2. Entrepreneurial Personality Idea person Small business owner
Contemporary classic Salesperson Managerial entrepreneur 3-3
Slide 4
3-4
Slide 5
3. Entrepreneurial Operational Competencies Competencies forms
of business-related expertise Pg. 61 level of competency assessment
Role model 4 levels - needs development, needs refinement,
competent, excellent 3-5
Slide 6
Five competencies appear repeatedly in successful entrepreneurs
KIRDO 1. Key Business Functions 2. Industry-Specific Knowledge 3.
Resource Competencies 4. Determination Competencies 5. Opportunity
Competencies 3-6
Slide 7
Key business functions activities common to all businesses
sales, operations/production, accounting, finance, and human
resources Delegate / outsource 3-7
Slide 8
Industry-specific knowledge activities, knowledge, and skills
specific to businesses in a particular industry industry expertise,
industry skill, market knowledge, ability to diagnose the businesss
health, ability to see opportunities 3-8
Slide 9
Resource competencies the ability or skill of the entrepreneur
at finding expendable components necessary to the operation of the
business Time, information, location, financing, raw materials,
support people (e.g. founders, advisors, partners, customers) E.g.
gocell2u.com 3-9
Slide 10
Determination competencies skill identified with the energy and
focus needed to bring a business into existence Willingness to take
action Stick with the business E.g. The spirit of Samurai knight
3-10
Slide 11
Opportunity competencies skills necessary to identify and
exploit elements of the business environment that can lead to a
profitable and sustainable business Ideally distinctive, hard for
others to copy E.g. mbg.com 3-11
Slide 12
4. Professionalization The extent to which a company meets or
exceeds standard businesses practices for its industry Standard
business practice a business action that has been widely adopted
within an industry or occupation E.g. a professional design website
3-12
Slide 13
Professionalization Three levels: Expert, specialized,
minimalized 3-13
Slide 14
Expert businesses A situation that occurs when all the major
functions of a company are conducted according to the standard
business practices of its industry A pool of talented management
team 3-14
Slide 15
Everything seems to be done in the best way possible Exceeds
the standard business practices of the industry E.g. ESQ 165
leadership training regarded as the best Why? ISO certification, CS
Survey, Kaizen philosophy 3-15
Slide 16
Specialized The middle level A situation that occurs when
businesses have founders or owners who passionate about one or two
of the key business functions such as sales, operations,
accounting, finance or human resources 3-16
Slide 17
E.g PR consultant, SEO, Interior Designer, lawyer, accountant
Satisfied if other activities are no worse than other companies in
the market Dr. Fadhilah Kamsah, training consultancy Trainers,
facilitators, owns training centre 3-17
Slide 18
Minimalized A situation that occurs when the entrepreneur does
nearly everything in the simplest way possible 3-18
Slide 19
Entrepreneur figures that good enough - to keep the business
going No systematic accounting Little recordkeeping E.g. Dr. Robiah
Hamzah Individual-based Motivational Speaker 3-19
Slide 20
5. Entrepreneurial Careers Combine personality characteristics,
competencies, and professionalization levels. Actual types of
entrepreneurial careers: Habitual entrepreneurs Growth
entrepreneurs Harvest entrepreneurs Spiral or helical Occasional
entrepreneurs 3-20
Slide 21
Habitual entrepreneurs Owners for a lifetime Businesses may
vary, 1 or more Primary goal = personal satisfaction Secondary goal
= income No succession plan keep working until they can no longer
continue E.g. Steve Jobs - Apple, NEXT Computers, Pixar, and Apple
3-21
Slide 22
Growth entrepreneurs Also owners of a lifetime Goal = major
success As soon as success is achieved - enter into the next
venture high growth-oriented Keep working until they can no longer
work When they retire, they tend to micromanage their successors
E.g. Bill Gates 3-22
Slide 23
Harvest entrepreneurs With an exit plan Work first, play later
Interested strong balance sheets, sizable market shares and capable
management team Build one company at a time, sell it, enjoy the
proceeds, and then start another Very wealthy but largely unknown
E.g. Valueclick, Bluelithium 3-23
Slide 24
Spiral (helical) entrepreneurs Alternate periods of growth and
stability which are driven by personal or family needs A typical
spiral strategy slow down when children are young push for growth
when the children are older The endgame strategy is scaling down
the business Advantage Advertising Laura Tidwell 3-24
Slide 25
Occasional entrepreneurs Generally have another primary job
Fascinated by entrepreneurship and pursue it periodically Classic
part-time entrepreneur Seasonal basis E.g. event organiser, or
making Eidul Fitris cookies 3-25
Slide 26
Which form of the various entrepreneurial careers appeals to
you most? Why? 3-26
Slide 27
6. Family Businesses Family business a company in which one
family owns a majority stake Involved in the daily management of
the business 3-27
Slide 28
Interesting Facts: 1/3 of the Standard & Poors 500
companies are family owned and managed Family businesses make up
over 1/2 of the businesses in the United States. 39% of businesses
in the United States are small family businesses. They employ 58%
of Americas workforce. 3-28
Slide 29
Its Advantages Communication can be more effective Decision
making may be easier and quicker Strong family bonds may lead to
strong corporate culture 3-29
Slide 30
Pre-established family relationship carries over into the
workplace Families are often the first source for business capital
Entrepreneurial parents often serve as the first entrepreneurship
teachers for their children 3-30
Slide 31
7. Family Business Challenges Role conflict Problem arises when
people have multiple responsibilities such as parent and boss, and
different responsibilities make different demands on them. Occurs
when family issues bleed into the workplace and vice versa At
worst, when people fail to recognise it. A boss daughter to work a
parent e.g. to ask her to be with own children 3-31
Slide 32
Solutions To keep family issues out of the business Whenever
possible, make decisions based on business necessities. When making
decision from a family perspective, broaden it to apply equally to
nonfamily as well as family members. 3-32
Slide 33
Role conflict breeds another unending problem-the shortage of
time. Time management skills can help meet the overload organizing
process to help make the most efficient use of the day List, 123
Prioritize, Delegate, Repeat, Strategize 3-33
Slide 34
Succession Process of intergenerational transfer of a business.
Only 1/3 survive beyond the first generation Reality - founders get
ill / incapacitated / die 3-34
Slide 35
Challenges Refusing to let go, or appointing a new manager
Interfering and undermining him/her consciously and unconsciously
No clear cut succession plan and a family member is thrust into the
position with little or no preparation 3-35
Slide 36
Loss of the founder causes dissension between family members
competing for the top position Or taking side on who theyd like to
see in that position 3-36
Slide 37
Taking a Professional Approach Creates a family council
immediate interests An advisory board board of directors strategic
direction Set boundary between a family council and a board of
directors To keep family involved - focused on running the business
3-37
Slide 38
Identifies who will take over roles, support Sets up the
necessary training for the successor Provides a schedule for the
changeover or trigger a point at which the changeover is affected A
good plan will also handle the assets to minimize the tax burden on
the family and company 3-38