Posts Tagged networking

Qualities of a Successful Entrepreneur


The story of Tariq Farid provides some insight on the qualities one needs to become a successful entrepreneur. Tariq is a Pakistani American who emigrated to the United States at age 11 with his family. By the age of 17 Tariq owned a flower shop with the support and encouragement of his family. Two years later Tariq successfully operated four stores. Making a better experience for his customers thrust Tariq’s drive that led to him to create point of sale software for the floral industry. Tariq later founded and led NetSolace, Inc., which provides franchise management solution software. In 1999, Tariq’s thirst for starting new businesses propelled him to start Edible Arrangements®, a franchise organization providing fruit bouquets, which grew to over 1,100 stores worldwide (Crowley, 2012).

Tariq developed his leadership style from the values instilled by his family while growing up. These values included honesty, integrity, and passion. Tariq believed in preserving these values and always returns to these basic values. For example, Tariq responded to an interview explaining how his drive comes from keeping honest with the consumer and himself. Tariq said he believe a true entrepreneur has a focus not so much on making money, but on keeping a social consciousness and providing for long-term profitability. According to Tariq the successful entrepreneur strives to do better and take care of the customer. Passion is the main motivation of the true entrepreneur not making money (Crowley, 2012).

Another striking characteristic of the successful entrepreneur is to embrace change because people enjoy new and unique products. Tariq believes in rethinking everything to stay on cusp. Tariq likes to employ people who embrace new ideas and who serve as change agents to customize products to people’s evolving needs (Crowley, 2012).

One other idea Tariq’s parents instilled in him is to work hard and go after the American dream. Success does not come easy. A person must work hard to become successful. Tariq realized he must work hard to confront risks and overcome them. Successful entrepreneurs must pay their dues and embrace a willingness to make mistakes (Crowley, 2012).

In short, genuine entrepreneurs are ” leaders who lead with purpose, values, and integrity; leaders who build enduring organizations, motivate their employees to provide superior customer service, and create long-term value for shareholders” (Crowley, 2012; George & Sims, 2003, p. 3).  Tariq Farid provides an example of an authentic entrepreneurial leader. Do you have what it takes to become an authentic entrepreneurial leader? Do you want to learn more?

References

Crowley, K. (2012). CEO perspective: Entrepreneurship with a point of view. South Asian Journal of Global Business Research, 1(2), 177-182. doi: 10.1108/20454451211252714

George, W., & Sims, P. (2003). Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value. San Francisco, CA: Jossey-Bass.

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Small Business Alliances: The Case of Lehman Trikes


During the height of the Great Recession of 2008-2009, Lehman Trikes formed a strategic alliance with Harley-Davidson. Lehman Trikes, a small publicly held company on the TSX Canadian  Venture Exchange, lead the industry in making three-wheeled motorcycles in Spearfish, South Dakota. Harley-Davidson announced it selected Lehman Trikes as its exclusive supplier of its Tri-glide three-wheel motorcycle. Before signing the alliance, Lehman made the three-wheeled motorcycles in the aftermarket. Harley legitimized the three-wheel motorcycle with its announcement bringing it into the established motorcycle market (Looney & Ryerson, 2011).

By the end of the summer of 2010, Harley-Davidson faced difficult times losing half its business. Harley-Davidson did not renew the agreement signed with Lehman Trikes. Harley kept the rights to the Tri-glide brand and granted no residual rights to Lehman Trikes, but in its original agreement clearly laid out its non-renewal rights and terms. Although Lehman feared Harley might not renew the contract, it understood the risks when it signed the original agreement (Looney & Ryerson, 2011).

Do you believe the alliance between Lehman Trikes and  Harley-Davidson met both companies’ goals? Do you believe the alliance had successful results? What benefits did the companies achieve because of the alliance? What risks did the companies face by signing the alliance? Did the alliance benefit Lehman Trikes, the smaller company? Do you believe Harley exercised its rights in a fair and transparent manner? Knowing that ending the agreement would limit its supply of the Tri-glide, did the strategy benefit Harley-Davidson? Did Lehman Trikes have a viable business model or could it have strengthened its model?

Let us know what you think? Do you want to know more about forming strategic alliances? Learn more.

References

Looney, D. C., & Ryerson, A. (2011). Lehman Trikes: A story within a story 17, 35-39. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=ent&AN=69927663&site=ehost-live

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An Opportunity for Small Business Collaboration in Global Markets


Today small businesses find it tough enough to survive let alone expand in the global markets. Opportunity does exist, however, in the global markets through making alliances with strategic partners. The partners to alliances look at alliances as temporary or until considered no longer necessary and the alliance has served its need (Grosse, 2000).

The idea behind strategic alliances is to co-create value, but often businesses find it difficult because of the unwillingness to share or a lack of common values. The small business alliance depends on trust and openness to work toward a common value. The parties to a strategic alliance have to negotiate to fill in their strategic weaknesses and improve the competency of the alliance (Grosse, 2000; Mockler & Gartenfeld, 2001). Mockler and Gartenfeld argued effective negotiation at the start of the alliance cements the likelihood of a successful partnership.

Liu (2009) asserted international alliances should collaborate to find critical technology and knowledge in a strategic alliance and negotiate learning activities leading to competitive advantage. The partners to an alliance should structure the alliance so it becomes a “race to learn” by mixing competition in with cooperation, but this structure leads to instability. Grosse (2000) argued a one-sided alliance leads to unstable relations and the objective should seek to strengthen weaknesses in the competencies of the alliance partners.

Grosse (2000) claimed the strategic alliance partners need to find a strategic fit by settling the cooperation level, the effectiveness of the cooperation level, and molding the culture of the alliance. Partners should seek a significant understanding of each other to form an effective alliance. An understanding will help foster a successful work relation and avoid failure. A successful partnership will promote value creation through knowledge gathering. Planning has a critical role in forming successful strategic alliances.

Do you have what it takes to expand through inter-firm alliances to succeed into global markets? If you need help planning for global expansion contact us to learn more.

References

Grosse, R. E. (2000). Thunderbird on global business strategy. New York: John Wiley & Sons.

Liu, W. K. (2009). Advantage competition of inter-partner learning in international strategic alliance. Journal of Global Business Issues, 3(2), 123-128. Retrieved from http://search.proquest.com/docview/223750245?accountid=35812

Mockler, R. J., & Gartenfeld, M. E. (2001). Using multinational strategic alliance negotiations to help ensure alliance success: An entrepreneurial orientation. Strategic Change, 10(4), 215-215. doi: 10.1002/jsc.536

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Entrepreneurs: Knocking on Heaven’s Door


Alexander Graham Bell once said, “When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one that has opened for us” (Bell, n. d.).

Often the entrepreneur dwells on the negative instead of pursuing more positive leads. The doors of opportunity are all around us, but when a prospect shuts the door we spend too much time looking for reasons the door shut on us. The savvy entrepreneur moves on and does not dwell on doors shut by prospects. The novice entrepreneur spends too much time trying to find out what went wrong. Entrepreneurs can learn from the shut door, but should move on. Often the reason comes out later anyway. So why dwell on misfortune instead of focusing on new opportunities?

The next opportunity may show the entrepreneur what went wrong the first time around, but if the entrepreneur does not pursue the next opportunity, likely he or she will not learn nothing from the lesson of the closed door. Comparing experiences helps the entrepreneur see how effective different strategies are. The entrepreneur should not keep taking the same steps if the results do not change. Trial and error helps entrepreneurs open doors the next time around.

Extensive planning and analysis is for managers, not for entrepreneurs. Entrepreneurs find success by failing and trying new approaches. Dwelling on closed doors puts the focus on failing, but trying new approaches focuses on opportunities. The more the focus is on new opportunities, the greater the chance of succeeding by learning from mistakes (or failures).

Each failure is a step closer to the next success and entrepreneurs should look at failure not as failure, but as a mover closer to success. Failures are a challenge all entrepreneurs must overcome to see success, but they should not let failure paralyze them. Why fail when you can succeed?

I encourage you to start find the motivation to look at opportunities instead of failures. Start knocking on heaven’s door. You can start now by signing on with us to help you. Learn more.

References

Bell, A. G. (n. d.). QuoteWorld.org. Retrieved from http://quoteworld.org/quotes/1168

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Does Your Business Need an Attitude Adjustment?


Think about why some companies succeed despite their characterization as risky. For example, one of the most risky businesses people think of is to start a restaurant. The failure rate for restaurants is high, but those that succeed have some special qualities. A good business needs to adapt to what people want.

I am originally from Chicago and I distinctly remember a restaurant chain that became very successful because of its ability to provide what people want. If you have ever heard of Lettuce Entertain You Enterprises, Inc. you may have a good idea what I mean. Richard Melman with Jerry Orzoff  started Lettuce Entertain You in 1971 with $17,000. Melman wanted to start an upbeat restaurant directed at young singles interested in rock music, casual clothing, and healthy food. R. J. Grunts became the company’s first eatery in Lincoln Park followed by Fritz That’s It! in Evanston and Great Flying Food Show in 1974. In 1975 Lettuce Entertain you introduced Jonathan Livingston Seafood and Lawrence of Oregano opened in 1976. Lettuce Entertain You mastered the avante garde casual restaurant business with its unique themes (Anonymous, 2012).

A good business needs to anticipate what customers want like Melman did with Lettuce Entertain You. Traditional restaurant startups do not typically think about what will make a restaurant stand out to a certain crowd and will take a more conservative route. A good entrepreneur has an open mind and anticipates providing a service or product customers will want. Lettuce Entertainment did not stop with the off-beat casual idea, but opened more restaurants with more  ambience like the Pump Room on Chicago’s Gold Coast and Ambria in partnership with renowned French chef Gabino Sotelino. Later Melman introduced several other themes by opening a series of other restaurants (Anonymous, 2012). My personal favorite is Tucchetti’s.

An open mind is important to becoming a successful entrepreneur. This notion reminds me of a TED talk by psychologist Jonathan Haidt I viewed not too long ago. Haidt explained five key differences between conservatives and liberals (Haidt, 2008). Entrepreneurs with closed minds often do not succeed because they fail to anticipate what consumers want. Lettuce Entertain You showed how new themes can entice people.

Think about your business! Does your business need an attitude adjustment? Lettuce Entertain You provides a good example of how an open mind can open doors for a new business and keep customers happy. If you want to start a new business I urge you to start now to explore how to keep an open mind by working with us. Learn more.

References

Anonymous. (2012). Lettuce Entertain You Restaurants. Lettuce tell you our history, from http://www.leye.com/about-us/history

Haidt, J. (2008). Jonathan Haidt: The moral roots of liberals and conservatives. Retrieved from http://www.ted.com/talks/jonathan_haidt_on_the_moral_mind.html?quote=339

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Small Business 101: Lessons Learned from the Dog


 

One of the most important ways for entrepreneurs to learn is to watch others, and what better way than to learn than from watching the pets we love. I have learned so much from my dog, a yellow Labrador retriever, and I want to share some of the tricks I learned from her. Abby is my most loyal and obedient partner and I value the lessons she has taught me. I hope you can learn from what she taught me.

One of the first tasks an entrepreneur needs to learn is how to hunt when hungry. Abby has the distinct ability to sense when she needs a meal. She knows how to hunt and find food to satisfy her appetite. An entrepreneur is hungry often when first starting out and must also find a way to hunt to satisfy the urge to eat. Too often I find entrepreneurs taking hunting for granted mistakenly believing hunting is not an important task, but I find hunting is one of the most basic primal tasks an entrepreneur has. Good entrepreneurs learn to hunt early and often because they  need to eat to prolong their existence. Hunt if you want to survive.

Abby also taught me to keep digging. An entrepreneur’s work is never done and to find what one needs one must always keep digging and not let obstacles stand in the way. If a fence or roadblock exists dig under it and find the way to what you need. An entrepreneur never knows what he or she might find, but keep digging and the treasure will come. Dig to find your way.

Another trick I learned from Abby is to keep my sights high. You never know what might drop from the sky. I have seen Abby look at the squirrels on the fence or in the trees and one misstep causes them to drop to the ground in striking distance. I have seen the same result when Abby kept an eye on the birds that did not leave themselves enough room to climb back up and dropped to the ground. Entrepreneurs should keep their sights high as no one knows if something good will drop in their lap. Keep up your head and salvage what drops from the sky.

On a related note, I also learned from Abby to make my presence known. Abby lets me know she is there and if something falls from my grasp she is there to reclaim it. Squatters rights matters! The entrepreneur can also claim something that falls from a competitor or supplier’s grasp and use it to make life better. Claim the prize by making your presence known.

Once Abby claims a prize she also never lets go. Once the squatter’s rights rule takes effect, entrepreneurs need to hold on to what they have gained presuming it has value.  If the entrepreneur fails to protect the prize the same can happen to the entrepreneur that happened to the competitor or supplier. Never let go if you want to keep the prize.

Similarly, Abby taught me to keep an eye on the prize. If you have not yet gained the prize this step is most important because once you take your eye off the prize, the more apt you are to lose it. Entrepreneurs need to stay focused and continually look for what they are after. If you want a prize bad enough you have to keep your focus. Never let your eye off the prize.

Once Abby finds a prize, she taught me not to waste anything. Waste violates the survival rule as the entrepreneur should always set aside enough for down times. Squander what you find and do not use as it can come in handy when business is down. Never waste what you have, but keep it for when you fall on hard times.

Another trick I learned from Abby is to have a sixth sense and keep prepared. When someone comes to the door Abby is on her way before anyone knocks or rings the bell. Good entrepreneurs need to prepare for the unknown and have a sixth sense. Anticipation puts you in front of others. So prepare yourself by having a sixth sense and anticipating what is to come.

Abby has another natural knack that I learned that has to do with networking. Abby keeps abreast of the trends and setting by networking with her peers. Entrepreneurs need to scan the environment to find their niche and identify new opportunities.  Sniff out opportunities by looking at what peers do!

One other find from Abby’s behavior is to play the game by your own rules. If Abby has the opportunity to define how to play the game she does and lets others play by her terms. Entrepreneurs need to define the rules by which to play the game or risk letting someone else control how they play. Define the rules to benefit how you play and do not rely on someone else to set them for you.

With what I learned from Abby, I have conferred on her the doctor of fine bones degree. I think she has earned her degree and can teach others many good lessons about entrepreneurship. I hope you have found her teachings informative. I continue to learn from Dr. Abby and you can too. I encourage you to act now and learn more.

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Another Episode from my Marathon Experience: The Triathlon


In another post I related my marathon experience to starting a new business. Let me tell you about the next episode related to my running experience. One of the people I met while training for the marathon included an avid triathlete. I started running with Bill who ran much faster than me, but liked shorter distances and preferred the challenge of the triathlon. Bill excelled most in biking, but ran fast at shorter distances. Bill often finished in the top three of his age group. Bill motivated me to buy a bike and learn how to swim. Soon after, I started training for my first triathlon. Unlike Bill, I found biking the hardest to learn and I had a fear of the water inhibiting me from learning to swim.

The triathlon taught me how to take on new tasks similar to learning new tasks involved in starting a business. Someone starting a new business has to learn new tasks all the time. The founder of a new business often fears new tasks just as I feared learning how to swim. Yet, as I jumped in the pool every day and started to swim laps, I started to enjoy swimming because it provided solitude and relaxation in the water without the pounding of running. I found this similar to a new business owner because sometimes a new business owner has to step back in solitude and reflect on what he or she wants to do. The founder of a new business continually seeks new ways to make the business fit and productive. Imagine having the resources to learn new tasks to avoid fear and learn new tasks.

Learning to bike created new challenges a as I learned to stay with the pack by drafting. I found bikers stayed close together in a pack to preserve energy and keep pace with other bikers. I also found this strategy is not without risk. I learned quickly if one biker went down, many would go down and when bikers go down together they are in great danger of injury. I also learned the best bikers pick themselves back up and continue the race despite their injuries. Good bikers learn from other bikers in the pack about preventing the danger and sticking with the pack. Experienced bikers work as a team to prevent mass wipe outs and hang together in unison.

Savvy entrepreneurs are much like the biker because they continually scan what other people in their business do. Entrepreneurs learn to keep pace and stay together to reach their goals, but sometimes take a spill and have to pick themselves back up and move forward. Risk is inherent in entrepreneurship and a business owner has to accept failure as a path to success. The savvy entrepreneur learns from mistakes and shares with allies to prevent further wipeouts. Think about having the resources of a team to avoid mistakes by working as a team.

When race day finally came I became nervous and had doubts about completing the race. When the gun went off I plunged into the water and began to flail away as people swam over me and bumped into me. I kept lunging forward and noticed the cold water had taken my breath away unlike the pleasing temperature I became accustomed to at the pool. I began hyperventilating and thought I would drown, but I kept stroking away and moving forward. I finally reached a turnaround buoy and caught my breath even though I had no safety outlet as I did in the pool. I started feeling good and could see the shore coming within reach. I realized I would make it to shore and still many people had struggled behind me.

Entrepreneurs also have their doubts when first starting out, but successful ones keep moving forward toward their goals. A business founder also takes his licks and recovers despite unfamiliar conditions. Sometime the entrepreneur feels like he is drowning, but catches a second wind by moving toward the goal. Successful entrepreneurs struggle just like the triathlete, but keeps the goal in sight and moves toward it. Imagine training diligently for an event like the triathlon and not finishing. Not finishing is not a choice for the entrepreneur. With a good coach the entrepreneur can find the encouragement to keep moving toward the finish line.

Upon finishing the swimming leg, I ran toward my bike and found my biking gear and prepared to mount my bike. The transition entailed finding my gear in a sea of athletes, bikes, and gear. I had to change and put on my socks and shoes after drying myself off with a towel. I watched others with more experience than myself who had the transition down to a science and minimized the time to launch into the biking leg of the race. Although I did not do too bad, I learned how to become more efficient by making the transition more of a process. I learned experienced triathletes practice the transition just like they do the three main legs of the race.

The transition taught me I can improve with experience just as an entrepreneur improves with experience. A small business also becomes more efficient the more process-oriented it can become. The entrepreneur learns how to become more efficient just like the triathlete in the transition phase. Consider how the entrepreneur can improve having someone with experience showing him or her the way instead of learning on the fly.

Once I began the biking leg I realized the pack of bikers I had to draft on had shrunk because instead of starting together, bikers began at different times following the swimming leg. I found I had to work harder to find enough bikers on which to draft and not let go. In some places I peddled by myself without a pack. I had no idea how to use what I learned in training.

An entrepreneur also faces uncertainties when conditions change unexpectedly. Just as the triathlete faces the lack of a pack on which to draft, the entrepreneur experiences unknown conditions through which to navigate by taking action. The entrepreneur at times feels alone without any support. The entrepreneur must work harder to find a solution just like the triathlete does without a pack. Imagine how the entrepreneur can improve by having some experience with change and how to adapt to it. Good entrepreneurs must learn to manage change just like a new triathlete.

As I approached the final leg I faced another transition from the bike to the run. The transition mainly entailed dismounting the bike and changing shoes. Again, I found experienced triathletes practiced the transition to cut down their time. The experienced triathlete made the transition so smooth it took very little time. Zaleski (2011) found entrepreneurs with experience have a competitive advantage.

The entrepreneur has to learn every facet of a business and gets better with practice, just like the seasoned triathlete. Entrepreneurs make running the business smooth through developing the right processes and checking them for problems. Although the triathlete measures the transition with time, the entrepreneur uses specific metrics to measure efficiency of different processes to develop a good working model. Blanchflower (2004) found entrepreneurs improve the chance of success by having a higher educational level. However, one does not need a traditional education to learn what the entrepreneur needs to succeed. Entrepreneurs learn on the fly.

As I started the run, I reaffirmed the running leg is my strength because I already had experience as a runner. I settled into a nice rhythm and looked for other runners to pace. Again, I found the field of runners much more spread out because of not starting all at once. However, I did find many people running on empty I could easily pass. I gained speed as I approached the finish because a 10-kilometer (6.2 miles) running leg is much shorter than a 26-mile marathon. I had the long-distance conditioning in my favor. Whatever time I lost in the swim and bike, I made up for in the run. I finished in a good time, but still could improve by learning from my experience.

The entrepreneur is similar to the triathlete because both gain from experience and learn along the way. Both the entrepreneur and the triathlete learn to pace themselves and deal with unknown conditions. Action is critical to both the entrepreneur’s and triathlete’s success, and both strive to achieve fitness.

Do you have the tenacity of the entrepreneur? Act now if you do and learn more.

References

Blanchflower, D. G. (2004). Self-Employment: More may not be better. (10286). National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/w10286.

Zaleski, P. A. (2011). Start-ups and external equity: The role of entrepreneurial experience. Business Economics, 46(1), 43-50. doi: http://www.palgrave-journals.com/be/index.html

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Starting a Business is Like Running a Marathon


I started running late in life when two of the guys at worked challenged me to run a mile with them. I worked at a large hospital at the time and worked and often socialized with two guys. One managed patient accounts and the other was a consultant from Andersen Consulting (now Accenture). At the time, I was overweight and wanted to lose some weight. The challenge we made with one another stipulated that whoever quits has to buy whoever keeps running dinner. Guess what? I am the guy who did not quit and I went on to become fanatical about my running. The other guys treated me to a free dinner.

Good entrepreneurs are like runners because they do not quit. I used to tell myself, “one foot in front of the other.” Entrepreneurs should tell themselves something similar like take it a step at a time, but whatever you do, do not quit. Similarly, an entrepreneur should take an active interest in the business he creates. The entrepreneur should also give himself small rewards along the way like the free dinner I received from my work associates.

Okay, so after this first episode I continued to run. I started running about three miles about three times a week through my neighborhood, but then the fall came. Another friend of mine wanted to join a new health club so we could play racquetball. I went to the club and signed up with him to play racquetball, but we started our routine doing a workout. I noticed the club had an indoor running track and next time I brought my running gear so I could run a little first before playing racquetball.

Next time we visited the club, I started running first before our game. I met some nice people on the track who encouraged me to run the Chicago Marathon with them. My racquetball friend did not like running and our racquetball games quickly stopped, but running with my new friends continued.

Starting a business is like running because you develop and nurture new relationships. After our runs we would go upstairs to the bar and have a few beers and have a good time. We forged a strong relationship with each other. We talked about our plans for the marathon. Starting a business is similar to planning to run a marathon because a business founder plans his business and develops strong relationships in forming those plans. A business founder does not exist on an island, but collaborates with those he trusts. A good business depends on good relationships.

As the date of the marathon approached, we trained together encouraging one another. We trained inside and out depending on the weather. We continued encouraging one another on our runs and discussed different strategies to take to complete the marathon and run a good time. A few of my friends fell to injuries, but most of us went on to the marathon.

A new business is similar because some relationships will stop and others will continue depending on who is the fittest. The camaraderie continues as the goal comes into sight. The new business founder has to keep his goals in front of him just like a person wanting to complete the marathon. The new business founder continues to forge relationships with the fittest of his relationships.

The day of the marathon finally arrived and the weather was perfect. I started out slow to pace myself. I learned from running with my friends I am an endurance runner, but not too fast. However, my friends pushed me to improve my time. Running a new business is similar to the marathon because business associates push you to do better and recognize your abilities.

During the marathon I built speed as the race progressed and I loved the cheering crowd’s encouragement. As the I approached the twenty mile mark, runners started to hit the wall and drop from the race, but I continued to press on. Running a new business is like running a marathon because some people hit the wall, while others press on to the finish. Customer encouragement helps the new business put the final goal in sight. A new business needs customer feedback to stay on course and complete the race.

As I approached the finish I saw many struggling to continue. Some stopped or walked as they headed to the finish. I felt good as my training paid off and I decided to pass as many people as I could. I surged to the finish picking off as many competitors as possible and I could finally see the time clock at the finish. I knew I had beat my goal and a good feeling it was.

Starting a new business is like running a marathon because training pays off and allows an entrepreneur to surpass the competition. The goal of the entrepreneur becomes clearer as the founder approaches the finish line and it feels good to beat the goal.

As I crossed the finish, a few of my faster friends greeted me and I waited with them to see the others of us who finished. One by one I greeted the rest of my friends as they completed their journey. Running a business is like running a marathon because the encouragement continues throughout the journey. The camaraderie continues as those who make it have cause to celebrate.

Are you ready to run the marathon and start your own business? Learn more.

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Dr. Phil’s Fables of Entrepreneurship: Part I


The Falcon and the Pitcher

A falcon exhausted with thirst flew with glee to an abandoned pitcher hoping to find water. When the falcon reached the pitcher, it found so little water that it’s beak could not reach it. The falcon frantically tried everything to reach the water, but its efforts were in vain. Finally, the falcon took a collection of stones and dropped them into the pitcher one at a time bringing the water into its reach.

Moral of the story: Persistence is the mother of invention. Never give up.

The Owl and the Rodent

An owl in great need of food saw a rodent asleep in the grass and flew down and grasped him. Bewildered, the rodent turned and bit the owl a mortal wound. In agony, the owl exclaimed, “Oh unhappy me! I found what I thought a happy windfall only to find the source of my own destruction. ”

Moral of the story: Do not underestimate competition from the entrepreneur as it may prove the source of your “creative destruction.”

The Boasting Traveler

A man traveling in foreign lands liked to boast upon return to his native country about historic feats he had performed in the places he visited. The man exclaimed, while traveling at Rhodes, he had leaped a distance no other man could leap and had witnesses who could attest to his achievement. A bystander interrupted and said, “Good man no need for witnesses. Suppose this is Rhodes. Aust leap for us.”

Moral of the story: If you can’t see it, you can’t believe it! Success starts with vision.

The Ass and the Purchaser

A man wanting to purchase an ass agreed with its owner to try the animal before buying it. The man took the ass home and left it in the straw yard with his other asses. The ass joined another that was most idle and the biggest eater. When the man observed this behavior he took the ass back to its owner. The owner asked the man how in such a short time he could make such a decision to return the ass. The man answered,” I do not need a trial. I know the ass will be the same as the companion it selected.”

Moral of the story: Take care in selecting who you associate with.

The Boy and the Nettles

The boy was stung by a Nettle. The boy ran home and told his mother, saying,” Although it hurts me very much, I touched it gently.” The boy’s mother responded,” that is why it stung you. The next time you touch a Nettle, grasp it boldly, and it will be soft as silk in your hand and not in the least hurt you.”

Moral of the story: Use a full effort in everything you do.

The Ants and the Grasshopper

The ants spent a fine winter day drying grain from the summertime. A grasshopper, succumbing to famine, passed by and begged for some food. The ants asked,” why did you not gather up food in the summer?” The grasshopper responded,” I had not enough leisure. I spent the day singing.” The ants responded in derision, “If you’re foolish enough to sing all summer, you must dance supperless in winter.”

Moral of the story: You must plan today what you will need tomorrow. Never run out of cash, which is the lifeblood of the firm!

The Eagle and the Fox

An Eagle and a Fox formed an intimate friendship and decided to leave live near each other. The Eagle built her nest in the branches of a tall tree, while the Fox crept into the underwood and there produced her young. Not long after they had agreed upon this plan, the Eagle, being in want of provision for her young ones, swooped down while the Fox was out, seized upon one of the little cubs, and feast herself and her brood. The Fox on her return, discovered what had happened, but was less grieved for the death of her young than for her inability to avenge them. A just retribution, however, quickly fell upon the Eagle. While hovering near the altar, on which some villagers were sacrificing a goat, she suddenly seized a piece of flesh, and carried it, along with a burning cinder, to her nest. A strong breeze soon fanned the spark into a flame, and the eaglets, as yet unfledged and helpless, were roasted in their nest and drop down dead at the bottom of the tree. There, in sight of the Eagle, the Fox gobbled them up.

Moral of the story: Do unto others as you would have them do unto you. Treat others how you want to be treated.

Please leave a comment about the lessons learned from the fables.  Want to learn more?

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A Treatise on The Need for Social Entrepreneurship


Today I watched a video presentation by Steve Blank and the UCLA Anderson School of Management on different entrepreneurship types. Blank had many good ideas I agreed with about entrepreneurship. For example, Blank said when a founder finds a model that works, investors act quickly to take over and replace the founders because founding entrepreneurs’ role is to create value by finding new models. Investors look to manage successful models by recruiting corporate planners to maximize profits for owners and managers in these newfound wealth creating enterprises. Blank also claimed social entrepreneurship has no value because it creates no new wealth (LeanStartupCircleLA, 2011, October 16).

I take exception to this shortsighted view because I believe all enterprises should take some social responsibility. Further, sometimes, I believe social issues belong in social enterprises rather in commercial ones because social enterprises better serve consumers’ social needs and commercial businesses place more value on serving themselves. What is wrong with just earning a decent living instead of channeling all wealth to the elite? Can social entrepreneurs gain more value from satisfying more than their personal wealth and by serving society’s needs? If government fails to address social issues who should?

Different worldviews on social entrepreneurship.

Various worldviews exist about social entrepreneurship. One view comes from the protectors of social entrepreneurship, who believe in the effectiveness of social organizations. Another view comes from the doubters, who demand empirical proof of social entrepreneurs effectiveness  (Pärenson, 2011).

Trexler (2008) reasoned both people and business enterprises have hybrid needs consisting of both social and commercial parts. Trexler rationalized business managers encode the thinking burdensome laws in, “the DNA of our for-profit corporate entities, yet business leaders persist in reducing corporate identity to the material enrichment of its executives and shareholders” (p. 80).

Bull, Ridley-Duff, Foster, and Seanor (2010) argued the current social setting directs itself toward self-interest and eroding moral values. Bull et al. claimed social entrepreneurship has great value to look beyond existing missions and values and maximize ethical virtues.

Defining social entrepreneurship.

Pärenson (2011) found some scholars define social entrepreneurship as any action helping solve social issues, while others see social entrepreneurship only when it serves both a social cause and fulfills a commercial need. Pärenson found other definitions about social entrepreneurship strictly about nonprofit corporations, but most definitions view social entrepreneurship mainly focusing on social needs and less on commercial concerns.

Alvord, Brown, and Letts (2004) defined social entrepreneurship as providing sustainable solutions to great social problems using economic, political, and social means by applying market-based skills to the nonprofit area. Noruzi, Westover, and Rahimi (2010) defined the social entrepreneur as a person, group, or alliance seeking sustainable solutions through break-through changes and ideas in how business, governments, and nonprofit organizations should do business.

Who decides where an enterprise fits?

Should government, commercial enterprise, or society decide the best place to deal with social issues? Should corporate profit making behaviors eclipse social values? Traditionally, governments decided because people of the world organized governments to represent their interests, but with global markets companies aim to tear down the walls of governments. Who then deals with social issues?

Soros (1998) argued autocratic governments find it easier to amass capital, but their power causes corruption and ignores the glue holding the shared values of society together. Soros explained the weaknesses of global capitalism emanating from uneven benefit distribution, unstable financial systems, threats to competition by monopolies and oligopolies, the unclear and confusing role of governments, and the lack of social unity. Without government is the social landscape falling to autocratic interests of big companies? What say should people have about their values?

When does “creative destruction” begin and creativity die?

Without the voice of consumers represented by government the place to deal with social issues best comes from entrepreneurs close to the customer. If monopolies and oligopolies make it difficult for entrepreneurs so they cannot compete who is responsible for creating new and improved products and services to fill the gaps needed by consumers?

Pichler (2010) explained entrepreneurs act as the villain to market economies by averting market tendencies in accord with what Elliot (1983) viewed as Schumpeter’s theory of creating new combinations. Without such new combinations economic conditions become static and fail to foster conditions ripe for creativity. Entrepreneurship drives creativity and when crowded out by monopolies and oligopolies exposes the economic conditions leading to “creative destruction.”

Society needs entrepreneurs to drive creativity and fill gaps exposed by monopolies and oligopolies that fail to consider social needs. Monopolies and oligopolies foster preserving the wealth of the elite with little consideration for social needs. Without entrepreneurship creativity dies and leaves a hole in market for needs direly needed by consumers.

Global markets and unfilled social gaps in the market.

Where do issues like education, healthcare, housing, and alternative energy fall in global markets? Are these not social issues? Should the private companies strictly deal with such issues or should society deal with these issues as social issues. Are such issues best dealt with by government or nonprofit organizations? Does one size fit all?

I do not believe all these issues rightfully belong with private companies because they are beyond the control of the consumer who needs some help. For example, should everyone who wants an education have the opportunity to get one or should education depend solely on those who can afford to pay for a good education?

I would also argue putting such issues in the private companies makes the cost rise and reduces the efficiency of the market in delivering such services to members of the public. Although private enterprises like to espouse their efficiency, sometimes markets become less efficient with the profit incentive. Costs rise because merchants involved add their markups on top of all the ingredients in the product or service causing costs to spiral. In government and nonprofit enterprises companies put less focus raising prices and more focus on buying efficiently. Molina-Martinez and Martinez-Fernandex (2010) and Zhang and Fung (2006) argued social entrepreneurs contribute to improved economic performance, and Granovetter (1992) made the case that social entrepreneurs outperform nonsocial entrepreneurs.

Should society distribute social services to the highest bidder or do all people have a right to certain basic services? Who decides where best to deal with basic social needs? Do the people have a say in a global market that has torn down the walls of government or have we digressed to “the survival of the fittest?”

Deregulation and its effect on social needs.

Loss of government funding from deregulation places more demands for meeting social needs on entrepreneurs (Gliedt & Parker, 2007). Entrepreneurs need better conditions to deal with emerging social needs, but monopolies and oligopolies with notable political influence detract from making conditions more favorable for social entrepreneurs. Social enterprises now face dwindling support from donations and public funds (Craig, Taylor, & Parkes, 2004).

Without government playing a role, social entrepreneurs have a responsibility to deal with social needs, but need improved conditions to do so. Foster (2010) argued for a mixed economy because markets are not perfect and the inability of big companies to deal with certain issues. Foster called for needed government policies to deal with promoting entrepreneurship. These policies include a commitment to education and training, public guarantees of financing for entrepreneurs, public support for research and development in emerging industries, and regulatory changes promoting entrepreneurship through networking. How can conditions improve to provide better conditions for social entrepreneurs without government intervention?

Examples of some of the unmet needs.

Alternative energy, housing, healthcare, and education offer examples of issues social entrepreneurs can play a part in. Green energy focuses on environment problems besides solely profit-making ambitions, but threaten conventional energy source providers with competition (Gliedt & Parker, 2007). Does threatening conventional energy source providers offer enough reason not to develop energy alternatives? What happens when shortages exist in conventional sources? Should society just accept paying more? How does society deal with environmental issues like global warming?

Society can apply the same thinking to housing, healthcare, and education. Are these not at least in some part social issues needing solutions encompassing more than profit-making? Do social entrepreneurs have value in solving these problems?

We would like to hear more from you about what you think? Please leave a comment or let us know if you would like to learn more.

References

Alvord, S. H., Brown, L. D., & Letts, C. W. (2004). Social entrepreneurship and societal transformation: An exploratory study. Journal of Applied Behavioral Science, 40(3), 260-282. doi: 10.1177/0021886304266847

Bull, M., Ridley-Duff, R., Foster, D., & Seanor, P. (2010). Conceptualising ethical capital in social enterprise. Social Enterprise Journal, 6(3), 250-264. doi: 10.1108/17508611011088832

Craig, G., Taylor, M., & Parkes, T. (2004). Protest or partnership? The voluntary and community sectors in the policy process. Social Policy & Administration, 38(3), 221-239. doi: 10.1111/j.1467-9515.2004.00387.x

Elliott, J. E. (1983). Schumpeter and the theory of capitalist economic development. Journal of Economic Behaviour and Organisation, 4(4), 277-308. doi: 10.1016/0167-2681(83)90012-4

Foster, J. (2010). Productivity, creative destruction and innovation policy: Some implications from the Australian experience. [Article]. Innovation: Management, Policy & Practice, 12(3), 355-368. doi: 10.5172/impp.12.3.355

Gliedt, T., & Parker, P. (2007). Green community entrepreneurship: creative destruction in the social economy. International Journal of Social Economics, 34(8), 538-553. doi: 10.1108/03068290710763053

Granovetter, M. S. (1992). Problems of explanation in economic sociology. In N. Nohria & R. G. Eccles (Eds.), Networks and organizations: Structure, form, and action (pp. 29-56). Boston, MA: Harvard Business School Press.

LeanStartupCircleLA (Producer). (2011, October 16). Steve Blank on customer development: The second decade. Retrieved from http://www.youtube.com/watch?v=6t0t-CXPpyM

Molina-Morales, F. X., & Martínez-Fernández, M. T. (2010). Social networks: Effects of social capital on firm innovation. Journal of Small Business Management, 48(2), 258-279. doi: 10.2307/2393553

Noruzi, M. R., Westover, J. H., & Rahimi, G. R. (2010). An Exploration of Social Entrepreneurship in the Entrepreneurship Era. Asian Social Science, 6(6), 3-10.

Pärenson, T. (2011). The criteria for a solid impact evaluation in social entrepreneurship. Society and Business Review, 6(1), 39-48. doi: 10.1108/17465681111105823

Pichler, J. H. (2010). Innovation and creative destruction: At the centennial of Schumpeter’s theory and Its dialectics. Nase Gospodarstvo/Our Economy, 56(5-6), 52-58. doi: http://www.ng-epf.si

Soros, G. (1998). Toward a global open society. The Atlantic Online, 281(1), 20-32. Retrieved from http://www.theatlantic.com/past/docs/issues/98jan/opensoc.htm

Trexler, J. (2008). Social Entrepreneurship as an Algorithm: Is Social Enterprise Sustainable? Emergence : Complexity and Organization, 10(3), 65-85. doi: 10.1207/s15327000em0101_2

Zhang, Q., & Hung-Gay, F. (2006). China’s social capital and financial performance of private enterprises. Journal of Small Business and Enterprise Development, 13(2), 198-207. doi: 10.1108/14626000610665908

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