What is Entrepreneurship? Five Principles of Entrepreneurship
Entrepreneurs should obey some fundamental principles that would serve as guidelines and beacons for their success. Based on the three-year research and interviewing over 150 entrepreneurs, a noted author and management expert, Bill Murphy. One of the insights from this research is that most of these principles can be learned from experience and the process of starting a venture is an educational experience in itself. With this introduction, we can now move on to the five principles of entrepreneurship. Here are a list of five principles that should serve as markers for both aspiring as well as existing entrepreneurs.
1. It is always not the case that Entrepreneurs should make money fast and this should not be the goal
It is important for entrepreneurs to test the waters before launching a new venture. This means that one must commit themselves to the idea of entrepreneurship and try out new business models, and new forms and paradigms of transacting business. In other words, the entrepreneurs must not be to make profits from the word go and instead, understand what entrepreneurship is all about. For instance, it is better to come up with a game-changing out of the box idea instead of pursuing leads that are dead ends which means that entrepreneurs must be ready to be in the game for the long haul.
2. It is always better to find the right opportunity even if it takes time instead of chasing mirages
This principle translates into waiting for the right opportunity and at the same time, seizing the moment when the opportunity arises. Of course, we are not saying that entrepreneurs ought to wait forever for the right opportunity. Rather, the aim here is that entrepreneurs need to ensure that they have the appropriate foundation in place to capitalize on the opportunity and that they also need an idea and a business model that would create opportunities if they find it difficult to get the venture started. For example, as the clichés about how opportunity only knocks once as well as if you don’t have a chance, create a door to be ready when the opportunity arises can be taken to mean that entrepreneurs must both create opportunities as well as seize them when they arise. Another analogy would be that entrepreneurs must be ready with the fishing rods and the baits when they go fishing and if the river, sea, or lake is saturated, they must find water like “blue oceans” meaning that they need to create new markets for themselves.
3. Invest in people and build successful teams
As with the previous principle, entrepreneurs must ensure that before starting the venture they have the right team in place. After all, the venture would not be able to capitalize on the opportunities, unless there is a team in place. Further, entrepreneurs must ensure that the team is passionate, committed, and most importantly, shares the vision and mission of the founders. Besides these, in addition to being inspired and innovative, getting the right people who have concentration, ambition, commitment, dedication, bravery, and integrity are some of the criteria that the entrepreneurs may be unable to ignore.
4. It is always not enough to have everything in place. Execution and Delivery are what matters
Have you ever got the feeling that a salesperson is engaging you in glib talk wherein he or she is trying to convince you to buy a product that is untested? Similarly, all talk and no execution will lead the new venture nowhere and therefore it is crucial for entrepreneurs to make sure they obey the talk and fulfill their promises.
Indeed, it is not sufficient just to have a game-changing idea and a great team in place unless the entrepreneur knows the art of execution. As happened during the Dotcom boom, there were many startups with great ideas and equally great teams that promised the moon for anyone willing to listen. However, the fact that they failed in their businesses was mainly due to the gap between ideas and execution.
The businessman must, therefore, be a leader who walks the talk and knows the execution’s meaning. Furthermore, leadership means that entrepreneurs must not fear failure, but turn adversity into a triumph and turn failure into a success stone.
Indeed, great entrepreneurs are those who are willing to trust their instincts and intuition and back themselves up when the venture is yet to fructify or even making losses. In other words, if you think that you have a great idea and are executing it well with the right team, you need to persist and keep going even when the conventional wisdom says that you are getting it wrong.
5. Entrepreneurs must be self-actualizing visionaries
Ask any successful entrepreneur and they would say that while money is indeed important and profits are indeed essential, it is always not about the money or that making profits is the only thing that matters. Instead, great entrepreneurship is all about heeding the inner voice, creating jobs and opportunities for others, be conscious of societal prosperity due to the venture instead of having me, myself only attitude, and most importantly, translate their vision into success.
For instance, there are many of us who have heard or come across individuals who gave up cushy jobs to find their passions and to follow and chase their dreams. Therefore, successful entrepreneurship is all about making a difference in the world and becoming a social messiah who would transform societies with his or her ventures.
For this to happen, the entrepreneur must be both i.e. able to fulfill environmental, social, and economic expectations from the larger system and at the same time, must drive themselves in the pursuit of their dreams. Indeed, the balance between inner aspirations and external expectations is the most important determinant for success.
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