityofGroningenintheNetherlands.Entrepreneurialcompetencehasformedthefoundationofmyresearch,whichconsistsoffourelements:• Motivation• Characteristics• Qualities• Knowledge

Ihaveexaminedtherelationshipbetweentheseelementsandsuccess, inwhich“success”isseenas(atleast)lettingthecompanycontinue.

Forthisbook,Ihavespokentoseveralentrepreneurswhotoldmeabouttheirsuccessesandtheirfailures.Someofthemtellwonderfulstoriesofgoingfrombeingamillionairetobeingbrokeandbacktobeingamillionaireagain.Iconnecttheirpositiveandnegativeexperiencesasentrepreneurstotheircharacteristicsandqualitiesinordertodeterminewhatcharacteristicsandqualitieshavecontributedtotheirsuccessaswellastheir failures.Howwellhavetheybrusheduptheirself-knowledge,andhowhonestly havetheylookedinthemirror?Havetheysoughtandfoundcompensationfortheirweaknesses?Ianswerthesequestionsinthisbook,whichwillprovideadeeperinsightintothepsychologyoftheentrepreneuraswellasamirrorforyourownentrepreneurshipandpathtosuccess!

The structure of this bookFourentrepreneurswillsharetheirsuccessesandfailures,andtheywillexplainwhatqualitiesandcharacteristicshavecontributedtotheirsuccess,butmoreimportantly,whatqualitiesandcharacteristicshavenot.Theiridentitiesarenotrevealed,buttheirentrepreneurialspiritandenterpriseare.Afterthat,Iwillgiveyouthedefinitionofentrepreneurship,describetheentrepreneur,anddescribeone’scharacteristicsandqualitiesindetail.

Whatarethemotivationsforstartingabusiness?Whatmakesabusinessgood?Isitanadventure?Areyouanentrepreneurbecauseyouarefrustratedandexasperated?Thesequestionsareimportant,becausetheydetermineyouractionswhenthingsdonotworkoutthewayyouwantthemto.Willyoupullthroughorwillyoudosomethingelsethatyoulike?Whatcharacteristicsandqualitiesareimportant?Whatqualitiesshouldanentrepreneuruseinthevariousphasesofthecompany?Howcanyoudevelopyourself?Finally,whatknowledgeisneededinentrepreneurship?

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Two partsThisbookcontainstwoparts.Thefirstpartwillbeaboutthepracticalstoriesofbusinessowners,self-employedindividuals,andsuccessfulentrepreneurs.Thisistheeasiestparttoread,whichiswhyIstartwithit.

Thesecondpartisbackgroundinformation,butitisasshortaspossibleandwritteninasimplemanner.Itisimportanttounderstandwhatentrepreneurshipisandwhichcompetencesareneededtobecomesuccessful.Forreadability,thetheoryisenlivenedwithentertaininganecdotes,explanations,examplesfrompractice,etc.Thesecanberecognizedeasilywiththesymbolsbelow.

ResearchK

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how

explanat

ions

Know w

hat

Quotes How to

dev

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the limit anymoreis not

pracTIces

the limit anymore

You can go much further!

is not

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PRACTICES Practical examples

Self-employed Alfonso

Alfonsois41yearsyoungandhasstartedhiscompanyattheageof33,whenthe internetreachedfeverpitch.Alfonsoliveswithhispartnerinthenorthofthecountry, isnotmarriedandhasnochildren.BasedontheEntrepreneurScan(discussedlater inthisbook),theentrepreneurialprofileofAlfonsoisasfollows:

“Theeconomywasonlygoingforward;theopportunitieswereendless.”Alfonsorecallsthetimehestartedhiscompanywithsomenostalgia.“Iwasworkingatacompanythatdesignedandrealizedwebsites.Wesattherewithninemenandwomen,mostofthemveryyoung,andworkliterallycamepouringin.ItisnotasifIalwayswantedtobe anentrepreneur,orthatIwaswaitingfortherighttimesotospeak.Idonotcomefromafamilyofentrepreneurs.However,twofriendsofmineareself-employed,inavery differentway:oneisorganizationalconsultantandtheotherajewelrystore. Thesimilaritybetweenthetwoisthattheyareboth(still)successful.”

Need for achievementAlfonsodidnothavethedreamofbecominganentrepreneur.Itwasnotencouragedfromchildhood,butnotdiscouragedeither.Hence,itsayssomethingabouttheperformanceorientationofAlfonso.Themotivationtostartabusinesswasnotstrong,anddidnotbecomestrongereither.ThewordsofAlfonsodonotspeakofarealdesiretomakesomethingofit.Slightlystoicallyandwithnostalgia,herecallshisstartasanentrepreneur.Therewasnofightingspiritinhimtomakesomethingofit,tobesuccessful.Severalcompanieshavegonebankruptbeforetheyweresuccessful.Thatsayssomethingabouttheirmotivation,abouttheirstrongdesiretoperformwell.

norm profile professional servicesprofile alfons pioneer salesperson managerspecialist

need for achievement

need for autonomy

need for power

social orientation

self belief

endurance

risk taking

market awareness

creativity

flexibility

specialist: 56%

salesperson: 6%

manager: 25%pioneer: 13%

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“TherewasnotaparticularmomentwhenIsuddenlysawthelightandwantedtobeself-employed.Ithappenedslowly,partlyduetothetremendousgrowthoftheInternetmarket,andpartlybecauseIwasnothappywithhowmybosstreatedhisstaff,includingme.Itwasexpectedofusthatweworkedveryhard,thatwecontinuedworkingintheeveningsandweekendsasneeded.Donotthinktherewasanyappreciationforthat,notincash,andnotwithwordseither.Thatisfrustrating,becauseyoudowanttofeelappreciationforallyourefforts.”

“ThingsgotgoingbecauseofthestoriesofmyfriendsabouttheirsuccessesandbecauseIstartedtalkingabout‘myownbusiness’withacolleagueatsomepoint.Wetalkedaboutitmoreandmore,andmadeeachotherenthusiastic.Theplansgraduallybecamemoreconcreteandinevitably,themomentarrivedthatwedecidedonastartdate.Wemadeabusinessplanwhilewestillhadourjobs.WewantedtostartacompanythatwouldhelpeveryoneontheirwayontheInternet,bothindividualsandbusinesses.Wewantedakindofaccessiblestore,whereyoucouldwalkinwithallyourquestionsaboutInternet.HowdoIgetaconnection,whichdevicesdoIneed,isawebsite somethingforme?Andobviously,wewantedtobuildthatwebsite.”

“Rightbeforeweweretowriteourletterofresignation,mycolleaguedroppedout. Heapparentlydidnothavethecourageandstartedtoapplyforjobs.Iperseveredandstartedonmyown.ThetroublewasthatIcouldnolongerstartthewayIhadimagined. Ithadtohappenonasmallerscale.Luckily,Iwasabletoborrowmoneyfrommyfamily,whichwasenoughtobuyapropercomputerandthenecessaryprograms. ThatishowIbecameanentrepreneur.”

MotivationAlfonsoclearlyhadexternallydrivenmotivestostarthisownbusiness.Itwasnotadeep-rooteddesire;hisannoyingbossandsuccessfulfriendsactuallymadehimconsiderit.Inotherwords,theenvironmentexposedhimtoentrepreneurship.

However,yourcompanionsuddenlyquittingandyoudecidingtocontinue,thatdoessaysomethingofAlfonso.Nevertheless,becauseitwasnotalong-cherishedwishoraninternallyfeltdesire,thequestioniswhetherheshouldhavedoneit.Afterall,hecouldnotevenstartthewayhehadimagined.

“Afterthestart,Iquicklyhadsomeassignments.Theywerenotverybigones,but sufficienttoprovidemyownincome.Theorderscamefromdifferentdirections. Icouldnotaffordtosay‘Ionlycatertothataudience.’Ipreferredgrabbingeverythingthatcamealong.Especiallyinthefirstyear,Iwasluckythattherewasanother assignmentaftereachassignment.Wheretheycamefrom?Purelybywordofmouth,Ididnotdoanythingwithadvertising.Well,Ionceplacedanadvertisementinsomekindofbusinessguide,butIshouldnothavedonesoinhindsight.Itcostsalotof moneyanditeventuallydidnotpaythebills.”

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PRACTICES “Afterthefirstyear,thenumberofassignmentstobuildawebsitewasdecliningstrongly.

Theso-called“Internetbubble”burstandeveryonesuddenlybecamemuchmorecautious.Idefinitelysufferedfromthat,becauseIjusthadtoolittleworktoprovideadecentincomeatthattime.Ihadtolooktwiceateverypenny.Howdoyougetassignmentsatsuchamoment?Therewerecompetitorswhoworkedwithstudentswhobuiltwebsitesforincrediblylowprices.Icouldnotcompetewiththemofcourse,sowhatwasIsupposedtodo?Forthebigboysinthemarket,Iwasobviouslynotacompetitoreither.TheycouldaccomplishthingstechnicallythatIcouldneveraccomplishbymyself.”

Market awarenessAlfonsohasnotformedapictureofhismarketoroftheneedsofhiscustomers.Withoutvisiononthemarketandhisfuture,hehassurrenderedtochance.Thisusuallyworksoutinthebeginning,asyouseeinmorestart-ups,becauseyoustillarerelativelynewandpeoplegrantyouajob.Nevertheless,itgoesdownhillafterawhile,asitisnolongernew.ForAlfonsotoo,hefacestheharshreality.Insuchcase,ifyoudonothaveafocusortarget,thereisnotmuchyoucando.Itisthennouseadvertisingeither;indeed,itisawasteofmoney.

“Allinall,itwascleartomethatmyserviceswereatthatawkwardage.WhenIwasgoingthroughalongerperiodwithoutjobs,Imetabusinessconsultant,whichwasprobablynotacoincidence.Inthesameperiod,Icouldborrowsomemoneyagain,soIcouldcontinueforafewmonths.IfiguredIcouldtakesometimetoorientmyselfagain.However,Ihavehadmanyconversationswiththeconsultant,butIcannotsaythatIwasbeginningtoseethelightquickly.

Yes,overtime,itbecameclearthatIwouldhavetofocusonanichemarket.Iwouldhavetobecomereallygoodatmakingwebsitesforlocalauthoritiesforexample,orsitesformovietheatersandmoviehouses.Actually,everythingwasokay,aslongasIwasfocusing.”

KnowledgePreciselybecauseitwasnotgoingwell,Alfonsodecidedtotalktoabusinessadvisor.Focuswasthemostimportantadvice.Alfonsoactuallyknewthis,buthehasnotacteduponitfromthebeginning.Nowitfallsshort,andhehasremainedinvisibletothemarketatthesametime.Abusinessadvisorcannotmakechocolatefromsomethingthatishardlycocoa(yet)either.Itfirsthastobecocoa.Onlywhenitishighqualityandpurecocoa,itcanbeturnedintochocolate.Alfonsomustbecomeexceptionallygoodatsomething.TheproblemforAlfonsoishowhethenappliesthatknowledgetohisownsituation.Onlyinretrospect,itwasobviousthathecouldnotprovidehisownincomebyonlybuildingwebsites,nomatterhoweasyaccessible.Hecouldhaveseenthiscomingfromthebeginning.

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“Becauseoftheseconsultations,itwasobvioustomethatIcouldnotorhardlyprovidemyownincomebybuildingwebsites.Guidingorganizationswantingtoworkwithawebbuilderwasafairlyunexploredareathough.Icouldformulatealistofdemandsforthem,assisttheminchoosingabuilder,andguidetheactualconstruction. Ihadalreadydonesomethinglikethisonce,althoughthefinalphaseofthatjobwaseventuallydropped,becausetheydecidedtodothatinternally.Still,howdoyou approachsomethinglikethat?Ididnothavemoneytoadvertise,soithadtocomefromword-of-mouthadvertisingmainly.Inhindsight,IcansaythatIhavedonetoolittletogetnewcustomers.Forexample,Ididnotdomuchwithnetworking.HowcouldI? Icanhardlygotoallkindsofpartieswithoutbeinginvited.Moreover,Ihateit:allthosepeopletogethertryingtofindwork.Thatdoesnotsuitme;Idonotfeelathomethere.”

Social orientationThesocialorientationofAlfonsoisinsufficient.Hedoesnotlikepartiesand certainlynotbeingtheretopromotehisbusinessorratherhimself. Networkingisadirtywordinhiseyes.Nevertheless,ashesaid,hisbusinessrunsonword-of-mouthadvertising.Afterall,thisprovidedhimwithjobsatthestartandthusrevenue.Now,heisolateshimselfandhecanonlyhopeforagood productthatsellsitself,orthathiscustomersbringinnewcustomers.

“WhatelseIhavedonetoturnthetide?Well,nowthatyouaskmedirectly...Istartedfixingupmyownwebsite.Afriendthatisadesignerredesignedmycorporatedesign,onwhichIbasedmynewwebsite.Ihaveobviouslymodifiedthetextstoo,puttingemphasisonadviceandguidance.However,visitorsdonotcometoyourwebsitenaturally,soitisnotasifthejobscamepouringin.Ihavealsomadesomewebsitesviamyownnetwork.Unfortunately,thatwasforsmallbusinessesandforpeopleintheartssector.Thatmeansasmallbudgetandlittleincomeforme.”

“Atthismoment,Iamapplyingforjobs.Ihaveto,becauseIneedmoney.Eventhatisnoteasy,becausetherearenotsomanyjobs,especiallynotinthesectorthatIlike.Ifthisapplyingdoesnotworkout,Ihonestlydonotknowwhattodonext.Iprefertoremainself-employed,butIdonotknowhowIcanbringinenoughorders.IfIhavetotakethelastfewyearsasabenchmark,itdoesnotworkoutanyway.ItwouldbebestifIcanworksomewheretwoorthreedaysaweek,forexample,andstillbuildsomewebsitestheotherdays.Whataremychances?Idonotknow.IjustknowthatIhaveto,otherwiseitisover.”

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PRACTICES

Perseverance Alfonsodoeshaveperseverance.Hehasproventhatwhenhispartnersuddenlydroppedoutduringpreparation.AlthoughAlfonsocouldnotstartthecompanythewaytheyhadenvisionedtogether,hepersisted.Evennow,whenthathasbecomemoredifficultandthesurvivalchancesofhiscompanyaresmaller,hepreferstocontinue.Hemighthavetotakeanadditionaljobforawhiletodoso,butthatdoesnotmeanitistheend.Itisnotoveruntilhequits.Hemightevengetnewinspirationandmotivationbydoingsomethingelseforawhile–becausehemissedthisatthestart–andputhisbacktoitoncerefreshedandfullofcourage.Hewouldnotbethefirstwhoeventuallybecameamillionairebecauseofit.

Alfonsoisself-employed.Afterall,heprovideshisownincome,whetheritisgoingwellornot.Hehasdonesoforanumberofyearswithupsanddowns. Hedidnotwantmorethanthateither.

Moreover,hedidnotseehowhecouldachievethat.There isnothingwrongwiththat.Ifyoudonotwanttogrow,youshouldnotbejudgedforit.However,youcannotcallhim enterprising,andthusanentrepreneur.

It all startswith a dream!

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Practical examples

Business owner Dirk

Dirkisnow54.TogetherwithhiswifeAnna,hehasbeenrunningthecompanyforover15years.DirkandAnnaaremarriedandhavetwodaughters.Bothdaughtersdonotwanttobeanentrepreneur;thistheyknowforsure.DirkandAnnaliveinPoland andtheyareplanningtostayandruntheirbusinessforalongtime.Eventhoughthecompanyhasgonethroughdifficulties,theystillenjoyit.BasedontheE-Scan (discussedlaterinthisbook),theentrepreneurialprofileofDirklooksasfollows:

“IhavehadmanydifferentjobsbeforeIstartedformyself.Myfirstjobwasthehelper ofthemilkman,whonotentirelycoincidentallywasmyfather.Aftermanydetours, Ifinallyendedupatalargeconsultingfirmfocusedonenvironmentalandconstructionadvice,whichmeansmuchtechnique.However,theyalsohadtheirowndesign department,whichiswhereIendedup.Iwasluckythattheywereflexibleabouttakinguptraining.Inthatperiod,Istudiedgraphicdesignattheartacademy.IlearnedalotmorethanIcoulduseinmyjob,becauseonedidnotgetalotofcreativefreedom there.Astudioheadknewexactlywhatwasrightandwhatwasnot,soalltherewas todoformewastheexecutivepart.”

profile dirk norm profile general

pioneer: 56%

manager: 6%

salesperson: 25%

specialist: 13%

need for achievement

need for autonomy

need for power

social orientation

self belief

endurance

risk taking

market awareness

creativity

flexibility

pioneer salesperson managerspecialist

24

PRACTICES

CreativityDirkhasalotofcreativity,butthatonlycameoutlater.Helpinghisfatherwiththefarmandthemanydetourshavedemandednothingofhiscreativity.Wouldsuchacreativepersonashimnotcomeupwiththathimself?No,thatdoesnothavetobethecase,justasitwasnotwithDirk.Sometimes,anenvironmentcanbeparalyzingtoyourtalents,soyouleavethemuntappedandyouarenot challengedtousethem.Onlywhentherightenvironmentwasthere,Dirktappedhiscreativityandhetookupcreativetrainingafterhours.Thiswasoneimportantmomentthough,becausethebasisofhisworkmanshipwasinthetraining.However,workmanshipisnoentrepreneurship.

“Overtime,Inoticedthatweweredoinglessandlesswork.Consequently,Iwasnotsurprisedwhenthestudiowasclosed.Iwasobviouslythrownoutofwork,whichformewasthetimetostartformyself.Iwasabitolder;wheredotheywantyouthen? Everyoneislookingfortheso-called‘youngguns,’whichIwasnotanymore.Iamatypicalexampleofa‘forcedstarter.’”

MotivationDirkisforcedstarterandthusexternallydriventoentrepreneurship.Itwasnotadeeperdesire,somethinghehadalwayswanted.Evenhisfatherhasnotservedasanexample.Hadhenointernallydrivenmotiveatall?Hiscreativitywillhaveplayedaroleinhischoicetobecomeanentrepreneur,aswellashisneedforfreedom.Thiscanbetracedbacktohisneedforindependence:takingcontrolofhisideasinsteadofjustexecutingwhathisbosslikes.Thisisnotthesameasindependence,becausethatisnotprevailinginDirk.Hehasnostrongneedto beonhisown;onthecontrary,helovesbeingandworkingtogetherwithothers.Thiscanbeseenlateron.

“Istartedwritingabusinessplan.Youareforcedtothinkaboutwhatyouwanttodoandhowyouwanttodoit.Thishasputmeontherighttrack.Myfatherhashelpedme,becausehehadentrepreneurialexperienceafterall.IalreadyhadahousewitharoomthatIcouldeasilyturnintoanoffice.Becausemyformeremployergavemesomejobs,thestartwasnotreallyaproblem.Well,Ididnothavemoney,sothathadtobearranged.Thebankwasnotreallyexcited,butaftermucheffort,Iendedupwithalittlecredittobuysomeequipment.Iwasdeterminedtostartproperly,withaprofessionallook,notfromabackroominamakeshiftmanner.”

“Iknewnothingaboutacquisition;Istilldonotbytheway.Ihavethereforestartedverymodestly;IcreatedafolderinwhichIintroducedmyself,andIputitinthemailboxesofbusinessesandshopsinmyarea.Afterwards,IcalledthemtoseeifIcouldgetanappointment.Itworked!Ithasreallybeenmyonlyacquisition.

25

InthethirteenyearsthatIamworking,Ihaveneverdoneanythingaboutitanymore.Ithasneverbeenmyambitiontohavealargecompany.MywifeandIrunthecompanytogether.Aslongaswecanliveoffofit,Ithinkitisokay.Wedoworkalotwithothers,withfreelancerswhoallhavetheirownspecialty.Teamingupwithotherssuitsmefine.Iamstubborn,butIthinkeveryentrepreneuris.However,IdonothavesuchabigegothatIcannotputitaside.Thereisalwayssomeonewhocandothingsbetterthanme.Youshouldnotinsistupondoingityourselfinthosecases;youshouldratherusetheotherperson.Frankly,Idonothavethecouragetostandonmyauthority.IletmyselfbepersuadedquicklyandagreemorequicklythanIlike.Ithasevencostmerevenue.Becauseapartnerwantedtohaveitallhisway,ajobweworkedontogetherfailed. Wehavenotgottentheextraworkthatwaspromisedusifweweretodoagoodjob. Ididnotrealizeitatthattime,butinretrospect,Ifeltlikeanidiot.Well,Iwillprobablynotteamupwiththatpartneranymore.Well,maybeifhecomeswithaverynicejob. Itmightbeapossibility,becausehedoesitquitewellandhehasestablishedquitealargebusiness.”

Need for Achievement and DominanceDirkhasanaverageneedforAchievement.Hedoeshavethedesiretodothingsrightandtodothemalittlebettereverytimeaswell.Nevertheless,thecompanydoesnothavetobebigaccordingtohim. Hedoesnotsethisgoalshigh,sohecanworkonthemrelaxed.Heenjoystheprocess,evenmorethantheaccomplishmentofahighergoal.Thereisnothingwrongwiththatofcourse;heissuccessfulifhereacheshisgoal,whichisgettingpleasurefromthework.Thatpleasureiscreatedpartlybyworkingwithothers.Thegoodrelationshipwithothersisparamount.Yethisdominanceplaystricksonhiminthis.Heappearsnottohavetheneedtoputhismarkonsomething.Heratherfollowstheother,eventhoughheactuallythinksitshouldbedifferent.Hehasnothadtheabilitytoopposeit,ortomakeachoice.Heisnotevenveryparticularwithhisownprinciples.Hedoesnothavethecouragetotakeaposition onthatpointeither.Hewillprobablyworkwiththepartnermentionedagain,despitewhathappened.Strongeractionhadearnedhimmoresales.

“Ihavealwaysreliedonmycommonsenseandonmyaccountant,whomIhavehiredimmediatelyafterthestart.Idolikekeepingtherecords:keepingtrackofhours,seeingwhetherajobhasbeenprofitableornot.Thatautomaticallymakesyouwiser.Ohwell,maybeIhaveinheritedthatpartfrommyfather,whowasalwaysathomecountingtoseeifthingsweregoingwell.”

26

PRACTICES

Thinking style of the PioneerThethinkingstyleofDirkispre-eminentlythatofapioneer.Thisisreflectedin hishighscoreoncreativitytoo.However,heindicatesthathelikesbusinessadministration.Thisfitsthethinkingstyleofaspecialistbetter.Thisiscorrect,becauseitusedtobedifferentwithDirk.Dirkhasgottenthehangofit,becausethesupportofthebookkeeperhasmadehimrealizethatthisisanimportantaspectofdoingbusiness.However,blindlytrustingyourbookkeeperisnotsmart.Oneday,youmightfindoutthatyourbankaccounthasbeenplundered.Throughpractice,hehaslearnedhowtokeepalargepartoftherecordshimselfand,moreimportantly,howtouseitforfuturedecisions.Dirkmighthavedonelittleornoacquisition,buthehasalwaysensuredthatcustomerspaidontime,andthathetimelyscorednewjobswithhisexistingcustomersthemomentitappearedasthoughtherewasnotgoingtobeenoughwork.Nowthatisrunningabusiness inacontrolledway.

“Howitisthatithasgonewellwithoutdoingacquisitionalltheseyears?Maybewehavebeenluckywiththeperiodinwhichwestarted.Itisallmuchmorebusinesslikenowthantenyearsago.Inoticedthattoo,becausepricehasbecomemuchmoreimportantforclients.Thejobsnolongercomeinbecauseyouaresuchaniceguy,whichpreviouslywasthecase.Ialsothinkthatwewillsoonbedoingacquisitionagainforthefirsttimesincethestart.Therefore,Iamgoingtomakeanotherbrochure,senditandmakingfollow-upcalls,asIdidbefore.Iwonderwhetherthatstillworkstoday.MaybeIneed tocallthatonepartnerthatmadeuslosethatnicejobagain.”

“Oh,Idonotreallyseemyselfasanentrepreneur.Forexample,Idonotlikethehardbusinessworld.Dressingneatlyandsmoothtalkingarenotforme.Iconsequentlymainlylookformycontactsintheserviceindustry.”

Dirkisabusinessowner.Hehasbeenrunninghisownbusinesswithhiswife foryears,nomatterhowwellorbaditisgoing.Yettheydonothavetheneed orambitionforalargecompany.Again,thereisnothingwrongwiththat.Itisa choice,butyoucannotreallycallthementrepreneurial.Theyarebusinessowners,butnotentrepreneurial.

27

Practical examples

Entrepreneur André

Andréisnow44yearsyoung.Hehasstartedhisfirstcompanyjustafterfinishingschool.Andréhasbeenmarriedandhasonesonfromthatmarriage.HenowlivesinSouthAfricawithhisnewandyoungergirlfriend.Theyliveinabeautifulhouseonthewaterfront,whichtheyclearlyenjoy.BasedontheEntrepreneurScan(discussedlater inthisbook),theentrepreneurialprofileofAndrélooksasfollows:

“MybrotheractuallymadesurethatIbecameanentrepreneur.Thatwasnotreallyasuccess;forthatmatter,youcouldsaythatImadeafalsestart.Hehadactuallygonebankruptwithhiscompany,buthewantedanewcompanynonetheless.Hedidhaveagoodturnover,butthecostsweretoohigh.Youcouldalsosaythathehadtoolittleturnoverforthecoststhathemade.Wethenstartedtogether,butwiththecompanyonmyname.Wehavekeptthatupforlessthanthreeyears;then,thenextbankruptcywasafact.Wedidpaymuchattentiontothecosts,butwestillmadetoolittlerevenue.Still,Idonotthinkitwasthereasonforthebankruptcy.Wewerenotinagreementwitheachother,causingustoexploit(sales)opportunitiesinsufficiently.Ihavepersonallyexperiencedwhatitisliketoendupbeingself-employedandbankrupt.Yougobankruptpersonally,soyouliterallyhavenothing.”

profile andré norm profile hospitality

pioneer: 63%

manager: 6%

salesperson: 13%

specialist: 19%

need for achievement

need for autonomy

need for power

social orientation

self belief

endurance

risk taking

market awareness

creativity

flexibility

pioneer salesperson managerspecialist

28

PRACTICES

Risk takingAndréhasahighriskappetite.Hisriskappetiteisevenslightlytoohigh,thoughhisbrotherscoresevenhigher.Bothdidnotseetherisksofstartingabusinesstogether.Theyhavenotevenconsideredthem.Ofcourse,theadvantageofthisisthatyousimplystart.Otherwise,theymightneverhavestarted.Entrepreneurshipismostlyjustdoing.Somenaivetyishealthyforentrepreneurship.Youcontinuetoseeopportunities,whichiswhereentrepreneurshipstartsanyway.Thedisadvantageisthatyoudonotseethepitfallsandconsequently,youfallforthem.ThathashappenedtoAndréandhisbrothertoo,anditwillhappenmoreoften.YetAndréhaslearnedfromwhatwentwrongthefirsttime.Thecostsweretoohigh,sotheyhadtobecontrolled.Thatworkedout,butAndréforgottocheckwhetherheandhisbrotherwouldbeabletoworktogetherwell.Inretrospect,AndrérealizedthathisbrotheronlyneededAndréforthepurposeofcontinuingthepreviouslybankrupt companyinhisname.Andréactuallyknewthisbeforehand,buttheopportunitywasstaringathim.

“Theworstthingwasthatyoucannotstartagaininsuchacase.Mytrusteeinbankruptcywantedmetogointothewelfaresystem,butIabsolutelydidnotwantthat!Despitethebankruptcy,entrepreneurshipattractedmeandIwantednothingmorethantostartoveragain.Ithusmovedtoanothercountrytosetupabusinessthere.Ihavetradedinanythingandeverything,includingcomputerequipmentandsneakers,justtomakesureIwouldpullthrough.Fortunately,thatwentveryquicklyandverywell,sothebankruptcycasewasclosedsoon.Itevenwentsowellthatmywealthwasestimatedatafewmillion. Averydifferentlifecame.Ihaveledalooselife.”

PerseveranceAndréhasperseverance.Abankruptcywillalwaysaffectyouadversely.Ifyoureallywantsomething,yougetitdone.Hedidnotwantsocialwelfare;hewantedtorunacompany.EntrepreneurshipattractedhimtosuchanextentthatAndrémovedtoanothercountry.Manyotherswouldhaveacceptedthesituation.

“Imetmywifeduringthattime.Shewasthemanagerofarestaurantandwantedtostartherownbusiness.Weboughtarun-downpubandturneditintoarestaurant. Wehadsomeinitialproblemsinthefirstyear,butafterwards,therewasnostoppingit.Nevertheless,Iamthetypethatlikessomethingforafewyearsandthenwantstodosomethingelse.StartingsomethinginFranceseemedfun,sowesoldthelot,the restaurantandourhouse,andwewentlookingforsomethingdecent.”

29

FlexibilityAndréisflexible.Itdoesnotmattertohimwhereherunshisbusiness.Totallyunhinderedbyanyprofessionalknowledgeandexperience,whichhiswifehad,hebuysarestaurantandmasterstheprofession.Hedoessobyprimarilycontinuingtofocusonthepossibilities.Andrébelievesthatsomethingispossible,thathecanrealizeit.Thedownsideofhisflexibilityisthatheisquicklyboredwithsomethingandthatheeasilywantstoworkonanewidea.Thismightnotbesoannoyingforhim,butratherannoyingforhisenvironment.

“Findingsomethingniceworkedout,yetitendedupasafailure.Wehadourownmoneyandweborrowedsomeextratocompletethefinancialpart.However,whenwewerefinallyatthenotaryofficeinFrance,theamountsinthesalescontractsweremuchhigherthanagreed.Theyprobablythoughtthatwewouldsignanyway.’Noway.WegotupanddrovebacktotheNetherlands.Iactuallythoughtthattheywouldcallmeontheway,totellmethatitwasallamisunderstanding,butthatdidnothappen.SoweendedupintheNetherlandswithabagofmoneyandnothingelse.”

“Afterafewdays,wewerecalledbyanacquaintance.Heknewthatacateringbusinesswasforsaleatalargerecreationallake.Hewantedtoknowwhetheritwassomethingforus.Itturnedouttobewhatyoumightsafelycall“longgoneglory,”butweboughtitanyway.Wehadtoworkveryhardtoopenitforthesummerseason.Wemadeit:wewereabletoreceivethefirstguestsinJune.Wedidnotknowwhatwewereinfor.Workwaspouringinandweweremakingsomuchmoney.Ifwewereabletokeepthatupforawhile,wewould‘naturally’makeit.However,thatwasnotthecase:itwasliterallydeadquietinSeptember.Thatiswhenweunderstoodwhythebusinesswasforsale...Coincidentally,Imetamanwholivedattheendofourstreet.HehadbeentheownerofaMichelinstarrestaurantandthoughtitwouldbenicetogiveussomehelp.Asavolunteer,hehashelpedusturnourseasonalbusinessintoarestaurantthatdoesjustaswellinwinterasinsummer.Thatisthekindofluckyouneed,Ithink,bumpingintosuchapersonattherighttime.”

Effectiveness Andréhasconfidence.Well,buying“something”oflonggoneglorytestifiesto hisriskappetiteonceagain.Itmightalsobethistensionofdoingsomething unknownoruncertainthatheneeds.Nevertheless,itisalsoaresultofhis confidenceorbeliefinhisownabilitiestogetthingsdone.Andréisanoptimist.Hebelievedthattherewasasolutiontotheproblem.Thenhemeetssomeonefromtheneighborhoodwhoknowsthesolution.Coincidence?MeetingsomeonewhocanhelphimcouldbetheresultofAndré’scontinuousbeliefinit.Itmightbehardtobelieve,butthatisexactlywhathedid,causingAndrétofindasolution.

30

PRACTICES “Therestaurantwasgoingreallywell,butourprivatelifewasnot.MywifeandIdecided

tobreakup,whichalsomeantsayinggoodbyetotherestaurantforme.Ihadmebought outandallIhad(onceagain)wasacar,myclothesandabagofmoney.Meanwhile,Ihadinventedsomethingnice,whichIputonthemarkettogetherwithacommercialpartner.IalsosoldthatpatenttofirsttakeasabbaticalyearandreflectonwhatIwantedtodowiththerestofmylife.ThemomentI‘returned,’someonewhoknewthatahotelwasforsalecalledme.Thatisthewayitgoes.Onceyouareinthatbusiness,theyknowhowtofindyou.Eventually,Iboughtthathotelandthereisnostoppingitnow.Still,Iamthinkingaboutsomethingelse:ahotelinadifferentplace ormaybesomethingcompletelydifferent.Ilikebuildingthings.Forme,thatis entrepreneurship:curiosity,decidingonthingsyourself,pushingyourlimits.Iamalsoasurvivor,Ithink.Ifyoudonothavethespirittokeeptrying,Ithinkyouarenotanentrepreneur.Nevertheless,youshouldalsoknowwhentostopandtakeyourloss.Keeptryingtomealsomeansgivingyouropinionandtakingastandforit.ThatisnottosayIalwaysimposemyownview.Thatissomethingelse.Igivepeoplespacetodothingstheirownway.”

DominanceAndréisdominant.Thatsoundsnegative,butitisusefulforanentrepreneur.Somecallitpigheadedness.Anyway,itmeansstandingupforyouropinionandbeingwillingtofightforit,orkeeptryingasAndrécallsit.However,aswith everythinginlife,anythingwith‘too’infrontofitisnotthatgood.Thesamegoesforcharacteristicsandqualities.Ifyouaretoodominant,itwillstarttoworkagainstyou.Peoplewillfindyoubossyandannoying.Thatmakesitimportanttofindabalancebetweenbeingdominantandsubmissiveoraccommodating.Sometimes,youneedtocontainyourselfwhenyoumightotherwisekeeptryingordominate.Andréhasgraduallylearnedthis.Hehaslearnedfromhimselfthroughothers,whichishowhemanagedtofindabalanceincreasinglybetter.Hewantedtolearn,becausehewantedtorealizehisvision(repeatedly).Inshort,thereisonethingthathasgottenAndréthisfar:bysheerdoing,fallingonhisface,learningfromit,andcontinuing.

CreativityAndréiscreative.Foreveryproblem,hecomesupwithmultiplesolutions.Preciselytheproblemshefacesmakehimthink.Thinkaboutit:arun-downbar,aramshacklecateringbusiness,aninvention.Heseesopportunitiesbybeingcreativeandcomingupwithsolutionsfortheproblemshefaces.Hesawthesolutionsintheproblemsandalreadyenvisionedhowitshouldlook.Itwasreallyjustamatterofworkingonandexecutingwhathehadalreadyconceived,sothateveryonecouldseeit.Hiswifeinitiallydidnotwanttobuythecateringbusinessattherecreationallake.Shedidnotthinkitcouldwork.However,thecontagiousenthusiasmofAndrépersuadedher.Afterawhile,Andréwasboredagain. Wantingtodosomethingdifferentisadisadvantageofacreativespirit. Hiswifedidnotfeellikeitanymoreandstillrunstherestaurant.

31

Andréisatrueentrepreneur.Hehasrunseveralandvariousbusinesses.Hehasmadesomecompaniesbigandruinedothers.Yetheisalwaysenterprising:afterabankruptcy,hehasfoundedanothercompany.Hence,heisanentrepreneuratheart.Whetherheisasuccessfulentrepreneurisadifferentmatter.Itisjustwhatyoudefineassuccessful.

Think outside your own box!

32

PRACTICES Practical examples

Entrepreneur Bettine

Afterherfirstjob,Bettinestartedherfirstbusiness.Thatwasjustafterher27thbirthday.Now,sheismarriedandhasadaughteroffivewithherhusbandofthesameage. Herhusbandalsohashisownbusiness.TheylivenearMadridandtheyarenotthinkingaboutmoving.BasedontheEntrepreneurScan(discussedlaterinthisbook),the entrepreneurialprofileofBettineisasfollows:

“Iwantedtobeanentrepreneurfromanearlyage.Myfatherwasnotanentrepreneur.Hewasacivilservant,notreallyenterprisingyoumightthink.Still,Ialwaysthought itwasaveryenterprisingman,maybenotsomuchinhiswork,butcertainlyintheafterhours.Therefore,IthinkIgotitfromhim.Wearequitesimilar.Afterall,you cannotbeanentrepreneurineveryprofession.Anyway,IwenttoschoolfirstandIstudiedManagementandLaw.IhonestlyhadnoideawhatexactlyIwantedtodowiththatstudy,butIfounditinteresting.Imustadmitthatstudyingpushedmydesiretobeself-employedintothebackgroundthough. Ifirststartedtoworkatalargebankaftermystudies.Iquicklyencounteredthelimitsofmymanager.Hewantedtokeepmesmall,whileIjustwantedtogrow.Icouldnotstandthisforaverylongtime.Ihaveappliedforadifferentpositionwithinthebank. IthengotamanagerwithwhomIgotalongwell,wholetmegrow.Nevertheless,afterafewyears,Iwasmissingsomething.IlikedwhatIwasdoing,butitwasnotsomethingofme.Entrepreneurshipwasbubblingupinmeagain.”

profile bettine

pioneer: 25%

manager: 38%

salesperson: 19%

specialist: 19%

norm profile retail pioneer salesperson managerspecialist

need for achievement

need for autonomy

need for power

social orientation

self belief

endurance

risk taking

market awareness

creativity

flexibility

33

MotivationBettineishighlymotivated.Asalittlegirl,shedreamedofherowncompany,whileitwasnotencouragefromchildhood.

However,astudycoulddeterherfromstartingherownbusiness.Herwork,inwhichshecouldnotgrowfullyandshemissedsomething(thelackofindividualityistheexternallydrivenmotivehere),madehernoticethatshewasnotworkingonherchildhooddream(internallydrivenmotive).

“Entrepreneurship!IdidnotknowwhatIwantedtostartthough.Myownshopsoundedgoodtome,butIhadnoideawhatkindofshop.AsIfocusedonwhatIreallylike, Iknew:abeadstore.Theshopshouldbecozywithaniceatmosphericdecorandcustomersshouldbeabletodesignandassembletheirownbeadnecklace.Mydreamwasachainofbeadstoresthroughoutthecountry.Iwaswellpreparedandhadwrittenabusinessplan.Thatistheadvantageofmystudies.Yet,themomentIactuallyhadtogothroughwithit–signingthelease–Ichoked.Ibegantodoubt:whatifitdoesnotworkout,whatshouldIdothen?CanIactuallydothis?WhatdoIknowaboutbeadsandentrepreneurship?Ibrokeoutintoacoldsweat.Myconfidencefelltoanevendeeperlevelthanitalreadywas.Isufferedfromthismoreoften.Idecidedtostartitwithsomeoneelse.Itsoundedgoodtoagoodfriendofmine,Anna,andshedidnothavetothinkforlong.Westartedtogether.” “Thebeginningwasgreat.Thecompanywentwellthefirstyearanditsrevenuegrew,eventhoughIdidnotfindthatthemostimportantthing.Thefeelingoffreedom,justdoingwhatyouwant,feltgreat.Ofcourse,Ihadmyduties:beingintheshop,stocking,keepingtherecords,etc.;thisisallpartofit.ThiswaswhatIwanted.Iwasreallymotivatedandhadenergyfortwo.Wegotverypositivereactionsfromourcustomers,whobroughtinnewcustomersthroughword-of-mouth.Thefirstfewyears,wedidnottakemuchincomefromit,buttheprognosesweregood.Ikepttrackofthose.Iamanorganizerforthatmatter,andIactuallylikebookkeeping.Itallowsyoutoseehowyourbusinessisdoing.Youshouldknowthatasanentrepreneur,Ithink.Ifyoucannotdoityourselforyoudonotlikeit,youshouldoutsourceit.Youshouldnotcutbackonthat,becauseitalwayspaysforitself.Annawantedtogetahigherincomefromthecompany.Ithoughtitwasimportantthatwewerepayingbacktheloanwehadgottenfrommyparentsandthebankasquicklyaspossible.Annathoughtsodifferently(itappearedlaterthatmostlyherboyfriendthoughtso).Wehaddifferencesofopinionandmorefollowedquickly.Ourcollaborationbecameawkward,whileIsurelydidmost.Shewasgoodwithcustomersandalwaysknewhowtocreateawarmatmosphereinthestore,butIsurelywasthedrivingforce.AfterIhadtalkedtootherpeopleaboutwhattodoinsuchasituation,Imusteredcourageandmadeheraproposal.Iwasafraiditwouldendourfriendship.Aftermuchbickering,especiallywithherboyfriend,Ihadtobuyherout.

34

PRACTICES Ithoughtthepricewastoohigh,givenhereffortscomparedwithmine.Ithoughtitwas

unjustified,butsawnootherchoice.Iactuallystillhateit.Ourfriendshipisovertoo.Itmadememuchmorebusinesslikethough.”

Independence and EffectivenessBettinescoredloweronindependence.Shedidnotscorehighoneffective-nesseither.Eventhoughitwasherdream,herideaandherpreparation,thebreakthroughonlycamewhenherfriendAnnekeparticipated.Thereisnothingwrongwithstartingabusinesswithsomeoneelse.Onthecontrary,youoftenneedothers.Hence,agoodbusinesspartnerworksconducivetothegrowthofthecompany.Nevertheless,foryoutobeabletoworktogetherwellwithsomeone,whatorwhoworksout?Youhavetomakesurethatyougotogetherinapersonalandbusinesssense.InBettine’scase,Annawascertainlynotamatch.Bettineactuallyfeltthat,butshewasafraidtoactaccordingly.Inpersonalterms,AnnawasnotasenterprisingasBettine;sheuncriticallyfollowedBettinein everythingshesuggested.Youmightexpectthatfromanemployee,butnotfroma(co-)entrepreneur.Inbusinessterms,AnnasupplementedBettineinnothing.Bettinedidthepurchasing,kepttherecordsetc.andactuallydidthecreative designsofnecklacesaswell.OnecanconcludethatAnnawasnottheideal partner,whichhascostBettinealotofmoneyandafriendship.ShenonethelesssawitthroughandboughtAnnaout.Thoseultimatelyaretheduesshepaid.

success

The key

to

35

“Idecidedtofocusonthegrowthofmyowncompany.Afterall,mydreamwasanationwidechainofnicebeadsstores.Initially,Iensuredthatmyfirststoreyieldedagoodreturnwithouthavingtobepresentmyself.Onlythen,Istartedasecondstoreinanothercity.Ihaveevenmovedforthat. Mybusinessismymainpriority;Iwilldoanythingforit.Everytimethatstoreranwell,Istartedthenext.Ididnotmoveeverytimethough.IboughtanicecarandsoIdrivetoallthestores.Meanwhile,IhavesevenstoresthroughoutSpain.Ialsohaveawebshopnowadays,whichisgoinggreat.Inthewebshop,customerscandesignnecklacesonline;afterthat,wemakethemandmailthemtothecustomers.Wenowhaveourregularclientele.SomeevenliveinJapanandChina,andhaveitsentthere.Ithinkthatissocool.”

Thinking style of the Manager-PioneerBettinemainlyhasthethinkingstyleofamanager.Shelikesorganizingand structuringthecompany.Shemightevenpreferthattothecreativeelement inthedesignofbeadednecklaces.

Inastructuredandplannedway,sheworksonthegrowthofherbusiness. Shedoessoverycontrolledandsensible.Thechoicetoworkwithsalaried employeesinsteadoffranchise(co-ownerofthestore)alsotestifiestoherthinkingstyleofamanager.Shelikestobeincontrol,especiallyafterherexperiencewithAnna,whoco-ownedthestorebutdidlittlework.Abeadstoreismorethanjusthavingfunhelpingcustomersbuyanecklaceinthestore.

“Whataremyplansforthefuture?Iwanttogrowto13storesintheNetherlandswithinfouryears.Itisnotafranchiseconcept,asIdonotreallybelieveinthat.Forinstance,everystoreisadaptedtothelocalcharacteristicsofthecity.Insomestores,wesellothernecklaces,butthedifferencemainlyliesinthevariousaccessories.Allcolleaguesareemployed,andIamthesoleshareholder.IamcontemplatingwhetherIwanttogoabroad,butIamactuallyleaningtowardsno.Wealreadycoverforeigndemandinthewebshop.Ihaveplentyofotherideas,butIfirstwanttofocusonmycurrentactivities,beforeIdiveintosomethingelse.”

Need for AchievementBettinehasambitionandvision.Sheisveryperformance-orientedandshewouldliketogrow.Withaclearandconcretevisioninmind,shehasmappedoutherstrategy.Itsmostimportantcharacteristicisthatshehasmadechoices. Sheknowsexactlywhatshedoesanddoesnotwant.Thatmakesiteasiertoresistotheropportunitiesandideas.Freedomisthebeautyofentrepreneurship,asBettineandmanyotherentrepreneurssay.Thedownsideofthisfreedomisthatentrepreneursareinclinedtoseizeanyopportunityortostartworkingoneveryidea.Irrespectiveofthefactwhetheritisagoodopportunityoragoodidea,themainquestioniswhetheritfitswithinthevisionthatyouhave.DuetotheclearvisionthatBettinehas,shecaneasilyputideasasideorpostponethem.Thisway,shefirstrealizeswhatsheintendedtorealize,whichisverysmartbusinesswise.

36

PRACTICES “WhathaveIlearnedfromitandwhattipsdoIhaveforstartingbusinessowners?

Ithinkitisimportantthatyoudowhatyoutrulylike,becausethatcreatesthemotivationtobeabletoseeitthroughduringtoughtimes.AnotherimportantlessonIhavelearnedisthatyoumustrelyonyourownstrength:yourperseveranceandcreativity.Ifyouareindeedmotivated,youalsolearntoseethingsthroughandtobemorecreative.Forinstance,Iwasnotveryindependenteither.Ioftenaskedotherswhattodo,while Ialreadyknewtheanswer.

Iwasafraidtotrustit.Iwaslookingforconfirmation,andstillcontinuedtodoubt. Ihavestoppedthathabit.Ihavelearnedtotrustmyselfmuchmore.Inthatrespect,entrepreneurshipreallyoffersthebestschool,becauseeverythingyoudoisreflectedinyourwalletimmediately.Ididnotlikethatatallinthebeginning,butIstartedseeingitasagameatsomepoint.Entrepreneurshipisafungame.Justdoit,andthenthinkcarefullyabouthowyoucandoitevenbetter.Seeifthatwhichyouhadcomeupwithactuallyworks.Thatgivesmeathrilleverytime.”

From self-employed to entrepreneurBettinewashighlymotivatedtobeanentrepreneur.Thatinternallydriven motivationhasprovenimportant,especiallyattimeswhenshehadsetbacks. Eventhoughnoteverysetbackisdescribedinthesummaryoftheinterviewwithher,shecertainlyhadthematbothpersonalandbusinesslevel.Shehaslearnedtodealwiththem,whichhasmadeherstronger.Shehaslearnedfromhermistakes,becauseshehadavisionthatshewantedtoachieve. Shewoulddoanythingforit.Wasshealreadycompetentfromthebeginning,whenshestartedthecompany?No.Actually,shedidnotscorehighonthemajorcharacteristicsandqualitiesofentrepreneurship.Yet,throughhardworkandwantingtolearn,especiallybydoingandreflecting(thinkingaboutthestepsyouhavetakenafterwardsandlearningfromthem),shehasbecomeanentrepreneur:anenterprisingentrepreneur.Thedreamofachainofbeadsstoreswastherefromthebeginning,butshehadthecourageto(continueto)striveforthisdream.AsWaltDisneysaiditsobeautifully:“Allourdreamscancometrue,ifwehavethecouragetopursuethem.”

Bettineisanentrepreneur.Shehasaclearvisionofwhereshewantstogo.Shewantedtobeanentrepreneursincechildhood.Shebecametrulyentrepreneurialasshestartedabusinessandcontinuedtochallengeherselfendlessly.Herstrongentrepreneurialprofilehashelpedwiththat.

37

spectacles

WhaT Is enTrepreneurshIp? chaptEr 1

Look at the worldthrough different

spectacles

40

WHATISENTR

EPREN

EURSH

IP?

1 What is Entrepreneurship?

Entrepreneurshipisimportantforasociety;ifpeopleembarkonsomething,itmeansthatnewinitiativesaredevelopedtomakelifebetter,easierormorefun.Nevertheless,whatisentrepreneurshipexactly?Muchhasbeenwrittenonentrepreneurshipinthecourseoftimeandtherearemanydifferentdefinitions.Here,Iespeciallywanttogivemydefinitionofentrepreneurship:whatisitandwhatisitnot?Itisimportantforthisbooktousethesameunderstandingforthecharacteristicsandqualities,whicharebasedonitandwhicharediscussedinthisbook.

Thesocietyneedsentrepreneurs.SMEsarethejobengineofanyeconomy. Morethanhalfisfreelancer(self-employed).Nevertheless,isthefreelanceranentrepreneur?Opinionsdifferonthis.Oneatleastprovidesone’sownincome.Onemighthelpothersthatareself-employedwiththeirincomethroughone’sentrepreneurialattitude.Thatisnot(yet)visiblethough.

Severalresearcherslookatentrepreneurshipfroman‘economic’pointofview. Theydefineentrepreneurshipasthecreationofaneworganization,oranyperson whofoundsanewbusiness.

Someresearcherstakeabroaderpointofviewanddefineentrepreneurshipasenteringnewmarketswithexistingornewproducts,orenteringexistingmarketswithnewproducts.Ifyouhaveknowledgeofmarketing,yourecognizethegrowthstrategymodelinthis.Thismodelexplainswhatstrategyisbestifyouwanttogrowasanentrepreneur.Willyoudosoinanexistingmarketoranewmarket?Willyoudosowithanewproductoranexistingproduct?Characteristicisthatthesestrategiesarefocusedongrowth.

Otherresearchersapproachentrepreneurshipfromapsychologicalperspective. Theydescribeentrepreneurshipinavisualway:

“Entrepreneurshipistheabilitytocreateandbuildsomethingfrompractically nothing.Itisinitiating,doing,achievingandsettingupacompanyratherthantakingoverormanaginganexistingcompany.Itishavingafeelingforseeingopportunitieswhereothersseechaosandproblems.

Itisthepowertoputtogetherateamthatcomplementsorcompensatesthe personalqualities.Itistheknowledgeaboutwheretherighttoolsandresourcescanbeobtained(oftenownedbyothers)andtoensurethatmoneydoesnotrunoutwhenitisneededmost.Finally,itisthewillingnesstotakecalculatedrisks-bothpersonallyandfinancially-andtodoeverythingpossibletoputtheoddsinone’sfavor.”

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Inthisvision,entrepreneurshipisaboutcreatingsomethingnewandthebehaviornecessarytotakeadvantageofit(eventually),althoughthelatterrelatesmoretotheentrepreneur.Ithinkthebeautyofthisdefinitionisthatitalreadybecomesclearwhichpersonalcharacteristicscomeintoplaywithentrepreneurship:

• Totaldedication,determinationandpersistence• Ambitionandperformanceorientation• Independency• Creativity• Goalorientationandriskorientation• Takinginitiativeandresponsibility• Perseverance• Self-awarenessandself-knowledge• Self-reflectionandtheneedforfeedback• Effectivenessandbeliefinone’sownability• Beingabletodealwithuncertainty• Dominanceanddecisiveness• Socialorientationandbeingabletocollaborate

Definition of entrepreneurship Entrepreneurshipbeginswiththeideaofstartingsomething.Youseeanopportunityor apossibility,andconsiderrespondingtothat.Youcanseethatopportunityinsomethingthatdoesnotexistyet,butthatiswhatyouconsider“thegapinthemarket.”Alternatively,anopportunitymightpresentitselfbyimprovingexistingproductsorservices,becausetheydonotworkwellinyouropinion.Youcanalsoseeitasanopportunitybecauseithasalwaysbeenyourdreamtohaveyourownbusinessorsimplybecausethereisnobetteralternativeatthatmoment,becauseyouareunemployedforexample.Thereisalwaysareasonthatfuelsyourdesireordecisiontostartabusiness.Togetfromdesiretoreality,youshouldseizetheopportunity.Thinkingshouldbefollowedbydoing.Takeactiontoturntheopportunityintoanadvantageforyourselfandforothers.

In short, entrepreneurship is:seeingandseizingopportunitiesthroughone’sowncompanyorwithina(larger)companywithwhichyoucreatevalueforyourselfandothers.

Inthecompactdefinitionabove,entrepreneurshipisseenasrenewal,butthisdoesnotnecessarilymeanthestartofanewcompany.Entrepreneurshipcanalsooccurwithinanexistingcompany,eitherwithinasoleproprietorshiporwithinamultinational.Inasoleproprietorship,theentrepreneurshipnaturallyrelatestotheentrepreneur,whoistheenterprisingpersonwhoseesnewopportunitiesandknowshowtoexploitthem. Atlarge(r)companies,itrelatestooneormoreenterprisingpeoplewithinadivision orsubsidiary.Thisistheso-calledinternalentrepreneurship:apersonwhocreates innovationinan(existing)organization.

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WHATISENTR

EPREN

EURSH

IP?

Nowadays,evenwithinrelativelysafeandwell-definedorganizations,itisexpectedofemployeesthattheyare‘entrepreneurial.’Youmightwanttotakethatwithoneormoregrainsofsalt,becauserealentrepreneurshipalsomeanspioneering,takingrisksandmakingdecisionsinmomentsofuncertainty.Theseissuesarenotvaluedinmanyorganizations;theyareoftenevenimpossibleorpunishable(youwillbefired:“ifyoulovetobeentrepreneurial,beitinyourowntime’).Therequirement‘entrepreneurialpersonality’inemploymentadvertisementsisusedinthesearchforpeoplewhonotonlydowhatisexpectedofthem,butwhoalsobringintheirindependentthinking.Theyarelookingforpeoplewhoarecreativeandcritical.Thesetwocharacteristicsalsocomeinhandyforthetrueentrepreneur,buttheyarenotsynonymouswithentrepreneurship.

Bytheway,youshouldunderstandcreatingvalueinabroadsense.Ofcourse,youcreatevalueforyourselfbyearninganincome.However,bystartingabusiness,youalsocreatevalueforothers,justbytheproductsandservicesyouoffer.Peoplebuyyourproductorservicebecauseitsolvestheirproblemorfulfillsaneed,orbecauseyoucansellverywell.Youalsocreatevaluebyofferingemployment,whichmeansmorethansimplyputtingpeopleonthepayroll.Todeliveryourproductsandservices,youoftenalsoneedtheproductsandservicesofotherbusinesses.Withthat,youprovidethemworkandthusvaluetoo.Donotfeelashamedifyouhavenoemployeesandpeopleaskyouhowmanyemployeesyouhave.Thequestionofhowmuchworkyouprovideismoreimportantthanhowmanypeopleyouemploy.

Didyouknowthatbiggercompanieshavetroublekeepingupwiththepaceofinnovationandthattheywillbebeatenbynewsmallbusinessesmuchmoreofteninthefuture?BusinessmodelshavechangedradicallythankstotheInternet.

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please, try it yourself!

or the golden

eggThe Goose

When are you an enTrepreneur? chaptEr 2

46

WHEN

AREYO

UANENTR

EPREN

EUR?

2 When are you an entrepreneur?

What is an entrepreneur and who can you classify as one?Variousdefinitionsofanentrepreneurexist.Thisdoesnotmakeiteasierofcourse. Somescientistsseetheentrepreneurastheinnovatorofthecompany,whileothersseetheentrepreneurastheownerand/ormanagerofthecompany.Stillothersdonotseeanentrepreneurinanownerofasmallbusiness.Theyseeinanentrepreneursomeonewhosetsupabusinesswiththegoalofachievingprofitsandgrowth.Onedoesthisthroughinnovativeandstrategicbehavior.Iftheowner-managershowsnocreativeorinnovativebehavior,onecannotberegardedasanentrepreneur.

Onecannotgiveagenerallyaccepteddefinitionoftheentrepreneur.Thedifferent definitionsoftenraisemorequestionsthantheyanswer.Youcansafelyspeakofa definitiondilemma.Differenceofopinionalsoexistsinthebusinesscommunityand theTaxAuthoritiesuseyetanotherdefinition.ThefactthatyouregisteredyourbusinessdoesnotimmediatelymakeyouanentrepreneurfortheTaxAuthorities.Thereare numerouscriteriaforthat.Allthisdoesnotmakeiteasier.

Youareanentrepreneurwhenyouhaveregisteredyourcompany.Registeringcostsyouaboutacoupleofhoursandafewbucks(dependingonthenatureofyourbusinessandthecountryorregioninwhichyouwanttostart).Fortherecordsyouthenhaveacompanyandsoyouareanentrepreneur.Youcanrelaxandwaitforalldirectmailoffersthataresenttoyousubsequently:administrationoffices,officefurnishers,salesrepresentativeforsoftware,theyallknowhowtofindyou.

Accordingtothedictionary,anentrepreneuristhepersonwhoembarksonsomething,takesonathingofanyimportance,starts.Ineconomicterms,anentrepreneurisapersonwhoisself-employedinabranchoftradeorbusiness,forone’sownaccountandrisk,onthebaseofproductionresources.Youcanstillmakeadistinctionherein.Strictlyspeaking,youareanentrepreneurasabusinessowner,butthisfindingsaysnothingabouthowenterprisingyouare.

Self-employedYouareself-employedifyoumainlyprovideyourownincome. Thinkofthesmallbusinesspersonwhoissatisfiedwiththestatusquoandwhocancontinuewiththatforyears;youcouldclassifythispersonasself-employed.Youcanalsoclassifythefreelancerwhoessentiallytriestoprovideone’sownincomebydoingjobsforclientsasself-employed.

IfyouhaveregisteredyourbusinessandmeetallthecriteriaoftheTaxAuthorities,areyouanentrepreneur?Yes,youofficiallyare.Thatishoweasyitistostartyourown business,tothesatisfactionofmanystarters,totheannoyanceofsomeothers. Itshouldbenoted,however,thatthisisnottrueforeverycompany:tostartadaycare,you-fortunately-indeedneedaprofessionaldiploma.

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Youcannowsaythatyouareself-employed,justlikethehairdresserandtheownerofthedrivingschoolinyourneighborhood,andfamousentrepreneurssuchasRichardBransonandConradHilton.Theoneearnslessthantheminimumwage;theotherisconsideringthepurchaseofasecondprivateplane.Theirsimilarityisthattheyare registeredandmeetthecriteriaoftheTaxAuthorities.Thatiswherethesimilarityends.

The enterprising entrepreneurIfyouwanttogrowasanestablishedself-employedindividual,suchasConradHilton,andyouwanttostartseveralorothertypesofbusiness,Icallitentrepreneurial.Thisisalsomoreinlinewiththeprevailingperceptionspeoplehaveofanentrepreneur.Entre-preneurshipcanberecognizedhereaswell:seekingandfindingnewopportunities,andmanagingtoturntheminone’sfavor.Afterall,itisnolongeraboutprovidingone’sownincomeorexercisingcraftsmanship,butabout(un)consciouslyreachinghighergoals.Thepointhereisnotwhetheryouareabusinessowner,butwhetheryouareentrepreneurial.Yourbehaviorshowsthatalotmorethanyourregistration.Abusinessownerisnotnecessarilyentrepreneurialaswell.

motivation

passion

knowledge

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WHEN

AREYO

UANENTR

EPREN

EUR? Soyoucouldsaythattheentrepreneurdiffersfromthebusinessowner,inthisperspective.

Aself-employedindividualisratherthecraftsmanorspecialistwhodoesnotfeellikeworkinginpaidemploymentordoesnothavetheopportunitytodoso. Fortheentrepreneur,runningabusinessistheprofession:thereliesone’sstrengthandchallenge.

ConclusionEntrepreneurshipisseeingandseizingopportunitiesthroughyourowncompanyorwithina(larger)companywithwhichyoucreatevalueforyourselfandothers.Thiscanthereforetakeplaceinasmallorlargeorganization.Eitherway,youorsomeoneelseseesanopportunityanddecidestoactuallyseizethatopportunity.Inasmallorganization,thisisoftentheentrepreneur,butnotnecessarily.Someoneelsecanalsoobservetheopportunity,suchasthepartneroftheentrepreneur.Asanentrepreneur,yourunthecompanyonyourownaccountandrisk,butthatdoesnotnecessarilymakeyou entrepreneurialtoo.Thequestioniswhatmakesyouentrepreneurial?Whatpersonal factorsplayaroleinsuccessfulentrepreneurship?Alternatively,whatpersonalfactorsplayaroleinsuccessfullyaddingvaluebyseeingandseizingopportunities?

FinallyIexplicitlymakenovaluejudgments.Boththeself-employedindividualandthe enterprisingentrepreneurarefull-fledgedbusinessowners.Theremainderofthis bookisconsequentlyaboutboth.Theself-employedindividualisnotbetterthanthe entrepreneurortheotherwayaround.Ifyoudecidetobeandstayself-employed, thereisnothingtobesaidagainstit,bynoone.Itisyourchoice.Thatisthebeauty ofentrepreneurship.Youdecide!

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to be continued...

finishstrong

go hard

finishstrong

WhaT Is a compeTence? chaptEr 3

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WHATISACOMPETENCE? 3 What is a competence?

Inthischapter,Iclarifywhatacompetenceisandofwhatitconsists,becausethisconceptisthebasisforthisbookabouttheentrepreneurialcompetence.

Themeaningofthewordcompetencehasshiftedfrom‘qualification’(beingauthorized)to‘capability’(beinggoodatsomething)inthecourseoftime.Acompetencecanthereforebeindicatedassomethingatwhichyouaregood,asyourabilityallowingyoutodoyourworkwell.Thisabilityconsistsoffourelements:Motivation,Personalcharacteristics,QualitiesandKnowledge.Theseelementstogetherarenecessaryforachievingagoodscore.Thismeansthatthetermcompetenceobviouslyimpliesincompetencetoo.Thelackofcompetenceorofapartthereofmayleadtolowerperformances.

Inshort,acompetenceisthatwhichmakesyousuccessfulinaparticulartaskorrole.Thefigurebelowexplainsthisfurther.

Figure1:Fourelementsofacompetence.

Motivation (want) Motivationhaseverythingtodowithwanting.Howmuchdoyouwantsomething?Whatdoyoufindtrulyimportant?Themotivationdependsonyourambition,(inner)motivationsandvalues.Onlywhenthereismotivationforaspecifictask,theremainingelementsofthecompetencecan“really”beaddressed.Supposeyouhavealotofknowledgeandskillsforaparticularjobbutlittlemotivation,youwillprobablynotusethoseknowledgeandskills.Motivationisliketheignitionofamotor;howmuchdoyouwanttogetstarted?Thenumberofhorsepower(hp),theotherthreeelements,indicatesthepoweroftheengine;howwellcanyoustart?

Personal characteristics (be) Personalcharacteristicssaysomethingaboutwhatyouarelike,aboutyourcharacter. Itissocloselyrelatedtoyouthatitisvisibleandrecognizabletoothers.Thinkofsomeoneinyoursurroundingswhooftendoesmostofthetalkingandisverydominant.Oneissopresentthatitstandsout.Thisway,thereareanumberoffeatureswithwhichyou

qualities characteristic

s

know

ledge motivation

wantingknowing

beingdoing

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cancharacterizesomeone.Theyareoftenreferredtoascharacteristicsaswell.Thinkaboutit:whatareyourcharacteristicfeatures?Whatdoothersoftensayaboutyou? Characteristicsorfeaturesarenoteasytolearn.Youarebornwiththemmoreorless,andthroughtheyears,theyhavemadeyouthepersonyouaretoday.

Qualities (can) Qualitiessaysomethingaboutthatatwhichyouareverygood.Qualitiescanbe learnedeasilyincontrasttocharacteristics.Qualitiesaretiedtoasituationortask.Incidentally,qualitiesandcharacteristicsareoftenmixedup;onemighttalkaboutcharacteristics,whiletheotherusesthetermqualities.Thus,themaindifferenceisthatqualitiescanbelearnedmoreeasilythancharacteristics.Inaddition,aqualityismoreoftensomethingpositive,whileacharacteristiccanbebothpositiveandnegative.

Knowledge (know) Thelastelementofacompetence,knowledge,isrelatedtoknowing.Inordertobeabletoperformaparticulartaskorhandleaparticularsituation,youneedtoknowhowthatshouldbedone.Whatrules,proceduresandlawsapply?Qualitiesalsohavearelationshipwithknowledge.Forexample,whengivingfeedback,itisusefultoknowwhichrulesshouldbeapplied.Characteristicshavenorelationshipwithknowledge.Youdonothavetoknowanythingtobeit.Lookatperseverance;youdonotneedtoknowanythingforthat,thoughitispossibletodevelopthisbyknowingorlearninghowothersdoit.

Developing competencesCompetencescanbedevelopedtoacertainextent.Itdependsonyourintelligenceandpersonality.The‘limits’toyourintelligenceandpersonalityaregiventoyousincebirth.Withintheselimits,itcanthusbedeveloped.Itstartsinyourearlyyearsanditdependsontheenvironmentinwhichyougrowupaswell:towhatextentisitastableandsafeenvironment?However,competencescanbedevelopedeveninadolescenceandadulthood.

Does intelligence matter? IntelligenceobviouslyhasastrongrelationshipwiththecompetenceelementKnowledge.Knowledgeisgainedquickerandyouwilllearnmorefromexperienceifyouare intelligent.Educationismainlyfocusedontwotypesofintelligence:linguisticand logical.Researchersarguethatatleastseventypesarepresenttoacertainextent, whichcanbedeveloped.

• Linguisticintelligence:yourabilitytoread,writeandcommunicate.• Logicalormathematicalintelligence:yourabilitytocalculateandtoworkwith

numericalsymbolsandtousethemaccordingtotherulesoflogic.• Musicalintelligence:yourabilitytouseandappreciatethelanguageofmelody,

rhythm,harmonyandsounds.• Spatialintelligence:yourabilitytoperceiveandtorecreateonpaperorinthehead.• Physicalormovableintelligence:yourabilitytousethebodyforself-expressionor

asatoolforlearning.

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WHATISACOMPETENCE? • Interpersonalintelligence:yourabilitytoperceiveandunderstandthefeelingsand

needsofothers.• Intrapersonalintelligence:yourabilitytoself-understanding,knowledgeaboutyourself.

Thelasttwopersonalintelligences(interpersonalandintrapersonal)arealsoreferredtoasemotionalintelligence,whichhasgreatlygainedpopularityinrecentyears.BesidestheIQ(ameasureofintelligence),theEQnowalsomatters(ameasureofemotionalintelligence).Thelattersaysalotmoreabouthowgoodyouareincontactwithothers.Doesintelligencematter?Well,itdoeshelp,butifyouarenotmotivatedormadeoftherightstuff,youwillnotgetthere.MotivationandPersonalityarealsoimportant; thisbookelaboratesonthis.

Didyouknowthatabout100BC,Ciceroalreadyspokethewisewords: “Characterwithoutknowledgehasledtosuccessmoreoftenthanknowledgewithoutcharacter.”

Inthefollowingchapters,Iapplythefourelementsofacompetence(motivation, personalcharacteristics,qualitiesandknowledge)totheentrepreneur.

To get a grasp of whatyou need to become a

successful entrepreneur, have a look at the

entrepreneur competence model

To get a grasp of whatyou need to become a

successful entrepreneur, have a look at the

entrepreneur competence model

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qualities characteristics

kn

owledge motivation

Company level• Market• Environment• People• Production• Finance

Learning styles• Accommedator• Diverger• Converger• Assimilator

Mature phase• Leadership• Motivating• Planning -

organising• Financial controlling

Early phase• Market awereness• Creativity• Flexibility

Traits• Need for achievement• Need for autonomy• Need for power• Social orientation• Self belief• Endurance• Risk taking

propensity

Thinking styles• Pioneer• Salesperson• Manager• Specialist

Internally driven• Need for achievement• Need for autonomy• Need for power

Externally driven• Unemployment• Business opportunity• Specialism

Figure2:TheEntrepreneurialCompetenceModel.

Theentrepreneurialmotivationcomesfromwithin(internallydriven)andispartlyfueledbymotivesfromoutside(externallydriven),alongwithanumberofcharacteristicsandoneormoredominantthinkingstyles.Inaddition,duringtheprocessofrunningabusiness,particularqualitiesplayaroleinthecurrentphasesofthebusinesslifecycle.Inordertoachieveone’sobjectives,theentrepreneurmusthave,acquire,orhireknowledgeof anumberofbusinessareas,dependingonone’slearningstyleandexperience. Themotivationworksasamotorhere.Onecannotlearnit,butonecanboostit. Itiscontagiousfortheuseanddevelopmentoftheotherelements.Motivationismostcloselyrelatedtotheperson;onecannothireit.Knowledgeistheleastcloselyrelatedtotheperson.Itisclosertothe‘surface;’onecanhireoracquireit.

WhaT consTITuTes The enTrepreneurIal compeTence? chaptEr 4

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WHATCONSTITUTESTH

EEN

TREPREN

EURIALCOMPETENCE?

4 What constitutes the entrepreneurial competence?

Inthepreviouschapter,youreadthatacompetencycanbedividedintofourelements:motivation,personalcharacteristics,qualitiesandknowledge.Theseelementsdetermineyourabilityandmakeyousuccessfulinaparticularjoborrole.Nevertheless,whatisyourjobasanentrepreneurandwhenareyousuccessfulinbeingone?Whodecidesthat?Itiscertainlyeasiertoaskthatquestionthantoanswerit.

Youcandescribesuccessinvariousways.Youcandefinesuccessintermsofachievingagoal.Thiscanbeasocialgoal.Youcouldemploydisabledcolleagues.Thisiscalledcorporatesocialresponsibility.Youcanalsodefinesuccessinfinancialterms.Fromafinancialperspective,thereissuccesswhenthecapitalinvestedyieldsmorethanwhenitwouldhavewhenputinasavingsaccount.Youcanarguethatsuccessiswhenyouhaveoutdoneyourcompetitors.Ifthecompanyhasyieldedhigherrevenuegrowthandstaffgrowththanpeers,itissuccessful.However,isanentrepreneurnotsuccessfultoowhenoneissatisfiedwiththeincomeoneearns,orwhenonecancompletelyputone’screativityinit,orwhenonehasfoundagoodbalancebetweenworkandprivatelife? Ithinkoneis.Anyway,onecannamemanycriteriaforsuccess,butthemostconvincingcriterionhastobethecontinuityofthebusiness,especiallygiventhefactthatwithinfiveyears,abouthalfofthestart-upsnolongerexist.Youcanhavesuccessatthreelevels:societal,companyandentrepreneurial.

Didyouknowthatwomenaremoresuccessfulthanmenare?InaresearchbyDutchresearchersonly14.6%ofthebankruptcompanieswereheadedbya woman,while33%ofentrepreneursarewomen.Womenfocusonthe relationshipsinandaroundthecompany,whilemenaremoresales-oriented.Thatmakeswomenmoreconservativebutmoresuccessful(incontinuity).

Youshouldmainlythinkofsuccessasthecreationofjobsandtaxableassetsatthesocietallevel.Jobsarecreatedbygrowthorlargeinvestments.Governmentswantspeopletorunsbusinesses.Entrepreneurship,asresearchshows,createsinnovation,newinsightsanddevelopments,andgrowth.Newbusinessescreatenewjobsandrevenuesthatcanraisenewtax,whichisgoodforthepublictreasury.

Successatthecompanylevelislimitedtothecompany.Itisanobjectivemeasure.Theindicatorsofacompanyprovidetheopportunitytocomparecompanieswitheachotheraslongascompaniesadheretotheaccountancyrules.Youcandescribesuccessinthiscaseintermsofgrowthinsales,staffandprofit.Aslongasthecompanyscoresbetterthanitspeersdo,youcanobjectivelyspeakofsuccess.

Successattheentrepreneuriallevelindicatestowhatextenttheentrepreneurthinksoneissuccessful.Everyentrepreneurobviouslydeterminesthisforoneself.Thatisfortunate.Whenonereachesthegoalsonehassetforoneself,oneissuccessful.Onemustsetgoalsofcourse.Successcanalsobefeltbecauseofthefreedomexperienced

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orthetypeofworkortasksforwhichoneisasked.Onehaseveryrighttodoso.Inshort,whateverthereasonis,theleastonewillwanttoachieveisthatone’scompanycontinuestoexist.

Is everybody successful?No,noteverybusinessownerissuccessful,farfromit.Theexamplesofsuccessful entrepreneurslikeRayKroc(McDonald)andConradHiltonaretherefore somewhatmisleading:theyaretheexceptionsthatprovetherule.Thefactisthatfordecades,thesuccessrateofastartingentrepreneurhasnotbeengreaterthan50%.By‘success,’wemeantheentrepreneurwhoisstillanentrepreneurafterfiveyears.Thatmeansthatmorethanhalfofallthoseenthusiasticentrepreneursthrowinthetowelafterafewyears.Inthemostfavorablecase,theydoso themselves,becauserunningthebusinessrequiresmoretimethanexpectedandyieldslessmoneythanhoped,forexample.Intheworstcase,theentrepreneurhastostopbecausethereisafinancialmess,uptobankruptcy. Failingentrepreneurshipcostssocietieshundredsofmillionsofdollarseveryyear.Thereisyourreasontoconsiderthecausesforfailure.

Askentrepreneurswhatthereasonfortheforceddiscontinuationoftheircompanyisandtheywillbehappytopointatexternalfactors.“Themarketwasworkingagainstme”isverypopular.Non-payingclientsareintheTop10NationalExcusetoo.Pointingatsomeoneelseor,evenbetter,abstractexternalfactorssuchas‘themarket’ismorepopularthanpointingatyourself.Thesplinterintheeyeoftheotherisstillmorevisiblethanthebeaminone’sowneye.Thisprincipledoesnotonlyapplytoentrepreneursbytheway.

Theentrepreneurwhoseesone’scompanyperishafterashorttimeandblames itonone’sownshortcomingsisrare.Thatisremarkable,giventheresultsofmanystudiesconductedonthisfailure.Theseclearlyindicatethat,forexample,thepoorkeepingofrecordsisanimportant‘failfactor,’justastheinabilitytoattractclients.Thathasnothingtodowithexternalfactors,butallwiththeinterioroftheentrepreneur,withone’squalitiesor,withanicerword,one’sentrepreneurialcompetence.

ConclusionItisthejoboftheentrepreneurtocontinuethecompany(atleast).Thatsaysnothingabouttheprofitorlossyielded.Itisalsoverydependentontheindustry,butcontinuingthebusinesssurelyistheminimumrequirementyoumustsetasentrepreneurialtask.Behonest:whostartsabusinessinordertoalreadyknowatthestartthatitisdiscontinuedafterthreeyears?Everyonewouldwantthecompanytocontinue.Theentrepreneurialcompetenceconsistsofthemotivation,personalcharacteristics,qualitiesandknowledgenecessaryforthesurvivalofacompany(atleast).

Be different Think with your heart

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4.1 Motivation: what do you really want?

Figure3:Thefirstelementofcompetence:motivation.

Inmotivation,itisabouthowmuchyouwanttobeandstayanentrepreneur.Hasitbeenapositivechoice,becauseyouhavealwayswantedthis?Hasitbeenaninnerfeltmotivetogointobusiness?Alternatively,hasitbeenanegativechoicebecausetherewasnoalternativeforyouatthetime?Forinstance,unemploymentcan‘force’youtostartforyourself,especiallylaterinlife.Afternumerousrejectionsinapplications,startingforyourselfmeetslessandlessresistance.However,ifthereislittlemotivationanditismostlynegative,itwillbedifficulttopullthroughwhentimesgettough,especiallyinthebeginning.Ifyouhavelittlemotivation,youwillthrowinthetowelquickly.Successisdefinitelynolongeranoptioninsuchcase.Ifyouaretrulymotivated,haveavisionandwanttofightforit,youwillpullthrough.Itisthereforeimportantnottooverlooktheanswertothefollowingquestion:

4.1.1 Entrepreneurial motives: why do you want to be an entrepreneur?

ItmayseemthatIwanttosayhere:‘donotstart’.Cherishyourlifeasawageslaveandrejoiceyourvacationbonusandyourpensionaccrual.Nothingisfurtherfromthetruth.WhatIdowanttomakeclearisthatyoushouldlookbeforeyouleap.Thatsoundslikeacliché,whichitis,butitistrue.Manysetbackswillcomeyourwayandarealisticlookatthelifeofanentrepreneurhelpsyouovercomeadversity.Inmypractice,Imeetmany(future)entrepreneurswhosaythatrunningabusiness‘seemslikefun.’Fun?Whatkindofmotiveisthatsupposedtobe?Thatsoundsabitpoorandnaïvetome.Therefore,answerthequestionofwhyyouwouldliketostartasanentrepreneur.Donottrytoconvinceme,butconvinceyourselfthatyouaredoingitfortherightreasons.

qualities characteristic

s

know

ledge

knowing

beingdoing

motivation

wanting

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MOTIVATION:W

HATDOYOUREA

LLYW

ANT? Entrepreneurial motives

Studiesconductedbyuniversitiesshowthat‘independence’or‘wantingtobeindependent”ismentionedastheprincipalmotiveforstartingabusiness.Othermotivesmentionedincludewantingtodeliverqualitywork,unemployment,havingfoundthegapinthemarket,beingsureofclientsandearningabetterincome.

Inonestudy,99,115entrepreneurswereaskedabouttheirpersonalgoalto startabusiness.Aforcedchoiceoffiveanswerstothequestionabouttheir mostimportantpersonalgoalproducedthefollowingpicture:

DoingworkthatIlike(41%)Stayingindependent(29%)Becomingfinanciallyindependent(17%)Beingabletoputmycreativeideasintopractice(10%)Controllingmyowntime(3%)

IndependenceIndependenceseemsextremelyattractiveandislinkedtoentrepreneurshipinextricably.Thereisgoodreasonfortalkingabout‘anindependententrepreneur’(aswithfranchisebytheway,thoughyouaremoredependentonthefranchiseorganizationofwhichyouareapart).

Itoldafellowentrepreneur–Iwillnotmentionanynames,hestillhasafirm–aboutthemotive‘independence’whilewritingthisbook.“Independence? Stopit!Dotheymeanthattheyarenolongerbeinglivedbyaboss? Man,whenIwasemployed,Ionlyhadtodealwithoneboss,nowwithhundreds!EverytimeIamhappybecauseIhavewelcomedanewcustomer,thenastyfeelingthatIhavegainedanotherbossimmediatelycomesoverme.ItisaTrojanhorse.IcantellabossthatIdonothavetimeoraheadache,butnotacustomerwithoutlosinghimorher.No,themorecustomers,themorepatrons,themorebosses.Iamlivedbythem.Theyeatmytimeandmyenergy.Theonlyadvantageisthattheyallhavetopayforit,andeventhatnoteveryonedoes.”

Thedesireforindependenceisnotsomuchtheindependenceitself.Rather,itisa necessaryconditiontomeetothermotives.Somewantfreedomsothattheydonothavetoworkforaboss.

(Whatisupwiththesebosses?Aretheystilltheslavedriversofyesteryear?)Otherswanttodeliverbetterproductsandservicesthantheycanatorthroughtheiremployer.Theywanttoputtheirownideasofwhatisgoodinpractice.However,thisislesseasyina(large)existingorganization.Independenceisanecessaryconditiontomeetothermotives.

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Actually,theseentrepreneursstriveforsuccess(forwhichthereareseveraldefinitions,seetheprevioussection),andtheyseethepossibilitytorealizethatthroughtheirowncompany.Nevertheless,howlikelyisitthatitwillbesuccessful?Isitaboutthesuccessofthecompanyorsecretlyaboutthatofthemselves?Isthelattertheirdeep-rooteddesire?

Independence in psychoanalysisIfIndependenceisakindofoverarchingmotivetoachieveothermotives(goals),itisinterestingtoseewhatthoseunderlyingmotivesmightbe.ManfredKetsdeVries(thefamousprofessoratInstead,theleadinguniversityinParis)liftsacorneroftheveil.

In“Thedarksideofentrepreneurship,”KetsdeVriesdescribesashadowyimageoftheentrepreneur.Thesuccessfulentrepreneursthathehasanalyzedshowedanexcessiveneedforcontrol,sometimestothedetail,andaninabilityorunwillingnesstoworkunderthecontrolofanotherperson.Consequently,theentrepreneurdiffersfromthemanager.Whilemanagersareabletoadapttoaleader,byseeingthemasarolemodel,suchsubordinateroleshorrifiesmanyentrepreneursandtheybringtheleadershipintodiscussion.Thisisclearlyamotiveforrunningone’sownbusiness.Withageneraldistrustinothers–andanenormousdesireforapplauseatthesametime,sometimestotheextreme–KetsdeVriesmightsketchanimageofextremes,buthealsogivesamorenuancedimageofcertaincharactertraitsofentrepreneurs.Thiswillundoubtedly(subconsciously)beabreedinggroundforsometostartforthemselvesandtoenduretothepointthatwhatstartedasadreamhasturnedintoaconglomerate.

4.1.2 What matters: does it come from the inside or the outside?

Inansweringthequestionofwhatisyourmotivationforentrepreneurship,youneedtorealizewhetheryourmotivescomefromtheinsideortheoutside.Internallydrivenmotivesstemfromyourdeeplyfeltdesiretoachievesomething.Whetherthatisdoinggreatwork,gettingrichornothavingtoworkunderaboss:youcanachievethosegoalsthroughentrepreneurship.Byunderstandingwhatyourdeepermotivesare,youalsogetabetterideaofwhatyouwanttoachievewithyourbusiness. Fordoingfunwork,youdonotnecessarilyhavetogrow.However,ifyouwanttogetrich,growthwillbenecessary.Nevertheless,ifyoucheckyourself,youwillrecognizeexternallydrivenmotivesthatcomefromtheoutside.

Fearingtomisstheopportunitythatoccurredatthatmoment,wantingtodosomethingcompletelydifferent:whateveritis,theyaremotivesthathavemadeyoutakethesteptostartabusiness.Nevertheless,evenifbeingunemployed,havingnoimmediateprospectofajob,madeyouconsiderentrepreneurship,thequestioniswhetheronlytheunemploymentmadeyouconsiderit.So,doesitstemfromyour(internallydriven)fightordoyouhavetoadmitthatitwasmoreofa(emergency)flight?Inthelattercase,themotiveisinyourenvironmentorsituationandsoitisdrivenexternally.Shouldyouthenstillwanttocontinueit?

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Thesurvivalratesofanacquiredcompany,fiveyearsaftertheacquisition,are90%-95%.Thesurvivalratesofastartupareapproximately50%after5years.

In shortMotivationasthefirstelementoftheentrepreneurialcompetencecanbedividedintointernallyandexternallydrivenmotives.Internallydrivenmotivescomefromwithin,andformtheinnermotivestobecomeanindependententrepreneur.Themainreasonsmentionedbyentrepreneursandresearchersaretheneedforindependence,performance andpowerorcontrol.Thechoiceofentrepreneurshipcanalsobeencouragedby externallydrivenmotives.Forinstance,unemployment–especiallylaterinlife–can“force”someonetostartone’sownbusiness.Afternumerousrejectionsinapplications,thethresholdfor(“nothinglefttodobut”)startingone’sownbusinessislower. Incidentally,therelationshipbetweeninternallyandexternallydrivenmotivesstillsaysnothingabouttheentrepreneur’schancesofsuccess.

Discoveryourmotivationforentrepreneurship!Doyouwanttofindoutifyouaremotivatedforstartingyourowncompany?Pleaseanswerthesethreequestions:

1.Canyoualsodowhatyouwanttodoata(large)company?2.Canyoucomplywithsomeoneelse’sexample?3.Canyoustanditwhensomeonegivesyouorders?

Ifyouhaveanswered‘No’threetimeswithoutanydoubt,considerstartingyourowncompanyifyouhavenotalreadydoneso.

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Be different Think with your heart

Be different Be who you are

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4.2 Personal characteristics: who are you really?

Figure4:Thesecondelementofcompetence:personalcharacteristics.

Personalcharacteristicscanbedividedintocharacteristicsandthinkingstyles. Characteristicssaysomethingaboutwhatyouare,whatcharacterizesyou.Itdoesjusticetoyour‘own’characteranditisthereforecloselylinkedtoyou.Itissostrongthatitisrecognizabletoothers.Thesamegoesforthinkingstyles,whicharealsostronglylinkedtoyourperson,thoughtheyratheraddressthewayyouthinkandaboutwhatyouthink.Forinstance,theoneisarealdreamerandtheotherisarealdoer.Bothconcepts,characteristicsandthinkingstylesofentrepreneurs,areelaboratedoninthischapter.

4.2.1 Characteristics: what characterizes you?

Manystudiesonthecharacteristicsofentrepreneurshavebeenconducted.Forthesecharacteristics,itisshownthatsuccessfulentrepreneursdifferfromnon-successfulentrepreneurs,ormanagersandnon-entrepreneurs,especiallywhenitcomestothecharacteristicsNeedforAchievement,NeedforAutonomy,NeedforPowerorDominance,SocialOrientation,Selfbelief,PerseveranceorEnduranceandtheWillingnesstotakerisks.Successfulentrepreneursscorehigheronthesecharacteristicsthannon-successfulentrepreneurs.Here,successmeanssurvivingthefirstyearsthatthecompany. Obviously,onecansetmanyrequirementsforsuccess,butasstatedearlier,continuityisthemostconvincingcriterion.Eachcharacteristicwillbeelaboratedonbelow.

Need for AchievementTheneedforachievementisaperformanceorientationandmainlyaboutwantingtodeliverperformance.Thismeansitsayssomethingaboutmotivationaswell:themotivationtocontinuetoachieveandtodosobetter.Thisdrivecomesfromwithin.Itisthehungerforsuccess.Forsome,itmaybeareasontostartone’sownbusiness.

Inyourowncompany,youcangrowasfastasyouwant,aslongasyouplanitwellintermsoffinance.Youcangrowfasterthanyoucangrowasanemployeeinalargecompany,becausethere,youarelikelytomeetamanagerwhocannotstandit.

qualities

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wantingknowing

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achievesomethingandthewilltodoit(increasingly)better.Youareperformance-orientedwhenyou:

• Feelpersonallyresponsiblefortroubleshooting,setgoals,achievegoalsthroughyourowneffortsandhaveastrongneedtoknowhowwellyouhavedone.

• Haveastrongneedtobegoodatsomethinginordertoobtainagreatersense ofinnervigor.

• Doyourbest,wanttobesuccessful,wanttocarryouttasksthatrequirecommitmentandproficiency,dosomethingofgreatimportance,wanttofollowadifficulttaskthroughtoasuccessfulconclusionandwanttoberespectedbyothers.

• Wanttoimproveyourselfcontinuously.• Takepersonalresponsibilityformakingdecisions.• Havethewilltodoaremarkablejobandtogetahead.

Generic description need for achievementSuccessfulentrepreneursareperformance-oriented.Thatis,theypurposefullystriveforanachievement,enteringintoafightwithothersifnecessary.Havingtheirbusinessgoalinmind,theyworkwithalotofwillpowerandenergyontheirowncompany.Theywanttoperformmoreandmorebydoingeverythingasgoodaspossibleandtheycontinuouslyraisethebarforthemselves.Theywanttostandout.Thatmotivationcomesfromwithin.Non-successfulentrepreneursdonothaveastrongperformanceneedorstrongwilltosucceed.Theyquicklysettleforless.

How can you develop Need for achievement?Performanceorientationdefinitelyhaseverythingtodowithwhatyouwanttoachieveandhowmotivatedyouaretoachievethat.Whatdoyoureallywanttoachieve?Youstartwithimaginingwhatyouwanttoachievebysketchingyour visionforthefuture.Whatimagesdoyouseeifyouthinkofthefuture?Ofwhatdoyoudream?Whatareyourwishes?Whatmakesyoutrulyenthusiastic?Alsoaskyourselfwhythisisthecase.Thisway,youautomaticallycometotheessence.Donothesitatetothinkbig;allgreatthingsstartwithafirststep.Developingavisionbeginsattheendofthe‘thoughtprocess.’Itistheresultofalltheactivitiesyouwanttoundertake.Itisarealistic,credibleandattractiveimageofthefuture.Itiswhatyouwanttoachieve!Itisaresultthatyoucanactuallyconcretelymeasureorholdwhenyouhaveachievedit,suchasthemarketleaderinagivensector,oralargecompanywithabuildingonwhichyournameadornstheentirefacade.

Whateveryouimagine,theresultmustbeconcreteandtangible.Afigureonhowmanyrevenueyouexpecttomakeisatangibleandmeasurableresulttoo!Theclearerandmoredetailedyoucanimagineit,thecleareritbecomesforyouhowtoachievethat.Bycreatingaconcreteimageofwhatyouwanttoachieveandbydescribingtheachievementclearlyandconcretely,itbecomescleartoyouandotherswhatyouwanttoachieveandwhenyouhaveachievedit.Thensubdivideitintoverysmallsteps,intermediategoalsthatyoucanachieverelativelyquickly.AusefultoolhereistomakeyourperformanceSMARTER.Itisanacronymfor

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Specific,Measurable,Achievable,Realistic,TimeSpecific,EmotionandfinallyResult.Inordertoachievetheresult,youthussubdivideitintoverysmallsteps,andeachstepisformulatedinaSMARTERmannerofcourse.ASMARTERgoalis

• Specific(definedindetailandclearly)• Measurable(howmuchrevenue,whatsize,whatcapacity,etc.)• Acceptableorfeasibleforyourselforinthemarket• Realistic(actuallyfeasibleor‘fantasyisland’)• Time-bound(start,phases,end)• Emotion(howbadlydoyouwantit,connectyourselfemotionally

withyourgoal)• Result(howimportantisthegoalforyou,makeitimportant)

Everysmallstepmakesthelongjourneytoyourgoalmanageableandachievable.Wheneveryouareonestepfurther,thefeelingthatyouaregoingtoreachyourownfinishlinegrows.Thinkofitasagamethatyouplaywithyourself.Everytimeyouhavetakenthenextsmallstep,yourMotivationandyourneedtoachievegrows.Yourvisionworkslikeamagnethere.Thecloseryoucometothegoal,themoreattractiveitbecomes.Watchoutthough:ifyounevertakethefirststep,youwillstayindreamland.

IndependenceThechapteronmotivationhasalreadywrittenathingortwoaboutindependence,buthereIwillelaborateonwhatindependencetrulymeans.Youareautonomouswhenyou:

• Haveanintenseneedforindependence,autonomy.• Wanttojudgeindependently,wanttobeindependent,resistsuggestionsfrom

othersandarelesswillingtoadapt.• Havegreatdissatisfactionwithworkingunderabossorhavingtofollowthe

decisionsofothers.Autonomousmeansbeingtooneselforwantingtobetooneself,whileindependencerathermeanswantingtobeandbeingabletodosomethingoneself.Thismeansthatindependencedoesnotautomaticallymeanautonomy. Thisispresentinmanyorganizationsnowadays.Employeeswantthesecurityofajobontheonehand-andthusincomeanddependenceofalargerorganization-,butindependenceintheworkontheotherhand:entrepreneurshipwithinthe company.Theentrepreneurisautonomous-onehastobecapableofdoingalotoneselfaswellasoftenactuallydoingitoneself-butnotindependentofothers,suchascustomers,suppliers,employees,financiers,thegovernmentetc. Theindependencethatentrepreneursexperienceismorethefeelingoffreedomtodowhatonewants,likesayingnotoapotentialcustomer.

I’ve failed over and over and over again in my life and that is why I succeed.

Michael Jordan

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General description IndependenceIndependenceisoftenthe(un)consciousreasonwhysomeonechoosestheexistenceofaself-employedentrepreneur.Onefeelstheneedtobeabletodecidefreelyandtodowhatonethinkisgood.Successfulentrepreneursmakedecisionsautonomousofothers,solvetheirownproblemsandfinishtheirworkontheirown,butalsoknowhowto letthisgoinordertogrowtheirbusiness.Theyunderstandtheincreasingneedfor independenceoftheiremployees.Unsuccessfulentrepreneursneedsupportorhelp,andoftenleavemakingdecisionstoothersorareunabletoletgotheirstrong independencewhentheirbusinessisgrowing.

How can you develop Independence?Independencemainlymeansthatyouchooseyourownpath.Especiallyifyoustarttheentrepreneurialadventureasasolostarter,youcannotdowithoutthischaracteristic.‘Canonelearnindependence?’youmightaskyourself. Well,youarebornwiththischaracteristicmoreorless.Yetyoucanincreaseyourindependence.Itismainlyamatterofdaringtotrustyourselfbyrelyingonyourownstrength.Howdoyoudothat?Thefollowingtipscanhelpyouincreaseyourindependence.Theeasiestandmosteffectivemethodistohireacoachwithwhomyoucantalk. Ifyouwanttodoityourself,whichofcourseisagoodsteptowardsgreaterindependence,thefollowingmethodcansupportyouinthat.Ifyouendupinasituationinwhichyouareatalossandwanttoconsultothers,stopforasecond.Waitafewminutesandletthenastyfeelingrisethatyoudonotknowhowtocontinue.Thisistheuncertainfeelingfromwhichyouwalkawayandforwhichyouhopetogaincertaintyofothers.Thenimaginethatthereisnooneelsearoundthatcouldhelporadviseyou.Thefeelingislikelytogetworse.

Nevertheless,acceptthebadfeelingforthatmoment.Donotavoidit;thefeelingisthere.Nowgobacktothesituationinwhichyoudidnotknowwhattodecideorhowtocontinue.Whatwouldyoudo,knowingthatthereisnobodywhocanhelp?Iamsurethatsomethingcomestomind.Applythat.Godoit.Donotbeafraidthatitturnsoutwrong.Ifthatdoeshappen,acceptitandresolvethatyouwillsucceednexttime.Independenceinfacthasapositiverelationshipwithyourself-confidence.Ifyoudonotdaretorelyonyourownstrength,youwillneverlearntotrustit,andactordecideindependently. Inshort,alwaystryityourselfbeforeyouconsultothers.Itisamatterofdoingit.Themoreoftenyoudoit,themorenormalitgets.Ifnecessary,startwithsmall,nodrasticsituations.However,neverapplythiswhenyoudonothavethefinalsay,orwhenothersalsohaveasayinthematter.

Dominance or Need for powerDominanceshouldbeseenastheneedforcontrolandpower,orwantingtohavethelastword.Accordingtosomeresearchers,theneedforpowerandcontrolcombinedwithanuncomfortablefeelinginasituationofdependencecharacterizeentrepreneurs.Thiscoverstheinternallydrivenmotivestobeanentrepreneur. Afterall,inentrepreneurship,youarenotonlytheboss;yougettoplayittoo.

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You are dominant when you: • Wanttoassertyourself,lead,organize,instruct,persuade.• Haveastrongneedforcontrol,andforimposingyourownstructureandconditions

towhichothersmustcomply.• Feeltheneedtoletothersbehaveastheywouldnotbehaveotherwise.

General description Need for PowerDominanceistheneedtohavecontroloverothers,imposingyourwillonsomeone.Dominancecanbeareasonforbeinganentrepreneur,asoneisthenincontrol. Successfulentrepreneursknowwhattheywantandhowtheycaninfluenceotherstoachievetheirowngoals.Inaddition,theyassumethattheirauthorityoropinionisaccepted.Stillthisdoesn’tsayanythingabouttheirleadershipstyle.Non-successfulentrepreneursaremodest.Theyprefernottobeintheforefront.

How can you increase Need for power?Youcanhardlychangeitifyourneedfordominatingisnotsignificant. Thatdoesnotalterthefactthatyoucanlearnhowtoinfluenceothersthough,howtoconvinceothersofwhatyouwanttoachieve.Afterall,youwantsomethingwithyourcompany,right?Howdoyouexpandyourinfluencingabilityandpersuasiveness?Thefollowingtipsmaybeabletohelpyouwiththat.Ithelpsofcourseifyouareacceptedasanexpert,suchasaprofessorbeingabletoexplainhis/herstoryeasily.Itisimportantthatyouhaveagoodstorywithsolidargumentsthatinfluencesandconvincesothers.Furthermore,youneedtobringthisstoryconvincingly,whichhastodowithhowmuchconfidenceyouhaveinyourownstoryandyourself.Howdoyougetthatcompellingstoryandyourunshakablefaithinyou?Putalltheargumentsandcounter-argumentsinarow.Convinceyourselfofthequalityofyouropinionandtheargumentsyouuse.Ifyoudonotbelieveinit,otherswillnoteither.Thendecidewhoyouraudienceortargetmarketis.Thatmakesadifference:youdonothavetoconvinceeveryone,justthosetowhomitisinteresting.Payattentiontothewayyouputit;ifnecessary,practiceinfrontthemirror.Practicemakesperfect.Byrepeating,yougetusedtoitanditwillbemucheasier.Thatpaysoff.Persuasionisaformofinfluencing.Intotal,therearefourtypesofinfluencing.InadditiontoPersuading,youcanalsoexertinfluencethroughUrging,ResearchandInspiration.Urgingisinsistingthatsomeonedoesordoesnotdosomething.Youtrytoimposesomethingonothers.Toachievethis,youneedtohavegoodarguments,sameaswith persuading.Inresearchandinspiration,youtrytomakeotherscurious,sothattheytakeactionthemselvesandstartdoingwhatyouactuallywantthemtodo.Goodargumentsdonotreallyhelpinthiscase,rathergoodquestions,interestingstoriesandattractiveimagesofthefuture.However,ifitdoesnotworkwiththehelpofresearchandinspiration,chancesarethatyouhavetoswitchto persuadingandurging.

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Social orientationSocialorientationsayssomethingabouttheneedforcontactwithotherpeople.Somepeoplearemorefocusedonideas,factsandevents.Othersfocusmoreonpeopleandalwayswanttobesurroundedbypeople,becausetheycannotstandbeingalone.Thelattergroupalsotendstobemorefriendlyandsociablethanthefirstgroup. Entrepreneursneedalittlebitofboth:“Onaverage,entrepreneursarenotalways sympathetic.Thisiseasytounderstand.Ifyouarealwayshelpingsomeone,someonewillendupabusingit.”Socialorientationisdividedintothreelevels:

• Youhavealowneedforsocialorientationifyoufeeluncomfortableinthecompanyofotherswiththeexceptionofafewclosefriends.Youmisstheneedorenergytomeetpeopleinsocialnetworksandgroupsandtoestablishcloserelationshipswithpeople,whichisnecessaryformanagersandentrepreneurswithstaff.

• Anaverageneedforsocialorientation.Thisisrelatedtoeffectivemanagement.Youwanttoandcanbeonyourownaswellaswithothers.Youdaretotakeunpopulardecisions,eveniftheyhavenegativeconsequencesforothers,toimplementrulestightlyandtopreferthosewhohavethebestpapersinsteadofonlypreferring peoplewithwhomyougetalong.

• Astrongneedforsocialorientation.Youliketoenterintorelationships;youdoeverythingpossibletomaintainrelationshipsormendthemifnecessary.Youliketoparticipateingroupsorsocialnetworksandenjoyactivitieswithfamilyandfriends.Youarelessgoodatbeingalone.Youwanttobelikedandacceptedbyothers.

Thequestionhereistowhatextentyouarefocusedonyourselforonyoursocial environment,otherpeople.Anaveragesocialorientationisrelatedtoeffective management.Thiswillalsoapplytoentrepreneurship.Afterall,itisacombination ofbeingfocusedonothersandatthesametimeonyourown. Thesocialorientationofanentrepreneurshouldbeseenasthemoderateneedfor closefriendships,forsecurity,solidarityand(continuously)beingsurroundedbyothers.Inotherwords,theentrepreneur,andcertainlytheself-employed,mustbeabletobe onone’sown.Atthesametime,onemustalsobeeffectiveindealingwithothers. Apersonwhoisabletohaveagoodchatgetsmoredonewithtradingpartners,banksandemployees.Thishasapositiveeffectonentrepreneurialsuccess.However,thissayssomethingaboutone’ssocialskillsandnotsomuchaboutone’ssocialorientation,whichshouldratherbeunderstoodasacharacteristic.

Coming together is a beginning; keeping together is progress; working together is success. Henry Ford

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General description Social OrientationSocialorientationistheextenttowhichapersonisfocusedonothers.Successfulentrepreneursunderstandthatpeopleandnetworksarenecessaryfortherealizationoftheirideas.Theyeasilymakecontactandtheyareguidedbycommercialconsiderationsintheirsocialactions.Inaddition,theycanputasidetheirsocialneedsandfocustheirattentionontheirbusiness.Soloentrepreneursoftenworkalone,whichcanbeverylonely.Unsuccessfulentrepreneursarereservedandcautiousinmakingcontact.

How do you develop Social orientation?Socialorientationisaninborncharacteristicanditsdevelopmentisthereforelimited.Itdoesnothavetobeaproblemifyoudonotliketobeinthecompanyofothers;youjusthavetomakesurethatyoukeepnetworkingsufficiently.Thatmighttakemoreeffortfromyou,butyouwillseethatyoufeeldifferentlyonceityieldssuccess.Becausewhetheryouaresellingaproductoraservice,networkingisthewaytofindnewcustomers,andtostaywellinformedaboutdevelopmentsinyourfieldandmarket.Whatisnetworking?Howdoyoudothat?Whatshouldyoudoandnotdo?Networkingistheestablishmentandmaintenanceofcontactsthatcanhelpyouandyourcompany.However,thatisonlyonesideofthecoin.

Networkingisgivingandtaking.Helpthepeopleinyournetworkaccess informationandnewcontacts.Thebasisofagoodnetworkistrust.Inprinciple,everyoneyouknowandofwhomyouhaveapositiveimpressionisyournetwork.Yournetworkisbiggerthanyouthink.Moreover,thecontactsfromyournetworkhaveaprivatenetworktoo.Byusingthisnetwork,youincreaseyourownnetwork.Ofcourse,youcanpurposefullyapproachpeopleforyourowngain,forexamplebycallingsomeoneforanappointmenttopresentyourproductsandservices.Nevertheless,chancesarethatthisiswhatyoufindsodifficult.Therefore,whatelsecanyoudotonetworkproperly?Afewtips.

Tips for good networking• Onlynetworkwithpeoplewithwhomyougetalong.Afterall,anetworkis

basedonmutualtrust.• Collectbusinesscardsandstoretheminasystem.Writeoneachcardwhere

youhavemetthepersonandwhatyoumightbeabletodoforeachother.• Knowwhatyouwantandexpressthat.Often,informationandcontactsa

utomaticallycomeup.Nevertheless,rememberthatnetworkingisalwaysmutual.Therefore,startbybrainstormingwiththeother:givebeforeyoutake.

• Keepupyourreputation.Forexample,donotforwardpeopletocontactsthatyoudonotthinkhighlyoforifyouquestiontheirmotives.Yournetworkwillholditagainstyou.

• Donotgrieveifnetworkingisnotdirectlyprofitable.Itoftentakesalittle longertopayoff.Sometimessomeoneofwhomyouhadnotexpectedit (anymore)visitsyou.

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Self beliefSelfbelieforefficacyreferstopeople’sbeliefinthecontrolovereventsintheirlives.Doesthatcontrollieontheinsideoroutsideofthem?Therearepeoplewhobelievethattheystandatthehelmoflife,thattheyhaveaninfluenceonwhateverhappens.Othersbelieveyouonlyhavelimitedimpactonthings;lifehappenstoyouandyoushouldlearntocopewithitasbestasyoucan.Isitamatterofluckordoyoucontrolhappiness?Canyouenforcehappiness?Isthecontrolinternalorexternal?Youareeffectivewhenyou:

• Perceiveaneventasanoutcomethatiswithinyourpersonalcontrolorthathas originatedbecauseofyourownefforts.Youareineffectivewhenyouperceiveaneventtobebeyondyourpersonalcontrolorwhenyouthinkthataneventisnotcausedbyyoureffortsbutbyluckorfate.Afterall,ifyoudonotbelieveinthe outcome(success)ofyour‘undertaking’andifyoudonotbelievethatthisoutcomeiscausedbyyourownefforts,youwillprobablynothaveagoatthatriskystep. Thetermself-confidenceisalsousedinrelationtothis.

• Selfbeliefdistinguishesbetweenpeoplewhothinkthattheythemselveshavecontroloverpersonaleventsintheirlives,simplycalled‘internals,’andpeoplewhothinkthatpersonaleventsintheirlivesareinfluencedbyfactorsoverwhichtheyhavenocontrol,simplycalled‘externals.’Internalsbelievetheycaninfluencetheirsurroundingsbyusingtheirabilities,whileexternalsbelievethatfactorssuchasluck,chanceorpowerfulpeopleandinstitutionshavetheupperhandinmostoftheeventsintheirlives.Internalshaveagreaterperformancedrive,andtheyaremorelikelytoadaptandtolearn.Thismeansthatinternalslookfortheimpactoftheirownbehaviorontheenvironmentmoreactivelythanexternalsdo.

Yourneedforachievementdeterminesthedirectioninwhichyourcompanyneedstogobysetting(ambitious)targets,accompaniedbyanenormousdrive(motivation)toachievethatgoal.However,youwillprobablynotreachthatgoalwithoutselfbeliefandthusconfidenceintheoutcomeresultingfromyourownefforts.

Thereareentrepreneurswhoaresuccessful,butwhodonotdirectlyattributethistotheirowneffectivenessandwhoratherclaimitisluckoreven‘God-given.’Someentrepreneursrealizethattheirsuccesscannotbeachievedthankstotheirownactionsonlyandtheythusseekanexplanationbeyondthemselves.Theyarewellawareoftheirprivilegedpositionandtheyaresometimesevensurprisedatthesuccessthathasbefallenthem.Theyfeelasiftherehasbeen(yet)anotherforcethathashelpedthem.Still,thatdoesnotsaythattheentrepreneursdonot(largely)owetheirsuccesstotheirselfbelief.Whatwouldhavehappenediftheyhadnotbelievedinit?Wouldtheyhavepersevered?Wouldothershavedoneso?Evenifentrepreneursdobelievethattheyhavesucceededlargelythankstotheirownknowledgeandskills,theymightnotwanttowalkaroundbrandishingit.

EntrepreneurHenryFordofthecarbrandofthesamenamealreadyunderstoodthatitmatterswhatyouthink.Herightlyarguedthatifyouthink‘Icandoit’or ‘Icannotdoit,’youarerightineithercase.

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General description Self beliefPersonalefficacyisthebeliefinone’sownabilitiesandtheconfidenceinrelationtoothers.Successfulentrepreneursareconfidentthattheycanachievetheirgoalsontheirown.Theyareconvincedthattheyareabletofinishanyjobandthattheirsuccessdoesnotdependonothers,butonthem.Theyalsobringthatconfidenceintheirrelationshipwithothers,eventhoughtheyarericher,moreimportantormorepowerful. Unsuccessfulentrepreneursbelieveintheirownstrengthlessandlivewiththeideathattheirsuccessdependsoncircumstances.

How do you increase your Self belief?Toworkandliveeffectively,itisnecessarytodetectblockages,hiddenbeliefsandthwartingemotions,andtoturnthemintothoughtsandfeelingsthatcomeinhandy.Youdothisbychangingthewayyouthinkaboutyourself,becauseitislargelyabouthowyoulookatyourselfandhowyoufeelaboutyourself.Youdonotdaretorelyonyourselfbecauseyouhavedeludedyourselfintobelievingthatyoucannotdosomething.Thatisjustwhereitbegins:thosenegativethoughtsaboutyourself.Thequestioniswhetherthatisthecasebecauseyouthinkyoucannotperformthatparticulartask,orbecauseyouthinkyoudonotknowhowtoperformit?Ifthelatteristhecase,itactuallymeansthatyouhaveinsufficientknowledgetobeabletostart.

Thefactthatyoudonotknowhowtostartstopsyoufromstarting.So,ifyoufindoutwhatyouneedtoknowabouthowtoperformthatparticulartask,howyoushouldtackleit,ittakesawaythethreshold.Onthecontrary,ifitisthefirstoption(youthinkyoucannotdoit),itisimportanttolookatwhatisbehindit.Youhavetofindoutwhatthoughtsandfeelingsbotheryou.Thoughtsandfeelingsthatmakeyouthinkthatyouarenotcapableofsomethingarealsocalledblockagesorobstacles.Afterall,thosethoughtsandfeelingsdonottakeyoufurtheranddonotmakeyouexudeconfidence.Howdoyoucopewiththem?Howdoyougetridofthosedoubts?Itisnoteasy,butnotimpossibleeither!However,eliminatingtheseobstaclesindependentlyisadifficulttask.Withsomeoneelsewhospecializesinit,itgoesmucheasierandbetter.

Ifyoustillfirstwanttotryityourself,itisimportantthatyoumakeclearexactlywhatthoughtscausethefeelingthatyoucannotperformaparticulartask,thatyouarenogood.Onlywhenthatthoughtisclear,youshouldmakeclearwhatyoufeelwhenyouthinkthatthought.Nowitisimportanttocounterbalancethenegativethoughtaboutyourselfwithapositivethoughtinwhichyoubelieve.Byendlesslyrepeatingit,youreplaceyouroldnegativethoughtwithanewpositivethought.Ittakesawhile,butyouwillseethatyoulookatitmorepositivelyandyouwillfindthatyouhavenothingtofear.Whosaysthereissomethingyoucan-notdo?YOU,right?Therefore,onlyyoucanreplaceyournegativethoughtwithapositiveone.Havingproblems?Thenuseanexperiencedcoachwhohelpspeopletobemoreeffectiveonadailybasis.

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Endurance or PerseveranceManyentrepreneursindicatethattheyfindenduranceimportanttothecontinuityof thebusiness.Thatiseasytoimagine,especiallyconsideringthemanysetbacksthat entrepreneurshaveontheunbeatenpath.Withthesaying‘ifthereisawill,thereisaway,’itisalsoeasytoimaginethatentrepreneurswithperseveranceandthewilltobuildasuccessfulbusinesswillfindawaytoit.Whenthingsarenotgoingwellandoneisactuallyabouttogiveup,one’sperseverancewillkeeponeonone’sfeetandone’sperformanceorientationwillkeeponefocused.Youareago-getterwhenyou:

• Havediscipline,havetheabilitytodominate,aregoal-oriented,feelpersonallyresponsible,persevereintasksespeciallywhenthesearedifficultandphysicallydemanding,aredeterminedandaretenacious.

• Persevere,likefairandconstructiveformsofcooperationandpreferworkthatenablesquietdedicationandregularcommitment.Thatmakesthesepeopleemotionallystablebutitmayalsoaffecttheirflexibility;theymaycomeacrossasrigid.

Ihavetalkedwithmanysuccessfulentrepreneurs.Withoutexception,theyhaveallhaddifficultperiods.However,bytheveryactofperseveringatthosetimes,theyhavemadeprogress.

General description EnduranceEndurancemeanscontinuingpowerfullydespitesetbacksorobjections,preciselywhenthegoinggetstough,alsointhelongerterm.Successfulentrepreneurshavegreat perseverance.Withacleargoalinmind,theyeventuallyovercomeeverybump.Evenwhentheydonot(directly)makeprogress,theypersevere.Theyworkhardanddonotletgountilthegoalisreached.Non-successfulentrepreneursoftenhavealackof willpowerandarequickertohidebehindfatigueorboredom.

How do you increase Endurance?Enduranceisatrait.Thecharacteristicofatraitisthatitishardtolearn.Youarebornwithit,moreorless.Theonehasthatmorethantheotherdoes.Howcanyoustillimproveyourperseverance?Thefollowingtipsmayhelpyou:• Makesuretohaveaclearvisionandthewilltorealizethisonlytoohappily.

Thecleareryourvisionisofwhatyouwanttoachieve,theeasieritisto persevere.Afterall,youknowforwhatyouaredoingit.

• Takealltheworkyouhavetodotoachieveyourvisionandsubdividetheminverysmallstepsthatarewellarrangedanddonotseemsobigthatyoualreadydonotfeellikeitinadvance.

• Concentrateonlyonthestepinfrontofyou.• Rewardyourselfaftereachstep.• Createspaceintherealizationofeachstep.Thisgivesmoreflexibilityto

finisheachstepsuccessfully,andtoensurethatyoudonotthinkitisnot goingtoworkinadvanceandthatyouthrowdownthetowelprematurely.

• Everyday,trytodomorethanyouhadactuallyenvisioned.• Enjoyeverystepyouhavetaken;consideritforamomentandbeproud

ofyourself!

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I don’t measure a man’s success by how high he climbs but how high

he bounces when he hits bottom.George S. Patton

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Risk takingSuccessfulentrepreneurstakecalculatedrisks,asmanybooksdescribe.Whatisacalculatedriskthough?Doesitmeanthatallrisksareidentifiedsothatitisknownwhatrisksoneruns?Alternatively,doesitmeanthattheentrepreneurknowswhatrisksonerunsandhowtodealwiththem?Athirdmeaningcouldbethattheentrepreneuroneselfisresponsibleforone’ssuccessandthatonereducestheriskoffailurethoughone’sown(entrepreneurial)behavior.

Startingabusinessisseenasariskyactivity.Thatisagivenwithwhichyouasanentrepreneurhaveto(learnto)deal.Whatoneseesasrisky,theotherexperiencesasanopportunitynottobemissed.Thatsamepersonmaynaturallybequiterisk-averse,butiftheriskoffailureisnotseenbecausethechanceofsuccessdominatesintheimagination,theriskdoesnotneedtobeavoided.Thus,itispossiblethatapersondoesnotseetherisk.Therearethreecausesforthis:thereisfirsttheoverconfidenceresultingfrom overestimatingone’sownknowledgeandskills.Secondly,thereistheillusionorwrongfulconvictionthatonecaninfluenceeventsinwhichluckplaysamajorrole.Finally,thereisthebeliefinthelawofsmallnumbers,whichmeansthatonewilldrawconclusionsbasedontoosmallsamplesorlimitedinformation.Anexampleofthisissomeonewronglytranslatingthreeenthusiasticreactionsfromfriendstoone’snewinventionintotheconclusionthattheentirepopulationwillbecharmedbyone’sinvention.

Entrepreneurialpeopleareactiverisktakers.Theyproactivelyobserveopportunitiesanddosowithenergy,initiativeandwillingnesstoachievethedesiredoutcomeofanopportunity,despitetherisksattachedtoit.Theirgoalsaremorefocusedonimprovingtheirlivesthanonpreservingthestatusquo.Thispositiveattitudetowardsopportunities,andthusthefaithandconfidenceinthepositiveoutcomeoftheopportunity,entailsaproactiveattitudethatischaracterizedbythewillingnesstoseizetheopportunitydespitetherisksoffailure.Itisthebalancebetweenthebestpossibleprofitandaslittledamageaspossible.Sooneroreventually,entrepreneurialpeoplearepulledbythe potentialpositiveoutcomesandthustheprofit,whilenon-entrepreneurialpeopletendtofocusonthenegativeimpactoftheoutcome,andthusthepotentialdamage.Non-entrepreneurialpeoplearemorepassiveintheirapproachtorisk.Theyoftenrespondonlytotheriskstheyfaceandcannotignore.Theirbehaviorisfocusedonreducingthepotentialdangersoftherisks.

ConclusionRiskisinherenttoentrepreneurship,butisstronglyconnectedwiththepersonwhoperceivesit.Somethingmayseemveryriskyforoneperson,whilethesameis-rightlyorwrongly-notperceivedassuchforthosesubjectedtoit.Inaddition,riskisconnectedwiththeuncertaintyabout(future)outcomes. Whenrunning/startingacompany,thereisuncertaintyaboutthefuture,thedevelopmentofthemarket,theprofitabilityofthecompanyandone’sownincome.Thatisagivenwithwhichyouasan(starting)entrepreneurhaveto(learnto)deal.Itispartofyourjobasanentrepreneur.Remember,althoughtherisksarecalculable,italwaysremains uncertainwhatactuallywillhappen.Takingrisksmeans,aboveall,tobeabletodealwiththisuncertainty.Riskisrelativetowhomissubjectedtoit,anditisthusalso connectedwithuncertainty.However,thetrueessenceofentrepreneurshipespecially

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liesinseeingopportunities,andthetendencytoseizethemratherdependsonthevision,creativityandperseveranceofanentrepreneurthanthewillingnesstotakerisks.Todealwithunknownssuccessfully,theentrepreneurmustpossessvision,confidence,decision-makingpowerandthepowertoassesscapacitiesofyourselfaswellasothersproperly.

“Ifyouhavenofaithinthefuture,youhavenofaithinyourself”

General description Risk takingRiskappetiteistheabilitytodealwithuncertaintyandthewillingnesstotakealoss.Successfulentrepreneursareactiverisktakers.Theyproactivelyobserveopportunitiesanddosowithenergy,initiativeandwillingnesstoachievethedesiredoutcomeofanopportunity,despitetherisksinherenttotheperceivedrisk.Theirgoalsaremorefocusedonimprovingtheirlivesthanpreservinglifeasitis.Unsuccessfulentrepreneursarepassiverisktakers.Theyapproachrisksmorecautiouslyanddefensivelyandtheyoftenonlyrespondtowhattheyfaceandcannotignore.

The only certainty you have is you

How do you increase Risk taking?Withrisktaking,itismainlyaboutknowingwhatrisksyourun,apartfromthefactwhetheryouwanttorunthatrisk.Thismeansthatyoushouldidentifyalltherisksassociatedwithadecision.Thiscanbestbedonebymakingariskanalysis.Youdothisbywritingdownallthedangersandconsequences,andbyindicatingwhatriskyourunineachdangerorconsequence–afinancialoneoranemotionalone.Financialriskscanbecovered.Therearespecialistswhocanhelpyouwiththat.Itiscompletelydifferentwithemotionalrisks.Whenyounoticeanemotionalriskistoobigforyou,youcandothefollowing:putthingsinperspective. Imaginethatyouhavemadethedecisionandthatitgoeswrong.Letthefeelingcomeup.Makeitworse,andthentrytoaskyourselfwhatexactlyissobad.Whatisitthatyoureallycannotstand?Istherenoothersolution,notevenwhenyoumakeaneffortandarecreative? Nomatterhowbaditgets,youwillalwaysfindawayout,right?Infact,thatiswhatitisaboutwithrisktaking.Nomatterwhatriskyourun,youtrustitandyouknowthatyouwillfindasolution,andthatultimately,onceithappens,itisnotsobad.Thepointisthatyou,onceitgoeswrong,starttolookatitdifferently.Youneedtothinkintermsofsolutionsandinpossibilities.Itiscalledputtingthingsinperspective,whichmakesrisks,seeminglyhugeemotionalrisks,seemsmaller.

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4.2.2 The thinking styles: which do you prefer?

TheelementPersonalcharacteristicsdoesnotonlyconsistofcharacteristics,butalso ofthinkingstyles.AccordingtothetheoryofHerrmann(1996),thinkingstylessay somethingaboutwhatyouthinkaboutandhowyoudoso.Yourthinkingstyleaffectsthebehavioryoushow.Therearefourdistinctentrepreneurialthinkingstyles:Pioneer,Salesperson,ManagerandSpecialist.Everyentrepreneurhasallthinkingstylesinoneself,butalsohasanaturalpreferenceforaparticularthinkingstyle.Thatisthethinkingstylethatusuallyprevailsanddetermineshowyouthinkandact.However,timeandagain,thesituationdetermineshowthefourthinkingstylesworktogetherandconsequently,howyoubehave.Therefore,itispossiblethatyouresponddifferentlythanyoumightexpectbasedonyourpreferenceforanentrepreneurialthinkingstyle.Thefollowingsubchapterswillelaborateonthefourthinkingstyles.

Pioneer

Manager Salesperson

Specialist

✔

✔

✔

✔

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The (experimental) PioneerThethoughtsofthepioneersaredominatedbypossibilities.One“lives”inthefuture,andhasalong-termvision.Duetoone’sstrongimaginationpower,oneoftenalreadyimaginesthewholepicture,whileothershavenoideayet.Thepioneerthinksplayfully,quicklyandoftenbeyondsetlimits.Onestandsoutbecauseofapassionate,optimistic,sometimesnaivestyle.Onehastheabilityeithertoturnasituationintochaosortopullitoutofchaos.Thisisbecauseonecanshedanewlightonexistingmattersandonecantransformapparentlyillogicalproblemsintosolutions.Thepioneercangettogreatheightsinchaoticsituations,butlosesoneselfinsituationsoforderandindailypractice.Oneisboredeasilybyroutineandhaslittleattentiontodetails. One’sbigmotivationisgettingrecognition.Onestandsoutbybeingdifferent.Insituationsofchaos,onegetsthatchance.Whileothersaccepttheimpossibilitiesorroutineofthesituation,thepioneerconstantlywonderswhythingshappenastheydoandwhyitcannotbedifferent.One’sideasaboutdifferentorbetterarelimitedonlybyone’simagination.

How do you develop the thinking style of a Pioneer?Youcantrainyourbrainandthereforeyourthinkingstyles.Obviously,yournaturalpreferenceforathinkingstylewillcontinuetoprevail,butyoucandevelopthestyleofthinkingthatyouusuallydonotapplythroughpractice.IfthethinkingstyleofPioneerappliestoyouless,youcandevelopthatbydoingthefollowingexercisesregularly:

• Designalogoforyour(future)businessyourself.• Imaginewhatyourbusinesswilllooklikein10years,andtrytodothatas

detailedaspossible.• Makeadecisionbasedpurelyonyourfeelings;useyourintuition,orthe

(very)firstthingthatcomestomind.• Developanewproductorapplicationforyourbusiness.• Inventatleastonecrazyideaperdayandexecutetheideaifyoucan.• Thinkofatleastfivesolutionstoaproblemthatyouencounter.• Createametaphorfortheproductsandservicesofyourcompany.• Dosomethingyouhaveneverdonebefore;• Predictwhatwillhappennextyearandwriteitdown.

The (sensitive) SalespersonThesalespersonlovespeopleandisfocusedondevelopingrelationships.Oneoftentrustsone’sfeelings.Onehasgreatinterestinthepeoplearoundoneandiscommittedtomakingcontact,thoughonemaybeguidedbybusinessconsiderations. Oneunderstandstheneedsofthecustomerbetterthananyonedoes.One’sbigmotivationisacceptancebythesurroundings.Preciselythistypeisfocusedontheother.Aslongastheothersarehavingfun,onehassotoo.Sellingproductsorservicesmeansmatchingtheneedsofthecustomer.Oneworkswellinharmonioussituations. Init,oneconstantlyseekswin-winsituations.Thesalespersonlikestodosomethingforothers,becauseitincreasesthechanceofacceptance.Thatmakesthistypeloyal,flexible

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andenthusiastic.Ithappensthatotherstakeadvantageofone.Onetendstoavoid conflictsandonecannottoleratecriticism;onewilltakeitpersonally.Thismeansthatoneisincapableofmakingrapid,hardorrationaldecisions.Oneismoreconcernedaboutwhoexperiencestheconsequencesinsteadofrealizingwhatthebestdecisionis.

How do you develop the thinking style of a Salesperson?Itispossibletotrainyourbrain.Youcandevelopyourpreferenceforacertainthinkingstyleaswellasthethinkingstylesthatarelessnaturalforyou.Ifthe thinkingstyleofSalespersonappliestoyouless,youcandevelopitbydoing thefollowingexercisesregularly:• Maketimetolistentoyourfavoritemusic.• Shareyourfeelingswithpeopleyoulove.• Takeagoodlookatthecolorsinaroom,tastetheatmosphereanddescribeit.• Dosomethingthatevokesstrongemotionsinyouandsharethiswithpeople

withwhomyougetalongwell.• Eachday,trytomeetandhaveaconversationwithanewperson.• Trypayingattentiontoyourpostureandhowyoucomeacrosstoothers:

howdoothersseeandexperienceyou?• Helpaco-workerorfriendwithone’sassignmentorproblem.• Organizeapartyorcasualgathering.• Makeadecisioninwhichyoutakeintoaccounteveryone’sneeds.• Haveaconversationwithsomeonewhenwalkingonthestreetorwhen

waitingsomewhere.• Practicetellingstories.• Makesureyougetgoosebumpsregularly.

The (conservative) ManagerLikenoother,themanagerisabletowatchthecompany.Throughone’ssearchfor certainties,oneattachesgreatimportancetorulesandprocedures.Focusedonthe shortterm,onekeepstheoverviewinanotherwisechaoticsituation.Onelikestostayincontrolandseeksorder.Onestructuresthecompanyintoanefficientlyoperatingenterpriseandascheduleisdrawnupforthesmallestdetail.Littleislefttochance.Onestructurestheworkintoaflawlesslyrunningbusiness,inwhicheveryoneknowsone’sdutiesandauthorities.However,whenchangesloom,themanagerisatanutterlossbecausetherulesaresuddenlynolongerusable.Onetrulylikestouserulesthathaveproventheirsuccessandstickstothemrigorously. Onedoesnotlikechangeandinsiststhateveryoneabidesbytherules.Ifnot,acommentwillinevitablyfollow.Oneacceptsthatthingsshouldbedoneastheyhavealwaysbeendone,eventhoughitdoesnotcomplywithone’sownidea.Onehasasenseofresponsibility.Onetakescareofmatterstoperfection.Thatmakesthemanagerloyalandapersonofintegrity.

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All our dreams can come true, if we have the courage to pursue them.

Walt Disney

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How do you develop the thinking style of a Manager?Youcandevelopyourbrainandyourthinkingstyles.Afterall,learninghappensinyourbrain.IfthethinkingstyleofManagerappliestoyouless,youcandevelop itbydoingthefollowingexercisesregularly:

• Makea‘ToDo’listandcheckoffwhatyouhavedone.• Createyourownbusiness(house)rulesandproceduresonhowone

shouldactorwork.• Cometoanappointmentearlierthanplanned.• Keepalogofthethingsyoudoeveryday.• Organizeorreorganizethefoldersinyourcomputerorcleanyour

deskaccordingtoacertainstructure.• Tryworkingoutthedetailsofaprojectortaskthatyouaredoing.• Lookattherisksanddangersofadecisionthatneedstobemade,

withouttakingintoaccountyourfeelings.• Puttogetheryourincomeandexpensesofacertainperiod.• Choosesomethingthatyouhavebeenputtingoffandfinishitnow.• Setprioritiesfortheweekorday.

The (Analytical) SpecialistThespecialistiswellinformedaboutalldevelopmentsinone’sfield.Oneknowsalltheinsandoutsofone’sprofession.Oneformsanimageofeventsfromone’sexperienceandknowledge,causingonetocometotherightdecisionindependentlyandrationally.Onealwaysdishesupthebestalternatives.Thespecialistisindividualisticandrealistic.Onedistinguishesoneselfbythedesiretobethebest,atleastinone’sfield.Oneisoftencriticalandmustfirstbeconvincedthatsomethingworksbeforeonetrustsit.Onepridesoneselftoknowitbetterortobebetterable.Onetakesrealityasagivenandtriestoperformthebestonecan.Thedisadvantageofthistypeisthatonecanhaveaperfectionistic andsometimesalsoauthoritarianattitude. Whenitcomestoone’sprofession,onedoesnotavoiddiscussion.Deliveringqualityisatoppriorityforthespecialist.Communicatingand interactingwithpeopleismore difficultforoneandconsequently, sellingisnotreallyone’scupoftea.Onebelievesagoodproductwill sellitself.

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How do you develop the thinking style of a Specialist?Itispossibletotrainyourbrain.Youcandevelopyourpreferenceforacertainthinkingstyle(further)aswellasthethinkingstylesthatarelessnaturaltoyou. IfthethinkingstyleofSpecialistappliestoyouless,youcantrainitwiththefollowingexercises:

• Examineanannualreportofacompany,preferablytheannualaccountofyourownbusiness,withoutdirectlyworryingaboutwhatexactlyitsays.

• Calculatethetimeittakesyoutomakeaproductordeliveraservice.• Learntoworkwithasoftwareprogramandthenexplainsomeoneelsehow

itworks.• Setsometargetsforthisyear.• Performastatisticalanalysisof,forexample,howmanyclientsyouhaveto

selltoperdayorweekinordertorealizeacertainturnover.• Foradecisionyouhavetomake,putallthefactstogetherandweighthepros

andconsofthedecisioninasystematicway,forexamplebygivingitpointsofimportance.

• Evaluateanemotionaldecisionthatyouhavemadeinarationalway.• Writedownyourcriticismonthingsthatyouthinkarenotgoingwellin

(thestartof)yourcompany.• Inmakingadecisionthatadverselyaffectsanother,playthepartof‘devil’s

advocate,’orcriticallyviewthedecisionfromtheviewpointoftheotherperson.

• Loseyourselfintheoperationofadeviceandaskyourselfhowitworks.

ConclusionPersonalcharacteristicsasthesecondelementoftheentrepreneurialcompetenceareshapedbycharacteristicsandthinkingstyles,andarenecessaryforthecontinuityofthecompany.ThemaincharacteristicsareNeedforachievement,Needforautonomy,Dominance,SocialOrientation,Selfbelief,EnduranceandRisktaking.Thinkingstyleslargelydeterminefromwhichangleasituationorissueisapproachedandtheythuslargelydeterminethebehaviorshown.Fourthinkingstylesforentrepreneurshavebeenidentified:Pioneer,Salesperson,ManagerandSpecialist.Everyentrepreneurhasallthinkingstyles,buthasanaturalpreferenceforoneormorethinkingstyles.

Be different Show what

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4.3. Qualities: what can you do well?

Figure5:Thirdelementofcompetence:qualities.

Qualitiessaysomethingaboutwhatyoucandowell.Qualitiesarethusnotthesame ascharacteristics.Thecruxofthedifferenceliesintheabilitytolearnit.Characteristicsareafairlyfixedgivenandarethereforenoteasytochangeorlearn(inashorttime).Qualitiescanbelearnedmoreeasilyandquickly.Trainingsfor,forexample,creativityandleadershiphaveproventhat.Youcanprobablyimaginethatyouneedotherqualitiesforthestartofacompanythaninthephaseofstronggrowth.Aninventorcanmakesomethingoutofnothing.Oneisatruestarter.Nevertheless,howwillitgowiththepioneerwhentheideaisviable,whenstaffshouldbehiredandaworkableorganizationshouldbesetup?Thepioneer,whowasfiddlinginone’sshedsobrilliantly,nowhastomanageallofasudden.Nottheuniqueproductiscentral,buttheeffectivenessofthebusinessorganizationis.Marketingcomesintoplayandtheartofcooperationistobepracticed.Ifoneisnotaverygoodmanager,onehasanimportantdecisiontomakeasoneneedstoputsomeonewhoisabettermanagerattheheadofone’scompany.Inotherwords,thispersonissomeonewhoismoresuitedtothenewsituationinwhichone’sfirmfindsitself.Thisway,everyphaseofacompanyrequiresdifferentqualities.

Inshort,organizationsgroworshrink.Asanentrepreneur,youshouldfollowtheascendingordescendingmovement.Thismeansthatyourrolecanchangesignificantlyovertimeandthatotherqualitiesareconsequentlyrequiredofyou.Intotal,acompanycangothroughfourphases:theEarlyphase,theExpansionphase,theAdultphaseandtheContractionphase.ThefourphasestogetherarecalledtheBusinessLifecycle.Thesephasesareimportanttothequalitiesneeded,whichalsodifferperphase. Beforediscussingthequalities,thecontentsofthedifferentphasesofacompanyareexplainedbelow.

characteristic

s

know

ledge motivation wantingknowing

being

qualities

doing

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Thebusinesslifecyclegenerallyhasfourphasesofdevelopment:nogrowth,modestgrowth,stronggrowthanddecreasinggrowth.Acompanycangothrougheachphasemorethanonce.Afteraphaseofdeclininggrowth,aphaseofmodestgrowthmaycome,followedbyaphaseofstronggrowth.Thus,onespeaksofacycle.ItlookslikeanS-curveasshowninthefigurebelow.Bothascendinganddescendingmovementsarepossible.

Thefirstphaseiscalledtheearlyphase.Youusuallystartsmall.Mostattentionispaidtobuildingandorganizingthecompany.Onestillhastotakecareofmanypracticalissues.Usually,thereisnogrowthyetandonestillhastostartfindingcustomers.

Theinitialgrowthisemergingoncethedemandforproductsorservicesincreases.Thisgrowthdoesnothavetobealogicalconsequenceofyourefforts.Growthoftenoccursbychanceandsometimes,youareevenoverwhelmedbyalargeorder.Thismaymeanthat thefirstemployee(s)mustbehired.Thecompanyheavilyreliesonyouasanentrepreneur.

Stronggrowthemergeswhenthecompanyconnectswiththemarket.Businessmanage-mentbecomescomplexandyoulosetheoverview.Aneedforclearrulesandaclearstructureincreasinglyarisesfromtheorganization.Tasksandresponsibilitiesshouldbedelegated.Thecompanybecomeslessdependentonyouasanentrepreneur.

Sometimes when you innovate, you make mistakes. It is best to

admit them quickly, and get on with improving your other innovations.

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Duetothesmoothorganization,thecompanylosestouchwiththemarketandgrowthdeclines.Thephaseofdecreasinggrowthorcontractionphasecanoccuranytime. Forexample,ifgrowthdeclinesafterthefirstphaseofgrowthandnothingisdone, thiscanresultintheterminationofthecompany.

Thetransitionfromonephasetoanotheroccursbecausetheexistingstructurecannothandlefurthergrowth.Thetransitionsaredifficulttoidentify.Youcanfeelthemasanentrepreneur,buttheyarenotalwaysvisible.Sometimes,aconflictisnecessaryforthecompanytobeabletotakethenextstep.

Figure6:businesslifecycle.

I No growthII Small growthIII Strong growthIV Decreasing growth

Time

Common companylife cycle

Possible companylife cycle

Com

pany

siz

e in

rev

enue

s

I II III IV

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Thecycleoffourphasesdoesnotonlyrelatetothedevelopmentofthecompanyonceithasstarted,butitcanalsobeappliedintheperiodthatprecedesthestartofacompany.Duringthestartupofacompany,thereareroughlyfourphasesaswell:

Before the start: From idea to start.

The concept phaseTheprocessleadingtoa(successful)businessstartswithanideaor,ifyoulike,aconcept.Theideaispresentinyourimaginationalotandinthisphase,itisthegreatchallengetogiveshapetothestillvagueideaconcretely.Thismaybethedrawingortheproductionofaprototypeoradetaileddescriptionofaservice.Thisbusinessphaseischaracterizedbyfantasizing,thinkingandimagining.Youareobsessedwithyourideaandthepossibilitiesitoffers(theEurekafeelingispresent24hoursaday:isthisthegatewaytosuccess,fameandfortune?).

Thereareentrepreneurswhonevergetbeyondthisphase.Theyarepioneersatheart,theycallthemselvesinventorandtheydeviseingenioussolutionsoneafteranother.Oncetheirideahasreachedthephaseofprototype,theyletitgoassoonaspossible,preferablybysellingtheideatoa(production)companyformuchmoneyofcourse.Unfortunately,most‘genius’ideasdieinbeautyastheyturnouttobeunworkableinpractice,tooexpensiveornotasgeniusastheinventorhadthoughtinitially.Thetruepioneerwillnotbeputoffbythis:onestartstoworkonanewidea,butnowonethatisgenius!

The product phaseTheinitialreactionstothe(prototype)productorserviceareofgreatimportanceforsharpeningit.Friendsorpotentialclientsactasguineapig.Beingabletoempathizewellwiththeexperienceofthecustomerandbeingabletolistenarequalitiesneededinthisphase.

The planning phaseThefeelingthathasaclearroleinpreviousphaseshastogivewaytoamorerationalviewontheproductandthemarketonwhichyouaregoingtofocus.Choiceshavetobemadeandabusinessplanshouldbedrawnupshowingthefeasibility(boththe combinationproduct-marketandthefinances).Beingabletoworksystematically andbeingabletoworkoutthingsindetailareimportant.Understandingthemarket (marketing)andsomenumeracyskills(administration)arepreferred.

The start or stop phase Thetimehascomethatthecompanyisactuallystarted.Itisalsopossiblethatthestartiscanceledbecause,inretrospect,theoriginalideaprovesnottobeviable.Thequestionwhethertostartrequiresanobjectiveopiniononthefeasibilityoftheplan.Thisrequiresanindependent,criticalandanalyticalview.Themindreignssupremeinthisphase.Throughtargetedquestions,itbecomesclearwhatgapsexistintheplanandwhatneedssomesharpening.

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Figure7:Thefourphasesofstartingacompany.

After the start: From startup to fall down

Oncethecompanyisafact,thesamecycleasinpreparationawaitsyouasanentrepreneur.Preparationmighthavetakenhalfayearuptooneandahalfyears,buttheideaisthattheexistenceofthecompanywilltakealittlelonger.Fortunately,thephasesgoabitslowerandsmoother.Therefore,youhaveplentyoftimetorespondtothedifferentphases.

Unfortunately,practiceshowsthattimeisnotenough.Youshouldalsorecognizethatyouareenteringanewphaserequiringdifferentqualities.

Early phaseTheinitialphasehasnogrowthandischaracterizedbychaosmainly.Theyoungcompanyisanewstrangerintheareaandyouespeciallyhavetopioneertogetyourbusinessstarted.Dynamics,uncertaintyandchaoscharacterizethestart-upcompany.

Expansion phaseThecompanyisinharmonywiththeenvironmentoncethefirstsaleshavebeenmadeandtheproductorserviceseemstocatchon.Thenitbecomescrucialtointensifythesaleseffortsandtoactdecisively.

Mature phaseThestrongertheorganizationgrows,thestrongerthedesireistokeepthatgrowthundercontrol:keepeverythingrolling.Preciselybymanaging,theorderwithintheorganizationcanbepreserved.Thankstostrongmanagementandthusanorderlyorganization,itispossibletotakefulladvantageofthefavorablemarketandtomaximizeprofits.

Contraction phaseHowever,asleekorganizationadaptslesseasilywhenthemarketchanges.Growthisdeclining,bythearrivalofacompetitor,forexample,orbychangesincustomerneeds.Soonaconflictemergesforwhichyouneedtofindananswer.Anobjectivepictureofthedeterioratingsituationshouldbeformed.

plan phase product p

hase

go

/ no

-go phase concept phase

Role: SpecialistCharacter: Judge

Role: PioneerCharacter: Think

Role: ManagerCharacter: Do

Role: SalespersonCharacter: Feel

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AgainThecontractionphasemayendintheendofthecompany,forexample,becauseithasgonebankruptorbecauseithasbeentakenoverbyacompetitor.However,ifyourcompanyis(still)vital,thecycleabovecanstartoveragain.Thismayhappeninmanyways,forexample,bytakingoveracompetitoryourself,creatinganewcompany. Chaosisthestartingpointagainandmuchpioneeringshouldbedone(again). Inaddition,anewproductorserviceisanoption,aspartoftheexistingcompany,orasanewsubsidiaryorsistercompany.Tappingintoanew(foreign)marketisalsoaperfectsteptoturnthecontractionphaseintoanewpioneeringphase.

Figure8:Thefourphasesafterthestartofacompany.

Thefourphasescarrywiththemcertaincharacteristics.Forinstance,theearlyphaseischaracterizedbychaos,whilethematurephaseischaracterizedbyorder.

Inthosecharacteristicphases,anotherroleorthinkingstyleisalsorequiredofyou.Forinstance,thechaoticearlyphaserequiresthethinkingstyleofthepioneer,thesales-orientedexpansionphaserequiresthesalesperson,thecontrolledmaturephaserequiresthemanagerandfinally,thecriticalcontractionphaserequiresthespecialist.Nevertheless,thethinkingstylesarealsowellreflectedinthephasespriortothestart.Theideaphaserequiresthethinkingstyleofthepioneer,theproductphaserequires thethinkingstyleofthesalesperson,theplanningphaserequiresthethinkingstyleofthemanagerandfinally,thephaseinwhichitisdecidedwhetherthecompanyisgoingtobestartedornotrequiresthequalitiesofthespecialist.

Inthenextparagraph,themostimportantqualitiesoftheearlyphaseandthematurephaseofacompanyaredescribed.

Early phaseCharacter: ChaosRole: Pioneer+ Creative+ Independence- Planning & organizing- Financial accounting

Mature phaseCharacter: Order

Role: Manager+ Planning & organizing

+ Dominance- Creativity

Expansion phaseCharacter: HarmonyRole: Sales person+ Sociale orientation- Perseverance- Independence

Contraction phase

Character: ConflictRole: Specialist

+ Financial accounting- Leadership- Dominance

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Do you really want to grow? Yes? Then here is how to grow. Based on the metaphor of the big smile of entrepreneurship.

Eyes closedREFLECTINGReflectregularly. WhereamI?HowfaramI?HowwellamIdoing?

Big smileSATISFYINGKeepyourcustomers andco-workerssmiling.AgainandAgain.

Euro signMONITORINGRegularlymonitoryourfinanceandcashflow.

Eyes openVISIONINGCreateavisionandalwayskeeptheendinmind.

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4.3.2 The early phase: when you have just started

Intheearlyphase,themaintaskisputtingtheproductorserviceonthemarketandgainsaleswithit.Youworkwithminimalinvestmentsandyouhavetobeverymarket-oriented. Theproductshouldmeetthecustomer’sneeds.Byrespondingtothedemandsof customersand,ifnecessary,adaptingtheproduct,enoughsalescanbeachievedtocreatefinancialconditionsforsuccessfulgrowth.Asastartingentrepreneur,youshouldbeabletolistentoyourcustomerswell,thankstowhomyougainknowledgeandexperience.Thesuccessful,startingentrepreneurisabletoadaptone’sproducttowhatthecustomerwants.Thisalsorequirescreativityandflexibility.

Importantqualitiesfortheearlyphase• marketawareness• creativity• flexibility

Market awarenessWhatmakessomeonemarket-oriented?Whatcharacteristicsdoesamarket-oriented entrepreneurhave?Thatisthecentralquestionofthisquality.Thetaskofthepioneeristoensurethattheproductcloselymeetsthewishesofthecustomer.Youaremarket-orientedwhenyou:• Havecontactwith(potential)customers.• Visitexhibitionsregularly.• Gooverindustrydata.• Enquireauthorities.• Havemarketresearchconducted.• Followthecompetition.• Stayinformedofthecompetitor(s):productrangecomposition,marketshare,

newproducts,salesandoverallfinancialsituation.• Aresensitivetoandmakeuseofthemarket,thebusinessenvironmentand

trendstherein.

General description Market awareness Amarket-orientedentrepreneurcanempathizewiththeneedsof(potential)customersandcreatealinktoone’sownbusinessmanagement.Successfulentrepreneursrespondtothespecificneedsofaclearlydefinedtargetaudience.Theycanalsoaccuratelyindicatewhattheircompetitorsdo.Theyfollow(trade)magazinesandtalkwithclientsinordertoanticipatechangesinthemarket.Unsuccessfulentrepreneurshavelittleeyefortheneedsoftheircustomers.Theyareoftenmoreproduct-orientedanddonothaveacleartargetinmind.

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How do you develop market and customer awareness?Youbecomemoremarket-orientedbykeepinganeyeonyourmarket.Thismeansthatyoumustbefedwithasmuchinformationaspossible.Youobtaininformationbyreadingnewspapers,watchingTVandtalkingwithcustomers,competitors,peopleonthestreetorinthequeueforacashregisteratthesupermarket. Everywhereyouare,lookaroundyou.Thenaskyourselfwhatthiscouldmeanforyourbusiness.Bydoingthisconsistently,youdevelopakindofthirdeyethatscansdevelopmentsinandaroundyourbusiness.Customer-orientedpeoplehaveaneyefortherelationshipbetweenthecustomerandtheorganization.Thatrelationshipisoftencomplicated.Thisincludesnotonlymanydifferentareas(sales,provisionofinformation,communication,service),butalsovarioushumanaspects (expectations,wishes,ideas).Manyorganizationshavedifferentdepartments,whicheachlookatthecustomerintheirownway.Thecreditcontroldepartmentseesadifferentpersoninthecustomerthanthesalesdepartmentdoes.Thefollowingtipscanhelpyoubecomemorecustomer-oriented:

• Putthecustomerfirstinyourbehavior.• Haverespectforthecustomer;afterall,thispersonpaysyourincome.

Youareservice-oriented:youlovedoingthingsforanother.• Alwaysseekasolution.• Putyourselfinthecustomer’spositionandtrytounderstandhowthecustomer

experiencestheproblem.Itisnotthesameastheproblemoritscause.• Firstlistentothecustomerandaskquestionsbeforetellingaboutyour

product.Trytolearnasmuchaspossible.

CreativityWithcreativity,manypeoplefirstthinkofbeingabletopaintorsculptwell.Thismeansthattheyarefocusedondoing,butIamaimingmoreatthinkinghere.Howwellandhowoftendoyoucomeupwithnewandoriginalideasandsolutions?Creativityincreaseswhenyouopenyourselfupmoretowhatyouexperience.Theabilityto‘play’withthoughtsisanindispensableprerequisiteforcreativity.Youarecreativewhenyou:

• Generateandimplementnew,usefulideastostartanewbusiness.• Areopentonewconcepts,ideas,opinions,beliefsandthoughtsofothers.• Areabletohandleconflictinginformationwithoutlosingsightofthebigpicture

andyoucomeupwithmultiplesolutions.• Displayacertainamountofplayfulnessandhaveanintuitivewayofthinking.

Creativitycanbelearned.Itisawayofthinkingthatenableseveryonetocomeupwithnewandinnovativeideas.

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General description Creativity Creativityistheabilityto‘play’withideasandtoseeandtrynewpossibilities.Successfulentrepreneursareopentowhatishappeningintheirsurroundings.Indoingso,theyarenothamperedbylimitationsofthesituation,butchallengedbythepossibilities.Theyhavetheabilitytothinkfromdifferentanglesandtoexittroddenpaths.Theycanturnproblemsintoopportunitiesandarenotafraidtotakerisks.Non-successfulentrepreneursarelimitedintheirthinkingandtheyareupfortheexperimentlessquickly.

How do you develop Creativity?Psychologicalresearchhasyieldedfourwaysinwhichyoucanbeuptotentimesmorecreative:

• Rememberideasthatcometomindbywritingthemdown.So,alwayskeepanotebookclose.Newideasmainlycomeupundercertaincircumstances.Formanypeople,thatisinbed,intheshowerorontheroad.Othersneedrest,orinspirationofabeautifulenvironment.Whateveryourideamomentsare,makesureyoucanrecordnewthoughtsthatcometomindimmediately.

• Challengeyourselfbythinkingofalternativesforthingsyounormallydowithoutthinking.Thinkofdifferentsolutionsforthesameproblem.Acceleratetheflowofnewideasbychallengingyourself.Thatis,putyourselfinadifficultsituationinwhichthatwhichyoutryisnotlikelytosucceedatall.Underthechallenge’spressure,yourbrainsearchesforsolutionsthathaveworkedinothersituations.

• Broadenyourknowledgeandskills.Readaboutyourfieldasmuchaspossible.Creativityarisesbyapplyingknowledgeandskillstonewsituations.However,youneedtohavethatknowledgeandthoseskillsinthefirstplace.Themoreyouknowandarecapableof,themorecreativeyouwillbe.

• Surroundyourselfwithvariousstimuli.Gosomewhereyouhaveneverbeenbefore,orgosomewhereyouwouldnormallynotgotointhefirstplace.Takeadifferentroutetoworkorhome.Trywalkingaroundyourhouseinthedarkandputafunnytoyonyourdeskwhenyouareatwork.Listentodifferentmusic.Youmaycallitdistraction,butitisagreatsourceofcreativity.

FlexibilityFlexibilitymeansknowingfourbasicactivities,whichtogetherformaprocess.TheseactivitiesincludeObserving,Interpreting,AnticipatingandResponding.Theydescribetheprocessofactionandreaction.Thefirsttwoactivities,ObservingandInterpreting,correspondtothewayamarket-orientedandcreativepersonperceives. Thelasttwoactivities,AnticipatingandResponding,describehowonewillrespondtothatperception.Whetherandhowquicklyonereactsdeterminesthedegreeofflexibility.Flexibilityisacombinationofchangecapacityandresistivity.Inchangecapacity,itisabouttheabilityandwillingnesstochange.Here,thefollowingcharacteristicisgiven:

• Thatyouarestable,haveanabilitytochange,haveanabilitytoresist,thatyouareopentoexperienceandthatyouaredynamic,stressresistantandrelativizing.

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Whenitcomestoresistivity,itisaboutbeingamatchforchange,sothatyoudonotgoalongwitheverychange.Here,thefollowingcharacteristicisgiven:

• Thatyouhaveimprovisationandadaptabilitycapacityinchangesinthesurroundings.

General description Flexibility Flexibilityissynonymouswithadaptabilityhere.Successfulentrepreneursrespondtochangestheyobserveinthesurroundings,suchasnewcustomerdemandsornewcompetitorsinthemarket.Theyassessopportunitiesorthreatsfortheireffectsandadjusttheir(corporate)planaccordingly.Unsuccessfulentrepreneursarehardlywillingtoadapt.Theyresist,andtheycanbestubbornandrigid.

Ifyouwanttobecomemoreflexible,youcandothefollowing.Trytolookatachangedsituationasobjectivelyaspossible.Determinewhatyourfamiliarthinkingpatternandworkingmethodare.Takeamomenttoconsiderwhatpositivethingsinthenewsituationcanhelpyouimproveyourworkingmethod.Achangedsituationalsooffersopportunitiesandthusimprovementofthewayyouusedtodothings.Itismainlyamatteroflookingatthingsdifferently.Striveforinnovation.Youwillnoticethatyouacceptchangesmoreeasily.Ifyouareexperiencingresistancefromyoursurroundings,pleasemoveawayfromyourownopinion.Youdonothavetoabandonyouropinion,butdonotsaythisopinionimmediatelyanddonotfinishwithiteither.Summarizewhatthedifferentopinionsare,andindicatethatyouwanttocometoasolution.Theotherwillbemoreinclinedtothinkofasolutiontogether,and–rememberthis–youtoo.Youcannowmakeadealmoreeasily.Ifyoualreadyareflexiblebutyoudonotwanttogooverboardwithit,thiscanhelpyou.Beingabletoadjustwellandtogoalongwithchangeswelldoesnotmeanthatyoualwayshavetosayyes.Guardyourownvaluesandwhatyoufindtrulyimportant.Sayingthisdirectlyistheeasiestthingtodo;themomentyouthinkofitoratthebeginningofaconversation.Thelongeryouwait,theharderitisforyoutosay‘no.’

4.3.3 The mature phase: When your company has grown

Inthematurephase,themaintaskismakingprofit.Profitisnownecessarytoinvestingoods,workingcapitalandpersonnelwithwhichtheorganizationalbasisforfurthergrowthiscreated.Thelow-costoperationshouldbedevelopedintoamaturecompany.Itisnecessarytogetthatsecondlayerthatcancontradictthedirector/ownerifnecessary.Manageabilitybecomesanimportantpointofattentioninfurthergrowth.Inthisphase,asoundfinancialpolicyshouldbeimplemented.Asanentrepreneur,youshouldbeabletolead,organizeandplan.Becauseprofitbecomesimportantinthisphase,theentrepreneurmusthaveorgetaninterestinmoneyandnumbers.Financialmanagementshouldthereforebelongtoyourqualitiestoo.

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Importantqualitiesinthematurephase• leadership• organizingandplanning• financialmanagement

Thequalitiesinthematurephase,whicharediscussedbelow,canbedeveloped.Youcanfollownumerouscourses.Becausethecontentofthesecoursesistooextensivetoexplaininshort,youwillnotfindinformationaboutitinthisbook.IreferyoutothelargeamountofinformationavailableontheInternet.Howyoucandevelopyour entrepreneurshiponaregularbasis.

LeadershipLeadershipisprimarilybridgingthegapbetweentheentrepreneurialplansandcarryingthemout(orhavingthemcarriedout).Thismeansthatyouneedtocreateacommondirectionwithyouremployees.Consequently,youasanentrepreneurmainlyneedtofocusontheemployeesandtheircommitmenttothecompany.Leadershipisthereforeimpossibleifyoudonotlovepeople(alittle)and/orcannothandlethem.

Therearetwotypesofleadership:task-orientedandpeople-oriented.Task-orientedleadershipinvolvesassigningresponsibilitiesandmonitoringtheperformanceoftasks,whilepeople-orientedleadershipinvolvesmotivatingemployeesandkeepingthemcommitted.Leadersarevisionarieswithconfidenceanddonotgiveupquickly. Leadershipcanbestbedescribedbythefollowingcharacteristics:

• Speakingwithsubordinatesasequals,developinginitiatives,showingrespectforbothsuperiorsandsubordinates,beingfirmandpurposeful,showingnopreferences,showinginterestineveryemployee,andinformingemployeesinadvanceaboutchangeswithwhichonewillbefaced.

• Delegating,involvingemployeesindecisions,exercisingrelativelylittlediscipline,encouragingmutualcommunication,havinglessformalmeetings,motivatingemployees,achievingplansandgoalstimely,leadingintimesofcrisesandfulfillingpromisesandobligations.

• Leadingemployeesthroughdifficultiesandchanges,andhelpingthem;tighteningtheorganizationalstructurebyapplyingapersonalinfluence.

General description LeadershipLeadershiphastodowithmanagingpeopleinahuman,task-orientedway.Successfulentrepreneursknowhowtoassessandmanagepeople.Successfulentrepreneurs understandthattheirroleisaleadingoneandtheseentrepreneursarehappytohelpothersbygivingthemthespaceandconfidencetheyneed,butnotwithoutapropersystemofcontrol.Lesssuccessfulentrepreneursaretoohappytodoitthemselvesandgenerallyhavelessconfidenceintheirownpeople.Afterall,theycandoitbetter.

Organizing and planningOrganizingandplanningmainlyrelatetotheemployees.Theirtasksandactivitieshavetobeorganizedandplanned.Nowadays,itisexpectedofmanyemployeesthattheycanplantheirowntasks,butinfact,theorganizationshouldtakecareofthat.

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Theorganizationistoensurethatemployeescanperformtheirtasksandresponsibilitiesthebestpossibleway.Youcanorganizeandplanwellifyou:

• Systematicallydesignandcontroltheworkofothers.• Employsourcesinsideandoutsidethecompany.• Developanefficientsystemofprocedureswithouthavingtoenterunnecessary

hierarchicallayers.• Planworkandsettargetsforemployeesaswellasfortheorganization.

General description Organizing and planning Organizingandplanningincludethedesignandimplementationofanefficientandeffectivesystemfortheworkofemployees.Successfulentrepreneurscanorganizewell,andcanassesstheirownworkandthatoftheiremployeesintermsoftimeandquantity.Lesssuccessfulentrepreneurstendtobetemptedbythechaosofeverydaylifeandtheylosetheirfocussooner.

Financial managementInfinancialmanagement,itisvitaltohaveinsightintonumbersandmoney.Thismeansthatanentrepreneurshouldbeabletodrawupthefinancialconductofbusiness,oratleastunderstandandapplyit.Thatoneshouldbeabletoworkwithfinancialdataisevident.However,financialmanagementobviouslyhasaclearlinkwiththecompetenceelementofknowledgetoo.Itisclearthatthisisaboutthebasicsofeconomics:balancesheet,solvency,liquidity,workingcapital,profitandlossaccountetc.Youarecapableoffinancialmanagementifyou:

• Usefinancialdatainbusinessmanagement.• Dealwithcontrolling:usingmonthlyfiguresandfactsinmonitoringthecompany

andtakingprecautions.• Lookaheadinadvancebytranslatingyourvisionintoalong-termbudgetwith

projectionsforthemonthlyresults,cashflowsandcurrentaccountpositions.

General description Financial management Financialmanagementmeansbeingabletokeepagoodbalancebetweencostsandexpenses.Successfulentrepreneursactivelyusetheirabilitytoanticipatethefutureinadvanceandtranslatethisintofinancialforecastswithorwithoutthehelpofabusinessconsultant.Successfulentrepreneursdonotseethebankasathreat;theyratherseethebankasanopportunitytorealizetheir(personal)goal.Lesssuccessfulentrepreneursshowalackofinterestintheir(future)financialposition.

ConclusionQualities,asthethirdelementoftheentrepreneurialcompetence,differbyphaseof thebusinesslifecycle.Theearlyphaseandexpansionphasehavethetasktomakeasmanysalesaspossible.ItrequiresqualitiessuchasMarketawareness,CreativityandFlexibility.Thematurephasehasadifferenttask,namelytoachievemaximumprofit.ThisrequiresqualitieslikeLeadership,Organizingandplanning,andFinancial management.

Be different You know more than you think

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4.4 Knowledge: Do you know what others know?

Figure9:Fourthelementofcompetence:knowledgeandexperience.

Knowledgeisthefourthandlastelementandhasofcoursealltowithknowing. Knowledgereferstothemorefactualorbusinessaspectsthathavetodowith entrepreneurship.Theseaspectsincludeknowingtherulesassociatedwiththeconductofanorderlyadministration,namingtheprinciplesofmarketing,knowingthedifferencebetweendebitandcreditorknowingthelegislation.Experiencealsoformsapartofknowledge.Indeed,itisknowledgegained,whichislearnedinpractice(ofentrepreneurship)forexample.However,knowledgealonesayslittleabouthowitisapplied.Whatsomeonehaslearnedcanbeevaluatedinasubsequentsituation,whenoneactuallyusesthatwhichislearned.

Inordertobeanentrepreneur,youneedtoknowanumberofthings,orasweprefertosayit:itisnotsomuchwhatyouknow,butwhoyouknowthatknowsit.Afterall,youdonothavetohavetheknowledgeyourself.Thisknowledgecanalsobehired,aswitnessedbythemanyconsultantsavailable.However,rememberthateveryonehasanopinion,butitdoesnotmeanoneisalsoanexpert.So,knowwhatothersknow!Here,Iwouldliketoelaborateontheknowledgeareasthatareimportanttotheconductofbusiness.Theseknowledgeareasareimportantineveryindustry;themostimportantonesarecoveredinthebusinessplan.Imentionhere:knowledgeofthemarket,environment,people,productionandfinance.

SMEsdonotapplythebusinessplanthatmuch.Forexample,onlyafinancialplanningorbudgetisdrawnup.Whatisthereasonthatfew(starting)entrepreneursdrawupabusinessplan?TheexcusesIoftenheararenotime,lackofinformation,lackofknow-ledgeormoneyand“Whatisthepoint;youcannotpredictthefuture.”However,itisintendedprimarilytostructureyourthoughtsaboutthefutureandtocalculatematters.Itforcesyoutomakechoices.Therefore,itleadstomoreknowledgeofyourbusinessandtheenvironmentinwhichyourbusinessoperates.

qualities characteristic

s

motivation wanting

beingdoing

know

ledge

knowing

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KNOWLEDGE:DOYOUKNOWW

HATOTH

ERSKNOW? • Market:marketpositionandcompetition,marketingknowledge,communications

andsalespromotion,marketresearch,innovationanddevelopments.• Finance:financialanalysisandformsoffinancing,businesseconomicand

financialknowledge,businessinformationanddevelopments.• Production:quality,procurementandsupplychainmanagement,production

andinnovation,technology(ICT)anddevelopments(incaseoftheprovision ofservice,itinvolvestheprovisionofserviceprocess).

• People:organization,personnelmanagement,monitoringandreplacement, anddevelopments.

• Environment:externalcontacts,environment,legislationanddevelopments.

Itisnecessarytoconsiderallaspects.Thecompany,youasanentrepreneurandyoursurroundingsshouldbeunderstoodasanintegratedwhole.However,thebusinessplanismorethanjustasingledocumentthattendstodisappearinthebottomdrawer. Bycontinuouslyupdatingtheplanwiththeresults,youkeeptheplanup-to-date.Thisishowyoukeepfocusedonthefuture.Everyentrepreneurknowsthatthisisnoteasy.Youasanentrepreneurshouldhaveknowledgeofmanydifferentknowledgeareas,andcontinuouslyupdatingthebusinessplanisnotaneasyjob.Luckily,youcanhirethatbusinessknowledge.Youdonotneedtoknowitallyourselfaslongasyouknowhowtoknowit.

Thewayinwhichoneacquiresandusesknowledgeplaysaroletoo,ofcourse.Afterall,knowledgeistheoutcomeofathinkingandlearningprocess:howdoyougainknowledge?Somemostlylearnbydoingandexperiencing(thedoers),whileotherslearnbyreadingandstudyingthetheorybeforeputtingitintopractice(thethinkers).Onelearningstyleisnotbetterthantheotherlearningstyle.Iwillnotelaborateon thisinthisbook,butitisimportantthatyoufigureoutwhatyourwayoflearningis.Howdoyoulearnsoyoucantakeitallinwell?

The entrepreneur doesn’t have to know anything, as long as he knows how to arrange it.

Martijn Driessen

The entrepreneur doesn’t have to know anything, as long as he knows how to arrange it.

Martijn Driessen

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!???

The end!

The end!(almost)

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ENTR

EPREN

EURSCAN Entrepreneur Scan

WhatmakestheEntrepreneurScansoimportantthatyouhavetotakeyours? Self-knowledgeisofgreatimportanceinthejourneytowardssuccessfulentrepreneurship.However,howdoyougainself-knowledgeaboutyoursuitabilityforentrepreneurship,especiallywhenyouhavenotstartedacompanyyet?Thatlackofself-knowledgeshowsitselfinthestatistics:afterthefifthyear,almost50%ofallstartingentrepreneurshavequit,orworse,havegonebankrupt.Apparently,entrepreneurshipisnotwhattheythoughtitwouldbe.

ThankstotheDutchscientistswhohavedevelopedtheEntrepreneurScan,youcanquicklygetamoreobjectiveunderstandingofyourentrepreneurialprofileinadetailedreport.Thereportclearlyshowsyourstrengthsandweaknesses,whatweaknessesneedtoberefined,andhowtheweaknessesneedtobedeveloped.Youwillreceivepracticaltipsonhowtodevelopbothyourstrengthsandweaknesses,ortoweaken“toostrong”strengths.Yourtestresultsarecomparedwithsuccessfulpeers.Youasanentrepreneurwillgetinsightintoareasfordevelopment,butrememberthatyoucannotseparatethetestresultsfromyourpersonalmattersorsituation.Itisasnapshot;youtakethetestforyourself.

Afterall,itisaboutincreasingyourself-knowledgeasanentrepreneur.Youcanstartimmediatelywiththishandyandvaluabletool.

How can E-Scan help you? Visit www.entrepreneurscan.com

More than 500,000 people

took their E-Scan

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About the author

Fromayoungage,IknewthatIwantedtobeanentrepreneur.First,Iwantedtoownabarbershop;later,Itradedthisideafortheideaofowningmyownhotel.Accordingtoanecessaryschooltest,Ishouldhavegonetothelowestlevelofsecondaryschool,butIhadthechancetostartatmid-level.Thingsweregoingwell,andsoonafter,Iwenttopre-universityschool. Ifinisheditsuccessfully.Then,IwantedtogototheHospitalityManagementSchool.TherearestrictentryrequirementsforadmittanceintheNetherlands.About2,500peoplesignedup,ofwhichonly240wouldbeadmitted.Toincreasemychances,Ivisitedmultipleluxuriousfivestarhotelsattheageoffourteen.IwantedtostartahotelonceIcompletedtheHotelManagementSchool,butitfeltasif Iwasnotdonelearningyet.Therefore,IwenttotheSchoolforBusinessAdministration,completingthethreeyearsofrequiredstudyintwoyears.Ididnotwanttodomy graduationinternshipprojectatalargecompanyandwhileafriendinPragueintroducedmetoacompany,Ihadtothinkofanassignmentonmyown.InPrague,IcameupwiththeideaoftheE-Scan(theentrepreneurscan).Igraduatedwiththisidea.In1997,Iwas27yearsoldandIstartedthecompanyEntrepreneur Consultancy.Iwonthepublicprize“StarteroftheYear”inacompetitionheldbytheDutchemployers’organization.Inadditiontostartingmyowncompany,IcompletedmyPhDinEntrepreneurshipattheUniversityofGroningen.Ihavestartedmultiplebusinesses,someofwhichIhavesoldandsomeofwhichIwasforcedtostop.Nowadays,theE-Scanisavailableinthreelanguages,anditisusedsuccessfullyinmultiplecountriesworldwide.Youcouldsaythatthiswasathesisthatgotcompletelyoutofhand.

ThemissionofEntrepreneurConsultancyisdevelopingentrepreneurshipworldwide.Itisourpassiontomakepeoplemoreentrepreneurial.Wedothisthroughpracticalproductsandsmartservicesbasedonscientificresearch.Whetheryouareastudent,anentrepreneurorasuccessfulbusinessowner,wecanhelpyoubecomeandstayentrepreneurial.

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FEED

BACK Feedback

WiththisbookIwanttomakeclearwhatIbelieve,supportedwithscientificresearch,whatanindependentbusinessownerisandwhatanentrepreneurialentrepreneuris,butmoreimportantly,whichcharacteristicsandcapabilitiesarerequiredandhowtodevelopthem.

ThisbookisbasedonmyPhDthesis:EntrepreneurScan,measuringanddevelopingentrepreneurialcompetencies.Besidemyextensiveliteraturesearch,Ihavedonemuchresearchamongestablishedandstartingentrepreneurs,especiallybecausetheE-Scanisapracticalproductthatismeantforentrepreneurialpractice.Scienceisattheserviceofpractice.Onlyif(starting)entrepreneursandintermediariesbenefitfromitsusewillitbeavaluabletoolproducedbyresearch.

Thereisabigdifferencebetweentheoryandpractice.Asignificantgapbetweengatheringandsupplyingknowledge.Knowledgeinitselfisnotthemostimportantthing.Whatyoudowiththatgained(self)knowledgeisimportant.That’swhatI’mtryingtoaccomplishwiththisbookandtheE-Scan.IcanimaginethatthisbookandtheE-Scanhavegivenyounewinsights.Ifso,I’minterestedinhearingyourstory.Youcanmailthemtoinfo@entrepreneurscan.com.Youwillhelpme,aswellasothersintheprocess.

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The Golden eGG

A scientific approach on how to become a

successful entrepreneur

A scientific approach on how to become a

successful entrepreneur

Dr. Martijn Driessen

ISBn/eAn 978-90-811019-6-7