mne3701_questions_and_answers

Unit 2 HOW CORPORATE ENTREPRENEURSHIP DIFFERS 2.1 DISPELLING THE MYTHS AND SIDESTEPPING THE FOLKLORE The following ten most notable myths are inaccurate: 1. Entrepreneurs are born not made: - There is a long-prevailing notion that the characteristics of entrepreneurs cannot be taught or learned, and that they are traits with which one must be born. - This is not true - Key traits associated with entrepreneurship include achievement motivation, aggressiveness, initiative, drive, willingness to take risks, tolerance to ambiguity an self-confidence - Today, however it is recognised that such traits and characteristics are heavily influenced by environmental conditions (family, work, peer-group, and social) and that each of us has significant entrepreneurial potential. 2. Entrepreneurs must be inventors: - The idea that entrepreneurs are inventors is a result of mis-understanding an tunnel vision - While many inventors are also entrepreneurs, there are numerous entrepreneurs who pursue all sorts of innovative activity beyond formal inventions, and/or who capitalise on the creative ideas of others. 3. There is a standard profile or prototype of the entrepreneur: - Many books and articles have presented checklists of characteristics and skills of the successful entrepreneur - These lists were neither validated nor complete, they were based on case studies an on research findings among achievement-orientated people - Today, we realise that a standard entrepreneurial profile is hard to compile - The environment, the venture itself and the entrepreneur have interactive effects, which result in many different types of profiles. 4. All you need is luck to be an entrepreneur: - Being at the right place at the right time is always an advantage but luck happens when preparation meets opportunity - Prepared entrepreneurs who seize the opportunity when it arises often appear to be lucky - They are in fact simply better prepared to deal with situations and turn them into successes - What appears to be lucky really is preparation, determination, desire, knowledge and innovativeness MNE3702 Page 1 5. Entrepreneurs are extreme risk takers (Gamblers): - The concept of risk is a major element in the entrepreneurship process - However, the public’s perception of the risk assume by most entrepreneurs is distorted - While it may appear that an entrepreneur is “gambling” on a wild chance, the fact is that an entrepreneur is usually working on a moderate or calculated risk - Most successful entrepreneurs work hard through planning and preparation to mitigate or minimize the risk involved - Few like risk - They seek to creatively manage risks in order to better control the destiny of their vision. 6. Entrepreneurial people are academic and social misfits: - The belief that entrepreneurs are academically and socially ineffective is a result of some hard-headed business owners having started successful enterprises after dropping out of school or quitting a job - In many cases such an event has been blown out of proportion in an attempt to “profile” the typical entrepreneur - They abandoned him or her as a misfit in a world of corporate professionals - Business education, for example, was aimed primarily at the study of corporate activity - Today’s entrepreneur wears two hats, that of visionary change agent and effective manager - He/she is typically adept socially, economically an academically - No longer is a misfit, the entrepreneur now viewed as a profes