WHAT DOES IT TAKE TO BE AN ENTREPRENEUR? BACKGROUND AND CHARACTERISTICS

Chapter 3 - 'Entreprening'
OBJECTIVES
After studying this chapter you will be able to:
•     Explain the nature and roots of the term 'entrepreneurship' and how it is related to the characteristic entrepreneurial path.
•     Uncover the different backgrounds that foster entrepreneurship among individuals, conse­quently engaging factors that will facilitate the development of such backgrounds in the business to stimulate entrepreneurial spirit and conduct among teams and employees.

•     Recognize that individuals differ in finding entrepreneurship as the most desirable career path, subsequently facilitating the way to entrepreneurship for those who are attracted to it as well as introducing entrepreneurship to those who are less attracted to it, to enable them to make more conversant choices along their future career path.
•     Understand the different drivers toward entrepreneurship.
•     Identify the main characteristics of today's entrepreneurs (e.g., human capital-related factors, vision, motivation, and psychological traits).
•      Discuss factors related to individuals' readiness to enter into entrepreneurship.
•     Articulate the multifaceted relationships between entrepreneurial businesses and their ecosystems, and be able to take knowledgeable decisions on the relevant niche in which to set up a business.

WHAT DOES IT TAKE TO BE AN ENTREPRENEUR?
Eelore discussing what it takes to be an entrepreneur, the term entrepreneur itself has to be defined, aT-C the various activities and actions involved in entrepreneurship examined and understood. T; date, no firm agreement on either of these has been reached, and the numerous proposed ctunitions and suggestions are usually sketchy and inconsistent. Many researchers, as well as many organizations, have highlighted the need for a collaborative international approach to entre­preneurship and have voiced strong support for the development of a core set of measures, within an agreed-upon framework, to identify the attributes and activities of the entrepreneur. In the belief that such a model can serve to promote entrepreneurship the world over, efforts have been made to build models and establish indicators that would benefit professionals in the area of entrepreneurship (e.g., counselors, mentors), as well as help academic researchers identify those measures. In this section, we attempt to 'crack the entrepreneur code' by delineating the attributes of today's entrepreneur and the main activities that he or she must be able to manage successfully. Some researchers define entrepreneurs as creative and motivated individuals who take a risk and establish a business, the risk being that of selling at uncertain prices after buying at certain ones (Brockhaus 1980; Garland et al. 1984; Palich and Bagby 1995; Chell 2008); others suggest that entrepreneurs are those who are willing to take risks, and are able, via networking ability and relationship-building skills, to bring different parts of the market together (Dubini and Aldrich 1991; Ostgaard and Birley 1996; Greve and Salaff 2003; Jack, Dodd and Anderson 2008). Entrepreneurs have been defined in myriad other wavs. the predominant ones being: inventors of ideas that they evolve to creation; people able to maintain and ensure the growth of an enterprise; developers of new technologies or products that change the field in which they are working; creators and exploiters of new opportunities, and people who change the way in which we think and function in a given area of social activity ('Sandber^ and Hofer 1987; Bygrave and Hofer 1991; Sarri andTrihopoulou 200S;Taormina and Kin-Alei Lao 2007).

The'Bill Gates syndrome',1 typifying 'ordinary' children who become powerful and influential entrepreneurs, is a recognized and acknowledged example, but it is the exception — albeit a notable one — rather than the rule. In many ways, the original iailure to recognize Bill Gates' abilities, as proven by the later outburst of his creative abilities and resultant success story, should actually be considered a failure of the educational system.
The educational system, and bodies such as labor- and market-related ministries, industrial ministries and associations and institutions of higher learning, among others, should develop measures to identify potential entrepreneurs and initiate programs to stimulate and encourage innovation, creativity, and other qualities that are necessary for entrepreneurial success. This should also be done among young people, even pupils in elementarv and high schools, since identifying and developing the traits, abilities and other resources that are vital for entrepreneurship can facilitate their future careers as successful entrepreneurs.

IS THERE A BACKGROUND THAT PROMPTS ENTREPRENEURSHIP?
Two random examples of successful and renowned entrepreneurs depict very different background scenarios: Oprah Winfrey and Conan O'Brien, the host of XBC's Tonight Show, both recognized television personalities in the United States. Oprah Winfrey's life story2 tells of a traumatic childhood and a young woman whose rebellious spirit enabled her to break through and overcome social and racial barriers. Determined to excel, she rose to become a prominent and innovative television talk-show host, and an influential multipreneur who owns a film company, a widely read monthly magazine and a cable network, in addition to establishing several philanthropic organizations. She has been quoted as saying that: 'with every experience, you alone are painting your own canvas, thought by thought, choice by choice',3 stressing that despite her background, her attitude toward life experiences is that thev can be translated into choices that craft oppor­tunities. Conan O'Brien was born and raised in an Irish Catholic family in a suburb of Boston, Massachusetts, to a mother who was an attorney, and a father who was a physician and professor of medicine. He graduated from Brookline High School, as valedictorian, and entered Harvard University, where he was a writer for the Harvard Lampoon humor magazine. In 2001, he formed an agreed-upon framework, to identify the attributes and activities of the entrepreneur. In the belief that such a model can serve to promote entrepreneurship the world over, efforts have been made to build models and establish indicators that would benefit professionals in the area of entrepreneurship (e.g., counselors, mentors), as well as help academic researchers identify those measures. In this section, we attempt to 'crack the entrepreneur code' by delineating the attributes of today's entrepreneur and the main activities that he or she must be able to manage successfully. Some researchers define entrepreneurs as creative and motivated individuals who take a risk and establish a business, the risk being that of selling at uncertain prices after buying at certain ones (Brockhaus 1980; Garland et al. 1984; Palich and Bagby 1995; Chell 2008); others suggest that entrepreneurs are those who are willing to take risks, and are able, via networking ability and relationship-building skills, to bring different parts of the market together (Dubini and Aldrich 1991; Ostgaard and Birley 1996; Greve and Salaff 2003; Jack, Dodd and Anderson 2008). Entrepreneurs have been defined in myriad other wavs. the predominant ones being: inventors of ideas that they evolve to creation; people able to maintain and ensure the growth of an enterprise; developers of new technologies or products that change the field in which they are working; creators and exploiters of new opportunities, and people who change the way in which we think and function in a given area of social activity ('Sandber^ and Hofer 1987; Bygrave and Hofer 1991.
The'Bill Gates syndrome',1 typifying 'ordinary' children who become powerful and influential entrepreneurs, is a recognized and acknowledged example, but it is the exception — albeit a notable one — rather than the rule. In many ways, the original iailure to recognize Bill Gates' abilities, as proven by the later outburst of his creative abilities and resultant success story, should actually be considered a failure of the educational system.
The educational system, and bodies such as labor- and market-related ministries, industrial ministries and associations and institutions of higher learning, among others, should develop measures to identify potential entrepreneurs and initiate programs to stimulate and encourage innovation, creativity, and other qualities that are necessary for entrepreneurial success. This should also be done among young people, even pupils in elementarv and high schools, since identifying and developing the traits, abilities and other resources that are vital for entrepreneurship can facilitate their future careers as successful entrepreneurs.

MAIN CHARACTERISTICS OF TODAY'S ENTREPRENEURSHIP AND ENTREPRENEURS
The multifaceted aspects of entrepreneurship and entrepreneurs are summarized in Table 3.1, which lists some of the major findings on human capital (HC) and the ecological and psychological aspects of entrepreneurship, along with several such entrepreneurial-related topics as networking, team work, career path and more.These characteristics have been identified in a large number of studies to date, but since the phenomenon of entrepreneurship is growing rapidly and is appearing in more and widely dissimilar countries all over the world, entrepreneurs, too, are becoming increasingly dissimilar.
Today's entrepreneurs may be highly educated, uneducated, or even illiterate; they may be trained professionals or lacking any trade or occupation; thev mav be very young (adolescents have established their own enterprises) or old enough to be out of the workforce; they may have had formal preparation for entrepreneurship or have learned about it along the way; finally, more and more women have entered the field of entrepreneurship i WE) as the constraints of work and home have become less limiting for women in most countries.
Theoretically, entrepreneurship can provide the best fit between a person and a profession or career, as the enterprise and how it is managed are determined bv the entrepreneur's own predilections and decisions, rather than by those made bv others, while within the corporate system employees have to adapt themselves to the dictates of employers or prestructured jobs (Gupta, MacMillan and Surie 2004; Mayo 2005).

Vision and motivation
Visions are all around us, in everything we see and think about. Thev can be things that we would like to see exist or happen, or things we would like to improve: they may be things that we think would help us handle our lives more effectively and pleasantly. A vision can also be a bright and exceptional idea that springs forth unexpectedly and with no apparent connection to ongoing affairs. In the context of entrepreneurship, however, vision means seeing something that others do not, and implementing it before they do. This kind of vision is an underlying requisite of venture creation and the motivating factor for the establishment of an independent and self-run enterprise.
Visions that emerge from very personal needs or experiences can grow and develop into entrepreneurial enterprises, as exemplified by the successful chain of Starbucks coffee shops. Howard Schultz, the former CEO of Starbucks, was drinking a cup of coffee in an Italian coffee bar during one of his trips to Europe. He loved the taste, the service and the atmosphere, and realized that he did not mind paying a little extra for them. This experience stimulated him to create the same atmosphere and presence in the United States. Schultz's vision led to a chain of Starbucks throughout North America, and in several countries in Europe and Asia, among other places (Hinterhuber and Popp 1992; Olsen 1994).
The normative process of decision-making in selecting a job, staying in or quitting an active job, or entering entrepreneurship, moves through three main circles (illustrated in Figure 3.1). The first, innermost circle in a person's motivation to select a specific job or profession is basically concerned with his or her personal desires and aspirations, and the answer to the existential question 'What do I want to do for a living?' or, perhaps, 'What do I want from life?'The primary

Gender
      Men launch businesses more than women do
      Men's businesses are more successful in terms of survival time and revenues than those of women
      More women are launching and managing their own businesses today than in the past
      More women consider entrepreneurship a career path today than in the past
      More women are attracted to entrepreneurship today because the home-work conflict is more manageable
      Local, embedded
      There are more transformations from cluster entrepreneurships to global, multinational and borderless ones
      Specific groups are more locally embedded: ethnic groups, low-tech sectors, local-oriented businesses, women more than men
      Motivations
      • Diverse motivations to enter entrepreneurship: person/,   uch as, autonomy, fulfillment of personalneeds; economic such
      Very diverse configurations (e.g., partnerships, multipreneurships, intrapreneurships, franchises) • Leading entrepreneurs have or develop different roles; involvement in one feature (i.e., creator of ideas, investor, launcher of start-ups, manager of the firm), does not predict engagement in others
      Human capital (HO
      Today's entrepreneurs' HC is more varied than in the past
      Wide-ranging HC is not necessarily related to entrepreneurial and/or professional activities: physicians may launch a computer-based venture, and retired teachers may launch websites for adult recreation possibilities
      Most entrepreneurs lack specialization in entrepreneurship and management
      Competition for scarce resources
      Power plays a crucial role in securing scarce resources
      Entrepreneurs utilize networking, political connections and innovation in order to compete against both entrepreneurial and corporate businesses in securing scarce resources
      Traits
      Entrepreneurs possess diverse psychological traits:
      Ambition
      NoMconformism
      Difficulty adjusting to a orpoivilc sysfiMii
      Advcnlurc M'rkimi
      Risk l.ikiiui
      OiMlivity
      Networking
      Most successful entrepreneurs are able to communicate their ideas and 'sell'them to their relatives, friends and family on an ongoing basis, thus establishing networks

Table 3.1 Continued Human capital
Personal characteristics
      Age -younger individuals are more likely to start a business
      Individuals in mid-career and ret/red people are turning to entrepreneursfiip more than in the past. The main exp/anations for this refer to longer life spans, better health care, past experience in the labor market, and the desire to fill free time with meaningful activities
      Women at a child care stage of life are more involved in entrepreneurial activities than in the past
      Ethnic groups and minorities
      Ethnic groups and minorities are under-represented in most entrepreneurial activities
      Female entrepreneurship in these groups is significantly under-represented
      In immigration countries (e.g., the US and Canada), ethnic entrepreneurship is addressed more than in non-immigration countries (e.g., most European and Asian countries)
      Ecology
      Spatial heterogeneity
      Less rigidity in organizational structures
      Heterogeneity and adaptive organizational forms in different environments (i.e., working from home, diffuse hierarchy in entrepreneurial businesses, partnerships, weakened bureaucracy, among others)
      Psychological aspects
      Core traits required
      Innovation, creativity and proactiveness are core traits throughout the entrepreneurial venture
      Communication, emotional intelligence and risk-taking are prime traits needed to sustain a competitive advantage
      Each entrepreneurial stage requires different individual traits: launching stage - creativity and risk-taking; operation and maintenance stage - managerial competence
      Leadership, persistence and managerial attributes are valuable in crisis phases
      Entrepreneurshaip and SME
      Team work
      Team hierarchy and traditional chain-of-command rules are less common today than in the past
      Teams are based on expertise. Relations in teams that are professional, interest-driven, informal and non-obligatory are more likely to lead to win-win situations, which are more likely to lead to a successful venture
      Career path
      Potential entrepreneurs should attend preparatory programs
      Active entrepreneurs should participate in training programs
      Mid-career employees tend to go back to specific training programs prior to switching careers to entrepreneurship
      Entrepreneurs find that their careers are ongoing learning experiences

'ENTREPRENING'
Myself Organization Career path
Figure 3.1  The process of decision-making in selecting a job
is therefore on myself,4' which encompasses other questions such as: What is best for me? : interests me? Where and how can I utilize my knowledge and skills? How can I grow and : in the course of my working life? Some individuals find their way to a job that provides i with a sufficient degree of satisfaction, while others must compromise and, in order to make
r, work in whatever job the market offers, with a lack of interest and enthusiasm. The middle circle refers to one's identification with the organization that he or she is actually ag in. An individual may be satisfied with his job per se, but not with the values, culture, »» or atmosphere of the workplace. This will lead to a feeling of detachment, or to a lack of jtment and identification with the organization, and although individuals in such a situation r continue to work in their organizations, their lack of identity will lead some of them to search elsewhere outermost circle represents the individual's career path. Within this circle are past and nt ;obs, as well as envisioned future jobs and other possibilities. Commitment, contentment 1 enthusiasm with past and present jobs or organizations, or the lack of any or all of these, are sfcr tc arfect or even determine perceptions of a future career path. Individuals who are satisfied i tbeir present or past jobs and organizations may nevertheless have doubts about their potential Bccess in other places of work or in an independent enterprise.
kivement from one circle to another is not always in what the individual considers a desired riiirward direction. For example, a professor who is highly competent in and satisfied with his rlier crosen academic field may be called upon to fill an even higher level position in admini-k«. as a dean or as head of a university department. Since such administrative positions are m demanding, full-time posts, very little time is left for academic research. There is also an n, two-sided dilemma: neglecting or abandoning research for three or four years is likely ioainger progress in one 's academic career path, but refusing such administrative jobs can often i renouncing prestigious and well-networked appointments. lifer ir.anv individuals in the workforce, entrepreneurship has proven to be an excellent choice, it ran pro\ide a satisfactory or even excellent livelihood, as well as fulfillment of the a.'s desires and aspirations (the innermost circle). In terms of many individuals' need for tzji;:r i the middle circle), entrepreneurship is likely to fulfill the need for commitment and iDKaTion with their own creation, and to do so in an organization that is planned, established

THE RESOURCE-BASED PERSPECTIVE
and developed by the entrepreneur, according to his or her own vision and desires, thereby promoting the entrepreneur's career path (the outermost circle), in a way that answers the needs of the id (a return to the innermost circle). Many entrepreneurs are more comfortable in a protean career (Hall 3976, 2002); that is, a career process in which the person, not the organization, manages his or her career; as such, the protean person s own personal career choices, desires, and their implementation are unified, controlled and adjusted by that person, promoting his or her self-fulfillment. As protean core values are freedom and growth, mobility between jobs is high, success criteria are subjective, and professional and job preferences fluctuate. Entrepreneurship is the best format for such a career type. Thus, for many individuals, entrepreneurship is highly likely to satisfy the needs found in all three circles.

Psychological traits
Psychological theories focusing on the personal traits, motives and incentives of entrepreneurs stress their need for achievement, a propensity for risk-taking, and an 'internal locus of control', all of which are considered major characteristics of the entrepreneurial personality. The strong need for achievement, in terms of accomplishing difficult tasks, organizing ideas, overcoming obstacles and/or attaining a high standard of work, is considered a significant psychological variable associated with new venture creation; independence and a strong internal locus of control, which are both associated with self-awareness, self-development and ongoing learning, as well as with self-regard and sometimes competitiveness, are also significant factors (McClelland 3963; Pandey and Tewary 1979; Sexton and Smilor 1985; Shaver and Scott 1991; Kaufmann, Welsh and Bushmarin 1995; Mueller and Thomas 2003).
Entrepreneurs have been found to be creative and enthusiastic about the fruits of their creativity, and to have a zeal for the challenge of inventing new products and exploiting new ways of marketing. They are restless, and even the most successful ones are never fully satisfied with their accomplishments: they tend to continually look for additional and different paths to achieve their goals and realize their vision. Sustaining goal-directed action and utilizing coping strategies when faced with obstacles are also traits identified with entrepreneurs, as is tenacity, which has been consistently identified as a typical trait of both inventors and entrepreneurs.
Researchers in cognitive theories that address entrepreneurs' perceptions of the startup process assert that in order to keep their long-term goals alive in the face of surprises, shortages and barriers, entrepreneurs develop intense mental imaees of desirable futures. These researchers also found that to cope with the uncertainties and urgencies thev face, entrepreneurs draw upon tacit knowledge, similar to intuition, through cognitive processes based on compressed experience, rather than on strategic thinking. The combination of these images and tactics comprises the overall scheme of the venture that the entrepreneurs want to create. All of these are important in the entrepreneur's exploratory and experimental setting, when information is scarce and outcome probabilities unclear, and in which rational decision-making processes strain limited resources and provide little gain (Brockhaus 1980; Sexton and Bowman 1986; Low and MacMillan 3 988; Chen, Greene and Crick 3998; Ireland and Miller 2004).

The main resource; human capital (HC)
The combination of higher education, work experience and expertise has a strong impact on entrepreneurship. Explanations for this derive from the laws of supply and demand. In the job market, education, experience and specific expertise are exchangeable assets that enable job

Characteristics
Theories have addressed the multifaceted relationships between new businesses and lilies- environments. These studies are based on the concept known as the Competitive Exclusion Hfflrimcipie (Hannan and Carroll 1992; Aldrich and Wiedenmayer 1993), which asserts that two •iimnmar businesses cannot occupy the same niche at the same time in the same ecosystem. In order •011 succeed, new entrepreneurial businesses must have or construct unique products or services, Kiir s'i-rJon or devise attractive conditions or characteristics that suit their particular environment. 'Hue ~;ultifaceted relationship between environment and business is the prime concern in iiino!;;c rical studies. Ecological models focus on how organizations change over time, especially lltllkrourli the demographic processes of selective replacement — organizations' founding, growth ann»«L "ortality. The major theories of organizational ecology dealing with the founding of new iiUiiszrjesses include, among other topics: the rate of new venture launches or launch attempts; CBKroetition across regions; rates of founding across geographical locales; the contribution of initial iK*corce endowments; allocation of power; risk-taking under conditions of uncertainty, and infihrmation asymmetry.
T.ie ecological conditions upon which entrepreneurial viability is dependent are difficult to liter:e and measure, and the long-term or continued success of such ventures, both newly launched .»; 'up and running', is therefore highly unpredictable. Ecological models are beginning to provide diiearer explanations for these relationships (Aldrich, Zimmer and McEvoy 1989; Reynolds 1991; te and Audretsch 2005).

SUMMARY
anyone can be an entrepreneur, be they young or old, male or female, with formal -aration for entrepreneurship or thrilled to explore this path with no previous knowledge, rj concrete or amorphous visions. All have a common drive — they are keen to develop rriselves into their own, extant venture. Yet entrepreneurship is quite a difficult matter: it -Tonts individuals with various vague, risky and uncertain business situations. Although repreneurship is encouraged by many national agencies and governments in many countries, : is culturally incorporated into many communities, some individuals will be more attracted rnrreprenurship than others, as this demanding, tough yet challenging and stimulating career r. Is more appealing to individuals possessing the combination of specific human capital erminants, psychological traits and family encouragement, along with positive values toward repreneurial spirit (e.g., independence, risk-taking, onoing learning, learning through doing). Some people find entrepreneurship a satisfactory, self-fulfilling career path as it provides them -i their desired livelihood, matches their aspirations and fits their independent, free-spirited psychological characteristics; others are attracted to entrepreneur ship as it fulfills their need for commitment and identification with their own creation, their own venture; yet others find it the best path for a protean career. Entrepreneurship fulfills different needs in different people as a preferred job and way of life.

CASE STUDY 3.1     Jemex, Croatia
After twenty years as a consultant in a large company, Luka Brstilo was bored with his job. 'I get bored easily/ he confesses. Brstilo was employed as a consultant in information technology (IT) management and marketing-related matters. He was earning well, but always felt that something was missing in his life. At work, Brstilo was considered 'rebellious', as he was frequently involved in disputes and disagreements \vith his boss and colleagues. They wouldn't fire him, however, due to his creative thinking and h:s commitment to the company's projects and clients: every project was carried out quickly and completely, and there was widespread satisfaction with his devotion and professionalism. In fact, after one particular disagreement, Brstilo was actually fired, but clients'threats to ieave the company if he wasn't there resulted in his boss's rehiring him the very next day. Brstilo's creative solutions often entailed risks, and the company he worked for could not afford to take them. Such refusals frustrated him. He felt that he was going downhill. One evening, on the way 10 scccer practice with his son, a neighbor told him that he looked 'gray'. Although Brstilo wasn't sure he understood exactly what this meant, he did feel old and run-down and bored. Brstilo quit his job the very next morning. Within a month, he launched two businesses-simultaneously. 'T/y wife was very worried about my decision to quit. She has a job, but we have two children, and there was no guarantee that things would work out for us. So I decided to have two businesses: one of them is solidly based, that is, it specializes in what I do best-marketing and management consulting-and I'm the only "player" there. My clients are only large companies, and I work for them when I really need money. The other one, Jemex, is a company that provides internet services. The internet activity was launched early last year, and I have been running it full time since September. I manage this second business, but my income is mainly from the first one.' Jemex is still in its infancy, and it faces several constraints, but Brstilo is very devoted to his entrepreneurial activity: he works longer hours and his work often spills over into his personal and family life, but Brstilo is happy: 'Croatia is an economically emerging country, but it has some old legal and economic structures, with so many rules that it is sometimes difficult to distinguish between them. The country suffers from very long decision-making processes and a lot of bureaucracy. Many people that I have spoken with avoid entrepreneurship for just those reasons,' he says. Brstilo is a restless doer with irrepressible creative energies, and he decided to turn these attributes to his advantage. He saw that the government's procedures were slow and burdensome, which made it difficult for new businesses to become established, including those related to the internet. He saw an opportunity there, and launched a company. He also began to look for other mergers, partnerships or opportunities that would make it possible to circumvent the government's cumbersome bureaucracy and provide services that were becoming more in demand. 'Suddenly, it occurred to me that in some parts of Croatia's main cities, especially in the south where I live, there is a lot

WEBSITES FOR ENTREPRENEURIAL COUNSULTING
ACE, Action Community for Entrepreneurship, http://www.ace.org.sg/Site/index.aspx.
Disney Entrepreneur Center, www.disneyec.com/.
DIY.BizPlan.com, www.diybizplan.com/HELP!_Free_Consulting_for_Entrepreneurs.
ECWT, European Centre for Women and Technology, www.womenandtechnology.eu/digitalcity/news/
FKCCI, Federation of Karnataka Chambers of Commerce and Industry, India, www.fkcci.org/services.php. Networked Intelligence for Development, www.networkedintelligence.com. SBA programs, www.world-entrepreneurship-forum.com/. SCORE, Counselors to America's Small Business, www.score.org/index.html. SMEtoolkit, http://us.smetoolkit.org/us/en/. SPRING, Singapore, www.spring.gov.sg/Content/HomePage.aspx.

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