inside the mind of an entrepreneur
Post on 14-Jul-2015
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Staying on top of adversity
continuum Well being
First ShockProvisional Adjustment
Inter Contradiction
Inner CrisisReconstruction & Recovery
OK
Feel Good
Distress & Despair
Excitement
Numbness
Letting Go
Honeymoon
Disbelief
Denial, Minimizing
Crisis
Quitting
Extended Crisis
Partial Recovery
Uncertainty
Losing Confidence
Confusion
DepressionAcceptance
Exploring
Testing
New Confidence / Transformation
A: Positive Events
B: Challenges/Loss/ Obstacles
Life Event
Typical behavior when adversity
strikes…
Wallowing Following Leading
Pessimism Cynicism/Skepticism Optimism
Negative Neutral Positive
Fear Caution Courage
Hopeless Helpless Hopeful
Resists change Watches change Leads change
Makes excuses Goes along Gets results
Impossibility thinking Probability thinking Possibility thinking
Complaining about what happened Watching it happen Making it happen
Whining and complaining Watching and waiting Promoting and supporting
Energy vampire Energy giver/taker Energy source
* Paul Stoltz, PEAK LEARNING
Avoid & Cope with Adversity Survive & Manage Adversity Harness Adversity
Entrepreneurs are…
• Masters of harnessing adversity to their
benefit and long term gains…
– Resourceful
– Resilient
– Think out of the box
– Thrive during distress
– Optimistic and hopeful
Makes them a risk taker
Objective of our research…
• Research was carried out in 2 phases.
• In Phase 1: (concluded in Dec 2013)
– Conduct a thorough research of 110 successful entrepreneurs on
personality behaviors and competencies that made them
successful
– Identify and document their traits
– Develop a tool to assess the traits to arrive at entrepreneurial
value index (EVI)
• In Phase 2: (ongoing)
– Develop an Online version of the tool
– Cover close to 500 successful entrepreneurs to strengthen the
database
– Use the tool for assessment of bonafide entrepreneurs
But not all SMEs are S(a)ME
• Although they are governed by same definition proposed by MOCI
• Globally definition focuses on size of business with respect to
annual turnover and manpower
• But the problem with these definitions are that the scope is too wide.
• MOCI definition:
Micro Small Medium
Less than 5 employees, max turnover of OMR 25000 or approx. Dhs. 250000
5 - 9 employees, max turnover between OMR 25000 – 250,000 or approx. Dhs. 250000 -2500000
10 - 99 employees, max turnover between OMR 250,000 – 1,500,000 or approx. Dhs. 2.5 million – 15 million
Are their needs same?
A coffee shop owner with 5 employees with OMR 25000 annual turnover
A landlord of a building with 6 employees with OMR 100,000 annual turnover
Accounting firm with 7 employees with OMR 150,000 annual turnover
IT & reseller company with 8 employees with OMR 200,000 annual turnover
Furniture shop with 9 employees with OMR 250,000 annual turnover
Facilities Management Company with 40 employees with OMR 300,000 annual turnover
Contracting Company with 70 employees with OMR 1500,000 annual turnover
A vegetable trader with 2 employees with OMR 10000 annual turnover
A fisherman with 3 employees with OMR 20000 annual turnover
Lighthouse Enterprise Classification
System…(LEC tool)
• Need to classify businesses using scientific
methodology
• In line with the definition proposed by MOCI
• Applicable to any industry, geography or region
• It provides a much needed range of
classification of business to small manageable
clusters
• Easy to use and understand
• Software tool www.smeadvise.com/lec
Elements of LEC
Enterprise Classification
Business Frame
Manpower Resources
Nature of Business
Asset Under Management
Capital Structure
Entrepreneur Knowledge &
Skills
Customer Expectations
Risk Factors
Factors and sub factors…
Business Size
Business lifecycle
Organization size
Manpower/ Resources
Manpower availability
Type of manpower
Nature of business
Type of market
Position in market
Asset under management
Capital structure
Type of capital
Quantum
Position/Exposure
Required knowledge &
skills
Education
Experience
Customer expectations
Business innovation
Customer demands
Economic conditions
Economic framework
Industrial environment
Classification of enterprise…
• Lowest score any organization can secure is 51 and
highest being 1200, Cluster of 25 points makes a classTotal Point
RangeEnterprise class Enterprise type
Total Point Range
Enterprise class Enterprise type
51 - 75 LEC 1Micro: Sole proprietors,
Sole trader, Professionals, Self
employed individuals,
476 - 500 LEC 18
SME 5: Medium - Large76 - 100 LEC 2 501 - 525 LEC 19
101 - 125 LEC 3 526 - 550 LEC 20
126 - 150 LEC 4 551 - 575 LEC 21
Large151 - 175 LEC 5 576 - 600 LEC 22
176 - 200 LEC 6
SME 1: Very Small
601 - 625 LEC 23
201 - 225 LEC 7 626 - 650 LEC 24
226 - 250 LEC 8 651 - 675 LEC 25
251 - 275 LEC 9
SME 2: Small
676 - 700 LEC 26
276 - 300 LEC 10 701 - 725 LEC 27
301 - 325 LEC 11 726 - 750 LEC 28
326 - 350 LEC 12
SME 3: Small - Medium
751 - 775 LEC 29
351 - 375 LEC 13 776 - 800 LEC 30
376 - 400 LEC 14 801 - 825 LEC 31
401 - 425 LEC 15
SME 4: Medium
826 - 850 LEC 32
426 - 450 LEC 16 851 - 875 LEC 33
451 - 475 LEC 17 876 - 900 LEC 34
Classification of companies
researched
1211
33
21
8
16
9
0
5
10
15
20
25
30
35
Micro SME1 SME2 SME3 SME4 SME5 Large
Classification of companies researched
Behavioral profiling of SMEs
• One to one meeting with the business
owners to conduct BEIs
• Psychometric profiling using team value
profiler (combination of MBTI & Belbin)
• Cluster the behavior pattern to arrive at
key competencies required to be a
successful entrepreneur
Common behavior identified in
Omani Entrepreneur – the X factor
• Passion
• Proactiveness
• Resilience
• Resource Management
• Strategic Vision
• Creating synergies
• Decision making
• Integrity / work ethics
• Business excellence
Results…(SME1- SME6)
Inspirational
Leadership
DirectionCustomer
partnership
Drive Customer impact Risk Alignment
Ambition Customer delight Risk governance Cost leadership
Achievement
Orientation
Customer
innovationManaging risks
Cost Containment
orientationResults delivery
Initiative Customer FocusTaking calculated
risksCost Control Market insight
Collaborative
relationships
Customer
OrientationRisk orientation Cost Focus Commercial Focus Collaboration Decision making
Risk awareness Cost conciousnessCommercial
awareness
Building business
partnershipDecision making Inspring change
Cost monitoring Business AcumenRelationship
managementDecision making Agility Strategic innovation
Committed to
businessNetworking Decision making Change Leadership Forecasting
Orientation to
excellence
Relationship
buildingDecision making Embracing change
Fostering
innovationResult orientation
Decision making Flexibility EnterprisingEfficiency
orientation
Adaptability Conceptual thinkingSystematic
planning
Problem SolvingPlanning &
organizing
Planning &
organizing
SME 1 SME 2 SME 3 SME 4 SME 5 SME 6
Key
Com
pete
ncie
s
What next?
• We have developed an online tool to assess “Entrepreneurial Value”
• Register and assess:
– If you plan to start a business:
• Do you have a right motivation to start a business?
• What is your entrepreneurial value score compared to successful
entrepreneurs?
• Identify your strengths and areas of improvements
• What is your personality type and how can you get the best mileage by
choosing an ideal role in your business
– If you already run a business:
• Identify LEC score for your business and its classification
• Identify how LEC scores can be enhanced with practical
implementable strategies
• Identify your EVI score compared with other successful
entrepreneurs in your LEC class and above
• Log in to www.smeadvise.com
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