13 characteristics and skills of entrepreneursthssbusiness.com/business-10/chapter-13.pdf ·...

Characteristics and Skills ofEntrepreneursS p e c i f i c E x p e c t a t i o n s

After studying this chapter, you will be able to

• describe the characteristics and skills often associated withsuccessful entrepreneurs

• explain how these characteristics and skills can be applied to anykind of entrepreneurial endeavour

• describe the lives and accomplishments of a variety of Canadianentrepreneurs

• analyze your own entrepreneurial strengths and interests

Entrepreneurs can be in their teens or in their 70s, male or female, formally educated

or self-educated. They come from many countries and backgrounds. But they have

some characteristics and skills in common. Entrepreneurs recognize business oppor-

tunities more quickly than other people. They see potential business opportunities in

problems and are not afraid to take risks, to make decisions, or to work hard. They

are problem-solvers who communicate well and who inspire others to follow their lead.

As you will see in this chapter, you too can become an entrepreneur. Many of the

skills shared by successful entrepreneurs can be learned and developed at home, at

school, at work, and in the community.

13

K E Y T E R M Sentrepreneurdot-com companyaptitude initiativerisk-toleranceconfidencecreativitymission statementintegrity

C H A P T E R 1 3 Characteristics and Skills of Entrepreneurs • MHR 347

Prokop-O’BrienJeen O’Brien, Stephan Szczesniak, Christina Prokop, and Jeff Lowe are thepartners in Prokop-O’Brien. These four, all still in their 20s, are bringingtogether their talents and skills to write, perform, and produce jingles forcommercials on radio and television, at Web sites, and in video games.

Jeen, who writes her own music, has been singing with a band sincethe age of 15. She has a powerful, rich voice which she has been trainingfor years. Jeen has appeared on television, had music CDs and videosmade, and has played in clubs wherever there was an opportunity to per-form and have her music heard.

Stephan started playing the drums when he was 8. He too has playedin bands, and he has toured with country music artists. Stephan went tothe Etobicoke School of the Arts and then on to Humber College. He isthe music arranger. He works with a song to make it feel right, creatingbridges between the verse and the chorus, establishing the tempo and thecolour of the different instruments that will be used.

Christina began her business career as a model, working in differentlocales around the world. By the time she was 20, she decided that hermodelling career was over. She was getting too old. So, she came backto Canada and joined the film industry. She works with the producers ofcommercials. She takes care of the details of a commercial shoot, work-ing with clients and the creative people who are making the commercials,coordinating the details of the project and keeping track of the financialdetails so that everyone stays on budget.

Jeff has been playing the guitar since he was 10 years old. He andStephan have performed together with various bands over the years. Jeffalso provides music for films. He is the one of the four who most clearlycombines his artistic gifts with a sound knowledge of business and how itworks. He knows the people who would hire Prokop-O’Brien, and he knowshow to talk to those people in a convincing manner.

So, how will Prokop-O’Brien solve problems for clients and differentiatethemselves from the competition? They will offer music that will be morecreative than the usual commercial music and that will appeal to the largedemographic group from teenagers up to 40-year-olds. They are, as theysay, real musicians, people who love music. Music isn’t just a job to them.It’s their passion! Their clients will have that talent and passion working forthem in the commercials created by Prokop-O’Brien.

B U S I N E S SP R O F I L E

Figure 13-1 Jeen,Stephan, Christina, andJeff are launchingProkop-O’Brien, a newentrepreneurial enter-prise. Their motto willbe “Art for the sake ofadvertising.”

Jeen O’Brien

Stephan Szczesniak

Christina Prokop and Jeff Lowe

348 MHR • U N I T 4 Entrepreneurship

The group knows that they have a lot to learn and will need a lot ofhelp as they get started. But they have some strong support systems inplace. Stephan’s father, Tom Szczesniak, and his partner, Ray Parker, willhelp. The two men are musicians who have been writing and producingmusic for 35 years for companies like Nelvana. You’ve probably heardTom and Ray’s songs in Beetle Juice and Babar films. The two mentorshave the sound equipment as well as the experience, and the four youngentrepreneurs will have access to both as they start out. Stephan pointsout that this is a tremendous advantage, because the equipment is far tooexpensive for a new company to invest in and the experience would takeyears to acquire.

Jeen, Stephan, Christina, and Jeff meet often to work out their busi-ness plan, to select the music for their demo CD, and to make decisionstogether. They are determined to keep their business grounded in the realworld. Jeen, who will be the primary writer, knows this will be a challengefor her. She says she recognizes that she will need to write to satisfy whatthe client wants, rather than "writing from the heart."

The four partners are in the process of putting together their demoCD. Jeff and Christina have the business connections, so they will take thedemo around to prospective clients. Once they have a couple of clientsand are earning some money, then they will invest in their own equipment.They’ll still have their mentors, Tom and Ray, to help. The young peopleknow that the experience of the older artists will be invaluable to them.

As you read this chapter on the roles and characteristics of entre-preneurs, keep Prokop-O’Brien in mind. How do their skills, talents, andcharacteristics fit the profile of an entrepreneur? How have they used theirstrengths and interests to start their new business venture?


What Is an Entrepreneur?Entrepreneurs have always been with us. Back whenpeople were hunters and gatherers, following herdsof animals for food and picking whatever plants theyfound, someone thought of doing things differently.Some ancient entrepreneur decided to plant cropsand raise domestic animals.

An entrepreneur is a person who organizes,manages, and assumes the risks of starting and oper-ating an enterprise. Entrepreneurs provide new goodsor services that will meet people’s needs and wants,or solve their problems. Many entrepreneurs startbusinesses to make a profit. Others are motivated bydifferent goals, such as helping the people in theircommunities. This form of entrepreneurship mightinvolve starting a charitable organization like a foodbank to solve the problem of hunger.

Why Become an Entrepreneur?

Some people seem to be born with an entrepreneurial spirit. As chil-dren they figured out how to sell the most chocolate bars for schoolfund-raisers. In high school, they started a window-cleaning businessand hired others to work with them. They seem to be able to solve aproblem before other people even recognize there is one. They wantindependence as they earn an income, and they aren’t afraid of hardwork or being different. They have the characteristics and skills to runa successful enterprise.

Leaps in technology have made it easier for young people with talentand skills to develop ideas and start their own businesses. Teenagers and20-year-olds have started dot-com companies. A dot-com companydoes business on the Internet or helps other companies offer productsor services over the Internet. With minimal investment and a good com-puter, these young entrepreneurs build successful companies. Not all ofthem survive in the long-term, but the trend of younger people taking onthe entrepreneurial challenge has been featured in numerous media sto-ries in the past five years.

F igure 13-2 MarkCullen comes from a familyof entrepreneurs. He is thepresident of Weall andCullen Nurseries Ltd. Mark’ssister, Susan, runs CullenGardens and MiniatureVillage in Whitby, Ontario.

At the same time, technology has advanced to the point that start-up business costs, especially those for a home office, are relativelyaffordable. Many people who may not have considered starting theirown businesses now think about entrepreneurship.

New Direct ionsFrequently, a sudden change in circumstances motivates, or evenforces, people to start businesses in order to earn an income that willprovide for their wants and needs.

With the recession that started in 1989 and continued into the early1990s, many people were laid off. People who thought they had job secu-rity until retirement were suddenly out of work. Since so many companieshad cut jobs, no one was hiring. Rather than continue to job-search, somepeople chose to start their own business.

Many people who have immigrated to Canada–such as FrankStronach of Magna International and Peter Munk of Barrick GoldCorp.–have used their experience and skills, along with their personaldrive and ambition, to start their own very successful business ventures.Dissatisfaction with current employment can motivate some people tostart their own businesses.

Some groups have found opportunities foradvancement in employment difficult. Women,for example, have had difficulty in getting pro-moted to the highest levels of corporate man-agement, although this is less the case today.Women still are one of the fastest growinggroups of entrepreneurs. One third of self-employed Canadians are women.

Sometimes the opportunity to start anentrepreneurial venture is related to geogra-phy. For example, Patrick Akpalialuk is thefounder of Northstar Networks in Nunavut.Northstar manufactures and services computersin Canada’s newest territory. Patrick turned thechallenge of being far from major computersuppliers into a business advantage. He pro-vides the people in his community with one-stop computer shopping and servicing.


F igure 13-3 In 2000, Patrick Akpalialuk won theYoung Entrepreneur Award for Nunavut from the BusinessDevelopment Bank of Canada. As part of his award, Patrickwill have a leading senior business person from Nunavut tohelp him with his business for a year.


Characteristics of Successful EntrepreneursImagine an entrepreneur who didn’t like to take risks. Or consider whatwould happen to someone who gets terrific ideas but can’t persevere.Successful entrepreneurs need a variety of characteristics, including risk-tolerance and perseverance.

Although not every entrepreneur has every one of the followingcharacter traits, most entrepreneurs will have most of these characteris-tics in common. While you’re reading, think about whether you sharesome of the same aptitudes and characteristics.

Apt i tude

Most people have a wide range of aptitudes–natural talents, tenden-cies, or capacities. Entrepreneurs apply their aptitudes to their businessventures. Some aptitudes that could be useful in an entrepreneurial ven-ture are the following:• Artistic–Entrepreneurs can use their artistic talents in many different

ways. For example, they may be recording artists, producers of moviesor television shows, creators of video games, or Web designers.

• Perceptive–Some people just seem to be more perceptive than therest of us when it comes to understanding other people’s intentions,ideas, or emotions. Perceptive entrepreneurs can define the realproblem that people are having in satisfying their needs and wants.

• Logical–Other people are able to apply reason quickly to solve con-sumer and business problems.

• Mechanical–People with this aptitude can understand how machinesand mechanisms work and how they could be improved.

• Spatial–People with this aptitude–for example architects and interiordesigners–can use space in an attractive or economical manner.

• Physical–Great athletes often have superior physical abilities. Theyhave strength, endurance, co-ordination, and the ability to excel at sports.

• Intellectual–People with this aptitude have a desire to seek outknowledge, to plan ahead, and to come up with original ideas andcombinations of ideas.

"Entrepreneurship embod-ies risk taking, having thecourage to change, fos-tering creativity andencouraging excitementfor excellence. All ofthese factors can andshould be the drivingforces in every workingenvironment, be it govern-ment, business, or wher-ever." Catherine Swift,President, CEO and Chair,Canadian Federation ofIndependent Business

Bombardier’s missionstatement presents thecompany’s vision."Bombardier's mission isto be the leader in all themarkets in which it oper-ates. This objective will beachieved through excel-lence in the fields of aero-space, rail transportationequipment, recreationalproducts, financial serv-ices and services relatedto its products and corebusinesses."

What are your aptitudes and talents? Perhaps you can draw cartoons, skiexceptionally well, or teach ballet to children. These talents just seem tobe part of who you are. With practice, hard work, and education, you cantake a basic talent and turn it into an entrepreneurial enterprise.

V is ion

Entrepreneurs can visualize their end results or goals. They have a visionof their success, and they constantly work toward making it real. Theymake business decisions with this end in mind and don’t get sidetracked.Often, they have written our their vision, either formally in a missionstatement, or informally, perhaps in a personal journal. A mission state-ment presents the aims, objectives, and general principles that a com-pany focuses on. Entrepreneurs refer back to this statement often. Thevision can evolve as the business grows, but remains clear and attainableto the successful entrepreneur.

Risk To lerance

Risk tolerance is the degree to which you can comfortably accept tak-ing chances. Entrepreneurs need to have a pretty high tolerance ofrisks. This doesn’t mean that they are gamblers, but they do take cal-

culated risks. For them, the oppor-tunity of success outweighs thepossibility of failure. And even ifthey do fail, entrepreneurs arelikely to try again.

For example, Heather Reisman,the founder of Indigo Books, Music& More, has a high risk tolerance.She heads up the merged Chaptersand Indigo companies in a toughbusiness environment and a fragileindustry. But, then, Heather is notafraid of tough situations.


F igure 13-4

Entrepreneur HeatherReisman turned a smallbook shop into a flourish-ing modern bookstore withan online component andlater bought out Chapters,a larger chain of stores.


In 1996, she left her job as president of Cott Corporation, the soft drinkmanufacturer, and decided to take the risk of starting her own book-sellingcompany. She was warned that she couldn’t compete against Chapters.Chapters was the major bookstore in Canada at the time. The risk of takingon this giant was considerable. However, Heather judged that consumerswanted something different from their bookstore. And Indigo was differ-ent, offering coffee and music as well as books in both its physical storesand its virtual store on the Internet. Heather Reisman’s risk paid off.

Conf idence

Those who have confidence believe in their own abilities. Because theyare sure of themselves, it is easier for others to believe in them. Even if theyfail, they know they will succeed the next time. This is a key characteristicof entrepreneurs. Their confidence can help them work through setbacksand sell ideas to potential customers andinvestors. Sometimes this can be the con-fidence to know when to ask for help. Aconfident person can say “I don’t under-stand” or “I need help” without feelingembarrassed.

Creat iv i ty

Creativity is the ability to create things,usually in an imaginative way. Artists arecreative. As you saw in the BusinessProfile at the start of this chapter, the fourpartners of Prokop-O’Brien are all cre-ative artists in their own fields. Whetherthe creativity appears as an invention, aninnovation, or as marketing or problemsolving, the successful entrepreneur is an“idea” person. Entrepreneurs see oppor-tunities everywhere. Just walking downthe street, they see gaps between needsand wants. Usually, they have many moreideas than they can ever implement.

F igure 13-5 Sarah McLachlan’s Lilith Fair took the idea of a rockconcert and merged it with a festival. In this photo, Sarah, Eden A.K.A.and Melanie Doane (from left to right) sing together at the Toronto stopof the 1998 Lilith Fair.


Sarah McLachlan, for example, used her singing and songwriting alongwith her understanding of the music industry, especially the lack of oppor-tunities for women performers and bands. She created Lilith Fair, whichshowcased talented women performers in a unique festival atmosphere.Lilith Fair success has boosted Sarah McLachlan’s profile internationally andexpanded her audience.

Perseverance

Have you ever been so determined to succeed at something that you justkept trying until you got it right? That’s a sign of perseverance.

Creating and running a business is hard work. It often means longhours, disappointments, and setbacks. Perseverance is the determinationthat pushes the entrepreneur to keep going, keep trying. This trait, whichwas introduced in Chapter 4 as a key requirement of a successful business,is necessary for a successful entrepreneur. Often, a new business can taketwo or more years to become profitable. A successful entrepreneur is pre-pared to continue selling his or her ideas through the tough times.

In i t ia t i ve

When an entrepreneur sees an opportunity, he or shetakes the initiative. Initiative is the readiness and will-ingness to start a new enterprise. Entrepreneurs are self-motivated and quite willing to take on this leadership roleand make themselves personally responsible for the suc-cess or failure of an operation.

For example, at the age of 17, Corey Hill was alreadyshowing initiative. She was the only Aboriginalperson–and the only woman–in her welding class at theGuelph, Ont. technical college she attended. She success-fully learned that trade. Then, after several years as awelder with the local gas company, she decided that shewanted to open the first health spa and fitness centre inOhsweken, near Brantford, Ontario. Her spa, Choosing ToLive Healthy, features a building of her own design whichshe built with the help of the local business developmentoffice, her father, and people from her community.

F igure 13-6 Miriam Goldberger ofWildflower Farms, whom you met in theChapter 10 Business Profile displays many ofthe characteristics of the successful entrepre-neur. She has the initiative and perseveranceto see her dream through to reality.

In tegr i ty

Integrity is the personal commitment to keep your promises, to do whatyou say you’re going to do and when you say you’re going to do it.

An entrepreneur with integrity creates confidence in customers andinvestors. When someone follows through on promises, customerskeep coming back, and may even tell friends about the business.Personal integrity can help entrepreneurs maintain their commitment totheir vision. Offering customers superior workmanship on productsand providing good service may take a little longer, but the entrepre-neur knows that his or her reputation depends on that high quality.Entrepreneurs with integrity are likely to be more successful than thosewho do not have integrity. Honest producers of goods and services tendto foster the loyalty of both their customers and their investors.

Feel Good Cars is one example of a business with integrity. TheCanadian company converts Dauphine cars from the 1960s into com-pletely pollution-free electric cars. In 2000, just as the cars were readyfor production, someone discovered that the batteries used to powerthe vehicles were faulty. The faulty batteries could have burst in a front-end collision, and sprayed hazardous battery acid over the driver andpassengers. Feel Good Cars quickly researched alternatives. Thereplacement batteries that the company found were more expensive,but Feel Good Cars used them because they were safer. Safety was non-negotiable. And the company didn’t even raise the price on its cars.


Figure 13-7 Feel Good Cars turn antiqueDauphine automobiles intoclean-running electric cars.But it’s their commitment totheir customers and theirown integrity that makesthem so special.

Pass ion

Entrepreneurs are passionate about their ideas, their company, and theirvision. Talk to any entrepreneur for five minutes about her company andyou’ll hear excitement in her voice. This passion helps entrepreneursovercome the long hours, the disappointments, and the various chal-lenges they will face.

Entrepreneurs love what they do. Often, their ideas arise from within,from something they love, like a hobby, or invention. As you saw in theBusiness Profile on Prokop-O’Brien, sometimes a group of people whohave the same passion can join together to form an entrepreneurial enter-prise. Jeen, Stephan, Christina, and Jeff are using their interest and expe-rience in their arts of music and film to seize a business opportunity.Their enthusiasm for their idea keeps them moving forward.

What are you passionate about? A pastime, hobby, or sport? Howcould you turn your hobby into a business?

K n o w l e d g e / U n d e r s t a n d i n g

1 In your own words, define entrepreneurship.2 Create a checklist that briefly defines the characteristics of a successful

entrepreneur.

T h i n k i n g / I n q u i r y

3 Research a newspaper or magazine article on an entrepreneur. Identifyand record how many of the entrepreneurial characteristics, from yourchecklist, that they have.

4 Throughout Exploring Business for the 21st Century, there are many sto-ries, examples, and profiles of entrepreneurs–both in the chapter text andin the chapter features. Select two of these entrepreneurs and create acomparison chart to show how they have used their aptitudes successfullyin their businesses.

C o m m u n i c a t i o n

5 Working in small groups, select two characteristics of entrepreneurs anddevelop a brief skit demonstrating those characteristics. Ask your class-mates to identify the characteristics that your group is acting out.


Check Your Understanding

S k i l l sA p p e n d i x

researching


working in groups


A p p l i c a t i o n

6 Imagine yourself in the position of an entrepreneur struggling to make hisor her idea or business a success. Select a famous entrepreneur like BillGates or Heather Reisman, for example. Write a page from his or herdiary describing the day’s problems and decisions. Be sure to demon-strate some entrepreneurial characteristics in your diary entry.

Entrepreneurial SkillsEntrepreneurs need to have a wide variety of skills to run a successfulbusiness, including the skills listed in the Conference Board of Canada’sKey Employability Skills (page 76-77). There are, however, some skillsthat are especially important for entrepreneurs: problem-solving, com-munication, planning, decision-making, and leadership skills.

Prob lem-so lv ing

All of us have to deal with problems and find solutions to them. Thesuccessful entrepreneur sees opportunities in these problems wheremany of the rest of us only see difficulties. Sometimes the best newideas come from the need to solve a problem.

Bombardier, as you saw in Chapter 4, was hit hard by the energycrisis in the 1970s. With gas prices soaring, consumers stopped buyingthe company’s snowmobiles; they were just too expensive to run. So,how did a company that built gas-consuming vehicles handle the situ-ation? Laurent Beaudoin of Bombardier solved the problem in an inno-vative way by diversifying the company’s product line. He started thechange in the company’s focus by making vehicles for mass transit.Once that venture was successful, the company moved on to produc-ing regional airplanes. Now, Bombardier is one of the world’s top pro-ducers of subway cars and small and mid-sized jet airplanes.

Ted Rogers of Rogers Communication Inc. is also a problem-solver.Since 1962, he has recognized business opportunities in the challenges ofchanging communication technology. For example, when consumers’interest in the Internet grew, Rogers anticipated a decline in the popular-ity of television. Rather than fight the new media, he decided to work

Connecting Businesss wwith Cartoon

In 1972 when Lynn Johnston discovered thatshe was expecting a baby, she left her job as amedical artist at McMaster University. At herdoctor’s request, Lynn drew 80 cartoons spoof-ing the experience of being pregnant. The doc-tor displayed the cartoons in his office. Theywere a great success and were soon publishedin her first book, David, We’re Pregnant!

With a new baby to take care of, Lynnbecame a freelance artist, working from home.She had trained for her career by studying art atthe Vancouver School of Art and at Art College,before coming to live in Ontario. As a freelancer,she designed cereal boxes, billboards, leaflets,posters, flyers, and book illustrations. This was adifficult time, but very educational.

Two more well-received efforts broughtJohnston to the attention of Universal PressSyndicate, which wrote to her in 1978 and asked ifshe was interested in doing a daily comic strip. Shesent off 20 examples of “The Johnstons”—a seriesbased on her own family—and later signed a 20-year contract.

Lynn’s comic strip is unique because it dealswith everyday, down-to-earth situations. "Whatsets Lynn's strip apart from the others," says

Elizabeth Andersen, Johnston's editor atUniversal Press Syndicate, "is that her charactersand readers are not spared mid-life crises, finan-cial hardships or confrontations with prejudice,child abuse and death."

Lynn Johnston’s For Better or for Worse comicsnow appears in over 2000 newspapers in Canada,the United States and 23 other countries. They aretranslated into eight languages. Twenty-threebooks are currently in print. Along the way, LynnJohnston became the first woman recipient of the“Reuben” (the comics world’s “Oscar”), was namedto the Order of Canada in 1992, and landed aGemini for one of her seven animated televisionprograms.

A C T I V I T I E S

1 Draw a comic strip or write a short story onturning an artistic talent into an entrepreneurialbusiness.

2 Working with a partner, discuss why LynnJohnston’s cartoons are so popular. Relate her pop-ularity to meeting consumer’s needs and wants.


F igure 13-7 "Mostcartoonists start the way Idid: doodling on anythingas soon as I was able tohold a pen. . . I’ve alwaysloved to draw. I alwaysknew I would be a cartoon-ist, I never expected tomake my LIVING as one!"(Lynn Johnstone)

Lynn Johnston


with it and launched Rogers@Home, a high-speedInternet provider service that operates through the cablelines. Rogers already had experience with the method oftransmission laid because of its cable television service.

Communicat ion

No matter how creative, talented, and confident youare, if you can’t communicate to others that yourideas are worth their consideration, you won’t besuccessful. Entrepreneurs have to be able to commu-nicate clearly with customers, suppliers, banks,investors, and employees.

Entrepreneurs must answer e-mail, write letters and reports, and super-vise the design of brochures or Web sites. They must read and review infor-mation. And, perhaps most importantly, they must listen. After they haveread, observed, talked, viewed, or listened, they must analyze the infor-mation and their reactions. for material they can apply to their business.

Even if busy entrepreneurs hire others to handle most of these tasks,they still must communicate with the people they hire to ensure thework is done properly.

How are your communication skills? Are you able to explain yourideas in a way that people understand? Are you able to actively listento someone else’s ideas, asking appropriate questions to make sure youreally know what they mean?

Wri t ingWriting well is critical to an entrepreneur. If, as an employee, you writeclear and polite responses to customer-complaint emails, your writingwill reflect well on your company. The customer may not rememberyour name, but he or she will be impressed with your company.

But if you are an entrepreneur and you write the same kind of clearand polite responses to complaints from customers, both you and yourcompany are likely to be remembered favourably. Being able to writeclearly, accurately, and persuasively can help you keep your customers.Good writing skills will also help you write stronger proposals, more effi-cient reports, and clearer press releases.

F igure 13-8 The Rogers @ Home web site showshow really multi-media Ted Rogers’ company is.


ReadingBeing able to read quickly, accurately, and with ahigh level of recall is extremely useful in this age

of information. With daily newspapers, weekly andmonthly magazines and the Internet—the world’s

largest library right at your fingertips—you can get buriedin information and quickly overwhelmed. In a way, an entre-

preneur must be researching every day. Good reading skills can mean thedifference between reacting in time to trends, or scrambling to catch up.

Speak ingMany people fear public speaking. Fortunately, you can learn to over-come these fears by learning speaking skills and techniques to turnyour nervous energy into enthusiasm.

Often, potential investors, business customers, or even banks requirebusiness owners to make a presentation on their product or service. Apresentation is a formal speech in which you “sell” your idea to youraudience. Slightly different than a regular speech in which you simplyshare information, the presentation is designed to persuade listeners.Using sophisticated software programs, such as Microsoft PowerPoint,slide projectors, flip charts, or overhead projectors, the entrepreneurwill try to convince his or her audience that the product or service isvaluable and necessary. Making a compelling presentation means mak-ing a sale or impressing banks or investors. Entrepreneurs who learnthis skill have a greater chance of success.

L is ten ingGood listeners have the ability to understand the intentions, ideas, or emo-tions that others express. An entrepreneur has to be able to listen care-fully to find out what the customer really needs and wants.

For example, as a good listener, you may be able to turn an angrycustomer into one with a renewed commitment to your company.When a customer calls to complain, a wise entrepreneur sees this as anopportunity. Here is a real customer who took the time to provide youwith feedback. This is valuable information.

If you listen in a respectful way, customers will recognize your sin-cere interest and willingness to correct the problem. They will end thecall with a sense of accomplishment and a belief in your company’sintegrity. You will keep your customer and gather valuable insights.

WebnectConnC

How well do you communicate? Is faulty grammarstopping you from expressing yourself clearly?

There are some useful online tools to help you test both your communication

and grammar skills.

http://www.mcgrawhill.ca/links/exploringbiz


V iewing and Represent ingEntrepreneurs today also have to have sound viewing and representingskills. In a world that is full of media images—on television, on the Internet,on billboards, in newspapers and magazines—business people have tounderstand the impact such images have on consumers. In order to appre-ciate the effect that their own marketing and advertising campaigns willhave on potential customers, entrepreneurs have to be able to analyse theirown and their competitors’ media images.

They also need to know how to make their own visual and mediatexts convincing for their target audience. While entrepreneurs may notactually be the ones who create the advertisement or the pack-aging, they do have to know what purpose the advertise-ment or package is to serve and how best to achievethat purpose. They have to be able to visualize theend result and identify the steps needed toachieve that result. They have to be able tokeep their focus on that purpose and audienceas they go through the brainstorming, plan-ning, and drafting stages of media works.

Plann ing

Having a great idea is only the first step to becoming an entrepreneur.The difference between success and failure can be your ability to plan.

The advantages of planning are twofold. Planning allows you toprepare for the future. If you know you will need to replace expensiveequipment in three years, you can begin saving now, rather than goinginto debt to purchase the replacement, or having the equipment breakdown because it has worn out.

Planning also means you are planning for growth. Thinking aheadabout the changes your company needs to make to continue growingmeans it will grow with fewer surprises. Massive unexpected growthcan leave entrepreneurs scrambling for equipment, staff, and time.Sometimes companies that grow rapidly without planning, collapsesoon afterwards. They couldn’t sustain the growth. We will have moreto say about business and financial planning in Chapter 14.

WebnectConnC

Media awareness covers a wide range of topicsthat are important to the entrepreneur, for example,

news reporting, advertising, the protection of personalprivacy, and online marketing directed at children.

Learn more about these topics at the MediaAwareness Web site.


Decis ion-making

Decision-making is another essential skill for the entrepreneur.Entrepreneurs who put things off can miss opportunities, wasting timeand money. An entrepreneur must• look carefully at the advantages and disadvantages of each possible

decision, weighing the short- and long-term risks• consider a broad range of ideas from different sources, gathering and

analysing information• survey the market and talk to customers

The need to be right keeps some peoplefrom making a decision. Despite the possibilityof making a mistake, the decision has to bemade. If it turns out to have been a poor deci-sion, a wise entrepreneur will learn from themistake and move forward.

Leadersh ip

Leadership is the ability to lead others. Leadersinspire others to follow their example. Theydon’t have to do everything, or know every-thing, but they have to know what they wantand who they themselves are.

Good leaders set an example by having supe-rior work habits and acting with integrity. Peopleare more likely to follow someone they respect.

Asking people for advice, praising ideas,and encouraging contributions are excellentleadership tactics. The more others feel they arevalued, the more they seek ways to help and themore ideas they will contribute to the company.When things go wrong, strong leaders take fullresponsibility, but when they go well, attributesuccesses to the efforts of their team.


F igure 13-9 Leadership leads to success in all walksof life. Hockey great Wayne Gretzky shows leadership onand off the ice.



1 Create a checklist that briefly defines the skills of a successful entrepreneur2 With a partner, brainstorm some of the situations you have been in where

you displayed some of the entrepreneurial skills described in this chapter.


3 Identify someone whom you think has strong leadership skills. What makesthem a good leader?

4 In a small group, discuss the characteristics and skills that are common toall successful business people. What is different about the entrepreneur?Work together to reach a consensus on this question and then presentyour conclusion to the rest of the groups in your class.


5 Let’s test your communication and listening skills. Three students fromyour class will be seated in a triangular position so that they cannot seeone another. Each student has an identical set of twenty pieces ofcoloured paper of various shapes and sizes. The team leader has todescribe to the other two people how to build the structure that he or sheis creating out of the pieces of paper. The two people who are buildingmay not speak at all, nor can they turn and look at the speaker. They mustlisten to every instruction and interpret it as best as they can. The rest ofthe class observes and records what they are learning about listening andcommunication skills.


6 Identify a short or long term goal that you would like to accomplish. Itmight be to enter into a career, excel at a competition, or find a specificpart-time job. Write a brief report explaining how you can use each of theentrepreneurial skills to reach your goal.



critical thinking


writing reports


Who Wants to Be an Entrepreneur?Do you think operating your own business soundsgreat, but are wondering where to start? You havemany choices. You may already have an idea, butjust don’t realize it!

As we discussed earlier, entrepreneurs are pas-sionate about their businesses. So what are you pas-sionate about? Do you love animals? Are you goodat fixing computers? Maybe you can play the guitar.Starting off with something you already love to doand are pretty good at is often the best way to findthe inspiration for your business idea.

Think about your hobbies and then look for aunique way you can use that as a business idea.Remember, it has to be something that people willneed and/or want, or you won’t be running a busi-ness; it will still be a hobby. Let’s say you love ani-mals, especially dogs. You have a dog and so domany of the people on your street. A dog-walkingservice might be something people need, especiallyin nasty weather.

Lynn Young had always loved dogs. She tookgreat pride in obedience training her dog, Becky.

As a new mom, Lynn was looking for a way to spend more time athome. She put together her knowledge of dog-training and new par-enting skills to create Dogma, an obedience training program for dogswith a specialty in preparing the family dog for a new baby.

Jot down a few of your hobbies and talents, or things you just likedoing. Then, watch for opportunities and inspiration around your com-munity. You’ll be surprised what ideas will come to you.

Sel f -assessment

Do you have what it takes to be an entrepreneur? How about to be asuccessful entrepreneur?

Before you launch yourself as an entrepreneur, you need to be ableto assess your skills and characteristics honestly to see which areas youneed to work on. For example,

F igure 13-10 LynnYoung also uses her entre-preneurial skills to con-tribute to her community.She volunteers her time tohandle publicity forFriends of AbandonedPets in the Ottawa regionof Ontario.


• Would you be prepared to take the risks needed to start a new busi-ness? Do you like to take the initiative? Could you handle the stressinvolved in starting up a new venture?

• Are you confident about your own abilities and skills? Do you knowwhich skills you’d need to work on or get help with? Have youstarted building up those skills?

• Can you identify the root causes of problems? Do you enjoy solvingproblems? Do you consider most problems to be an opportunity?

• Can you evaluate new opportunities coolly and calmly without let-ting your enthusiasm run away with you?

• Can you make decisions, even if there is a risk of failure?• Do you usually stay committed to a project even when you run

into difficulties?• Are you willing to work long hours for little reward, at least at the

start of your venture?• Can you plan ahead? Do you get things done on time? Do you usu-

ally finish what you start?• Do you have the knowledge you need–about the market, competi-

tors, production and other processes? Are you willing to continuelearning as long as you live?

• Can you lead other people? Can you take responsibility? Can peopletrust what you say?

How Can You Get the Sk i l l s You Need?

Now that you’ve assessed some of the characteristics and skills you haveand those you might need to work on, how do you get the training youneed? There are many ways to find out the things you need to know.

Tak ing CoursesEven if you don’t know exactly what business you want to start, or whetherentrepreneurship will work for you, taking some courses related to thisfield will help you, no matter what career path you choose.

For example, accounting courses are a good choice. No matter whatbusiness is right for you, there will be money involved. Knowing howto manage finances will help you realize your dreams. Getting theknow-how early means getting there even faster. If you decide to letsomeone else handle your bookkeeping, you’re still ultimately respon-sible. A basic understanding of accounting principles, lets you ask theright questions and understand the answers.


Going to college or university or apprenticingto learn more about your business idea, or justto learn about the world and train your mindto think analytically and creatively, is a great

start. Knowledge, even when it seems totallyunrelated, is never wasted. Martha Stewart who

produces the popular television show “MarthaStewart Live” worked in the financial industry before

becoming a caterer. Now, she runs a vast multimedia empire.She tapped into all her past experience to create her business and makeit successful.

Courses may also be available through Human Resources Canada,your local library, or Parks and Recreation services. Many organizations,

such as The Conference Board of Canada and PlanetEntrepreneur, offer conferences and seminars on awide range of business-related topics. Many are specif-ically targeted to younger entrepreneurs.

Research ing and ReadingA vast network of information on how to start a busi-ness and how to keep it running smoothly is also avail-able. It can be found on the Internet and in variousmedia. Many daily newspapers have business sections.Newspapers, like The Globe and Mail’s Report onBusiness section, magazines, such as Profit and Realm,and television programs, such as Venture, provide in-depth coverage. They discuss trends and governmentdecisions that could affect businesses.

Organizat ions and ProgramsLearning from others with the same interests is arewarding way to gain the experience needed to suc-ceed as an entrepreneur.

Many organizations are devoted to developingsmall business skills through workshops, seminars,

informal discussions, and mentoring programs. You may be pairedwith a peer or adult with more experience whom you can call on forsupport and counsel. You might ask the person to let you intern as avolunteer so you gain real-world experience.

WebnectConnC

More and more schools and organizations are offeringcourses online. Write a list of some skills you want

to develop or improve, and then investigatesome of these online resources.

F igure 13-11

CanadaOne is an example ofan online magazine specifi-cally for entrepreneurs.



A mentor is someone who has business knowledge and experienceand who offers support and practical help. Mentoring is so important tonew entrepreneurs that the Business Development Bank of Canada(BDC) offers it as a prize for their Young Entrepreneurs Awards com-petition. BDC provides small businesses in Canada with information,financial and management services, and business loans.

The 4-H Club of Canada offers leadership training, and ToastmastersInternational offers great tips and seminars on public speaking.

The Canadian Youth Business Foundation offers an online mentoringprogram. According to their Web site, you can either learn from your ownexperience, or from someone else’s. You can do it yourself, but learningfrom someone who’s been there makes it easier to avoid the pitfalls.

Other organizations are also offering advice, training, awards, financ-ing, and other services helpful to the budding entrepreneur.

The Association of Collegiate Entrepreneurs (ACE) is a national not-for-profit organization dedicated to helping young entrepreneurialCanadians succeed in the new economy.

Junior Achievement is an international nonprofit organization dedi-cated to educating and inspiring young people about business. It helpspeople discover leadership and entrepreneurial skills so they canachieve their highest potential as citizens in the global community.


1 How could taking courses help prepare you to become an entrepreneur?2 What are some of the organizations and programs that are available to

young entrepreneurs?


3 Investigate some of the business courses and programs that are availablefor new business ventures in your community. Research one of thesecourses or programs further, and prepare the script for a brief televisionnews clip on how it could be useful to young entrepreneurs.



researching



4 To assess your risk tolerance, create a chart listing five circumstances inwhich you decided to take a risk. For each circumstance, state the out-come of your decision. What was the worst thing that could have hap-pened? What was the best thing that could have happened? What were theconsequences of your decision?


5 Use the self-assessment list on page 364 to assess your entrepreneurialstrengths. First work with a partner to answer the questions. Offer exam-ples of times when you showed these characteristics in your daily life athome, at school, at work, and in your community. Then write a plandescribing how you could further develop one of your entrepreneurial characteristics or skills.


decision-making


Packing Goodwill

Soc ia l Respons ib i l i ty

In August, 2000, Mara Cole had an avalanche inher front room–a fitting climax to a summer spenthelping her kids build a mountain of goodwill forother people.

She and her three sons–Evan, 9, Darren, 6,and Griffen, 3–were waving good-bye yesterday tothe last of 1000 back-to-school "kidpacks" they’dput together for the Daily Bread Food Bank to dis-tribute to needy children.

"I’m tired. It’ll be great to have my houseback," said Mara Cole.

The backpacks, filled with everything fromsocks and toothbrushes to school supplies andsnacks, were Evan’s and Darren’s idea after theirmom challenged them to come up with an idea tohelp other people.

"They thought about it and they said, ‘Wewanna help kids. Kids need tonnes of stuff.’ I said,‘How many backpacks do you want to do?" Theysaid 1000 and I laughed. But not for long."

The boys wrote a letter to companies such asWal-mart and Nike, and in their letter they said,

"We think we are very lucky because we havea lot of nice things and we never have to worryabout things . . . We really like going back toschool because we get all kinds of new stuff.

A C T I V I T I E S

1 What problem did the three Cole brothers identify intheir community? What steps did they take to solvethat problem and respond to the needs of theircommunity?

2 Which of the characteristics of entrepreneurs dothe Cole brothers have?

Some kids don’t. Our goal is to get 1000 specialbackpacks for kids, filled with things they need tobe happy when they go back to school . . .weneed your help . . ."

They got it. Wal-Mart donated backpacks andother companies gave the stuff to go in them. Eachis worth about $60.

"I had no concept of what we were gettinginto until 86 big boxes of Pokémon pencil tinesshowed up," Cole said. "They just filled the place."

Handing out backpacks isn’t something theDaily Bread usually does, said Jim Russell, whoheads the food bank’s community relations pro-gram. "This is different, for sure, but there’s suchpressure on poor families at the start of the schoolyear. What these kids have done is pretty amazing.I’m impressed."

Mara Cole hopes to get more kids involvednext year and register the scheme as a charity."Then we can issue tax receipts. Some companieshave a policy that they don’t give to non-registeredgroups. Most of them gave anyway but not nearlyas much as if we were a charity."

Source: Adapted from "Packing Goodwill," by Bill Taylor, The Toronto Star,August 9, 2000, page B1.

3 In groups, brainstorm some of the needs in yourown community. First work together to identifythe problems. Then suggest some possible practi-cal solutions to those problems. After your brain-storming session, work with your group to list thesteps that you could take to implement one ofyour solutions.


C h a p t e r R e v i e w

P o i n t s t o R e m e m b e r• Entrepreneurs sometimes have natural talents or aptititudes that they are able

to use to their advantage in their entrepreneurial venture.

• Some of the characteristics usually associated with entrepreneurs includevision, risk-tolerance, confidence, creativity, and integrity.

• Entrepreneurial skills include problem-solving, communication, planning, andleadership skills.

• Self-assessment is a good beginning step for a potential entrepreneur to take.

• There are many ways to get the skills you need, by taking courses, research-ing, and joining organizations.

A c t i v i t i e sKnowledge/Unders tand ing

1 List two things that you have done that displayed entrepreneurial char-acteristics and skills. Describe the incident and list the characteristicsand skills.

2 Select three entrepreneurial characteristics and or skills that you possessand explain how you might use them in a present or future entrepre-neurial endeavour.

Th ink ing/ Inqu i ry

1 Write a brief explanation on what entrepreneurs can learn from set-backs or failures. How do you think failure helps entrepreneurs?

2 Identify two entrepreneurial skills that you would like to improve orwork on. Conduct research to discover what opportunities are availablein your community to help you improve these skills.

3 Do this activity in small groups. Your goal will be get a piece of paperin or as close to a basket as possible. The objective of the game is togather as many points as possible for your team. The closest point tothe basket is a one-point wager, the next closest point is two-pointwager and the farthest point is a threepoint wager. Each member of


your team will get a chance to participate. Each team member mustdecide on how many points to wager prior to tossing the papertowards the basket. If a team member misses the basket the amount ofthe wager is deducted from the team’s score. After the game brainstormas a class. Think about how your individual and group experiences inthis activity relates to the skills and characteristics of Entrepreneurs.

Communicat ion

1 Interview an entrepreneur and use the checklists you developed toidentify which of the entrepreneurial characteristics and skills that theypossess.

2 Examine the definition of an entrepreneur. Think of people who youadmire who fit this definition. Prepare an interview script in which youinquire how they became successful and the role that their entrepre-neurial skills and characteristics played in their success.

Appl icat ion

1 With a partner identify an entrepreneurial idea that would benefit yourschool or community. Write a business letter to your school principal orrelevant community organization describing the idea. You must ensurethe letter is professionally written and convincing.

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