Module 1

IDENTIFY THE NEED OF THE ENTREPRENEUR

Presentation trainer

Henrik Andersen,

Business Link, Central Denmark

Background for teaching this topic:

Experienced tutor, trainer and researcher.

Learning objectives

• Identify different entrepreneurial profiles

• Identify and distinguish between different needs of entrepreneurs

Lesson plan

LESSON PLAN – LECTURER GUIDEIdentify the need of the entrepreneur

Duration Content Learning Activities Resources

10’

30’

20’

Introduction to the education

The nature of the entrepreneur

Understanding differences

Lecture exposition

Lecture exposition

Power Pointhandouts

1h 30’ Theory about entrepreneur profiles:- Characteristics

Lecturer exposition and case studies

PowerPointHandouts

1h 20’ Tutoring the different entrepreneur profiles - according to their needs

Lecture exposition, exercises and discussions

PowerPointHandouts

10’ Evaluation Discussion and student questionnaire

The nature of the Entrepreneur

Revenue US $51.12 billion (2007)

Operating income US $18.52 billion

Net income US $14.06 billion

Employees76,539 (2007)

SloganYour potential. Our passion

9 Dec. 1978;

Whom are we dealing with?

The nature of the Entrepreneur

Definition:

Entrepreneur is a term applied to the type of personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for the outcome.

The word entrepreneur originates from the French word “entreprendre”, which means “to undertake”. In a business context it means to start a business.

National statistics

For instance:

• Annual rate for business startups• Mortality rate• International rating (GEM)• Growing rates for new enterprises• Categories like:

gender, age, business type etc.

Differences

Entrepreneurs can also be classified by gender, business type, age, geography, education, etc.

Culture

Entrepreneurship

Inventors

Pro

ject

E

ntr

epre

neu

rsLifestyle Entrepreneurs

Creative en

trepren

eurs

free-

lancers

Business owners

Immigrant

Entrepreneurs

Serial

En

trepreneurs

Growth entrepreneurs

born-globals

Pro

du

ctio

n e

ntr

epre

neu

rs

So

cial

entrep

reneu

rs

gazellesOwners

Differences

• All entrepreneurs are unique• They have different needs, motives, goals and

personalities• They act differently• They need different service, treatment and tutoring.• They will benefit differently from the tutoring service.

How do we identify who is who?

Stereotypes: Alpha- and Beta-entrepreneurs

A friend introduced me to a noteworthy line of thinking recently.  It went something like this:

“There are two types of entrepreneurs in this world: Alpha entrepreneurs and beta entrepreneurs. 

Alpha entrepreneurs are the guys that are naturally risk tolerant, even irrational dreamers; they’re charismatic and marshal folks around them to develop a company that’s viable. Alphas take the first step. 

Beta entrepreneurs, on the other hand, are very execution focused, basically rational when it comes to risk, and bring to bear a learned skill set. They take problems and set about methodically solving them.  Betas make entrepreneurship work.”

So, my friend says,

“We need to stop encouraging alpha entrepreneurship.  You can’t teach someone to be an alpha.  What we can do is teach folks to be betas.  A community doesn’t need a ton of alphas, but it needs lots of betas.”

Published March 23rd, 2008 in Entrepreneurship

Stereotype: Nine personality types of entrepreneurs.

1. The Improver (do it better, moral, ethics)

2. The Adviser (Give the customers what they want)

3. The Superstar (charisma, energy, mega-drive, workaholic)

4. The Artist (creativity, uniqueness, innovations)

5. The Visionary (A company based on visions and expectations for the future)

6. The Analyst (Problem solving, technical & systematic)

7. The Fireball (high level of energy, impulsive, optimistic, follows all ideas)

8. The Hero (leadership skills and competences, controlling crisis, break all barriers)

9. The Healer (inner peace, harmony, good karma, human resource developer)

Source: sbinformation.com

Stereotype:Indian Institute of management

• The Opportunistic Type Expectations of higher income, the “dreamer”

• The Negative “Push” Type Expectations of a better work life (dissatisfaction with the present situation …)

• The Managerial Type Managerial type and leadership skills, building a company

• The New Craftsman Type self-made man, need of autonomy, proof of competence

• The Idea driven opportunist Type A mix of all four types Source: Madhushree Agarwal,

Indian Institute of Management, Calcutta, Jan. 2004

Motivation

• Be self-determining / your own master => autonomy / harmony

• More interesting work => ambition / challenge (professional, personal and business challenges)

• Greater freedom of action / flexibility => harmony / challenge

• Earn more money / improve living standard (MEN) => tradition / ambition

• Combine work and home (family) (WOMEN) => self-realisation /harmony

• Miscellaneous: e.g. demands/offers from suppliers, unemployment etc. => because… / tradition

Push or Pull?

DriveFour types of entrepreneurs:

Harmony

Self actualisation

Types of entrepreneurs

• The growth-oriented => Ambition

• The project-oriented => Harmony

• The Lifestyle entrepreneur => Self actualization

• The traditional entrepreneur => Tradition

The growth-oriented entrepreneur• Personal:

high level of professionalism, ambitions for growth, the company comes first, scientific education/approach, a man

• New knowledge:professional network, professional specialists, problem => cause (… and it can be solved)

• Development / renewal:proactive, adapt or “turn upside down”, OK with sale of company (or share…)

• Practical guidance / advice:detailed business plan, focus on the product, no general (holistic) vision,

• Typical sectors:IT, Business Intelligence (system development/sale), Medico, research-related activities and businesses, production, concept-sales …

The project-oriented entrepreneur• Personal:

high level of professionalism, ambition to “try it out”, family and leisure are (also)important, considers the general picture (holistic minded), humanities education/approach, does not “run” a business but “runs him-/herself”.

• New knowledge:professional and business-related network, especially inclination to discuss, Don’t understand experts, problem => many causes, major user of various networks, shares knowledge with others

• Development / renewal:very up-to-date professionally, proceeds only if it is ethically, professionally and conceptually correct

• Practical guidance / advice:broad business foundation, commercialisation can be difficult, not ambitious for the business but on his own behalf, “everything is considered from all angles”.

• Typical sectors:consultants (soft values), design (one-man operations), psychologists, event making, journalism/communications sector, translation bureau

The lifestyle entrepreneur• Personal:

dissatisfied with “previous” life, attended many courses, in-service training, realisation of creative gene, change of sector, spiritual orientation and considers the whole picture (holistic), a woman

• New knowledge:likes courses, is together with “like-minded” people, likes to talk with people who listen

• Development / renewal:partnership with like-minded people, business development not important, must be rewarding and fun, must suit the life situation (most important)

• Practical guidance / advice:enthusiastic concerning product/service, thinks that “everybody/a lot of people” will buy, “small is good”, earnings aren’t so important (doesn’t need to …)

• Typical sectors:masseuse, author of children’s books or similar with children, therapy, provider of alternative treatments, sale of slimming cures, cremes, herbal products etc., web shops

The traditional entrepreneur• Personal:

professional education, well-defined product, wants to make money, wants only “to work” – not interested in running and developing a business

• New knowledge:practical work – tries things out, short specialist rewarding courses, talks with friends and colleagues, “how hard can it be??”

• Development / renewal:new people in the company (employees, generations), new tools/machines/products, some become growth companies (growth niches; often determined by the state of the economy / conjuncture))

• Practical guidance / advice:product IS defined – not up for discussion, only need a budget – and up and running!, thinks having a company/accountant is a lot of bother

• Typical sectors:clothing shops, carpentry and other craftsmendriven business, flowers- and other retail shops, restaurants and pizzerias, hairdressing salons

Business cases

The growth-oriented The project-oriented

Benee Huse A/S C3 Consulting

The Lifestyle entrepreneur The traditional entrepreneur

Olisan.dk StjerneBlomsten

- I have rewritten the business plan three times

- I thought that it was only my qualifications I had to sell

- I had to start my own business

- The name of the company consists of the names Oliver and Sander

The General viewType:

Method:Growth Project Lifestyle Traditional

Business plan

x x

Tutoring x x

Other (advisoring, tools on net, testing etc.)

Exercise 1

Find keywords for:

Tools

Dialogue

Motivation

• Growth potential

• Project-oriented

• Lifestyle

• Traditional

• Tools:

business plan (different types), starting guidelines, VIQ/Growth profile, guides, other ….

• Dialogue:

process, “cash payment”, solution-oriented, neutral, possibilities, inquiring, coaching, confirming, supporting …..

• Motivated by …

good advice and guidelines, defining problems, analysis, inquiries, experts, networks, tasks, problems …

Exercise 1 Type:

Tool – dialogue – motivation.

Growth Project Lifestyle Traditional

Business plan

Guides

Strategy tools

Dialogue

(Expert or dialogue or neutral)

Type: Tasks / motivation

=> Which tasks provide motivation?

Discussion

Traditional Growth

Lifestyle Project

Now! … Later!

Traditional Growth

Lifestyle Project

Commercialisation Commercialisation

Individual/team Individual/team

• Is it possible to move the entrepreneur from one type to another?

• Is this a desirable action?

• Are needs (and behaviour) changing over time?

• How can this knowledge be included in tutoring entrepreneurs?

Critical or creative thinking

CRITICAL THINKING VS. CREATIVE THINKING

left brain vs. right brainanalytic vs. generativevertical vs. lateralfocused vs. diffuseobjective vs. subjectiveprobability vs. possibilityverbal vs. visuallinear vs. associativeyes but …. vs. yes and …..

Discussion

But how do we avoid killing the ideas with practicalities and formalities?

Discussion:

What makes an entrepreneur succesful?is it …

•The business idea / product???

or, is it …

•The personality of the entrepreneur / the entrepreneural team ???