- Dedication – consumed by a goal or a purpose
- Focus – discriminates and targets
- Profit orientation – advantage-focused
- Ego drive – wants to make a recognised difference
- Urgency – no time to waste, must take action now
- Courage – determined in the face of adversity
- Activator – wants to make it happen
- Opportunity – sees possibilities, not problems
- Creativity – buzzing with ideas
- Expertise orientation – knows own limits and finds experts
- Team – gets the right people together
- Individualised perception – sees and uses strengths in others
Source: Bolton and Thompson, 2004, p.40
These distinct characteristics are typical of entrepreneurs and the way they operate. They like to spot opportunities in order to make a difference. They will drop everything in order to pursue the opportunity, putting the idea together straight away. Entrepreneurs such as George Lucas and Bill Gates clearly show dedication through their long working hours and inability to quit even though they do not need to work!! Entrepreneurs do not like to be beaten, they like to win, however, if beaten they are able to bounce back quite effectively. In research carried out by Roberts (in Bolton and Thompson, 2004, p.20) it was revealed that only 12% of entrepreneurs were motivated by wealth whilst 39% were motivated by the fact that they sought independence; and 30% were responding to a challenge.
Bridge, O’Neill and Cromie (1998, p.42) state that ‘. . it is the possession by individuals of a trait, or traits, that predisposes them towards enterprising behaviour’. They believe that these traits are the motivation for achievement, risk-taking propensity and the desire for control. Entrepreneurs strongly feel the need to achieve their own destiny, and to control it in their own way. Bridge, O’Neill and Cromie (1998, p.43-47) have also identified eight main traits and characteristics of entrepreneurs, which are:
- Motivation for achievement
- Risk-taking propensity
- Locus of control
- Need for autonomy
- Determination
- Initiative
- Creativity
- Self-confidence and trust
Again, you can clearly see that traits such as these are present in many entrepreneurs, and this list closely links to that of Gallups twelve ‘life themes’ mentioned previously.
Wickham (1998, p.39-41) comments that even though there does not seem to be one single ‘type of entrepreneur’, there does seem to be a consistency in terms of the traits that they possess. He defines these traits as: hard work, self-starting, setting of personal goals, resilience, confidence, receptiveness to new ideas, assertiveness, information seeking, eager to learn, attuned to opportunity, receptive to change, commitment to others and comfort with power. Entrepreneurs are also always looking for a way in which they can make a change, whether it is financially or socially. This is what motivates a lot of entrepreneurs; basically, they are not satisfied with things at the present time in their eyes). Most entrepreneurs enjoy the actual journey itself from the first idea to the end product.
Entrepreneurs come from a wide range of different backgrounds, some poor and some rich; however it is very difficult to determine who could potentially be an entrepreneur. Webster (Wickham, 1998, p.16-17) identifies that there are four types of entrepreneur; Cantillon (opportunity spotter); industry maker (creates an entire industry based on one idea); administrative (operates within an established firm); small business owner (responsible for owning and running their own venture). However, this does not tell us who could potentially be an entrepreneur, although Wickham (1998) does state five general personality types that could potentially be entrepreneurs. These were:
- Inventor – someone who has clearly innovated and who wishes to share their new innovation with the market.
- Unfulfilled manager – a manager who has everything but still does not feel satisfied and in control.
- Displaced manager – people whose career changes many times; therefore they feel the need to do something different
- Young professional – lots of enthusiasm, and prepared to take a lot of risks. Not prepared to invest in more education because they wish to start new ventures on their own.
- Excluded – To some people, nothing else is open to them; so they see entrepreneurship as a way out.
These personalities are trying to give a basic idea of the types of people that could potentially be entrepreneurs. However, I think it is still impossible to determine who could potentially possess entrepreneurial talents, because for example; some people have an event in their life which can triggers them into thinking entrepreneurially (George Lucas and his car crash).
I have simplified all of these traits in the Appendix under Reference 4.
Section Three: Entrepreneur Subjects
The three entrepreneurs that I have chosen to look at are:
- Anita Roddick
- George Lucas
- Bill Gates
I will look at each of these in turn; first I will include a short biography for each subject to show how they progressed into entrepreneurial figures, and then I will explain why I think each one of them is an entrepreneur.
Anita Roddick
Anita Roddick was born in the UK in October 1942, and after leaving school she trained as a teacher. In 1970 she met Gordon Roddick, and together they opened a restaurant and a hotel. In 1976, Anita and Gordon Roddick opened the first Body Shop, using £12,000 of their own savings, originally she wanted to share and exploit some of the ideas that she had seen whilst travelling around the world as a teacher. Six months later a second Body Shop was opened, and by 2004 there were 1980 stores worldwide in over forty countries.
The Body Shop is very well-known for its environmental and ethical strategies, offering only biodegradable products and refillable containers. Anita had visited many third-world countries on her travels, and seen how they use natural products to look after themselves; therefore she arranged a form of trade in order to bring products such as cocoa butter to Body Shop stores
in 2003 Anita Roddick was knighted by the queen. However, in December 2005 it was reported that Anita was ready to give away her fortune of an estimated £51 million.
Anita Roddick is a great example of how financial and social capital can be created together without destroying the original views of the founder. She stated (in Bolton and Thompson, 2004, p.193): “I am, in my skin, an activist. I am trying to free guys in prison in America and stop sweatshops. When I went
into business, I didn’t think you had to leave yourself and your beliefs at the door. “. The Body Shop has strong environmental and ethical stances, and this can be seen by the way it advertises in its shops rather than nationally. Anita spotted an opportunity from her visits to third-world countries around the world, and in return she was able to give something back to them and the community. She is a clear entrepreneur, because she wanted to create something that would give something back to the world, and without affecting the environment. With the Body Shop she has clearly achieved this, her individual contribution to the cause has been tremendous and in turn she has become a popular social entrepreneur.
George Lucas
George Lucas was born in California in 1944, and whilst still at high school he originally dreamt of one day becoming a racing car driver. However, just weeks before he was set to graduate in June1962, Lucas was involved in a freak car accident. After an illegal left turn by a friend’s car, Lucas’ Fiat Bianchina was clipped and it rolled five times before finally smashing into a walnut tree on a ranch owned by his family. The racing seat belts that were anchored to the floor miraculously snapped, which resulted in Lucas being thrown from the roof; thus saving his life. Lucas said (in Kao, 1989, p.61) “The fact is I could never have survived that accident if I’d been wrapped around that tree. . . . Actually, the seat belt never should have broken, under any circumstances. . . . “. This seemed to have given Lucas a very different outlook of his life. It had acted as a trigger. He began to study film at the University of Southern California, where he achieved an award for a short film; which in 1971 he made an extended version alongside Francis Coppola (acclaimed director of The Godfather and Apocalypse Now), the film was called THX-1138.
In 1973, Lucas released American Graffiti which was a financial success and provided a solid base for what was to be the most successful and influential film saga of all time: Star Wars. Star Wars was released in 1977, and re-wrote all box office records along with its two sequels: Empire Strikes Back and Return of the Jedi; together grossing over £1 billion worldwide. Lucas has also retained all the rights and ownership of merchandising licences to his star wars phenomenon. Since the 80’s he also co-wrote three Indiana Jones films alongside Steven Spielberg, and during the 1990’s he has created three more Star Wars films; based before the original three films: Phantom Menace, Attack of the Clones and Revenge of the Sith. George Lucas also has his own film company, aptly named Lucasfilm Ltd, which is based on Skywalker Ranch in California. In 2005, George Lucas received a Lifetime Achievement Award from the American Film Institute for his contributions to worldwide cinema.
I believe that George Lucas is a serial entrepreneur, this can clearly be seen by the fact that even though he had created the Star Wars trilogy, he was still intent on creating three more Star Wars films; this led to the three very recent prequels to the original films. Just before Lucas became a director he noticed that the film market was flat; therefore he spotted an opportunity to do something different, and attract people back to the cinema. This is what makes him an entrepreneur, he is a project champion. However, if it was not for the freak car accident that he was involved in, we may never have seen the global phenomenon that is Star Wars. Lucas stated:
The accident made me more aware of myself and my feelings. . . . I began to trust my instincts. I had the feeling that I should go to college, and I did. I got the same feeling later that I should go to film school, even though everybody thought I was nuts. I had the same feeling when I decided to make Star Wars, when even my friends told me I was crazy. (in Kao, 1989, p.61)
This shows that the accident acted as a trigger event that would shape the rest of Lucas’ life. Sometimes entrepreneurs have trigger events that let them realise their entrepreneurial talents, without knowing of them beforehand. This is what happened to George Lucas, and in effect it has made him a successful creator, writer, film director and entrepreneur. He has acquired both financial (through his Star Wars phenomenon success) and aesthetic (through the actual Star Wars saga and its merchandise) capital from his exploits.
Bill Gates
Bill Gates was born in Seattle in 1955, and throughout his early days he excelled in Mathematics and the Sciences. Whilst he was still in high school, he founded a small company called Traf-O-Data with his friend Paul Allen. Bill Gates then went to Harvard University along with Paul Allen, to pursue a Bachelors of Science in Computer Science major in 1973. This is also where Gates met his future business partner; Steve Ballmer. During his second year at Harvard University, Gates co-wrote the Altair BASIC for the Altair 8800 (microcomputer design) alongside Paul Allen and Monte Davidoff. However, by the time his third year at Harvard came around Gates dropped out and decided to instead pursue a career in software development, and shortly later Microsoft was born.
Bill Gates had a vision and this ‘was the realisation that operating systems and software (rather than the computer hardware) held the key to growth and industry domination (Bolton and Thompson, 2004, p.124) Gates took many risks in his early days at Microsoft, but this eventually paid off with his package licensed to Apple, Commodore and IBM. IBM gave Gates the challenge to develop an operating system for their new personal computers, for which he later named MS-DOS (Microsoft Disk Operating System). This catapulted Bill Gates onto the road of success, and since then Windows has become a popular first-choice operating system for the majority of PC manufacturers. Gates has obviously not needed to work for many years now, due to his overwhelming levels of wealth, which has seen him named the world’s richest man every year since 1997!! Gates prides himself in hiring the best and most intelligent people, and he has succeeded into making many of these into millionaires. Since the year 2000, Gates has reportedly given away £28 billion of his own wealth to various charities of his choice. Microsoft has since diversified into the games console market, and could now even prove tough competition for Sony with its new Xbox 360 console.
I think Bill Gates is a good example of a serial entrepreneur, and he also has many entrepreneurial characteristics. He has a strong ego and incredible determination; this is clearly proved by the majority of risk-taking in his early days at Microsoft. However, as his success proves this has clearly been beneficial to him in the long run. Also, another entrepreneurial characteristic is demonstrating his advantage over others, and he has done this by always ensuring that new software is backwards compatible. He personally challenges all of his colleagues, because he believes that this will bring out the best in them. As an entrepreneur he has acquired all types of capital: financial (through the success of Microsoft); aesthetic (through the creation of software); social (through his donations to charity). He spotted an opportunity to provide software for an ever-growing market (PC’s), he provided the software and this has been a major catalyst in the way that our world operates today.
Section Four: Compare and Contrast of our Entrepreneur Subjects
I will now discuss how each of my chosen subjects compares and contrasts with what I have found out from my literature research into the talent, temperament and technique of entrepreneur. I will simply use Gallups ‘life themes’ and Kao’s list of character traits in order to compare and contrast my chosen subjects.
Anita Roddick
Anita Roddick is a great example of a normal person who one day stumbled upon what she thought was a great idea and opportunity, and as a result has become a successful entrepreneur thus showing that anyone can do it if they put their mind to it. With regards to Gallups ‘life themes’, she clearly showed focus, because she wanted to create a business that would benefit the world both ethically and environmentally. This meant that as the business grew, she would try and stay focused on her original aims of what she was trying to achieve. She has shown courage in the face of adversity, because of her opinions about whale hunting and global warming. Many critics believed that she would not be a success because she chose to advertise only inside her shops and nowhere else. Roddick showed creativity by being able to use biodegradable products and refillable containers; thus pushing the influence of her care over the environment. She had used ideas from third-world countries and brought them to the UK, in a form of trade; therefore benefiting these countries. In terms of Kao’s (1989) traits, she has definitely showed commitment to the cause, because despite the rapid growth of the business, she has stayed true to the original values of the business. Also, she seems to fit into the trait that she does not feel the need to have great power or high status. To support this fact, as I have already stated previously; she was reported to be willing to give away her fortune of $51 million.
However, there is some traits and characteristics from my research that clearly go against what Anita Roddick stands for. She clearly is not driven by profit by any means (Gallups ‘life themes’), Roddick only seems to want to change the way in which businesses operate. The message that she is trying to give is that you can operate a business without having to harm any aspect of the environment. On this account she has succeeded, and I am sure Anita will consider the Body Shop a very respectable personal triumph.
Anita Roddick has generated both social and financial capital as a result of her entrepreneurship. She amassed fortune just over £51 million from the Body Shop, and at the same time she has been able to be a successful social entrepreneur. This is largely because she is highly opinionated and has very strong views over key views in the world such as global warming for example. In order to do her part Roddick is providing a service, but at the same time this business has some very strong ethical and environmental stances.
.
George Lucas
George Lucas varies slightly from Bill Gates, largely because of the fact that the entrepreneurial talent was triggered within him. This resulted in him thinking very differently about his life and the way in which he wanted to live it. In terms of Gallups ‘life themes’, the main ones that he possess are dedication, focus, urgency, activator, opportunity and creativity. Once the car crash had occurred, Lucas suddenly felt the need to do certain things, and this was to go into film; this shows urgency and activator. He suddenly realised that he had to something, so he changed his original plans and set about making new ones almost immediately (everyone thought that he was mad!). Before this Lucas had not been the brightest, but now he had found something that he wanted to focus on, and this showed his dedication to get where he wanted. He realised that world cinema was in a depression, ticket sales were poor and films were costing a lot more than they were actually making at the box office. Lucas had spotted his opportunity, he realised that in order to get people back into the cinema he needed to create something new and fresh. He accomplished this by directing the Star Wars trilogy, which shows his creativity attribute. Also, Kao’s (1989) traits indicate perseverance and risk-taking as common entrepreneurial traits, and Lucas also possessed these. Star Wars was a massive risk for him financially, and he had had to persevere in the past in order to get the funding for his film; and that is why he created the 1973 film American Graffiti.
However, there are some traits in my research that go against some of George Lucas’ characteristics. In Gallups ‘life themes’ it states the traits of profit orientation and ego-driven. However, it does seem that George Lucas was ever ego-driven; he simply did what he had to do because he felt the need to do it. He had experienced a trigger event, and this had led to him changing his career path totally from a racing car driver to a film director. Also, George Lucas did not change his career path because of the prospects; he simply had a change of heart after his accident.
George Lucas has generated both financial and aesthetic capital through his entrepreneurial ventures. Financially, the six Star Wars films alone have grossed over £2billion worldwide and Lucas has obtained all the rights to Star Wars merchandise as well. Aesthetically, he has created one of the most influential film sagas of all time, and this has been a great influence to modern sci-fi films.
Bill Gates
Bill Gates possesses many of the entrepreneurial talents that I have highlighted through my research into various resources. In terms of Gallups ‘life themes’, he clearly possesses ten out of the twelve. He has dedication, he used to work ridiculously long hours and in turn this also showed determination. He is focused, and clearly ego driven; he wanted to make a difference that would be recognised and would make a change. The Microsoft operating system is the result of his entrepreneurial venture, and it also shows urgency because in order to start Microsoft he left Harvard University in his final year; he had no time to waste because he is an ‘activator’. Gates clearly saw an opportunity in the market; he predicted that the ever-growing personal computer market would need an efficient operating system.
Kao (1989) however highlights a certain attribute called ‘low status and power’. This clearly does not describe Bill Gates, because it is basically the opposite of being egotistic. It is stating that entrepreneurs do not feel the need to have a high status or lots of power. I do not believe this is the case with Bill Gates though, he purposefully aimed to be the only sole provider of operating systems in the PC market, and he is said to be quite aggressive in terms of ensuring that Microsoft are number one. Therefore this shows that Bill Gates does not quite fit into this theme of a low need for status and power.
Throughout his entrepreneurial venture, Bill Gates has generated financial, social and aesthetic capital. Financially, he has made billions and is currently the richest man in the world
Section Five: A summary statement
Previously to this the word Entrepreneur was a word that I had heard of but did not fully understand what it meant. To me it was just a term used to describe someone who took risks in business. I now know that it is much more than that! The most important being that Entrepreneurs have shaped todays world and will continue to in the future.
Entrepreneurs are not simply people who start a business and make lots of money, some do not make any at all. They are innovated people who spotted opportunities, took risks and succeeded against the odds. They are global and can come from all walks of life and religions. Each one of us could be an entrepreneur, all we have to do is spot the opportunity.
Entrepreneurs are the worlds future and past.
From the three people that I looked at Anita Roddick was the one who struck a cord with me. She saw the opportunity but did not compromise her principles. This to me is as important as the success.
Section Six: Bibliography and any relevant appendices
Bolton, B. and Thompson, J. (2004) Entrepreneurs: Talent, Temperament, Technique. Second edition, Oxford UK: Elsevier Butterworth-Heinemann.
Bridge, S. and O’Neill, K and Cromie, S. (1998) Understanding Enterprise, Entrepreneurship, & Small Business. First edition, Hampshire UK: Macmillan Press Ltd.
Kao, J.J. (1989) Entrepreneurship, Creativity, & Organization. First Edition, New Jersey: Prentice Hall.
Kirby, D. (2002) Entrepreneurship. First edition, Berkshire UK: McGraw-Hill.
Kuratko, D.F. and Hodgetts, R.M. (2001) Entrepreneurship: A Contemporary Approach. Fifth edition, United States of America: Harcourt Inc.
Wickham, P.A. (1998) Strategic Entrepreneurship: A Decision-Making Approach to New Venture Creation and Management. First edition, London UK: Pitman Publishing.
Wikipedia: The Free Encyclopedia (no date) [Homepage] [online] Last revised January 5th 2006 [cited 20th April 2006] <http://en.wikipedia.org/wiki/Main_Page>
Centre for Bioscience (no date) [online] [cited 5th April 2006] <http://www.bioscience.heacademy.ac.uk/issues/entrepreneurship/bornorbred.htm>
Speakers for Business (no date) [online] [cited 30th April 2006] <http://www.sfb.co.uk/cgi-bin/profile.cgi?s=30>
Microsoft (2006) [online] [cited 30th April 2006] <http://www.microsoft.com/billgates/bio.asp>
Star Wars (2006) [online] [cited 30th April 2006] <http://www.starwars.com/bio/georgelucas.html>
My Hero (no date) [online] [cited 30th April 2006] <http://myhero.com/myhero/hero.asp?hero=Roddick>
Ludwig von Mises Institute (no date) [online] [cited 1st May 2006] <http://www.mises.org/content/cantillon.asp>
Autio, E. (2005) Global Entrepreneurship Monitor. [e-book]. Babson, 2005 [cited 1st May 2006]. Available from <http://www.gemconsortium.org/>
Reference 1
Reference 2
Reference 3
Reference 4
Overall Entrepreneurial Traits
