Entrepreneur

THINK LIKE A "Entrepreneur"

Common behaviors

THINK LIKE A "Entrepreneur"

Psychological makeup

Economics released a study which suggests

entrepreneurs are disproportionately white, male,

from wealthy and highly educated backgrounds,

and prone to

"aggressive,

illicit,

risk-taking activities"

as teenagers and young adults.

Entrepreneurs also performed above average on aptitude tests.

A study conducted by the Census Bureau

and two MIT professors,

after compiling a list of 2.7 million company founders

who hired at least one employee

between 2007 and 2014,

found the average age of a successful startup founder when he or she founded it is 45.

They consistently found chances

of entrepreneurial success rises with age.


Ross Levine, an economist

at the University of California, Berkeley,

and Yona Rubinstein, a professor at the London School

of economist -

"Coachability" and advice taking

The ability of entrepreneurs to work closely with and take advice from early investors and other partners (i.e. their coachability) has long been considered a critical factor in entrepreneurial success.

At the same time, economists have argued that entrepreneurs should not simply act on all advice given to them, even when that advice comes from well-informed sources,

because entrepreneurs possess far deeper and richer local knowledge about their own firm than any outsider.

Indeed, measures of coachability are not actually predictive of entrepreneurial success (e.g. measured as success in subsequent funding rounds, acquisitions, pivots and firm survival).

This research also shows that older and larger founding teams, presumably those with more subject expertise, are less coachable than younger and smaller founding teams.

marketing strategies

Innovation

adaptability

new business models

  • Finding solutions for problems

  • innovative networking

Strategies

Strategies that entrepreneurs may use include:

  • Innovation of new products, services or processes

  • Listen to customer feedback and adapt

  • Continuous process improvement (CPI)

  • Exploration of new business models

  • Finding solutions for problems

  • Use of technology

  • Use of business intelligence

  • Use of economical strategics

  • Development of future products and services

  • Optimized talent management

  • Entrepreneurial marketing strategies for interactive and innovative networking


THINK LIKE A "Entrepreneur"

"Entrepreneur" Entrepreneur

Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones.

More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, which is often similar to a small business, or as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit." The people who create these businesses are often referred to as entrepreneurs. While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to "lack of funding, bad business decisions, government policies, an economic crisis, lack of market demand, or a combination of all of these."

In the field of economics, the term entrepreneur is used for an entity which has the ability to translate inventions or technologies into products and services. In this sense, entrepreneurship describes activities on the part of both established firms and new businesses.

Contents

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Psychological makeup

Common definition

success

entrepreneurship

Entrepreneurial resources

Strategies

Opportunity

Entrepreneurial behaviors

Types of entrepreneurship

Relationship between small business and entrepreneurship

Communication

Styles


Opportunity perception and biases

One study has found that certain genes affecting personality may influence the income of self-employed people.


Some people may be able to use[weasel words] "an innate ability" or quasi-statistical sense to gauge public opinion


and market demand for new products or services. Entrepreneurs tend to have the ability to see unmet market needs and underserved markets.


While some entrepreneurs assume they can sense and figure out what others are thinking, the mass media plays a crucial role in shaping views and demand.


Ramoglou argues that entrepreneurs are not that distinctive and that it is essentially poor conceptualizations of "non-entrepreneurs" that maintain laudatory portraits of "entrepreneurs" as exceptional innovators or leaders


Entrepreneurs are often overconfident, exhibit illusion of control, when they are opening/expanding business or new products/services.


Styles

Differences in entrepreneurial organizations often partially reflect their founders' heterogenous identities.

Fauchart and Gruber have classified entrepreneurs into three main types: Darwinians, communitarians and missionaries.


These types of entrepreneurs diverge in fundamental ways in their self-views, social motivations and patterns of new firm creation.


Strategic entrepreneurship

Some scholars have constructed an operational definition of a more specific subcategory called

"Strategic Entrepreneurship". Closely tied with principles of

strategic management, this form of entrepreneurship is "concerned about growth, creating value for customers and subsequently creating wealth for owners".

A 2011 article for the Academy of Management provided a three-step, "Input-Process-Output" model of strategic entrepreneurship.

The model's three steps entail the collection of different resources, the process of orchestrating them in the necessary manner and the subsequent creation of competitive advantage, value for customers, wealth and other benefits.

Through the proper use of strategic management/leadership techniques and the implementation of risk-bearing entrepreneurial thinking, the strategic entrepreneur is, therefore, able to align resources to create value and wealth.