“ENTREPRENEUR” IN THE 21ST CENTURY
The French word “entrepreneur” first appeared in the French dictionary in
1723, and defined a person who organizes and operates a business while
taking a financial risk in order to do so. Since the word entrepreneur came
on the scene, it has added some terms like “social entrepreneurship” and
“intra-entrepreneurship” (which are terms I explain in other articles). Most
simply defined, an entrepreneur is a person who identifies a need or a want
and starts a business to fill that void. This simplistic definition, however,
provides little insight into the specific character traits and attributes that
makes a person thrive as an entrepreneur—especially one doing business
in the 21st century.
Before quitting my day job as an airline pilot to pursue an idea that was
brewing in the back of my mind, I considered if I had the necessary
fortitude to make it as an entrepreneur. As it turns out, I did. I have
been practicing entrepreneurship since 1992, and teaching it as a professor
since 2012. I’ve learned a lot, and I certainly know all too well about the
pursuit of opportunity without regard to resources. I started my first venture
by doing everything I now teach not to do (e.g. I maxed out 10 credit cards,
refinanced my condo, borrowed money from family, friends, and fools, etc.).
At a fundamental level, all entrepreneurs try to overcome adversity to
pursue opportunity with limited resources. So, unless you are comfortable
with minute to minute change, incredible amounts of stress, and the
uncertainty of your future financial stability, you should consider diverging
from the entrepreneurial path.
As a devoted student and lifelong practitioner of entrepreneurship, these
are some things I have learned about over the years from truly successful
21st century entrepreneurs and mentors:
1. Most start-ups fail – (According to the Small Business Association
only 30% of new businesses fail during the first two years of being
open, 50% during the first five years and 66% during the first 10). The
road to success is often long and lonely, with brutal hours, massive
amounts of stress, and lots of personal/family sacrifice and debt. So,
why would you want to become an entrepreneur? Well, it gives you
the freedom to be your own boss and the creator of your future.
2. Survival as an Entrepreneur – In my late twenties, I became an
entrepreneur (I started I&E Marketing Group—a reseller of phone
time to airline personnel), even though I didn’t know the meaning of
the word “entrepreneur,” let alone how to spell it. Nevertheless, I saw
a void and filled it. In order to survive, I thought, ate, and drank
telecommunications. I refined, iterated, and pivoted when needed. I
NEVER gave up in the pursuit of my dream.
3. How to Find Resources: One can do this by making, maintaining,
and leveraging contacts. Despite adversity, entrepreneurs can find
ways to exploit opportunities for mutual benefit, by networking and
being a great student in both the short and long runs. This is the most
powerful part about entrepreneurship. The more you give back to the
entrepreneurship community, the more you get!
4. Managing Risk: Up front research is everything to starting a
successful company. But, even though research can help you avoid
the pitfalls of risky ventures and save you in the long run, some
mistakes are inevitable. As life and experience have come upon me,
I’ve learned that great entrepreneurs are focused, learn from their
mistakes, and move on without regrets. Their appetite for risk is far
greater than the average person’s (although it decreases with age
and experience).
5. To Make a Difference: In my fifties, the idea of entrepreneurship
completely changed for me. I had started and sold 10 companies and
was successful at my trade, but I wanted to make a difference; to do
something that has a positive and long-lasting impact. I went back to
school to get my MBA, and started teaching what was so freely given
to me by my mentors. This required a different kind of mindset. It is
not just about making money, or becoming famous, or creating new
things. Making a difference as an entrepreneur has been very
rewarding for me. In my travels around the world to speak about and
teach entrepreneurship, I have met entrepreneurs from all walks of
life–in government, in academia, corporations, labs, and on stage. All
these entrepreneurs have one thing in common: they feel the desire
to give back to the entrepreneurship community.
What Is the 21st Century Entrepreneur Made Of?
Personality: Entrepreneurs are risk takers and have resilience,
tenacity, innovation, creativity, and the ability to identify opportunity all
rolled up into one. Whatever the entrepreneur lacks, they make up for
with a great employee.
Attitude: The entrepreneurial attitude is defined by personal
standards and values for the company and employees; the
perception of being the best, no matter what the size of your
corporation is; understanding the importance of customer focus; and
the desire to use and apply creativity and imagination.
Motivation: This and attitude is everything! Motivation consists of
personal drive and ambition, the desire to make an impact, the need
for achievement or self-satisfaction, a desire for status, to create and
accumulate wealth, and social responsibility. I was always very aware
that I was not the smartest person in the room, and I was okay with
that. But, I also knew that no one—in any room—would outwork me.
Skills: These will be learned on the job and at a quick pace. You will
spend many hours developing your entrepreneurial craft, but once it
comes together and you learn from your mistakes, it gets better and
easier. I cannot emphasize enough how important it is to have these
few necessities: the ability to network, to think strategically, and gain
access to resources, as well as possess business knowledge,
interpersonal skills, and management skills.
In the end (and I hate to say it), there is no exact formula for
entrepreneurship. Even in the 21st century, when entrepreneurship is a
well-taught and well-respected field, the road to success has no GPS to
provide you with a turn-by-turn map. Instead, entrepreneurship is as unique
as each individual, and you cannot follow someone else’s journey to
success. That journey is uniquely yours, and yours only.