LIFE OF AN ENTREPRENEUR

I will make this interesting by picking one of the world’s most famous, richest and successful entrepreneurs as a case study. I must mention that the man is a personal role model to me and a lot of us who have read about him.  With over 200 companies to his name, he is a serial entrepreneur, we will look in depth into how this man manages his large estate, family and society. He is the manager’s manager. We will be looking closely into the live of Sir Richard Branson as an entrepreneur. He stated his career as an entrepreneur at a very young age and has built himself an empire.

Sir Richard Branson was born in 1950. Branson was born in Black heath, London, the son and eldest child of barrister Edward James Branson and Eve Huntley Branson (née Flindt). Branson was educated at Scaitcliffe School (now Bishops gate) until the age of thirteen, he then attended Stowe School until the age of sixteen. Branson has dyslexia and had poor academic performance as a student but later discovered his ability to connect with others. He set up Student magazine at age sixteen

In 1970, Branson started his record business from the crypt of a church where he ran The Student. Branson advertised popular records in The Student Magazine. He founded Virgin as a mail order record retailer, and shortly afterwards he opened a record shop on Oxford Street, London. In 1972 he built a recording studio in Oxford shire where the first Virgin artist, Mike Oldfield, recorded 'Tubular Bells'.

In 1977 he signed the Sex Pistols and he went on to sign many household names from Culture Club to the Rolling Stones, helping to make Virgin Music one of the top six record companies in the world.

With over 200 companies in over 30 countries, the Virgin Group has now expanded into leisure, travel, tourism, mobile, broadband, TV, radio, music festivals, finance and health and through Virgin Green Fund he his investing in renewable energy and resource efficiency.

“A business has to be involving, it has to be fun, and it has to exercise your creative instincts.”

“Business opportunities are like buses, there's always another one coming.”

“What's the quickest way to become a millionaire? Borrow fivers off everyone you meet.”

                                                                                Sir Richard Branson.

ARE YOU A HIGH ACHIEVER?

My entrepreneurship professor made me take a personality test to determine if I am a high achiever, moderate achiever or low achiever. The aim of the test is to evaluate yourself as to how well you think you can handle risk and crisis. It is important for every entrepreneur to be a good risk and crisis manager.

I took the test and scored 77 percent which means I am a high achiever. I felt I could do better and thought the test did not describe my personality in terms taking risk. The result of the test challenged me to build my entrepreneurial skills to the best. I will post the test and hope that many readers take this test and evaluate you.

One of the most important characteristics of a successful entrepreneur is the desire to be a high achiever. The following ten questions are designed to help identify your achievement drive. Write the letter preceding your answer in the blank to the left of each question. Scoring information is provided at the end of the exercise.

1.            An instructor in one of your college classes has asked you to vote on three grading options: (a) Study the course material, take the exams, and receive the grade you earn; (b) roll a die and get an A if you roll an odd number and a D if you roll an even number; (c) show up for all class lectures, turn in a short term paper, and get a C. Which of these options would you choose?

2.            How would you describe yourself as a risk taker? (a) high, (b) moderate, (c) low.

3.            You have just been asked by your boss to take on a new project in addition to the many tasks you are already doing. What would you tell your boss? (a) Since I’m already snowed under, I can’t handle any more. (b) Sure, I’m happy to help out; give it to me. (c) Let me look over my current workload and get back to you tomorrow about whether I can take on any more work.

4.            Which one of these people would you most like to be? (a) Steve Jobs, founder of Apple Computers, (b) Lee Iacocca of Chrysler fame, (c) Jack Welch, former CEO of General Electric.

5.            Which one of these games would you most like to play? (a) Monopoly, (b) bingo, (c) roulette.

6.            You have decided to become more physically active. Which one of these approaches has the greatest attraction for you? (a) join a neighborhood team, (b) work out on your own, (c) join a local health club.

7.            With which one of these groups would you most enjoy playing poker? (a) Friends, (b) high-stake players, (c) individuals who can challenge you.

8.            Which one of these persons would you most like to be? (a) a detective solving a crime, (b) a politician giving a victory statement, (c) a millionaire sailing on his or her yacht.

9.            Which one of these activities would you prefer to do on an evening off? (a) visit a friend, (b) work on a hobby, (c) watch television.

10.          Which one of these occupations has the greatest career appeal for you? (a) computer salesperson, (b) corporate accountant, (c) criminal lawyer.

Scoring: Transfer each of your answers to the following scoring key by circling the appropriate number (for example, if your answer to question 1 is c, you will circle the number 2 in row 1). Then total all three columns to arrive at your final score.

                             a                                         b                                                    c

  

1.                       10                                          0                                                    2

2.                          2                                        10                                                   2

3.                          6                                          2                                                   10

4.                          7                                         10                                                  5

5.                       10                                          0                                                    0

6.                         2                                          10                                                   6

7.                         4                                           2                                                    10

8.                       10                                           7                                                    4

9.                        4                                           10                                                   4

10.                     10                                           5                                                    10

                      ----------            +                  -----------               +                         -------------                  = -----------------           

High achievers   76-100

 Moderate achievers 50-75

 Low achievers   less than 50

Interpretation:

1. High achievers take personal responsibility for their actions. They do not like to rely on luck. The third option (c) assumes that the class time saved by not having to study for exams will be used to study for other classes; otherwise, the answer would be a zero.

2. High achievers are moderate risk takers in important situations. 3. High achievers like to study a situation before committing themselves to a course of action.

3. High achievers like to study a situation before committing themselves to a course of action.

4. Jobs is a high-achieving individual but is more interested in design and engineering than in goal accomplishment; Iacocca is an extremely high-achieving salesperson/executive; Jack Welch is more driven by the need for power than the need to achieve.

5. Monopoly allows the high achiever to use his or her skills; bingo and roulette depend on luck.

6. The high achiever would work out on his or her own. The second-best choice is to join a health club, which allows less individual freedom but provides the chance to get feedback and guidance from individuals who understand how to work out effectively.

7. High achievers like challenges but not high risks. If you are a very good poker player and you chose (b), you can raise your score on this question from 2 to 10.

8. Because high achievers like to accomplish goals, the detective would have the greatest appeal for them. The politician is more interested in power, and the millionaire is simply enjoying him- or herself.

9. High achievers like to do constructive things that help them improve themselves, so working on a hobby would be their first choice.

10. The computer salesperson and the criminal lawyer have a much higher need to achieve than does the corporate accountant.

I expect comments from your results after taking the test. Do you think the test did justice in evaluating you? Did you score too high in the test or you think you should do better than score? We will appreciate your comments .

                                HOW TO THINK LIKE AN ENTREPRENEUR.

What is the difference between small business owners and entrepreneurs?

There is truly a great difference between entrepreneurs and small business owners but I must mention that your ability to succeed and expand far beyond your tentacles is what makes you an entrepreneur. I will say starting and running a small scale business successful is sometimes the first stage of entrepreneurship. Small businesses owners prefer to run own their firms independently. They are satisfied with their steady profit and do not do much innovations. They most times do not expand or spread their tentacles. They usually are aggressive with profit making because they have a steady expectation as to profit making unlike entrepreneurs whose objectives are innovation, profitability and growth. They crave for development of their firms at every point in time, recognising opportunities and ready to manage, take moderate and calculated risk towards the development of their organisations. They are aggressive in profit making, rapid development and managerial skills.

So many people keep some false ideas or thoughts about entrepreneurs and because of this they do not try or want be an entrepreneur. I will share ten of such myths and how it applies to entrepreneurs.

Myth 1:           Entrepreneurs Are Doers, Not Thinkers

Entrepreneurs are both 'thinkers' and 'doers'. They engage in a lot of creative and careful thinking about the long and short run of a business. They also explore every brilliant idea and necessary precaution that comes to mind to ensure a solid and flawless business plan. They however do not just think and sweep their creative ideas under the carpet like regular people do; they take action by initiating their plans and starting their business.

Myth 2:     Entrepreneurs Are Born, Not Made

Entrepreneurship is not a birth gift and nobody is born an entrepreneur. It only takes the     extraordinary people who have developed themselves that way to identify what other people see          as problems or bad business as something they can turn into a money making venture. The misconception of entrepreneurship being a birth gift has long been in existence. This is not necessarily so as every individual can acquire skills to become an entrepreneur.

Myth 3:           Entrepreneurs Are Always Inventors

We will call entrepreneurs innovators rather inventors. They are people who see the business and profitable part of either natural resources or early innovations. Many inventors are entrepreneurs but not all entrepreneurs are inventors. Entrepreneurs mostly formulate creative ideas for turning around an already invented one. Many entrepreneurs become successful in businesses that have been in existence long before now. Entrepreneurs are innovators rather than inventors.

Myth 4:           Entrepreneurs Are Academic and Social Misfits

Entrepreneurs are not academic or social misfits because they are people who either learnt something useful in schools or their social environment. I will say the study of entrepreneurship is one of the most important courses in every tertiary institution in the world. It is considered a profession to learn the skills to be innovative and creative in every market condition as the case may be.

Myth 5:          Entrepreneurs Must Fit the “Profile”

As human beings, we might sometimes share the same characteristics but we cannot all share the same ideology. We all have our different ways of doing things which cannot make us fit into the same profile regardless of the common characteristics we share together. The same instance applies to entrepreneurs, they are all innovators and successful in what they are doing but they have different ways and reasons for doing what they are doing. Some entrepreneurs do what they do because they want more money, while some others do what they do to make the world a better place for everybody while the others are just motivated to succeed.

Myth 6:           All Entrepreneurs Need Is Money

I must mention that so many people are millionaires through lottery or public embezzlement but are not entrepreneurs and cannot manage or sustain a business regardless of their wealth. In as much as the financial aspect is important ,it is not the only resource required to succeed. Most entrepreneurs started with little or no money and survived all their financial hurdles because they see money as a mere resource out of so many factors responsible to succeed in starting and sustaining a business venture. Most times little or no money is required to be creative and create an avenue where people will have to pay for your innovations.

Myth 7:           All Entrepreneurs Need Is Luck

As much as everybody needs luck to be better successful in what they are doing, there must have being a lot of self effort to qualify you for that opportunity. For example; if there is a job vacancy in a company to be applied for by first class graduates, if you are going to be the lucky one to get the job, you must have put a lot of effort into been an excellent student to be able to apply for the job at all. Just as the adage says luck only happens when preparation meets opportunity.

Myth 8:       Ignorance Is Bliss For Entrepreneurs

Entrepreneurs are selling or have a target market of the elites and as such we cannot say ignorance is bliss for them. They sell their product to people who know the value of what they are buying and are interested in buying because they have a use for it. It must be mentioned that most times high cost is paid for advertisement of a new product to create awareness and enlighten people of the usage of that product.

Myth 9:           Entrepreneurs Seek Success But Experience High Failure Rates

From research, some entrepreneurial ventures survive while some don’t. Theory is usually different from practice and this explains why a business with a well laid out plan might fail when ventured into. An entrepreneur however continues to learn from different experience in a business and lessons learnt are used to improve the business until success is achieved.

 Myth 10:   Entrepreneurs Are Extreme Risk Takers (Gamblers)                                                     

 We most times see entrepreneurs as extreme risk takers because we think they buy uncertainty    with certainty. Entrepreneurs are sometimes perceived as gamblers due to the high level of risk associated with their career. We should however not forget that entrepreneurs also do their homework and conduct proper research on every project or business before venturing into it. They therefore usually take cautious and calculated risk necessary for individual project as the case may be.

DEFINITION OF ENTREPRENEURSHIP.

                                                 DEFINITION OF ENTREPRENEURSHIP.

I will be starting our discussion with the definition of entrepreneurship. It is important we know the meaning of the subject and get the key words in the different definitions we will be stating.

Entrepreneurship is a dynamic process of vision, change, and creation that requires an application of energy and passion toward the creation and implementation of new ideas and creative solutions. This process of innovation and new-venture creation is accomplished through four major dimensions—individual, organizational, environmental, and process— and is aided by collaborative networks in government, education, and institutions. All of the macro and micro positions of entrepreneurial thought must be considered while recognizing and seizing opportunities that can be converted into marketable ideas capable of competing for implementation in today’s economy.

(Kuratko, Donald.  Introduction to Entrepreneurship is the 8th Edition. Cengage Learning UK, 3/14/09. p. 21). <vbk:9781133455189# page(21)>

I will give five other definitions of entrepreneurship by world's most successful entrepreneurs over time. We will say their definition to entrepreneurship is sharing their experiences to the world in different terms. There is truly a great difference between entrepreneurship and small business owners but I must mention that your ability to succeed and expand far beyond your tentacles is what makes you an entrepreneur. 

1725: Richard Cantillon: An entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.

. 1934: Schumpeter: According to him entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services

1961: David McClleland: An entrepreneur is a person with a high need for achievement [N-Ach]. He is energetic and a moderate risk taker.

1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.

1975: Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control

Source; Wikipedia...

From the definitions of entrepreneurship stated, we will observe that innovation and productivity are key factors to being an entrepreneur.

INTRODUCTION

My name is Abdussamad Olarinde. This is my blog and it is dedicated to how to start small scale businesses with little or no money. I will be talking to the world on how to start and sustain  small scale businesses and how to expand this businesses within the shortest possible time.