On one hand, this is great, very motivational, I really liked this post.
On the other hand, it's not that I disagree with you, Matt or Rebecca, but I see this as a pointless debate. Maybe the whole “pride” about being an entrepreneur is not that present in Argentina, maybe it is. Whatever the reason, I see too much fuzz around that word. I wonder how many people that will follow their entrepreneurial dreams we will see miserable 20 years from now because it wasn't what they wanted in the first place.
It's no longer a dream, it's a pressure. There's a lot of good things about being an employee if you work at a place you like, with people you respect, but we are losing that point of view.
What I'm trying to say is that we should try to see past the “words”, the fads. Be you, screw definitions.
I do want to put my own coffeshop and pub in the future, and when I do, I won't care less if I'm an entrepreneur, a self-employee or a small business owner.
It's semantics. The problem is we communicate a lot through words, and I think there is more to this than a debate about the definition of “entrepreneur.” I don't care if you want to call me a consultant – that's how I introduce myself. But it's the way we say things. Words are important, definitions are important, whether we like it or not.
The negative posts around “entrepreneur” and who really is an entrepreneur and who's not are put-downs in disguise. They are about establishing a pecking order of who's cooler or better. I'm guilty of it and I'm sick of it.
I agree that entrepreneurship is en vogue lately. I think there are TONS of people who just want a job and are happy with a job. People online are not good representatives of the general population, so it seems like everyone wants to be an entrepreneur instead of an employee. That's just not true. Go out into other social circles and you'll find that the majority of people want jobs, plain and simple.
Personally, I've thought a lot about entrepreneurship and whether I really want to be an entrepreneur. And I have real-world experience in consulting, freelancing, and startups. And I approach entrepreneurship much differently than other people do. I don't want to start a Fortune 500. I don't want to be bigger than 10 employees. I really don't think that people who are serious about following entrepreneurial dreams will regret it – the people who are like that will find success one day because drive and ambition are ingrained in their personalities. The people who think working at home is “really cool” never even make it to the gates.
I really enjoyed your post. I too believe entrepreneurship is a mindset/way of thinking versus just someone who starts or owns a business. I believe as we move forward into new economic realities more will people need to broaden their perspective on entrepreneurship, because it's becoming a more prevalent and needed career option for more people – by choice or circumstance.
It is semantics indeed. And that's the thing. Once we can see something, once we understand the problem, we have to at least try to break loose from it. It's not the same to use a word to define your job, than to use it to define what's “better”, what others “should” do (I'm not saying that you do this).
Agreed, it's those little things like working from home and flexible schedule that are en vogue. And many people call them entrepreneurship.
How will we know who were serious in the first place? By their success? That's the problem I see, many will be serious about it, but they will judge their journey by their success and not by their effort and seriousness.
And I'm with you, I don't want a huge company either. Big is dying.
Hmm. That actually was an oversight, and I was going to fix it when I got home from my dog's vet appointment.
That said, “bitchy” means “marked by or arising from malice; “a catty remark”"
I do think what you wrote on Twitter was catty, mean, and directed towards me. That doesn't mean you aren't a nice person, because you are. You just aren't nice to me, and this isn't the first time this has happened.
There's a self-selection problem there with entrepreneurship, ESPECIALLY if you look at case studies and research and facts on entrepreneurship. It's hard to tease out what's really happening in the field because of the high mortality rate of ideas.
I think you're right about the word “entrepreneur” – and honestly, I *have* done this. With many words. I just think it's worth saying that the field of entrepreneurship doesn't need to be hijacked by angel or VC-seeking companies – that plenty of highly entrepreneurial companies still start the good old-fashioned ways – bootstrapping, self-funded, small, and local.
It has to be a mindset. Companies actually “start” in our minds long before there is anything tangible to call a company. The ideation stage is not worth much in terms of cash, but it's still the spark that lights the fire.
Disagreement has nothing to do with being nice. I disagree with you sometimes – although those tweets were not directed at you, sorry – as you disagree with me. I never agree with anyone 100% all the time. We have different opinions and as a result, there should be dialogue, not name calling.
First, I want to say kudos for coming out and saying you were wrong, that you said something dream-crushing (as you called it). Not everyone can do that. And what you say impacts people – not just Matt, but me and others. I think I saw that exchange on Twitter, and it would've crushed me (and it did momentarily), but I have learned not to give credence to what other people think (no offense to you, but a girl's got to stay focused on the prize!).
Second, I'm one of those people with a “day job” to pay the bills as I figure out my business (Oh no! I'm a social media consultant! I must not be a real entrepreneur either. Oh well. That money sure feels real). There are days when I really need the power behind the word “entrepreneur” to get me through my cubicle-job so I can get home to my real work. There are days I feel like a fraud using the word.
Nevertheless, I listen to a lot of financial talk radio, and one of the things I always hear is that if you want to start a business, try to keep your job if you have financial uncertainty. So, I think it's fair to say that those of us in our 20s have financial uncertainty and shouldn't be pushed into a risky situation because we're getting peer pressure to become “real” entrepreneurs.
I also wonder, is an actress any less an actress if she's waiting tables, as long as she's going to auditions, even doing commercials or pilots?
And, to Carlos' point, and to a point I made in a recent post of my own, who has time for semantics when you're working a 9-6 and spending all your waking hours on your “side project”? I told someone just yesterday that if you're going to aim to make your big dreams a reality, there are going to be naysayers along the way. Stay focused, keep your eye on the goal, and don't pick your head up just to listen to someone tell you aren't who you know you are. The only person's dreams you have to aim for are your own.
Wow, my web analytics must have lied to me then. That's cool though.
I don't think calling a picture of your comments “bitchy” from your account called “modite” (which I don't interchange with your name, Rebecca Thorman, because I know you personally) and doing all this accidentally (after all, you were the one who pointed it out before I could fix it) is now considered “name-calling,” but I can see how that was confusing – especially when you twist the story to make it sound how you want it to.
Thanks for the support Holly. I didn't realize Matt and I had that exchange on Twitter – I thought it was one day when we were chatting on the phone. But sorry to hear that it had the potential to kill anyone's spirits. Clearly, we should all be more careful about what we write on Twitter.
My other example was musician. I completely agree with you. What about artists? What about photographers? Can we not claim these titles unless we are making it huge?
And yeah, it's semantics. I sometimes think we dismiss semantics too easily though. Obviously, the power and meaning behind words can have a huge affect on people.
I think it's unfortunate when semantics force gaps in camaraderie. We're all in this whole life thing together and to split hairs over what makes an entrepreneur just seems assinine. But, when you feel you're being attacked and have a point to make, regardless of semantics, it's important you stand up for yourself.
I agree with you that entrepreneurship is a mindset. To me, being an entrepreneur is opting to work with and for yourself, no matter the size or scope of your business or service offerings. Being self-employed takes just as much work as starting a business, from tracking expenses to billing clients to drumming up potential leads, and is usually the route people take before expanding a business concept into something bigger. It's all the same in the end, and the safe bet is to work toward your business ownership dreams with a 9-5 at hand, taking on small projects and developing a handful of interested parties to help you get your feet on the ground as you can–at least you have a steady means of paying your bills (which means one less thing to worry about).
You make solid points–ones that should be kept in mind when people feel insecure about pursuing their entrepreneurial dreams or bogged down by the work that's involved in making them come true.
Interesting article Monica. Although, I don't think you were ever 'wrong' in your definition of entrepreneur. Your perspective when we chatted was far from career crushing – rather – it put things into perspective. Am I an entrepreneur? Do I think like an entrepreneur? Yes. That's essentially what the last post on my own blog is talking about – that you don't have to be an entrepreneur to think and work like an entrepreneur – for example – my new job allows me to be VERY entrepreneurial, which is one of the things I love about it. I believe anyone can achieve that entrepreneurial role if they strive to do so.
Are you wrong? Is your definition of entrepreneur lacking? I don't think so. Your point is powerful – we do need to team up and make things happen rather than making efforts to bring each other down. And you're right – whether we realize it or not, we (collectively as online people) are way ahead of the majority – I realize that now more than ever.
I do think that Entrepreneur is a mindset. No one can give you that title, it's something you create and build. I also do believe that if you create ANY company (e.g. dog walking company, to a multi-million dollar software company) you are an entrepreneur.
It seems like you were highly sensitive to this topic…who cares about what someone else calls your business, clients or entrepreneurial pursuits? I do think that standing up for yourself is important, however, also focusing our efforts less on the naysayers, keeps motivation strong and willful. Maybe it has to do with the pride bit Carlos mentioned and furthermore, it does seem to follow semantics where much of this lies on a technicality… Just a thought.
What both you and Holly said about finances is a great point – because most people start a company part-time and pick up steam that way. It's definitely a much easier way to do it than the route I've gone!
Monica, I think the key terms at play in the discussion on entrepreneurship are initiative and risk.
Initiative encompasses the starting of a new venture and the continued process of initiating action, the latter of which could be an apt (although incomplete) description of management.
Many dictionaries will also include risk-taking as one of the defining aspects of entrepreneurship. I take issue with this because entrepreneurs can take vastly different approaches to risk, depending on their personal situation or preference. For example, some entrepreneurs will mitigate their personal risk as much as possible. Many entrepreneurs put in very little capital of their own, and may pay themselves a hefty salary whether the business is succeeding or not.
In place of risk I would put ownership. You can pull several levers to increase and decrease the risk to yourself and to the business, but what makes you an entrepreneur is your ownership of the equity, the upside of the venture, if you will.
Speaking directly to your post (which I liked, by the way), I agree that the view of entrepreneurship as simply high-growth, venture-backed start-ups is rather silly. People will invariably find their own meaning in the word entrepreneur, just as I have, but I think we should steer clear of our own whims and prejudices and come up with some clear, objective standards.
Speaking directly to Rebecca's tweets, I agree that being an entrepreneur, owning a small business owner, and being self-employed are indeed different…but they most certainly are not mutually exclusive.
Example: I invest $1 million in a software firm of my own creation, one that I manage. I am the CEO, sole equity owner, and have no employer other than myself. I have no revenue and I only have three employees. I am an entrepreneur and a self-employed small business owner….at least I think so.
As far as entrepreneurship being a mindset, I have to say I'm a bit confused. Entrepreneurship concerns what you do and–to a certain extent–how you do it. But when you start to talk about mindset, it sounds like you're getting too involved with why someone gets involved with a venture, which is more personal detail than this conversation needs to include. It might be important to your definition of entrepreneurship, but it's where you lose me.
Anyway, on the topic of semantics, I think “bitchy” is different from “catty”. Rebecca's tweets may have been “catty”, but so is calling someone “bitchy”. I hope you two can make up
Matt, I linked to your last post. I liked it. But I do think that you want to start a company some day, and I do think your blog is the start of that. My blog was the start of that for me. Brazen Careerist essentially started from a blog too. Every entrepreneur starts somewhere.
t_unit – great points. To me, risk and ownership are closely tied when it comes to entrepreneurship.
You're right about the three terms being different, but not mutually exclusive. In most cases I see entrepreneur as a term than encompasses the other two, depending on the type of small business/self-employment. But really, they are just different types of businesses. It's like comparing a football player to a swimmer to a cheerleader. They are all really different types of athletes.
In terms of the entrepreneur mindset, I just meant you didn't need a tangible product to be an entrepreneur. It is about what you do – but a lot of what you do when you start a company is think. The idea is still just an idea.
I didn't call anyone bitchy, really. It's explained above.
Risk and ownership are clearly tied. My point was that you can mitigate your risk to the tilt, but still be an entrepreneur if you have a significant equity stake in the venture you create and manage.
An important caveat here is that I'm talking about direct financial risk as it relates to the success or failure of the business. There are obviously other risks inherent in entrepreneurship that have secondary effects for your career and personal life.
With that said, greater-than-average risk is neither a necessary nor a sufficient condition for entrepreneurship. Ownership, on the other hand, is quite necessary. Add to the equation the initiative that I spoke of earlier and you might just be on the right track in creating sufficient conditions for entrepreneurship.
Where things start getting hairy is when you point out that executives at large corporations have both initiative (they are managers) and ownership (they get hefty stock options). My answer to that would be that they are entrepreneurs if they had a significant role in the formation of their company or their particular division therein. So, actually applying the initial impetus of the venture should be an important part of the “initiative”.
Another potential problem with my definition (bear with me) is that a person who buys an existing business could be considered an entrepreneur, but didn't actually “initiate” the business. I would contend that in many of these cases the purchaser intends to do something quite different with the business once establishing ownership. For example, a person taking over a failed bar or restaurant might simply be buying the liquor license to end up doing something quite different with the establishment. In a different scenario, the purchaser could be drastically changing the ownership structure. Even if the business operations go unchanged, I would posit that someone buying a business under an LBO model would certainly be an entrepreneur.
In the case that a buyer isn't changing anything at all with the business, the person is simply buying a job and a lifestyle. I would consider this toward the lower end of the entrepreneurial scale, but I'm not ready to say that the person isn't an entrepreneur.
Great comments again. I agree with what you're saying about a person purchasing a business that someone else started. That's why there's a distinction between founders and entrepreneurs.
I think whenever anyone buys something huge (like a business) they usually have a vision, and it would be very rare for that to match up with the original owner's vision. It's hard to know where to draw the line with the entrepreneur definition. In the case of a large company where the executive gets most of his/her pay in stock options, I wouldn't consider him/her an entrepreneur unless s/he was a founder.
I agree that being an entrepreneur is a mindset, but a lot of the comments seem to pointing at the fact that you can STILL be entrepreneurial while being a part of another business or a startup. This is true to some extent but I believe it's called by another name — “intrapreneurship” — when you're trying to change the system from the inside out, and when you haven't necessarily started your own business but are working to put your entrepreneurial skills to work within another framework or organization. I think this is a clear difference that people have to distinguish.
And I have to say that I agree with everyone else here…at the end of the day it IS a mindset and I don't think the semantics are as important as what you are achieving.
The funny thing is that a couple of weeks ago I was going to write a post titled: “The difference between startups, freelancers, and home business owners” – or something along those lines.
To be honest, I'm on the side that not all entrepreneurs are the same. Here are certain criteria that I measure an entrepreneur by:
- Commitment to the idea - Sacrifices made to achieve success - Impact of the startup (does it have global or local impact?) - Leadership ability - Investment into the startup - Sheer hustle and energy spent to succeed
Though I love your post and want to full-heartedly agree, I think there is a clear difference between a good entrepreneur and just a business owner.
The entrepreneur creates systems and works ON his company. The business owner does all the work himself and works IN his company.
You know, this is a good blog post. Expect a longer comment in my upcoming blog post
Monica O'Brien is the Director of Digital at Fizz and author of the book Social Pollination, which helps businesses leverage social media for crazy growth!
Monica O'Brien is the Director of Digital at Fizz and author of the book Social Pollination, which helps businesses leverage social media for crazy growth!
{ 28 comments… read them below or add one }
On one hand, this is great, very motivational, I really liked this post.
On the other hand, it's not that I disagree with you, Matt or Rebecca, but I see this as a pointless debate. Maybe the whole “pride” about being an entrepreneur is not that present in Argentina, maybe it is.
Whatever the reason, I see too much fuzz around that word. I wonder how many people that will follow their entrepreneurial dreams we will see miserable 20 years from now because it wasn't what they wanted in the first place.
It's no longer a dream, it's a pressure. There's a lot of good things about being an employee if you work at a place you like, with people you respect, but we are losing that point of view.
What I'm trying to say is that we should try to see past the “words”, the fads. Be you, screw definitions.
I do want to put my own coffeshop and pub in the future, and when I do, I won't care less if I'm an entrepreneur, a self-employee or a small business owner.
It's semantics. The problem is we communicate a lot through words, and I think there is more to this than a debate about the definition of “entrepreneur.” I don't care if you want to call me a consultant – that's how I introduce myself. But it's the way we say things. Words are important, definitions are important, whether we like it or not.
The negative posts around “entrepreneur” and who really is an entrepreneur and who's not are put-downs in disguise. They are about establishing a pecking order of who's cooler or better. I'm guilty of it and I'm sick of it.
I agree that entrepreneurship is en vogue lately. I think there are TONS of people who just want a job and are happy with a job. People online are not good representatives of the general population, so it seems like everyone wants to be an entrepreneur instead of an employee. That's just not true. Go out into other social circles and you'll find that the majority of people want jobs, plain and simple.
Personally, I've thought a lot about entrepreneurship and whether I really want to be an entrepreneur. And I have real-world experience in consulting, freelancing, and startups. And I approach entrepreneurship much differently than other people do. I don't want to start a Fortune 500. I don't want to be bigger than 10 employees. I really don't think that people who are serious about following entrepreneurial dreams will regret it – the people who are like that will find success one day because drive and ambition are ingrained in their personalities. The people who think working at home is “really cool” never even make it to the gates.
I really enjoyed your post. I too believe entrepreneurship is a mindset/way of thinking versus just someone who starts or owns a business. I believe as we move forward into new economic realities more will people need to broaden their perspective on entrepreneurship, because it's becoming a more prevalent and needed career option for more people – by choice or circumstance.
Thanks for your insights!
Paul Wilson, Jr.
Fellow Entrepreneur
http://www.paulwilsonjr.com
It is semantics indeed. And that's the thing. Once we can see something, once we understand the problem, we have to at least try to break loose from it. It's not the same to use a word to define your job, than to use it to define what's “better”, what others “should” do (I'm not saying that you do this).
Agreed, it's those little things like working from home and flexible schedule that are en vogue. And many people call them entrepreneurship.
How will we know who were serious in the first place? By their success? That's the problem I see, many will be serious about it, but they will judge their journey by their success and not by their effort and seriousness.
And I'm with you, I don't want a huge company either. Big is dying.
You can see what you named your images – “http://blog.monicaobrien.com/wp-content/blogs.dir/2/files/2009/08/bitchy-modite.gif”
Real professional.
Hmm. That actually was an oversight, and I was going to fix it when I got home from my dog's vet appointment.
That said, “bitchy” means “marked by or arising from malice; “a catty remark”"
I do think what you wrote on Twitter was catty, mean, and directed towards me. That doesn't mean you aren't a nice person, because you are. You just aren't nice to me, and this isn't the first time this has happened.
There's a self-selection problem there with entrepreneurship, ESPECIALLY if you look at case studies and research and facts on entrepreneurship. It's hard to tease out what's really happening in the field because of the high mortality rate of ideas.
I think you're right about the word “entrepreneur” – and honestly, I *have* done this. With many words. I just think it's worth saying that the field of entrepreneurship doesn't need to be hijacked by angel or VC-seeking companies – that plenty of highly entrepreneurial companies still start the good old-fashioned ways – bootstrapping, self-funded, small, and local.
It has to be a mindset. Companies actually “start” in our minds long before there is anything tangible to call a company. The ideation stage is not worth much in terms of cash, but it's still the spark that lights the fire.
Disagreement has nothing to do with being nice. I disagree with you sometimes – although those tweets were not directed at you, sorry – as you disagree with me. I never agree with anyone 100% all the time. We have different opinions and as a result, there should be dialogue, not name calling.
Great post, Monica.
First, I want to say kudos for coming out and saying you were wrong, that you said something dream-crushing (as you called it). Not everyone can do that. And what you say impacts people – not just Matt, but me and others. I think I saw that exchange on Twitter, and it would've crushed me (and it did momentarily), but I have learned not to give credence to what other people think (no offense to you, but a girl's got to stay focused on the prize!).
Second, I'm one of those people with a “day job” to pay the bills as I figure out my business (Oh no! I'm a social media consultant! I must not be a real entrepreneur either. Oh well. That money sure feels real). There are days when I really need the power behind the word “entrepreneur” to get me through my cubicle-job so I can get home to my real work. There are days I feel like a fraud using the word.
Nevertheless, I listen to a lot of financial talk radio, and one of the things I always hear is that if you want to start a business, try to keep your job if you have financial uncertainty. So, I think it's fair to say that those of us in our 20s have financial uncertainty and shouldn't be pushed into a risky situation because we're getting peer pressure to become “real” entrepreneurs.
I also wonder, is an actress any less an actress if she's waiting tables, as long as she's going to auditions, even doing commercials or pilots?
And, to Carlos' point, and to a point I made in a recent post of my own, who has time for semantics when you're working a 9-6 and spending all your waking hours on your “side project”? I told someone just yesterday that if you're going to aim to make your big dreams a reality, there are going to be naysayers along the way. Stay focused, keep your eye on the goal, and don't pick your head up just to listen to someone tell you aren't who you know you are. The only person's dreams you have to aim for are your own.
Wow, my web analytics must have lied to me then. That's cool though.
I don't think calling a picture of your comments “bitchy” from your account called “modite” (which I don't interchange with your name, Rebecca Thorman, because I know you personally) and doing all this accidentally (after all, you were the one who pointed it out before I could fix it) is now considered “name-calling,” but I can see how that was confusing – especially when you twist the story to make it sound how you want it to.
Thanks for the support Holly. I didn't realize Matt and I had that exchange on Twitter – I thought it was one day when we were chatting on the phone. But sorry to hear that it had the potential to kill anyone's spirits. Clearly, we should all be more careful about what we write on Twitter.
My other example was musician. I completely agree with you. What about artists? What about photographers? Can we not claim these titles unless we are making it huge?
And yeah, it's semantics. I sometimes think we dismiss semantics too easily though. Obviously, the power and meaning behind words can have a huge affect on people.
Holly's comment is perfect. Really.
I think it's unfortunate when semantics force gaps in camaraderie. We're all in this whole life thing together and to split hairs over what makes an entrepreneur just seems assinine. But, when you feel you're being attacked and have a point to make, regardless of semantics, it's important you stand up for yourself.
I agree with you that entrepreneurship is a mindset. To me, being an entrepreneur is opting to work with and for yourself, no matter the size or scope of your business or service offerings. Being self-employed takes just as much work as starting a business, from tracking expenses to billing clients to drumming up potential leads, and is usually the route people take before expanding a business concept into something bigger. It's all the same in the end, and the safe bet is to work toward your business ownership dreams with a 9-5 at hand, taking on small projects and developing a handful of interested parties to help you get your feet on the ground as you can–at least you have a steady means of paying your bills (which means one less thing to worry about).
You make solid points–ones that should be kept in mind when people feel insecure about pursuing their entrepreneurial dreams or bogged down by the work that's involved in making them come true.
Wait, what? Web analytics? I'm completely lost now. I don't want to fight – can't we just all get along?
For the record – we never had an 'exchange' online – we discussed entrepreneur/entreprenurial over the phone before recording one of our podcasts.
Interesting article Monica. Although, I don't think you were ever 'wrong' in your definition of entrepreneur. Your perspective when we chatted was far from career crushing – rather – it put things into perspective. Am I an entrepreneur? Do I think like an entrepreneur? Yes. That's essentially what the last post on my own blog is talking about – that you don't have to be an entrepreneur to think and work like an entrepreneur – for example – my new job allows me to be VERY entrepreneurial, which is one of the things I love about it. I believe anyone can achieve that entrepreneurial role if they strive to do so.
Are you wrong? Is your definition of entrepreneur lacking? I don't think so. Your point is powerful – we do need to team up and make things happen rather than making efforts to bring each other down. And you're right – whether we realize it or not, we (collectively as online people) are way ahead of the majority – I realize that now more than ever.
I do think that Entrepreneur is a mindset. No one can give you that title, it's something you create and build. I also do believe that if you create ANY company (e.g. dog walking company, to a multi-million dollar software company) you are an entrepreneur.
It seems like you were highly sensitive to this topic…who cares about what someone else calls your business, clients or entrepreneurial pursuits? I do think that standing up for yourself is important, however, also focusing our efforts less on the naysayers, keeps motivation strong and willful. Maybe it has to do with the pride bit Carlos mentioned and furthermore, it does seem to follow semantics where much of this lies on a technicality… Just a thought.
What both you and Holly said about finances is a great point – because most people start a company part-time and pick up steam that way. It's definitely a much easier way to do it than the route I've gone!
Monica, I think the key terms at play in the discussion on entrepreneurship are initiative and risk.
Initiative encompasses the starting of a new venture and the continued process of initiating action, the latter of which could be an apt (although incomplete) description of management.
Many dictionaries will also include risk-taking as one of the defining aspects of entrepreneurship. I take issue with this because entrepreneurs can take vastly different approaches to risk, depending on their personal situation or preference. For example, some entrepreneurs will mitigate their personal risk as much as possible. Many entrepreneurs put in very little capital of their own, and may pay themselves a hefty salary whether the business is succeeding or not.
In place of risk I would put ownership. You can pull several levers to increase and decrease the risk to yourself and to the business, but what makes you an entrepreneur is your ownership of the equity, the upside of the venture, if you will.
Speaking directly to your post (which I liked, by the way), I agree that the view of entrepreneurship as simply high-growth, venture-backed start-ups is rather silly. People will invariably find their own meaning in the word entrepreneur, just as I have, but I think we should steer clear of our own whims and prejudices and come up with some clear, objective standards.
Speaking directly to Rebecca's tweets, I agree that being an entrepreneur, owning a small business owner, and being self-employed are indeed different…but they most certainly are not mutually exclusive.
Example: I invest $1 million in a software firm of my own creation, one that I manage. I am the CEO, sole equity owner, and have no employer other than myself. I have no revenue and I only have three employees. I am an entrepreneur and a self-employed small business owner….at least I think so.
As far as entrepreneurship being a mindset, I have to say I'm a bit confused. Entrepreneurship concerns what you do and–to a certain extent–how you do it. But when you start to talk about mindset, it sounds like you're getting too involved with why someone gets involved with a venture, which is more personal detail than this conversation needs to include. It might be important to your definition of entrepreneurship, but it's where you lose me.
Anyway, on the topic of semantics, I think “bitchy” is different from “catty”. Rebecca's tweets may have been “catty”, but so is calling someone “bitchy”. I hope you two can make up
Matt, I linked to your last post. I liked it. But I do think that you want to start a company some day, and I do think your blog is the start of that. My blog was the start of that for me. Brazen Careerist essentially started from a blog too. Every entrepreneur starts somewhere.
Grace, thanks for the comment.
There is probably something to Carlos' point – Most of us take pride in the work we do. When we care about something, we are more likely to react.
t_unit – great points. To me, risk and ownership are closely tied when it comes to entrepreneurship.
You're right about the three terms being different, but not mutually exclusive. In most cases I see entrepreneur as a term than encompasses the other two, depending on the type of small business/self-employment. But really, they are just different types of businesses. It's like comparing a football player to a swimmer to a cheerleader. They are all really different types of athletes.
In terms of the entrepreneur mindset, I just meant you didn't need a tangible product to be an entrepreneur. It is about what you do – but a lot of what you do when you start a company is think. The idea is still just an idea.
I didn't call anyone bitchy, really. It's explained above.
Thanks for the thoughtful comment!
That's why I put “I think”… must've been thinking about something else. Sorry!
Risk and ownership are clearly tied. My point was that you can mitigate your risk to the tilt, but still be an entrepreneur if you have a significant equity stake in the venture you create and manage.
An important caveat here is that I'm talking about direct financial risk as it relates to the success or failure of the business. There are obviously other risks inherent in entrepreneurship that have secondary effects for your career and personal life.
With that said, greater-than-average risk is neither a necessary nor a sufficient condition for entrepreneurship. Ownership, on the other hand, is quite necessary. Add to the equation the initiative that I spoke of earlier and you might just be on the right track in creating sufficient conditions for entrepreneurship.
Where things start getting hairy is when you point out that executives at large corporations have both initiative (they are managers) and ownership (they get hefty stock options). My answer to that would be that they are entrepreneurs if they had a significant role in the formation of their company or their particular division therein. So, actually applying the initial impetus of the venture should be an important part of the “initiative”.
Another potential problem with my definition (bear with me) is that a person who buys an existing business could be considered an entrepreneur, but didn't actually “initiate” the business. I would contend that in many of these cases the purchaser intends to do something quite different with the business once establishing ownership. For example, a person taking over a failed bar or restaurant might simply be buying the liquor license to end up doing something quite different with the establishment. In a different scenario, the purchaser could be drastically changing the ownership structure. Even if the business operations go unchanged, I would posit that someone buying a business under an LBO model would certainly be an entrepreneur.
In the case that a buyer isn't changing anything at all with the business, the person is simply buying a job and a lifestyle. I would consider this toward the lower end of the entrepreneurial scale, but I'm not ready to say that the person isn't an entrepreneur.
Great comments again. I agree with what you're saying about a person purchasing a business that someone else started. That's why there's a distinction between founders and entrepreneurs.
I think whenever anyone buys something huge (like a business) they usually have a vision, and it would be very rare for that to match up with the original owner's vision. It's hard to know where to draw the line with the entrepreneur definition. In the case of a large company where the executive gets most of his/her pay in stock options, I wouldn't consider him/her an entrepreneur unless s/he was a founder.
No worries Holly – and I didn't mean to come across as a jerk – I realize my above comment came off as a little stand-offish.
I agree that being an entrepreneur is a mindset, but a lot of the comments seem to pointing at the fact that you can STILL be entrepreneurial while being a part of another business or a startup. This is true to some extent but I believe it's called by another name — “intrapreneurship” — when you're trying to change the system from the inside out, and when you haven't necessarily started your own business but are working to put your entrepreneurial skills to work within another framework or organization. I think this is a clear difference that people have to distinguish.
And I have to say that I agree with everyone else here…at the end of the day it IS a mindset and I don't think the semantics are as important as what you are achieving.
The funny thing is that a couple of weeks ago I was going to write a post titled: “The difference between startups, freelancers, and home business owners” – or something along those lines.
To be honest, I'm on the side that not all entrepreneurs are the same. Here are certain criteria that I measure an entrepreneur by:
- Commitment to the idea
- Sacrifices made to achieve success
- Impact of the startup (does it have global or local impact?)
- Leadership ability
- Investment into the startup
- Sheer hustle and energy spent to succeed
Though I love your post and want to full-heartedly agree, I think there is a clear difference between a good entrepreneur and just a business owner.
The entrepreneur creates systems and works ON his company. The business owner does all the work himself and works IN his company.
You know, this is a good blog post. Expect a longer comment in my upcoming blog post
{ 1 trackback }