the entrepreneurial mind

paulshawsmith scientific business strategy

The Entrepreneurial Mind How great entrepreneurs think different

paulshawsmith scientific business strategy

Researching Entrepreneurs

paulshawsmith scientific business strategy

Entrepreneurial personality?

David McClelland

1953

1967

Intelligence

Intelligence Personality

Intelligence Personality Needs

Intelligence Personality Needs Risk

??? ??? ??? ???

paulshawsmith scientific business strategy

1984

“Who is an entrepreneur?”

Is the wrong question.

- Willaim Gartner

Who?

Who? Do?

Who? Do? Think?

paulshawsmith scientific business strategy

Successful entrepreneurs thoughts?

paulshawsmith scientific business strategy

What thoughts predict success?

paulshawsmith scientific business strategy

1 Start up reasons

paulshawsmith scientific business strategy

Why start a business?

1

2

3

3

4

5

6

1 Self-realization

2 Financial success

3 Roles

3 Innovation

4 Recognition

5 Unemployment

6 Independence

paulshawsmith scientific business strategy

Reasons that lead to success?

Unemployment

Reasons

Financial

Reasons

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

Why?

paulshawsmith scientific business strategy

2 Growth Motive

paulshawsmith scientific business strategy

How many employees to do you expect to

employ in 5 years time?

0 or more

1 or more

2 or more

5 or more

10 or more

20 or more

50 or more

100 or more

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

What do you expect your annual sales

turnover to be in 5 years time?

Less than a R1 million

R1 million or more

R20 million or more

R50 million or more

R10 million or more

R20 million or more

R50 million or more

R100 million or more

paulshawsmith scientific business strategy

Growth Commitment?

Source: Barringer et al. (2005)

54%

80%

FAST

GROWTH

SLOW

GROWTH

Avg. profit 12.4%

Source: Baum , Locke and Kirkpatrick (1998)

Avg. profit 5.5%

Written growth vision?

x

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

If your employees/sales doubled how would it

have a negative or positive impact on:

Your workload

Extend to which preferred tasks would dominate

Your employee well being

Ability to control operations

Independence from customers, suppliers, etc.

Ability to survive a crisis

Ability to keep up quality products and services

FOUNDER OF SONY

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

“We will create products that become

pervasive around the world… We will

be the first Japanese company to go

into the US market and distribute

directly.. Fifty years from now, our

brand will be as well know as any in

the world.”

HENRY FORD

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

“I will build a motor car for the great

multitude… It will be so low in price

that no man making a good salary

will be unable to own one. The horse

will have disappeared from our

highways, the automobile will be

taken for granted.”

paulshawsmith scientific business strategy

3 Optimism

paulshawsmith scientific business strategy

Optimism?

paulshawsmith scientific business strategy

What are the odds of your business succeeding?

Source: Cooper et al. (1988)

0 1 2 3 4 5 6 7 8 9 10 No Chance

of Success

Certain Chance

of Success

paulshawsmith scientific business strategy

What are the odds of your business succeeding?

Source: Cooper et al. (1990)

0 1 2 3 4 5 6 7 8 9 10 No Chance

of Success

Certain Chance

of Success

81%

paulshawsmith scientific business strategy

What are the odds of your business succeeding?

Source: Cooper et al. (1990)

0 1 2 3 4 5 6 7 8 9 10 No Chance

of Success

Certain Chance

of Success

33%

paulshawsmith scientific business strategy

=

paulshawsmith scientific business strategy

Why?

paulshawsmith scientific business strategy

4 Self Efficacy

paulshawsmith scientific business strategy

Self-efficacy:

Belief in one own competence to

perform a specific task

paulshawsmith scientific business strategy

How certain are you that you can:

Set and meet sales goals

Source: Chen, Greene & Crick (1998)

1 2 3 4 5

Completely unsure Completely sure

paulshawsmith scientific business strategy

How certain are you that you can:

Expand your business

Source: Chen, Greene & Crick (1998)

1 2 3 4 5

Completely unsure Completely sure

paulshawsmith scientific business strategy

How certain are you that you can:

Create new products and services

Source: Chen, Greene & Crick (1998)

1 2 3 4 5

Completely unsure Completely sure

paulshawsmith scientific business strategy

How certain are you that you can:

Define organizational roles,

responsibilities and polices

Source: Chen, Greene & Crick (1998)

1 2 3 4 5

Completely unsure Completely sure

paulshawsmith scientific business strategy

How certain are you that you can:

Work under pressure and conflict

Source: Chen, Greene & Crick (1998)

1 2 3 4 5

Completely unsure Completely sure

paulshawsmith scientific business strategy

How certain are you that you can:

Develop financial systems and internal

controls

Source: Chen, Greene & Crick (1998)

1 2 3 4 5

Completely unsure Completely sure

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

Is self-efficacy always good?

paulshawsmith scientific business strategy

5 Passion?

Does passion lead to success?

paulshawsmith scientific business strategy

I look forward to returning to work when I am away from my work

Source: Cooper et al. (1990)

0 1 2 3 4 5 6 7 8 9 10 Very

False Very

True

paulshawsmith scientific business strategy

I accomplish a lot because I love my job

Source: Cooper et al. (1990)

0 1 2 3 4 5 6 7 8 9 10 Very

False

Very

True

paulshawsmith scientific business strategy

Most of my life’s satisfaction is derived from my work

Source: Cooper et al. (1990)

0 1 2 3 4 5 6 7 8 9 10 Very

False

Very

True

paulshawsmith scientific business strategy

=

paulshawsmith scientific business strategy

Why?

paulshawsmith scientific business strategy

Working Alone

Restaurant

Cooking

Research recipes

Testing new dishes

Shopping

paulshawsmith scientific business strategy

Managing Others

Working with others

Marketing and Selling

The Hiring Process

Dealing with customers

Managing Finances

paulshawsmith scientific business strategy

Building a Great Team

Finding Opportunities

Marketing and Selling

Building Great Products

Acquiring Resources

Managing Finances

TASK SPECIFIC PASSION

6 Time Horizon

Good idea?

TIME AND SURVIVAL RATES

paulshawsmith scientific business strategy

Source: Evans and Leighton (1989)

START UP EXP AND SURVIVAL

paulshawsmith scientific business strategy

Source: Bruderl, Ziegler & Preisendorfer (1992)

Start up

Experience (3/20 failed)

No start up

Experience (6/20 failed)

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

Born 1930

paulshawsmith scientific business strategy

1. His Dad was a stock broker

paulshawsmith scientific business strategy

2. Chewing gum business (6-12 years)

paulshawsmith scientific business strategy

3. Coke Business (6-12 years)

paulshawsmith scientific business strategy

4. Peanuts and Popcorn job (6-12 years)

paulshawsmith scientific business strategy

5. Invested in stocks (6-12 years)

paulshawsmith scientific business strategy

5. Meet Sidney Weinberg (6-12 years)

paulshawsmith scientific business strategy

6. Read Dad’s business books (13-15 yrs)

paulshawsmith scientific business strategy

7. Read (6-12 yrs)

paulshawsmith scientific business strategy

8. Worked at Buffet & Sons (11-14 yrs)

paulshawsmith scientific business strategy

9. Newspaper delivery job (13-15 yrs)

paulshawsmith scientific business strategy

10. Magazine business (11-14 yrs)

paulshawsmith scientific business strategy

11. Sold second hand golf balls (13-15 yrs)

paulshawsmith scientific business strategy

12. Calendar business (11-14 yrs)

paulshawsmith scientific business strategy

13. Caddying job (11-14 yrs)

paulshawsmith scientific business strategy

14. Set the millionaire goal (11-14 yrs)

I want to be a millionaire by the time I am 35

– Warren Buffett, 1941

paulshawsmith scientific business strategy

15. Read stock pages daily (13-15 yrs)

paulshawsmith scientific business strategy

16. Library visits (13-15 yrs)

paulshawsmith scientific business strategy

17. Snow shoveling job (13-15 yrs)

paulshawsmith scientific business strategy

18. Invested in a hardware store (15-17 yrs)

paulshawsmith scientific business strategy

19. Horse race betting (15-17 yrs)

paulshawsmith scientific business strategy

20. Tip sheet business (15-17 yrs)

paulshawsmith scientific business strategy

21. Golf ball refurbish business (15-17 yrs)

paulshawsmith scientific business strategy

22. Collectable stamp business (15-17 yrs)

paulshawsmith scientific business strategy

23. Cornflakes and dog biscuits (15-17 yrs)

paulshawsmith scientific business strategy

24. Car-buffing business (15-17 yrs)

paulshawsmith scientific business strategy

25. Pinball business (15-17 yrs)

paulshawsmith scientific business strategy

26. Farm investment (15-17 yrs)

paulshawsmith scientific business strategy

27. Studied great business leaders

(15-17 yrs)

paulshawsmith scientific business strategy

28. Studied at WBS (17-19 yrs)

paulshawsmith scientific business strategy

29. Studied at UNL (19-20 yrs)

paulshawsmith scientific business strategy

30. Masters at Columbia (20-21 yrs)

paulshawsmith scientific business strategy

31. Taught by Graham (21-24)

paulshawsmith scientific business strategy

32. Almost learnt textbooks by heart

(20-21 yrs)

paulshawsmith scientific business strategy

33. Studied at NYIF (20-21 yrs)

paulshawsmith scientific business strategy

34. Worked as a stock broker (21-24)

paulshawsmith scientific business strategy

35. Taught a class on investing (21-24)

paulshawsmith scientific business strategy

36. Invested in a gas station (21-24 yrs)

paulshawsmith scientific business strategy

37. Worked for Graham (24-26)

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

Is it enough to just start business?

paulshawsmith scientific business strategy

Marius

Pretorius

paulshawsmith scientific business strategy

8 failures

paulshawsmith scientific business strategy

D’oh!

8 failures

Expertise Development

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

Deliberate Practice: An activity that is designed

to improve a individuals performance level.

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

paulshawsmith scientific business strategy

Are you taking time to reflect and learn?

The Entrepreneurial Mind

The Entrepreneurial Mind

1 Financial Motive

The Entrepreneurial Mind

2 Growth Motive

1 Financial Motive

The Entrepreneurial Mind

3 Optimism 2 Growth

Motive 1 Financial

Motive

The Entrepreneurial Mind

4 Self efficacy

3 Optimism 2 Growth

Motive 1 Financial

Motive

The Entrepreneurial Mind

4 Self efficacy

5 Task Passion

3 Optimism 2 Growth

Motive 1 Financial

Motive

The Entrepreneurial Mind

4 Self efficacy

5 Task Passion

6 Time Horizon

3 Optimism 2 Growth

Motive 1 Financial

Motive