Inside the mind of an entrepreneur
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This document discusses research conducted on entrepreneurs and small businesses. The research was conducted in two phases: Phase 1 involved profiling 110 successful entrepreneurs to identify personality traits and competencies that contributed to their success. Phase 2 aims to expand the research to 500 entrepreneurs to strengthen the database. The research developed an online tool to assess an individual's "entrepreneurial value index" and classify businesses into different categories based on factors like resources, revenues, and risks. The tool can help current and aspiring entrepreneurs understand how their skills and businesses compare to successful peers, and identify areas for improvement. The classification system also provides tailored strategies for businesses to enhance their scores within their category.
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Inside the mind of an entrepreneur
- 1. Inside the mind of an entrepreneur
- 2. “Necessity is the mother of invention, adversity must be the father of entrepreneurship”
- 4. Staying on top of adversity continuum Well being First Shock Provisional Adjustment Inter Contradiction Inner Crisis Reconstruction & Recovery OK Feel Good Distress & Despair Excitement Numbness Letting Go Honeymoon Disbelief Denial, Minimizing Crisis Quitting Extended Crisis Partial Recovery Uncertainty Losing Confidence Confusion Depression Acceptance Exploring Testing New Confidence / Transformation A: Positive Events B: Challenges/Loss/ Obstacles Life Event
- 5. Typical behavior when adversity strikes… Wallowing Following Leading Pessimism Cynicism/Skepticism Optimism Negative Neutral Positive Fear Caution Courage Hopeless Helpless Hopeful Resists change Watches change Leads change Makes excuses Goes along Gets results Impossibility thinking Probability thinking Possibility thinking Complaining about what happened Watching it happen Making it happen Whining and complaining Watching and waiting Promoting and supporting Energy vampire Energy giver/taker Energy source * Paul Stoltz, PEAK LEARNING Avoid & Cope with Adversity Survive & Manage Adversity Harness Adversity
- 6. Entrepreneurs are… • Masters of harnessing adversity to their benefit and long term gains… – Resourceful – Resilient – Think out of the box – Thrive during distress – Optimistic and hopeful Makes them a risk taker
- 7. If you don’t have data …you re just another guy with opinion
- 8. Objective of our research… • Research was carried out in 2 phases. • In Phase 1: (concluded in Dec 2013) – Conduct a thorough research of 110 successful entrepreneurs on personality behaviors and competencies that made them successful – Identify and document their traits – Develop a tool to assess the traits to arrive at entrepreneurial value index (EVI) • In Phase 2: (ongoing) – Develop an Online version of the tool – Cover close to 500 successful entrepreneurs to strengthen the database – Use the tool for assessment of bonafide entrepreneurs
- 9. But not all SMEs are S(a)ME • Although they are governed by same definition proposed by MOCI • Globally definition focuses on size of business with respect to annual turnover and manpower • But the problem with these definitions are that the scope is too wide. • MOCI definition: Micro Small Medium Less than 5 employees, max turnover of OMR 25000 or approx. Dhs. 250000 5 - 9 employees, max turnover between OMR 25000 – 250,000 or approx. Dhs. 250000 - 2500000 10 - 99 employees, max turnover between OMR 250,000 – 1,500,000 or approx. Dhs. 2.5 million – 15 million
- 10. Are their needs same? A coffee shop owner with 5 employees with OMR 25000 annual turnover A landlord of a building with 6 employees with OMR 100,000 annual turnover Accounting firm with 7 employees with OMR 150,000 annual turnover IT & reseller company with 8 employees with OMR 200,000 annual turnover Furniture shop with 9 employees with OMR 250,000 annual turnover Facilities Management Company with 40 employees with OMR 300,000 annual turnover Contracting Company with 70 employees with OMR 1500,000 annual turnover A vegetable trader with 2 employees with OMR 10000 annual turnover A fisherman with 3 employees with OMR 20000 annual turnover
- 11. Lighthouse Enterprise Classification System…(LEC tool) • Need to classify businesses using scientific methodology • In line with the definition proposed by MOCI • Applicable to any industry, geography or region • It provides a much needed range of classification of business to small manageable clusters • Easy to use and understand • Software tool www.smeadvise.com/lec
- 12. Elements of LEC Enterprise Classification Business Frame Manpower Resources Nature of Business Asset Under Management Capital Structure Entrepreneur Knowledge & Skills Customer Expectations Risk Factors
- 13. Factors and sub factors… Business Size Business lifecycle Organization size Manpower/ Resources Manpower availability Type of manpower Nature of business Type of market Position in market Asset under management Capital structure Type of capital Quantum Position/Exposure Required knowledge & skills Education Experience Customer expectations Business innovation Customer demands Economic conditions Economic framework Industrial environment
- 14. Size the company… Industry classifications based on MOCI
- 16. Get the result…
- 17. Classification of enterprise… • Lowest score any organization can secure is 51 and highest being 1200, Cluster of 25 points makes a class Total Point Range Enterprise class Enterprise type Total Point Range Enterprise class Enterprise type 51 - 75 LEC 1 Micro: Sole proprietors, Sole trader, Professionals, Self employed individuals, 476 - 500 LEC 18 SME 5: Medium - Large76 - 100 LEC 2 501 - 525 LEC 19 101 - 125 LEC 3 526 - 550 LEC 20 126 - 150 LEC 4 551 - 575 LEC 21 Large151 - 175 LEC 5 576 - 600 LEC 22 176 - 200 LEC 6 SME 1: Very Small 601 - 625 LEC 23 201 - 225 LEC 7 626 - 650 LEC 24 226 - 250 LEC 8 651 - 675 LEC 25 251 - 275 LEC 9 SME 2: Small 676 - 700 LEC 26 276 - 300 LEC 10 701 - 725 LEC 27 301 - 325 LEC 11 726 - 750 LEC 28 326 - 350 LEC 12 SME 3: Small - Medium 751 - 775 LEC 29 351 - 375 LEC 13 776 - 800 LEC 30 376 - 400 LEC 14 801 - 825 LEC 31 401 - 425 LEC 15 SME 4: Medium 826 - 850 LEC 32 426 - 450 LEC 16 851 - 875 LEC 33 451 - 475 LEC 17 876 - 900 LEC 34
- 18. Classification of companies researched 12 11 33 21 8 16 9 0 5 10 15 20 25 30 35 Micro SME1 SME2 SME3 SME4 SME5 Large Classification of companies researched
- 19. Behavioral profiling of SMEs • One to one meeting with the business owners to conduct BEIs • Psychometric profiling using team value profiler (combination of MBTI & Belbin) • Cluster the behavior pattern to arrive at key competencies required to be a successful entrepreneur
- 20. Common behavior identified in Omani Entrepreneur – the X factor • Passion • Proactiveness • Resilience • Resource Management • Strategic Vision • Creating synergies • Decision making • Integrity / work ethics • Business excellence
- 21. Results…(SME1- SME6) Inspirational Leadership Direction Customer partnership Drive Customer impact Risk Alignment Ambition Customer delight Risk governance Cost leadership Achievement Orientation Customer innovation Managing risks Cost Containment orientation Results delivery Initiative Customer Focus Taking calculated risks Cost Control Market insight Collaborative relationships Customer Orientation Risk orientation Cost Focus Commercial Focus Collaboration Decision making Risk awareness Cost conciousness Commercial awareness Building business partnership Decision making Inspring change Cost monitoring Business Acumen Relationship management Decision making Agility Strategic innovation Committed to business Networking Decision making Change Leadership Forecasting Orientation to excellence Relationship building Decision making Embracing change Fostering innovation Result orientation Decision making Flexibility Enterprising Efficiency orientation Adaptability Conceptual thinking Systematic planning Problem Solving Planning & organizing Planning & organizing SME 1 SME 2 SME 3 SME 4 SME 5 SME 6 KeyCompetencies
- 22. What next? • We have developed an online tool to assess “Entrepreneurial Value” • Register and assess: – If you plan to start a business: • Do you have a right motivation to start a business? • What is your entrepreneurial value score compared to successful entrepreneurs? • Identify your strengths and areas of improvements • What is your personality type and how can you get the best mileage by choosing an ideal role in your business – If you already run a business: • Identify LEC score for your business and its classification • Identify how LEC scores can be enhanced with practical implementable strategies • Identify your EVI score compared with other successful entrepreneurs in your LEC class and above • Log in to www.smeadvise.com
- 23. • Thank you
Editor's Notes
- Avoiding Adversity — how often do you take adversity head on…and don't postpone, delegate, ignore, or sidestep a difficulty? Coping with Adversity — How much energy do you expend just keeping your head above water, or coping with your daily dose of adversity? Managing Adversity — Beyond coping, how often do you at least do something positive with the adversity? Surviving Adversity — Sometimes coming out alive is a major victory. But then life asks, “Now what?” or “What do we do now?” do you take steps to transform the situation not waiting for help from others? Harnessing Adversity — How often do you use the adversity to achieve gains you could never enjoy without it? How many moments do you have, when, like an scientist you convert adversity into fuel that propels you to a place you could never get to without it?