ENT4000 9/18/07
Entrepreneur Background and Characteristics: Age
Most entrepreneurs initiate their entrepreneurial careers between the ages of 22 and 45.
Other factors needed to launch and manage a new venture successfully:
Experience.
- (Delaying entrepreneur entry and certain tracfor better chance of success)
Financial support.
High energy level.
Entrepreneur Background and Characteristics: Work Experience
Dissatisfaction with aspects on one’s job often motivates launch of a new venture.
Previous technical and industry experience is important once decision to launch is made.
Experience in the following areas is important:
Financing.
Product or service development
Manufacturing
Development of distribution channels
Preparation of a marketing plan.
Previous start-up experience is a relatively good predictor of starting subsequent businesses.
- Good indicator of success, do you have what it takes? Uncertainty, ambiguity, etc.
- Dealing with "down cycles"
Role Models and Support System
Role models can be parents, family members, or other entrepreneurs.
Successful entrepreneurs are viewed as catalysts by potential entrepreneurs.
- People to shadow, etc.
Role models serve in a supportive capacity as mentors during and after launch of a new venture.
Entrepreneurs need to establish connections and eventually networks early in the new venture formation process.
Strength
of the ties between the entrepreneur and any individual in the network
is dependent upon the frequency, level, and reciprocity of the
relationship.
Moral-Support Network
Individuals who give psychological support to an entrepreneur.
- "Lonely" as entrepreneur; important to have support system outside of business itself
- "Peer networks" of CEOs as an example
Entrepreneurs need to establish a moral-support network of family and friends—a cheering squad.
Friends can provide:
Advice.
Encouragement.
Understanding.
Assistance.
Relatives can be strong sources of moral support, particularly if they are also entrepreneurs.
Professional-Support Network
Entrepreneurs need advice and counsel throughout the establishment of the new venture which can be obtained from:
Mentors
Business associates
Trade associations
Personal affiliations
Entrepreneurial activity is embedded in networks of interpersonal relationships.
- Entrepreneurs network well
Profile of an Entrepreneur…
A study of Inc. 500 CEOs
Marriage - high rate of marriage, around 80%
Education - most with college education, some with graduate, few without college education
Age - 30s-40s
Capital - Onset capital was somewhere around $5,000
Revenue Growth - 15-20% (because of being in this list)
Starting Early
Most entrepreneurs had childhood jobs at 10 years old
An Old Story
Survivor rates - older founder has a better chance of success
The Myths of the Entrepreneur
Entrepreneurs are born not made.
- Some people develop the skills
All such success stories begin with a great idea.
- More about execution than idea
Money is the reason entrepreneurs work so hard.
Open a business and you can kiss your marriage good-bye.
- Many entrepreneurs are married (above)
All entrepreneurs are high-tech wizards.
The Myths of Entrepreneurs
Entrepreneurs are loners.
- Entrepreneur need networks and other people to be successful
Today's entrepreneur was yesterday's restless job hopper.
Entrepreneurs wouldn't get anywhere without venture capitalists.
Comparison of Male and Female Entrepreneurs
Comparison of Male and Female Entrepreneurs
Characteristics of Entrepreneurs
Then . . .
Small business founder
Boss
Lone Ranger
Secretive
Self-reliant
Seat-of-the-pants
Snap decisions
Male ownership
Idea-driven
Trade knowledge
Automation and efficiency