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    Chapter 2

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    of 22
    The Entrepreneurial Mind-Set in Individuals Entrepreneurio! ought Frail we know about bolance sheets, income sttemens and cash fw accounting for aH OF our understanding about marketing strategies, tacts, and techniques; and for ‘verrthing we hove learned about monagement principles and practices, there remains Something essential yet mysterious, ot the core oF entrepreneurship. isso mysterious {het We cannot se ito touch i; yet we fet it ond know it exists. cannot be mined manufactured, or bought; yt it can de discovered. Is source i inside: yt it rests ar tangible and measurable, This mysterious core is 50 powerful that it can make the ‘emorkable appear ordinary, So contagious that it cam sored ite wie from one to another and So persuasive tht it can trmsform doubt and uncertainty into conviction, This mysterious core is PASSION! = Ray Suton, PH.D. Osrng Visionaries Chapter Objectives 4 To describe the entreprencurial 4 To discuss the “dark site" of mind-set entrepreneurship 2 To present the major sources of 5 To identify and descrie the different information that are useful in types of risk entrepreneurs face as profiling the entrepreneurial well 2s the major causes of stress for mind-set these individuals and the ways they can handle stress 3 To identity and discuss the most common found in ly cited characteristics 6 To examine entrepreneurial successful entrepreneurs ‘motivation ‘The Entropreneurial Mind-Set 29 ¢ Entrepreneurial Mind-set ‘Today’s younger generation is sometimes referred to as Generation X because they feel “X-ed” out of traditional opportunities. This generation of the twenty-first century eventu- ally may be known as Generation E, however, because they are becoming the most entrepre- neurial generation since the Industrial Revolution. Millions of individuals younger than age 135 are actively trying to start their awn bnisinesces roday. One-third of new entrepreneurs fare younger than age 30, and a huge percentage of 18- to 30-yearolds sudy entrepreneur- ship in business schools today. Majar universities are devoting more resources to entrepre- neurship, and the success stories of young entrepreneurs are increasing.! Every persnn has the porential and free choice to pursue a career as an entrepreneur. Exactly what motivates individuals to make a choice for entrepreneurship has not been identified —at least not as one single event, characteristic, or trait. As we demonstrated in Chapter 1, researchers continually strive to learn more about the entire entrepreneurial pro- cess to better understand the driving forces within entrepreneurs.” “The chapters in this book focus on learning the discipline of entrepreneurship. This chap- ter, however is devoted to a more psychological look at entrepreneurs; it describes the most common characteristics associated with successful entrepreneurs, as well as the elements ass0~ Gated with the “dark side” of entrepreneurship. In this mannes, we can gain a more complete perspective on the entrepreneurial behavior chat is involved with the entrepreneurial mind-set fn individual exhibits. Alehough it certainly is not an exact science, exzmining this mind- Set provides an interesting look at the entrepreneurial potential within every individual.” Who Are Entrepreneurs? Frank Camey, the founder of Pizza Hot, Ine., once described entrepreneurs as the corner stone of the American enterprise system, the self-renewing agents for our economic environ~ ‘ment. Enteepreneurs—normally defined as “risk takers” in new-venture creations—are ‘uniquely optimistic, hard-driving, committed individuals who derive grest satisfaction from being independent. Starting a new business requires more than just an ideas it requires a special person, an entrepreneus, who combines sound judgment and planning with tisk rak- ing to ensuce the success of his or her own business. “Entrepreneurs, driven by an intense commitment and determined perseverance, work very hard. They are optimists who see the cup as half fall rather than half empty. They strive for integrity. They burn with the competitive desire to excel. They use failure asa tool for learn~ ing. They have enough confidence in themselves to believe that they personally can make a major difference in the final outcome of their ventures.* ‘The substantial failure race of new ventures attests to the difficulty of entrepreneurship. Inexperience and incompetent management are the main reasons for falure. But what ace the factors for success? Do they apply to all components of entceprensurship? These are some of the issues we shall explore in this chapter. Sources of Research on Entrepreneurs “Throe major sources of information supply data eelated to the entrepreneurial mind-set. The first source is publications—borh research-based and popular. The following are among the more important of these publications: 1. Technical and professional journals. These are refereed journals -hat contain arti- cles dealing with research—methodology, results, and application of results—that are ‘well designed and tightly strucrured. Examples include Enireprenewship Theory and Practice, journal of Business Venturing, Journal of Small Business Management, Strate- ‘gic Management Journal, Journal of Small Business Strategy, Academy of Management Review, Academy of Management Journal, Family Business Review, and Strategic Entrepreneurship Journal 2. Textbooks on entrepreneurship. These texts typically addess the operation of new ‘ventures and entrepreneusial organizations. Sections or chapters frequently are devored 30 ‘The Entreprenourial Mind-Set in Individuals to research on entrepreneurs. Examples include New Venture Creation, New Venture Management, Entrepreneurship, and Corporate Entrepreneurship & Innovation. 3. Books about entrepreneurship. Most df these boioks ate written as practitioners? “how-to” guides, Some deal with the problems that face the individual who seats a business; others deal with a specific aspect ofthe subject. Examples include Startp, In the Owner's Chair, Rethinking Marketing: The Entrepreneurial Imperative, Nuts, nad ‘The Breakthrough Company 4. Biographies or autobiographies of entrepreneurs. Examples include Business at the Speed of Thought and Radicals and Visionaries.” 5. Compendiums about entrepreneurs. These are collections that deal with several selected individuals or that present statistical information or overviews of perceived sseneral trends. Examples include The Entrepreneurs, which is a compendium of infor- mation about selected living entrepreneurs; The Enterprising Americans, which peo. vides a summary of trends; and The Venture Café,® which examines strategies and stories from high-tech start-ups. 6. News periodicals. Many newspapers and news periodicals run stores on entrepre- zeurs either regularly or periodically. Examples include Business Week, Fortine, US. ‘News and World Report, Forbes, and the Wall Street Journal. 7. Venture periodicals. A growing number of new magazines are concerned specifically ‘with new-business ventures. Most, if not all, of each issue's contents are related to entrepreneurship. Examples include Black Enterprise, Entrepreneur Fortume Small Business, Inc. and Family Business. 8. Newsletters. A number of newsletters ace devoted exchusively to entrepreneurship. The Liaison newsletter, from the U.S. Association for Small Business and Entreprencur- ship, is one example, 8. Proceedings of conferences. Publications related to annual or periodic conferences deal atleast in part with entrepreneurship. Examples include Proceedings ofthe Acad- my of Management, Proceedings of the International Council for Small Business, Proceedings of the U.S, Assocation for Small Business and Entrepreneurship, aod Frontiers in Entrepreneurship Research (proceedings of the Babson College Entre neurship Research Conference). 10. The Internet. Simply entering into a search engine the topic “successful entrepreneur {al stories” produces no less than 229,000 potential sources at this time. Many states have produced stories on their successful enteepreneurs. One example is the U.S, Small Business Administration (SBA) Web site, wwwsha.gov, The second major source of information about the entrepreneurial mind-set is dieect observation of practicing enteepreneucs. The experiences of individual entrepreneurs can be related through the use of interviews, surveys, and case studies, Analysis ofthese experiences 2m provide insights into the traits, characteristic, and personalities of individual entrepre- neurs and leads to the discovery of commonalities that help explain the mind-set, ‘The final source of entrepreneurial information is speeches and presentations (eluding seminars) given by practicing entrepreneurs. This source may not go as far in-depth as the cother two do, but it does provide an opportunity to learn about the entcepeencurial mind-set Entrepreneurin-residence programs at various universities illuscate the added value thes coral presentations may have in educating people about entrepreneurship, Common Characteristics Associated with Entrepreneurs A review of the literature related to entrepreneurial characteristics reveals the existence of a large number of factors that can be consolidated into a much smaller set of profile dimensions For example, he following is one list of common characteristics that has been compiled: * Total commitment, determination, and perseverance * Drive ta achieve and grow * Opportunity and goal orientation ‘Taking initiative and personal responsibility Persistent problem-solving Realism and a sense of humor Seeking and using feedback Intarnal locus of control Caleulated risk taking and isk se Low need for status and power Integrity and reliabitty ing ‘The Entrepreneurial Mind-Set St Howard H, Stevenson and David E, Gumpert have presented an outline of the entrepre- neurial organization that reveals such characteristics as imagination, flexibility, and willing- ress to accept risks." William B. Garmer examined the lirerarure and found a diversity of reported chacacteristis."* John Hornaday examined various research sources and formu Jated a list of 42 characteristics often attributed ro entrepreneuts (see Table 2.1). In the simplest of theoretical forms for studying entrepreneurship, entrepreneurs cause ‘entrepreneurship, That i E + fe) states that entrepreneurship is a function of the entrepreneur. 20. 2 ‘Sonne: Jn A, Hornaday, "Ressarc a Characteris Confidence Perseverance, determination nena, iligence Resoursefuness Ability to take calculated risks Dynami, leadership Optimism ‘Need to achieve Versatility; knowledge of product, market, ‘machinery, techrology Creativity bility to influence others Ability to get along well with people Flexibility ‘ntelgence Orientation to clear goals Positive response to challenges Indepenence Responsiveness to suggestions and Time competence, efficiency Ability to make decisions quickly Responsvilty Foresight Accuracy, thoroughness CCooperativeness Profit orientation Ability to learn fom mistakes Sense of power Pleasant personaity Egotism Courage Imagination Percepiveness| Toleration for amiigity Aagressiveness Capacity for enjopment ettcacy commitment Ability to ust workers Sensitivity to others Honesty, integrity Matarity, balance ining Earepeneus” in Enclopeia of Enraprenousy ed. Calvin Ket, Donald Sexton, and Karl Vesper glee Cif Nf Peni 19 246-27 Adaptd by pormsson of Pretce Hall, Englewood Clifs, NI P 1@ Entrepreneurial Mind-Set in Individuals 32 €MAPTER 2 The Entreprencurial Mind-Set in | ‘Thus, the continuous examination of entrepreneurial characteristics aids the evolving under standing of entrepreneurship. One author provides the following descriptions ‘Would-be entrepreneurs live in a sea of dreams. Theie destinations are private islands— places to build, create, and transform their particular dreams into reality. Being an entce- Preneur entails envisioning your island, and even more importantly, it means getting in the boat and rowing to your island. Some leave the shore and drift aimlessly in the shal. low waters cose to shore, while others paddle furiously and get nowhere, because they don't know how co paddle or steer. Worst of all are those who remain on the shore of the mainland, afraid co get in the boat. Yer, all chose dreamers may one day be entrepre- ‘curs if they can marshal the resources—external and internal—needed to transform their dreams into ceality, Everyone has dreams. We all dream while asleep, even if we don’t remember dream- ing. Entrepreneurs’ dreams are different, Their dreams are not limited to dreams about fantasy islands or fast ears. Theits are about business." Entrepreneurship also has been characterized as the interaction of the following skills joner control, planning and goal setting, risk taking, innovation, reality perception, use of feedback, decision making, human relations, and independence. In addition, many people believe that successful entrepreneurs are individuals who are not afraid to fal Research continues to expand our understanding of the cognitions of entrepreneuts."* New characteristics are continually being added to this ever-growing lis. At this point, however, lt uss examine some of the most often cited entrepreneurial characteristics. Although this list admittedly i incomplete, it does provide important insights into the entrepreneurial tind-se. COMMITMENT, DETERMINATION, AND PERSEVERANCE ‘More than any other factor, total dedication to success as an entrepreneur can overcome obstacles and setbacks. Sheer determination and an unwavering commitment to succeed ‘often win out against odds that many people would consider insurmountable. They also can ‘compensate for personal shortcomings. Often, entrepreneurs with a high-poential venture and a plan that includes venture capital financing can expect investors to measure theie com ‘mitment in several ways. Examples include a willingness to mortgage theit house, ake a cut in pay, sacrifice family time, and reduce their standard of living. DRIVE TO ACHIEVE Entrepreneurs are self-starters who appear to others co be internally dciven by a strong desire to compete, to excel against self-imposed standards, and to pursue and aain challenging soals, This drive to achieve has been well documented in the entrepreneuial literature, beginning with David McClelland’s pioneering work on motivation in the 1950s.and 1960s. High achievers tend ro be moderate risk takers. They examine a situation, deeermine how ro increase the odds of winning, and then push ahead, As a result, high-risk decisions for the average businessperson often are moderate risks for the well-prepared high achiever OPPORTUNITY ORIENTATION One clear pattern among successful, growch-minded entrepreneurs is their focus on oppor tunity rather than on resources, structure, or strategy. Opportunity orientation is the con stant awareness of opportunities thar exist in everyday life, Successful encreprencuts start with the opportunity and ler their understanding of ir guide other important issues. They are ‘goal oriented in their puesuit of opportunities. Setting high buc attainable goals enables them {0 focus their energies, ro selectively sore out opportunities, and co know when to say “no.” ‘Theie goa! orientation also helps them to define priorities and provides them with meastires ‘of how well they are performing. INITIATIVE AND RESPONSIBILITY Historically, che entrepreneur has been viewed as an independent and highly self-reliant innovator. Mose researchers agree thar effective entrepreneurs actively seek and take the initiasive. They willingly pur themselves in situations where they are personally responsible the » ‘The Entrepreneurial Mind-Set perspective Taking University Entrepreneurship Global ‘business experience, opportunities abound. AL the too of most students lists is the matter of compensation, but some students look for an alternative path=their career route after school boecames nore about the experience than the financial gain MBAs Without Borders (MWBI is an organization that was established in Canada to help third word ‘courivies by pairing social projects with cecent business sraduate, fs one of sevoral organizations thet gives students the opportunity to do more than just read bout sacis! entrepronourship. The students have the opportunity to apply their businass know-how to initiatives that wall have an immediate impact on the health and fnancal well-being ofthe local cizens, with ‘whom they work sio-by-sido, (Omar Yaqub wes a 28-year-old MBA graduate ofthe University of Alberts, Upon fishing schoo}, he decided that he was not realy fara earparate position, so he joined MWB and was sent to Nigaria. Mis project was FE those students who come out of schoo! with to help marta ife-saving entimalaria seeping nets. Despite the nets’ proven efficacy, Nigerians viewed thom as cheap and archaic, To change the perception ofthe nets, Yaqub conducted focus groups and, based ‘om is results, convinced the manufacturers to develop ‘the nets in more vibrant colors. He also worked with Nigerian fim producers to svategical place tho nots in movies and telavison shows. aresut of ther efforts, Yaqul and his team were abe ta nagotate deals forthe Aistibution of close to 4 milion nets. Participants in these pragrams certainly have ‘chosen # far loss glamorous path than thsir peers who ‘ave instead taken parmanent jobs; howover, the fact that students who have completed their first project ‘oftan opt to take one secand ora third suggests thatthe benefits outweigh the costs for everyone involad Source ped from Pte Wiles. “The Do-G re 20 Aun 2, 2007, pls. (8!.thsgarnessne as overex acces March 25, 2008) for the success or failure of the operation. They like to take the initiative in solving a problem or in filling a vacuum where no leadership exists. They also like situations where their pessonal impact on problems can be measured. This is the action-oriented nature of the entrepreneur expressing itself. PERSISTENT PROBLEM-SOLVING Entrepreneurs are not intimidated by difficule situations. In fact their selfconfidence and ‘general optimism seem to translate into a view thatthe impossible just takes a litte Longer. Yer they are neither aimless nor foolhacdy in their relentless attack on a problem or an obstacle chat is impeding business operations. If che taek ic extremely easy or perceived to be “unsolvable, entrepreneurs often will give up sooner than ochers—simple problems bore thems "unsolvable ones do not wazrant cheir time. Moreover, although entrepreneurs are extremely persistent, they are realistic in recognizing what they can and cannot do and where they can get help to solve difficult bur unavoidable tasks. SEEKING FEEDBACK Effective entrepreneurs often are described as quick learners, Unlike many people, however, they also have a strong desire ro know how well they are doing and how ehey might improve 33 ——a 34 CHAPTER 2 ‘The Entrepreneurial Mind-Set in Individuals ‘het peeformanc, In attempting to make these determinations they actively seek out and tse feedback. Feedback is also central to thei learning from mistakes and sevbacke, INTERNAL LOCUS OF CONTROL Successful entrepreneurs believe in themselves, They do not believe thatthe successor failure of theis venture will be governed by fate luck, or similar forces, They believe har dha argomeshments and setbacks are within theic own control and influence, and tha they eo alec the outcome of their actions. This attribute is consistent with a high achievers ‘motivational drive, the desie ro take personal responsibilty, and self-confidence TOLERANCE FOR AMBIGUITY Siaft-up entrepreneurs face uncertainty compounded by constant changes that introduce Aepiauity and stress into every aspect ofthe enterprise. Setbacks and surprises are inevitable tack of organization, structure, and order is a way of life. A tolerance for ambiguity coe Then the entrepreneur can deal withthe various setbacks and changes that comeantly com, front him or het, Successful entrepreneurs theive on the fluidity and excitement of eck on ambiguous existence. Job security and retirement generally are of no concern to there CALCULATED RISK TAKING Successful entrepreneurs are not gamblers—they ace calculated risk taker When they decide {a Pastcipate in a venture, they do so in a very calculated, carefully thought-out goannes kiss with them—for example, by persuading partners and investors o put up money, ered. ‘ors to offer special terms, and suppliers to advance merchandise, INTEGRITY AND RELIABILITY Tnvegrty and reliability are the glue and fiber that bind successful personal and business {clationships and make them endure. Investors, partners, customers, and creditors alike vane {hese attributes highly. Integrity and reliability help build and sustain trust and confidence Small-business entrepreneurs, in particular, find these two characteristics crucial o omecece TOLERANCE FOR FAILURE FFatrepreneurs use failure asa learning experience; hence, they have a tolerance for failure. The iterative, erial-anc-error nature of becoming a sucessful entrepreneur makes serngs setbacks and disappointments an integral pare of the learning process, The most eifectne fuureprencurs are realistic enough to expect such difficulties. Furthermore, they do noc Pecome disappointed, discouraged, oc depressed by a setback or failure In adverse and nt fut times, they look for opportunity. Many of cher belive that they learn tore from dig carly failures than from their early successes, HIGH ENERGY LEVEL Gui gxtraocdinary workloads and stressful demands placed on entrepreneurs puta premium crue ie enersy: Many entreprenears ne-tune their energy levels by carefully monstoring hat they cat and dunk, establishing exercise routines, and knowing when to getaway fe relaxation, CREATIVITY AND INNOVATIVENESS Creativity was once regarded as an exclusively inherited trait. Judging by the level of ereativ- ity and innovation in the United States compared wich that of equally sophisticated bes leg Sfeasive and innovacive cultures, it appears unlikely that this trait is solely genetic. An Expanding school of thought believes that creativity can be leamed (Chapter 5 provides» fimerchensive examination ofthis ercial characteristic. New ventures offen possess» colt Ugeive creativity that emerges from the joint efforts ofthe founders and personnel and pro duces unique goods and services, “The Entrepreneurial Mind-Set entrepreneurship Perseverance and Commitment fF you falloff the horse, you have to get back fon.” “What doesn’t Kill you only makes you strungen” Whatever adage you choose, Richard ‘Schulze is a living example of it, Senulze—the CEO and cheirman of Best Buy Company, Inc, as well a5 Ernst &t Young's 1999 Entrepreneur of the Year—is “tenaciousness” personified. His story, amazing enough to be a work of fiction, spans throe decades and defies the odds. Ficvard Schutze drepped out of college ta work for his other at his slectroniesdistibution company. After stining experience in the business, he began to pitch improvement ideas, only ta learn that his father was heppy wth the status quo, This utimstey drove Schulze to quit in 1966, he opened his own etl audio store, The ‘Sound cf Music, in St Paul, Minnesota. Tho economy of the late 1960s and 1970s was agracable with the small business, andthe chain grow wana stoves. In 1984, however, Schutze’s largest snd most profitable store was obliterated by 8 tomado. The son dic shina alter the storm, however-—the stock in the storaroom was left unscathed. Ever aptimistic, Schulze rounded up his employees and hold a “Tornada Salo" in the stores parking tot. Boca ate liquidate the stock, Schulze used tha marketing budget to promate the evant, Lite did ho know that the natural disaster would actually bo a turn forthe better. When the linet get into the fot exceeded two miles, Schulze was convinced he'd found a cash cow The customers confirmed his theory when he questioned them about “what they tly wonted whan shopping fr technology products.” Their overall response was “a hassie-iree shopping experience, broad sslaction of name-brand products readily available on shelves, informed sales assistance, service when needed, and a quick and easy ereckout process,” The ovorall result: Schulze utlizee personal assets to reposition the company, Included new produ ines, and renamod the business Best By. | f at fest you don’t succeed, try and try again.” ‘Arelentiess and savvy Schulze grow the chain to 251 stores by 1996. Life and business wore good, and Schulza probably had begun work on his reticement portfolio. Infact, business was so good that Schulze flecidod to borcow 5200 milion to gad his enmputer inventory far the 1996 Christmas snasnn. Much to his chagrin, disaster found him again when Intel ineraduced its new Pentium chip soonfter the inventory purchase, Best Buys stock fel from $22 per share to $3 45 the company’s earnings plummetsd due to its now obsolete assets. Apparently the experienced salesmen ‘was also not proficient with the financial aspect of running a large businass: The company was pricing is items too low, and operations were less than desirable. Best Buys debt, already at $271 milion in 1885, encom: passed 72 percent of equity. After 2 second disester, most people would throw in tha towel, But shareholders and family pressure tint deter this entepreneuc from prevailing over the malcontents and saving the company. Drastic changes were made ovar a H-sionth pariog, the most important being the dismissal ofthe company’s “no money down, ro monthiy peyment, no interest” policy. Marketing, ‘management, and inveetory contrat wera changed, and low-morgin tems were replaced wih profitable ones. The textbook reconstructian yielded a 5.500 percent increase in earnings, rocketing them to $245 milion in figeal 1998. Schulze claims the heppy ending was a result of his unwavering ethics, sold culture, and value systom, He never gave up, he got beck on the horse, and his experiences cartsnly made him stronger. The perseverance and commitment Schulze demonstrated ‘ver the years justly his designation as Entrapreneur of the Year, but his business acumen is’ the best reason for the ttle, in 1994, Schuize crosted the Best Buy Chiron’ Foundation to support mertorship, leadership, ‘and educational apportunities forthe youth of Best Buy communities, Furihermore, amid the TS upheaval, he and his wife plated the Schuze Family Fund— appropriately crvatad wo provide crisis oli ta company amployees, ‘Thostoryisn'tover yet. Now chapters wll bowen, «as Bast Buy now has 890etal stores, 105,000 employees, Continued 35 38 CHAPTER 2 The Entrepreneurial Mind-Set in Individuais Cha rae Pete sft lel sourcing fic in fr th bute no mata wht vs ane thrown nto the China Ecommerce and international opportunites are--lat, ' aso atthe top ofthe agenda. The electronics markets ——————___ (om tho rise, and Best Buy has a front-row seat. Richard Or Magne Sa aie : Schule haste necassary experience to mole stay om PH vision fatteprencurs know where they want to go. They have a vision or concept of what their fezs canbe. For example, Steve Jobs of Apgle Computes me waren oe firm to provide firms, however In many case, this sion develops over me es the ance begins to real- ‘ze what the firm is and what it can become, SELF-CONFIDENCE AND OPTIMISM INDEPENDENCE Tg Sess for independence sa driving force behind contemporaty entrepreneurs. A frustra- ences Bureaucratic systems, coupled with a sincere comtmlamers e wake This age {0 an independent personality tying to accomplish tasks sor hace way. des net to say that entrepreneurs must make all of the decison, however, they do wane TEAM BUILDING Ete desire for independence and autonomy does not preclude the entrepreneur's desire to Pui a strong entreprencuval team, Most successfl entepreneats weer highly qualified, elmerivared ams chachelp handle the venture’ growth anddevelopmene t= fact, although the entrepreneur may have the clearest vision of where the frm lee dry be) headed, the Pesonnel often are more qualified to handle the day-to-day implemenr ees challenges.'* The Entrepreneurial Journey Fennec ceed io Chapter 1 the prevalent view inthe literature i that entrepreneurs create or emrepeonment tat trv statement, is narrow framing nglees the comple process opie wentur cretion process, Venture retin isalvedexpercnes thar diesifolds, forms the entreprencur In fac, the creation ofa sustainable enterprise involves finer parallel interactive phenomena: emergence of the opportnity emergence of the ven- {ure and emergence of the entrepreneur. None are predetermined fixed—they define and As aclined by one anothez.” Thus, this perspective on the entteprencee hee gained new ‘momentum in the entrepreneurship esearch ofthe twenty fst cemuy ‘The Entrepreneurial Journey the entrepreneurial Exuding Passion in Your Venture he passion you have for your business is an fective method for getting people's attention. By being self-confident and articulating the value your business provides your clients, people will in turn share your enthusiasm and grow more comfortable maintaining their business relationship ‘ith you, Your customers will not believe in someone who does not believe in him- or herself, so be confident and outspoken about what you have (0 ‘offer. The following steps will get you started: pz: are drawn to passion, so emphasizing 1. Be genuine in your exeitement. Do not put up a facade in an attempt to win customers. Keeping ‘cusomers happy is hard enough without having to maintain a false image. People are more incned to buy from businesses they trust, andthe entepreneurs associated with those businesses are instrumental in building their confidence. To start @ business requires a tremendous amount of entrusiasm and energy; do not be afraid to let it siow when you tall with potential customers IF peaple are excited about you, they are more willing to compromise when it comes time to do boustess. 2, Recefine rejection as teaming. You can please some of the people al ofthe time and all of the peaple some ofthe time, but you cannot please all ‘af the people all af the time. Remembering this truism fs important when trying to win customers. Embracing rejection is @ trait that all successful centepreneurs eventually develop: You will learn ‘much more from your Failures than you will fom your suecesses. When people are not receptive to ‘what you have to say, tweak your message of find nother group of people. Even the best ideas will hhave their naysayers. so listen to both postive and This experiential view of the entrepreneur captures the emergent and temporal nature of negative feedback, improve your messaye, and start again, 3. Convey personal successes. Do nat hide your accomplishments. Starting 2 business is hard work-when your dedication gays off, et it be known, People like to believe that they are backing a winner, so talking about your victories fsa sure way to get people ta see you in that light. Aso remember that lessons learned are milestones relaying your experiences and what you have gained from them demonstrates that you are wise enough to learn and grow so that you will not ‘make the same mistakes twice 4, Empathize with others. Empachizing with your customers lets them know that you understand their position and, more importantly that you are interested in helping them. Regardless of Whether you are speaking with the CEO ar her assistant, showing that you car? about the other person's problems helps £0 build 2 rapport. Once your listeners grow comfortable, they wit be more willing to share information that you could use to better cater to your industry's ness. Being creative and willing to customize your product to fit the reeds of an organization will show the peaple Jinvolved how muich their business means to you: By taking these steps you wil convey not only your enthusiasm but also your ably to do what you promise. Do nate ashamed oe proud of yor accomplishments ‘and what you have to offer: If people aeliave in you, thoy will oliove in your business, and i ey belive in your business, they will most likely become a customer: Let ‘that passion exude brightly! Sonne Adapted from Rostanos Wales “Lele Shine,” Ensrrprone Febroary 2008} 130-131 entrepreneurship. It moves us pasta more stati “snapshot” approach and encourages con- sideration of a dynamic, socially situated process that involves numerous actors and events. Ie allows for the fact that the many activites addressed as a venture unfolds are experienced by different actors in different ways.'* Moreover, it acknowledges that venture creation 37 38 Tho Entrepreneurial Mind-Set in individuals fEanscend rational thought processes to include emotions, impulses, and physiological feeponses a indvidualsceact toa diverse, mulfacted, and imposing arey ton ee Spent and developments. This, perspective is consistent with reemt racer oe sopee a cee eteprencura action. However, we mus be aware that ths pactologesl aspect of entrepreneurship presents a dask side as wel The Dark Side of Entrepreneurship great deal of literature is devoted to extoling the rewards, successes, and achievements of cane paeuup: Howeves,a dark side of entrepreneurship also exists, and its destructive sooreg Sager {Otnd within the energetic deive of successful entrepreneurs. In examining his ents Sdged approach tothe entrepreneutal personality, researcher Manfred Ker de Vee oe apitowledged the existence of certain negative factors that may envelop enegprenn eo} dominate thee behavioc Although each ofthese factors posseses a poataee aspect, itis ‘important for entrepreneurs to understand their potential destructive side well The Entrepreneur’s Confrontation with Risk Searting or buying a new business involves risk The higher the rewards, the greater the risky eras ten taualy face. This is why entrepreneurs tend to evaluate risk very eareflin In an attempt to describe the risk-taking ativity of entrepreneurs, researchers developed Surpology of entrepreneurial styles. Figure 2.1 illustrates these classifications eee ot {Pe Financial risk endured when anew ventre is undertake. In ths model the frowar ig Heteasuced against the evel of profit motive (the desire for monecaty gain or reverse, the venture), coupled with the typ of activity. Profi-secking actity weoocueel ee ge Signs desice to maximize profit, and activity seeking refers to other activites ecard Tuan fmreprencurship, such as independence or the work ofthe venture sell The igo this theory argues that entrepreneurs vary with gard to the relationship between sak ok | Typology of Entrepreneurial Styles Level of Personal Financial Risk Low High Low Risk avoiaing Risk accepting Activity seeking | Activity selieg Love! of Profit Motive High Risk avoiding Risk accepting Profit seeking Profit seeking Sauer Thomas Moncey and Rober Flys *A Typology of Eaepteneral Spe eyo Beonomic Ratoni” fournal of Priate Emap Khe 2 [19985 4 Siress andthe Entrepreneur 39 financial return. This typology highlights the need to explore within economic theory the styles or entrepreneusial motivations thar deviate from the styles most characteristic of the rational person. “If differene entrepreneurial styles exist, then not every person who founds a new business enterprise does so by secking to minimize financial risk and maximize financial return, Models of organization formation would thus have to be adjusted for differences among those who form organizations."® Thus, noc all entrepreneurs are driven solely by monetary ‘gain, and the level of financial risk cannot be completely explained by profit opportunity. Entceprencucial risk is a complex issue that requires far more than a simple economic risk- versus-return explanation. Irshould be noted that “people who successfully innovate and start businesses come in all shapes and sizes. But they do have a few things others do not. In the deepest sense, they are willing to accept sis for what they believe in. They have the ability to cope with a profes- sional life riddled by ambiguity, and a consistent lack of clarity. Most have a drive to put their imprint on whatever they ace creating, And while unbridled ego can be a destructive thing, try to find an entrepreneur whose ego isn’t wrapped up in the enterprise.”® Entrepreneurs face a number of different eypes of risk. These can be grouped into four basic areas: (1) financial risk, (2) career risk, (3) family and social risk, and (4) psychic risk. * FINANCIAL RISK in most new ventures, the individual purs 2 significane portion of his or her savings or other resources at stake, which creates a serious financial risk. This money or these resources will, in all likelihood, be lost if the venture fails. The entrepreneur also may be requited co sign, ‘personally on company obligations that far exceed his or her personal net worth. The entre- preneur is thus expased to personal bankruptcy. Many people are unwilling to tisk theie savings, house, property, and salary to start a new business. CAREER RISK A question frequently raised by would-be entrepreneurs is whether they will be able to find a job or go back to theie old job should cheir venture fail. This career risk is a major concern to managers who have a secure organizational job with a high salary and a good benefit package, FAMILY AND SOCIAL RISK Starting a new venture requires much of the entrepreneur's energy and time, which can in turn ezeate a family and social risk. Consequently, his or her other commitments may suffer. Entrepreneurs who ate married, and especially those with children, expose their families to the risks of an incomplete family experience and the possibility of pe-manent emotional scars. In addition, old friends may vanish eventually because of missed get-togethers. PSYCHIC RISK ‘The psychic risk may be the greatest risk to the well-being of the entrepreneut. Money can be replaced; a new house can be built; spouses, children, and friends usually can adapt. Bue some entrepreneurs who have suffered financial catastrophes have been unable to bounce back, at least not immediately. The psychological impact has proven to be too severe for them, Stress and the Entrepreneur Some of the most common entrepreneurial goals are independence, wealth, and work satisfaction, Research studies of entrepreneurs show that chose who achieve chese goals often pay a high price.” A majority of entrepreneurs surveyed had back problems, indigestion, insomnia, or headaches. To achieve their goals, however, these entrepreneurs were willing to tolerate these ellecs of stress, The rewards justified the costs. ‘The Entropranourial Mind-Set in Individuals What Is Entrepreneurial Stress? te general gay can be viewed a8 a fonction of discrepancies between a person's expec- tartans and ability to meet demands, as well a discrepancies between the ielvakoats hen ener aiid Personality. If person is unable ro full role demands, sreas necare When entrepreneurs’ work demands and expectations exceed theis abies te pecform as Sereiness requires taking significant risk. As previously mentioned. dee wet may be described as financial, career family, socal, or psyche. Enteeprencues alee art ‘engage in castemarg mmunication ativites—interacting with relevant external consituension eh cn caromets suppliers, regulators, lawyers, and accountants—which can be erence Jaaking the depth of sources, entrepreneurs muse bear the cost of thelr wakes while Paving s multitude of roles, such as salesperson, recruiter, spokesperson and acorn ermnee Miltaneous demands can lead to role overload. Osing and operating c Renney Fanaly eaed es commitment of time and energy, as noted previously, often atthe expen of family and social activities. Finally, entrepreneurs often work alone or wih aise ofemployees and therefore lack the support from colleagues that may be avaable ve manag- ers in a large corporation.2* Jn addition to the coles and environment experienced by entrepreneuts, stress can result fama basic personality structure. Referred to as ype A behavior this peroncly aoe describes people who are impatien, demanding, and oversrung, These mec gravitate tard heavy workloads and find themselves completely immersed in thet beeten Goon Some of the distinguishing characteristics associated with type A personalites ae ae ee “tent and severe sense of timo urgency. For instance, type A people hecome particulary frustrated in trafic jams. * _farglantinvalvemontio multiple projects subject to deadlines. Type A poole tke delight in the feofing of being swamped with work + Neslect of el aspects of fe except work. These workaholics lve to work rather than work tw lve, 7 Atomaney to take on excessive responsibilty, combined withthe feeling tht “only! am ‘capable of taking care of this matter” * _Palosvenass of speech and «tendancy ta speak faster than most poople. Type A people are Prone to ranting end swearing when upset. A widespread bai inthe srese Nereus thar {yoo A behavior i elated to coronary heart disease and that stress is contbutort hears disease.” Thus. beter understand tes entrepreneurs need 1 be aware ofthe particular personal fey a8 well as the roles and operating environments tha diflerentine this bexiness russe Sources of Stress Researchers David P. Boyd and David E. Gumpert have identified four causes of centeepre: Seabees (1) loneliness, (2) immersion in business, (3) people problems, and (2) the od to achieve.” LONELINESS ‘ithouah entrepreneurs usually are surrounded by others—employes, customers, aecoun- Fe a ate they often are isolated from people in whom they can confide, Long hours at work prevent them from seeking the comfort and counsel of iteads un family rane petoreoves they tend not 10 participate in social activities unless they provide brsinss benefit. A sense of loneliness can set in because of che inner flips oto IMMERSION IN BUSINESS Ore of ihe ironies of entteprencurship is that sucesfl entrepreneurs make enough money Felner ea fare of leisure activites, but they offen eanmot take that exon ee, fshing trip, or skiing vacation because thee business will nat allow the obec wee Stross and the Entrepreneur ‘entrepreneurs are married co their business—immersion in business can mean they work long hours and have little time for civie organizations, recreation, or further education, PEOPLE PROBLEMS: Entrepreneurs must depend on and work with partners, employees, customers, bankers, and professionals. Many experience frustration, disappointment, and aggravation in their expeti= ences with these people. Successful entrepreneurs are o some extent perfectionists and know how they wane things done; often they spend a lor of time trying to wet lackadaisical employ- ees to meet their strict performance standards, Frequently, because of irreconcilable conflict, partnerships are dissolved. NEED TO ACHIEVE Achievement brings satisfaction. During the Boyd and Gumpert study, however, it became clear that a fine line exists between attempting to achieve too much and failing to achieve enough. More often chan. not, the entrepreneur was trying to accomplish too much. Many are never satisfied with theie work, no mater how wel i is done. They seem to recognize the dangers (for example, to theie health) of unbridled ambition, but they have a difficult time tempering their achievement need. They appear to believe that if they stop or slow down, some competitor is going to come from behind and destroy everything they have ‘worked so haed to build, Dealing with Stress Iris important to point out that not all stress is bad. Certainly, if stress becomes overbearing, ‘and uncelenting in a person's life, it wears down the body's physical abilities. However, if stress can be kept within constructive bounds, it cam increase a person's efficiency and improve performance. Researchers David P. Boyd and David E. Gumpert made a significant contribution to defining the causes of entreprencurial stress, but what makes their study particularly noce- worthy is the presentation of steess-reduction techniques—ways entrepreneurs can improve the quality oftheir business an personal lives.” Although classic stress-reduction techniques such a5 meditation, biofeedback, muscle relaxation, and regular exercise help reduce stress, Boyd and Gumpert suggest thar another important step entrepreneurs caa take is to clarify the causes of theic stress. Having identified these causes, entrepreneurs then can combat excessive stress by (1) acknowledging its existence, (2) developing coping mechanisms, and (3) probing unacknowledged personal needs Following are six specific ways entrepreneurs can cope with stress NETWORKING (One way to relieve the loneliness of running a business isto share experiences by networking with other business owners. The objectivity gained from hearing about the triumphs and errors of others is itself therapeutic GETTING AWAY FROM IT ALL “The best antidote to immersion in business, report many entrepreneurs, isa holiday. If vaca- tion days or weeks are limited by valid business constraints, short breaks still may be pos- sible. Such interludes allow a measure of self-renewal. COMMUNICATING WITH EMPLOYEES Entreprencucs ate in close contact with employees and can readily assess che concerns of their staffs. The personal couches often unavailable in large corporations—such as company-wide outings, flexible hours, and small loans to tide workers orer until payday— are possible here. In such settings, employees often ate more productive than their coun- terparts in large organizations and may experience less stress due to the personal touches, that are applied. a 42 CHAPTER 2 The Entreprencurial Mind-Sat in Individuals FINDING SATISFACTION OUTSIDE THE COMPANY Gounterng the obsessive need to achieve canbe difficult, because. the entrepreneurs person- aia is mexticably woven into the company fabric. Entepreneurs need to get avsy frown ‘be busines occasionally and become more passionate about life sel; they need gata some new perspectives DELEGATING chyeneur has 1 delegate tasks, Entrepreneurs often find delegation dficle, because they {ink they have to be at the business all ofthe time and be involved in every aspos of tho ghecation. Bu if time is to be used for alleviation of stress, appropriate delegatens mon he found and trained, EXERCISING RIGOROUSLY Researchers Michael G. Goldsby, Donald F Kuratko, and James W. Bishop examined the rela onship between exercise and the attainment of personal and profesional goal for enna, eur Petsonal goals: Specifically the study examined the relationship that two types of cxercise—ronning and weightlifting—had with sales volume, extrinsic rewards, and hevinsis reaped he fests indicated that running is positively related to all thee outcome variables, and weightlifting is positively related to extrinsic and intrinsic rewards. This study demon’ ‘trates the value of exercise regimens on reliving the stress associated with entreprenenrs The Entrepreneurial Ego In addition to the challenges of risk and stress, the entrepreneur also may experience the Sezatve effects of an inflated ego. In other words, certain characteristics tha ually propel Ehtrepreneurs into success also can be exhibited to eheir extreme. We examine fout of thee characteristics that may hold destructive implications for entrepreneure:® Overbearing Need for Control Fatrepreneurs are driven bya strong need to control both thet venture and thet destiny. This intemal focus of control spills over ito a preoccupation with controlling eveything, Av obves seat suowomy and contcol may cause entrepreneurs to work in structure situations ony pate they have created the structure on their terms. This, of couse, has seious implications {or networking in an entrepreneurial tam, because entrepreneurs can visualize eeteral coe {rol by others as atheeat of subjection or infringement on their will Ths, the same charac ‘src thar entrepreneurs need for successful venture creation also contains a destructive cake Sense of Distrust ‘igh cecopnize too late. This distrustful state can reslt in their focusing on tial thongs and cause them to lose sight of reality, distort reasoning and logic, and take desires actions, Again, distrust is a dual-edged characteristic, Overriding Desire for Success ‘Ths entrepreneurs ego is involved in the desire for sucess. Although many of today’s ett. Drencurs believe they ar living on the edge of existence, constantly tiring within them ie Strong desire to succeed in spite of the odds. Thus, the entrepreneur cises up a5 a deere rr ‘The Entrepreneurial Ego the entrepreneurial Entrepreneurial Fear 101 ne feat an enrgreneu eprint “Teatro long he pon rele an eneprene I vena an eaveatin:EneprenatFar 10 iow the ese vey ext son roma: pemision nator edd nr mag rate neti The ett entrees erp oma atte aot pe Siu coat be. prepared. for, Because most Rtrepreneus nat adit that they fave Sipe ts etcetera 3 see, dak ser cue nt tale Dut tm ecpenes seve tat they ae Se oy ones nahn Ie ezoing Won Horo an epee fom Sachem Foe, entoteeul fe 688 aero om sn fa Fes say esi cnowaved ant shonved—such a he sen turer experencad wen you aoe Get thy seh exp Erepon wl no Soe unstated i = ta wr sinh sep exer, veh di Monsen consent estoy toy wo he cinerea anyones wl x tin one NY 9 Carole ecole and yy sone ort tae, aro re as 2 tS i envy do twat bacon a at besreieron and pts ms van ot en ther nt ates hs comple a8 2 tedsombed Tetra eer cme von stat i ov tod otros buss al prose ing Ores Foo! Cnguny andi ow eras Snob i hn ou ojo Boas ad rte tab ok oes oe soaestd Kt Tnoqane an tht con slspeopa esd do the work better and ehesper. So what did Herel do? Because losing the Kraft accaurt woud put him out of business, ha placed evaryhing on te ine and proposes ‘that Kroft kept brokering through his company and not take over the brokering in Germany, Harel would help Kraft take over the food industry everywhere. While Harrell experianced 30 days of immeasurable terror, kraft made the decision to trust Harel and to continue brokering through his company. Altiough Harrell lator sold bis business, 30 years later the company stil represents Kraft, Inc—not only in Evrope but also in the Far East and many other countries. The company hes grown into the largest military-representative organization in the field and was sold in 1985 for more than $40 mon What is the seerat to entrepreneurship, given such fear? Reward. No matter what pain is experienced because ofthe fear, the elation of suscess surmounts it, That high, slong wit fear, is en emotion reserved for entrepreneurs and bocares foo for the spirit t is like a raller-coastor rie: lo the beginning, imagine pulling yourslf up the incline vory slowly, making any ‘ough decisions with a growing sense of excitement ‘and foreboding, Then, when you hit the top, for @ brief moment i is frightening, and the anticipation aceelorates befare you lose all felirgs of contra. AS you go screaming inta the unknown, fear takes over ‘At first, all you fal is fear; than, sudeny, the rides over and the fear is gone, butte exh aration remains What is nexe far the entrepreneur? He or she buys another ticket So, whet isthe key ingredient fr entrapreneuriel suecess? According to Wilson Harre itis the abittyto handle fear Ho believes that the lonaly entrepreneur, living with his or her personal fear, breathes life ‘and excitement into an otherwise dull and mundane wort “Sowers Adaped fom Wilson Harel, “Exteeprencuril Terr? fe. (Pebeaary 1987} 7A, 44 ‘The Entrepreneurial Mind-Set in individu person who creatively acts co deny any felings of insignificance The individual i driven to Seeseed and cakes pride in demonstrating that success, Therein lie the seeds of peeib ortiveness Ifthe entrepreneur seeks 0 demonstrate athievement through the ocean, gf monoment—such as a huge ofie building, an imposing facroy, ore nok ef ee Ganeer exists thar the individoal will become more important than the venture tee A eg of perspective like this can, of course, be the destructive side ofthe deseo sae Unrealistic Optimism =e examples do not imply that all entrepreneuts fall prey to these scensvien nee fat srr the characteristics presented always gives way tothe “destrutive”"sdes Nevenhelonn, all potential entepreneurs need to know shat the dak side of entrepreneurship sxe Entrepreneurial Motivation Jamining why people start businesses and how they dlfer from those who do not (or from ‘Rose who tart unsuccessful businesses) may help explain how the moxivaionthac scene, Free hibit ducing startup is linked to the sustaining behavior exhibited later Laney [ezon and Hacry J Sapienza have stated, "Because motivation plays an importane po the creation of new organizations, theories of organization creation that falloo deka te notion are incomplete." One researchet—in his review of achievement motivation sed the rea ae said, “lt remains worthwhile to carefully study the role ofthe individual, including his oF het prychological profile. Individuals ar, after all the energoes of he entrepreneurial process.” “Thus, although research on the psychological characteristics of entreprencues has not promged an agreed-on “profile” of an entreprencus, iis sill important to recogiioe she SRarthurion of psychological facors to the entrepreneurial process. In face the ce oe eve veatuce creation as well as the willingness to sustain that venture is dnectlytalaed oo 32 enureprencur’s motivation.” One research study examined the importance of ratafrerion eceeemtreprencurs willingness to cemain with the venture. Particular goals titedes goal ackgrounds were all important determinants ofan entreprencut’s eventual setshnceog fone research approach examines the motivational process an enctepreneur experi, ences. Figure 2.2 illestrates the key elements of this approach, che decision co behave entrepreneurial isthe result ofthe interaction of several factors, ct of lactors includes the individual’ personal charactecstis, the mdviduals poco STekonmtent the relevant business enviconment, the individual’ personal goal set end the Toate fable business idea In addon, the individual compares his ot hes percen, settee crbable outcomes with the personal expectations he or she has in mind. Ney jin idividual looks a the relationship between the enteepreneuial behavior he o she weal jmplement and the expected outcomes, -Acrording to the model, the entreprencuc’s expectations finally are compared with the a ual of perceived firm outcomes, Furure entrepreneurial behavior is based on these ce Hugi these comparisons, When outcomes meet or exceed expectations the enrepcenenich behavior is positively reinforced, and the individual is motivated to continue ig bene Acitional ventures, depending on the existing enteeprencural goal. When ourconne tnt ingieapeectations, the entrepreneur's motivation wil be lower and will havea conespont, ing impact on the decision to continue to act entrepreneuriall. These perceptions alse sic Succeeding strategies, strategy implementation, and management of the fine*® Yr Summary » BEET] ae earner rn axial Jae oe ee eee catty) OES | | Estee aad | J al 7 on Pattonal Business| Personal Characteristics Environment Personal Goals Environment “Somes Bongos W. Nath Jey S- Hornsby, and Donald Karatho,“A Proposed Research Mdel of Ertrepreneri Morivacons Enirsrensnship Theory and Practice [Speing 1994): 33, summary Im attempting to explain the entrepreneurial mind-set within individuals, this chapter pre~ sented the most common characteristics exhibited by successful entreprenears. Next, a review of che “dark side” of entrepreneurship revealed certain factors thar possess a destructive vein for entrepeencurs. Finally, a motivational model of entrepreneurship was discussed. ist, itis important to recognize that a number of sources of informavion related co the entrepreneurial mind-set exist. Three major ones arc publications, direct observation, and presentations by or case scudies of practicing entrepreneurs. Several studies have been conducted to determine the personal qualities and traits of suc- cessful entrepreneurs, Some of these characteristics were exausined in the chapter: commit ment, determination, and perseverance; drive to achieve; opportunity orientation; initiative and responsibility; persistent problem-solving; seeking feedbacks interna. locus of control; tolerance for ambiguity; calculated cisk takings integrity and reliability; w erance for Failures high energy level creativity and innovativeness; vision; self-confidence ard oprimism; inde- pendence; and ream building. ‘The next pate of the chapter focused on the dark side of entrepreneurship, including the confrontation with risk, the problems of stress, and the particular traits that may permeate the entrepreneurial ego. men! HAPTER 2 The Entrepreneurial Mind-Set in individuals Finally, the chapter introduced a model of entrepreneurial motivation. This model, which ecognizes the contribution of psychological factors to the process of entrepreneurship, dem onstrated the importance of entrepreneurs’ perceived expectations and acteal oumenes in their motivation to start and sustain a venture. Key Terms and Concepts calculated risk taker external optimism psychic risk career isk family and social tsk risk dark side of entrepreneurship financial risk stress delegating immersion in business tolerance for ambiguity drive to achieve loneliness tolerance for failare centrepreneutial behavior need to control vision entrepreneurial mind-set networking entrepreneur's motivation ‘opportunity orientation Review and Discussion Questions 4A, Identify and describe the three major sources of 6, fn what way is “vision” important to an informarion that supply data related to the entre- entrepreneur? Seli-confidence? Independence? preneurial mind-set. 7, Enteepreneurship has a “dark side.” What is 2. How do the following traits relate to entrepee ‘meant by this statement? Be complete in your nurs: desie to achieve, opportunity orientation, answer itiative, and responsibility? 8, Whar are the four specific areas of risk that 3. Some of the characteristics attributed to entre entrepreneurs face? Describe each, Dreneurs clade persistent problem solving, con: 9, What ate four causes of stress among tinuous seeking of feedback, and internal locus entrepreneurs? How can an entrepreneur deal ‘of control. What does chs statement mean? Be with each of them? complete in your answer, 10. Desecibe the factors associated withthe 4, Entrepreneurs have a tolerance for ambiguity, ae encrepreneurial ego.

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