Traits And Skills Of Successful Entrepreneurs And Managers

Who is an Entrepreneur?

Typically, business thinkers, researchers, and academicians tend to juxtapose the terms ‘entrepreneur’ and ‘manager’. Such is often the case as both are leadership positions that hold integral value in the emergence and development of most if not all business ventures (Johannisson 2017). These terms are considerably different inasmuch as they are often used interchangeably. On the surface, an entrepreneur exercises full control of the business while the manager remains accountable to his employer (Wu& Huarng 2015). Such a basic perspective is essential in enhancing one’s understanding of the contrasting roles and traits assumed by each party. The renowned Virgin Group’s founder Sir Richard Branson appears illustrious with respect to the entrepreneurship concept. This paper utilizes different theories alongside Branson’s entrepreneurial journey to engage its readership in a comprehensive exploration of entrepreneurship and small business management. For now, it suffices to claim that the first assumes a broader scope that sets it apart from the latter.

Who is an Entrepreneur?

The preceding question remains quite challenging to most people since they tend to interchange it with other leadership positions including manager and CEO among others. By its definition, entrepreneurship revolves around problem-solving and innovation in the business realm. This implies that an entrepreneur has the peculiar capacity to identify and resolve extant or emergent consumer problems through a profit oriented or non-profit approach (Ramadani, et al. 2017). When placed into perspective, this kind of leader assumes his or her position to enhance the consumer experience. At this point, the reader is urged to reflect on Uber founders Travis Kalanick and Garret Camp: the two initiated a business model that enhanced the customers’ experience in the transport sector. Thanks to their innovation, commuters now have an easy time accessing cabs through a smartphone application. In essence, an entrepreneur builds an idea – for a service or product – into an established organization for the sake of the customers (Dew, Read, Sarasvathy, Wiltbank 2016). Note that immense emphasis has been placed on the fulfilment of consumer needs. It is also important to note that entrepreneurs can be categorized as innovative, imitating, drone, and Fabian: each of them vary in terms of their business models. For instance, innovative entrepreneurs build novel ideas while their imitating counterparts build on extant ideas. Uber and Lyft (respectively) are exemplary in this regard.

First and foremost, it appears wise to acknowledge that the term ‘inherent’ has been used intentionally. One would be compelled to perceive the attributes as intrinsic particularly as they are evidenced in most if not all entrepreneurs. Note that proficiency/excellence in each domain varies across all individuals. So far, academicians have identified different entrepreneurial characteristics including high personal efficacy, risk-taking, high requirement of achievement, ability to analyze situations, conviction and commitment, and independence and initiative (Dess, Lumpkin, Eisner 2014). It is worth noting that these traits are almost noticeable in most leaders. However, unlike managers, entrepreneurs display intense levels in all attributes particularly as they hold the overall responsibility to the business. Among the mentioned, independence and initiative sets them apart from all managers. It goes without saying that as an employee of an organization, the manager is expected to adhere to the extant policies, principles, and guidelines. The same case does not remain true in the case of entrepreneurs since they are the source of the said guidelines, policies, and principles (Meyer, Neck, & Meeks 2017). When viewed from this perspective, ownership becomes a critical factor in determining the traits evidenced in both. That is, their privilege as owners gives entrepreneurs a unique sense of autonomy that allows them to define how they approach business while their subordinate counterparts must meet predetermined expectations with regards to how the business will be run.

The Inherent Characteristics of Entrepreneurship

Who is a Manager?

On the lower end of the spectrum is the manager. Such a sentiment does not intend to decouple managers from organizational leadership. Like entrepreneurs, they play a pivotal role in the success or failure of a business. They are defined as leaders within established organizations. A manager oversees departmental operations – regardless of size – under the supervision of high-level management (Zucchella & Magnami 2016). For the sake of this argument, high-level management includes the CEO, the founders, and the board of governors. At this juncture, it is wise to reflect on the preceding description of the entrepreneur. It is apparent that the primary duty of the managers is to their organizational authority rather than the customers. Such a factor reduces their autonomy as well as their ability to take initiative in all organizational matters. In essence, their role revolves around managing the resources available to the projects built by entrepreneurs. This is not to imply that managers cannot be entrepreneurs and vice-versa. Note that managers are categorized as bottom-, mid-, and top-level depending on the size of the organization/department/resources under their authority.

In an attempt to understand the distinct attributes of managers, it seems necessary to have a clear grasp of their primary functions including planning, directing, organizing, motivating, and coordination of organizational resources: human, capital, and assets among others. From this point, it is apparent that effective management demands conventional qualities including leadership, organization, communication, experience, knowledge, reliability, time management, confidence, respect, and delegation (Latham 2014). Note that the list is endless especially as leadership remains a highly ambiguous concept (Latham 2014). These skills are vital in the management of any type of project; hence, individuals in such positions ought to display proficiency in most if not all spheres.

When exploring on the current topic, one cannot help but consider various examples of successful entrepreneurs. Richard Branson’s story is quite inspiring in this matter. While he grew up as a dyslexic underachiever in academics, Branson has become one of the most influential entrepreneurs as the founder of the popular Virgin Group (Branson 2014). His conglomerate boasts of ownership in over 400 companies – some of which are listed among the Global Fortune 500 Companies (Branson 2014). The Virgin brand has been upheld by various organizations including Virgin Records, Virgin Galactic, and Virgin Atlantic. A keen observer is highly likely to note peculiar entrepreneurial characteristics including risk-taking, adventurousness, commitment, initiative-taking, and personal conviction. Unlike small business managers, Branson is accustomed to making independent decisions with respect to the fulfilment of market needs (Branson 2014). Such a realization necessitates a theoretical assessment of the factors that motivate people into either entrepreneurship or management. Note that an entrepreneur of a manager is highly likely to apply a unique leadership style depending on how he or she was motivated into the position.

Intrinsic and Extrinsic Motivation. A broad range of academic investigations have been geared towards understanding how managers and entrepreneurs are inspired into leadership, as well as how their experience affect how they motivate their subordinates. Theorists Douglas McGregor and Dr. Vroom offer unique perspectives under their X-Y and Performance and Reward doctrines (respectively). McGregor’s X-Y theory holds that people have two ways of viewing their work: some dislike what they do while others take pride in their work (Landis, Hill, & Harvey 2014). Note that the X represents the first lot while Y represents the latter. Under this theory, the first group can only be motivated through the ‘carrot and stick’ strategy: involves intense supervision and compensation of employee efforts. This approach is commonly applied by autocratic leaders such as Steve Jobs and Jeff Bezos (Landis, Hill, & Harvey 2014). In contrast, the individuals who take pride in their work require minimum supervision. McGregor defines this group as one that demands collaborative trust-based operations. Similar sentiments are held by Dr Vroom in his performance and reward ideology. According Vroom, employees are best motivated when allowed to operate autonomously: note that rewards and appraisals are vital in promoting efficacy and enthusiasm (Landis, Hill, & Harvey 2014). This kind of leadership approach is highly favored by Richard Branson since he does not take a hands-on strategy in the Virgin brands’ daily operations.

Conclusion

After a rigorous exploration of entrepreneurship and small business management, one can confidently assert that while both are relevant business leadership concepts, the first is broader than the latter. Such a stipulation is deeply grounded on fundamental aspects including leadership roles, responsibilities, and characteristics. Entrepreneurs display higher levels of independence, initiative, and commitment (to the market) than managers. The fact that managers remain accountable to the company limits their ability to operate as business leader. Either way, both positions are vital in the emergence and development of organizations.

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