Much of the hype around entrepreneurship today focuses on “hero entrepreneurs” – the stereotypical image of Virgin founder Richard Branson and his extroverted, risk-taking personality. Yet this picture doesn’t accurately reflect day-to-day life as an entrepreneur. This research busts the myth that entrepreneurs succeed because of inherent personality traits – because they are born that way. Sure, they may be determined and passionate, but they also follow processes and patterns of developing and testing ideas, building support networks and developing certain communication and business skills.
The entrepreneurs in this project wanted to solve problems and to use their technical expertise to develop creative solutions.
What was their typical career journey? Many of the younger cohort emerged from university, mainly from technical (science and engineering) faculties, to further develop – at first, at least – their own technologies. Most created start-ups later in their careers, after seeing a problem in their industry and identifying a solution but being unable to implement it within an organisation.
The notion that entrepreneurship is a high-risk/high-reward activity was not prominent. Leaving full-time employment for a start-up is risky, but many do so having been successful in their careers and with the security of a strong professional network and a fall-back position. Entrepreneurs are not necessarily risk takers, but they are seemingly more comfortable with uncertainty.
The study’s participants were determined, resilient and passionate, as well as being sufficiently open to risk to be able to give up a full-time job. However, they were also aware of the need to acquire stronger marketing, networking and social interaction skills – skills they weren’t born with. They needed to learn how to articulate a value proposition, how to understand the needs of the market, how to pitch and sell an idea, and how to persuade investors of the merits of an idea.
More findings of the report are available here and include discussions of how entrepreneurs measure and communicate success (to each other and to investors). It’s not always clear to those on the entrepreneurial journey whether they are moving in the right direction. Determining progress can take a number of forms and is an unstructured process.
We examine the art and science of valuing start-ups (emphasis being on the art), the requirements of early stage networking and the structure of entrepreneurial networks (many cultivating what sociologists describe as “weak ties”). We also explore whether entrepreneurs feel entrepreneurship can be taught and whether you need to go to business school.
A better understanding of the realities of entrepreneurial life in Australia will lead to better informed industry policy, and perhaps increased support for an ecosystem that is a key driver of future growth and development for Australia.
Danielle Logue is a senior lecturer in strategy, innovation and organisation at University of Technology, Sydney.
Martijn Boersma is a researcher in corporate governance at University of Technology, Sydney.
This story was originally published at The Conversation. Read the original article.
