Description
PART ONE
In a minimum of 1-page, double-spaced, answer the following questions (roughly one paragraph per answer):
From the lecture on CH 1, explain the difference between being managerial and entrepreneurial.
Do you think Alex Blumberg will get investor funding from Chris Sacca and/or any other major investors? Why or why not?
What worked about Chris’s pitch vs. Alex’s pitch?
PART TWO
Provide an example of how you already use deliberate practice in your life. How might these skills help promote entrepreneurial success for you personally? 100 WORDS ONLY
resource:
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https://gimletmedia.com/shows/startup/6nh3zg/gimle…
https://umsystem.hosted.panopto.com/Panopto/Pages/…
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Practicing
Entrepreneurship
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© Peshkova/Shutterstock
—Peter Drucker
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“The best way to predict the future is to create it.”
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Copyright ©2021 by SAGE Publications, Inc.
This work may not be reproduced or distributed in any form or by any means without express written permission of the publisher.
CHAPTER 1
Chapter Outline
Practicing Entrepreneurship 3
Learning Objectives
Entrepreneurship Requires Action and
Practice
1.1
Explain the importance of action and
practice in entrepreneurship.
1.2
Entrepreneurship May Be Different From
What You Think
1.2
List the seven lesser-known truths about
entrepreneurship.
1.3
Types of Entrepreneurship
1.3
1.4
Entrepreneurship Is a Method, Not a
Process
Compare and contrast the different forms
of entrepreneurship in practice today.
1.4
The Method Involves Creating the Future,
Not Predicting It
Distinguish between entrepreneurship as a
method and as a process.
1.5
The Key Components of the
Entrepreneurship Method
Compare and contrast the prediction and
creation approaches to entrepreneurship.
1.6
Illustrate the key components of the
Entrepreneurship Method.
1.7
Assess the role of deliberate practice in
achieving mastery.
1.7
The Method Requires Deliberate Practice
1.8
How This Book Will Help You Practice
Entrepreneurship
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Propose different ways in which this book
can help you practice entrepreneurship.
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1.1
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here’s no doubt that we are living in unpredictable times: High schools and colleges are struggling to keep up with the ever-changing job market; underemployment rates are skyrocketing, especially among younger people; those halfway
through their careers are asking what else is possible; mature workers are wondering
what comes next; and seniors are postponing their retirement to stay relevant. The traditional concept of staying in one job for your entire working life is a thing of the past,
especially when people are being asked to reinvent themselves every 5 years. In a world
full of uncertainty, rapid change is the only constant.
Although the future of the traditional workplace may be unclear, the climate is ripe for
entrepreneurship. Traditionally, entrepreneurship has been associated with launching new
businesses. However, many individuals and institutions are beginning to think of entrepreneurship as a vital life skill that extends far beyond the ability to launch a venture, a life
skill that prepares individuals to deal with an ambiguous and uncertain future. In other
words, you don’t need to build your own company to think and act like an entrepreneur!
Entrepreneurship embodies methods for thinking, acting, identifying opportunities, and
approaching problems that enable people to manage change, adjust to new conditions, and
take control of actualizing personal goals, aspirations, and even dreams. It’s also a vehicle
for developing a set of skills—financial, social, communication, marketing, problem solving,
and creative thinking, to name a few—that are applicable across many fields. Taken together,
these are mindsets and skillsets that not only enable you to start a venture, but will also distinguish you in a variety of traditional and nontraditional life paths. To be entrepreneurial is
to be empowered to create and act on opportunities of all kinds for yourself.
1.1 ENTREPRENEURSHIP REQUIRES
ACTION AND PRACTICE
>> LO 1.1 Explain the importance of action and practice in entrepreneurship.
Entrepreneurship is a way of thinking, acting, and being that combines the ability to find
or create new opportunities with the courage to act on them.
The pursuits of entrepreneurs have touched every corner of our lives, affecting
every aspect of the way we live—from electricity, to music, to transport, to agriculture,
to manufacturing, to technology, and many more. Although it can be difficult to see
Entrepreneurship: a
way of thinking, acting,
and being that combines
the ability to find or create
new opportunities with the
courage to act on them.
Master the content at
edge.sagepub.com/
neckentrepreneurship2e
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4 Part I Entrepreneurship is a Life Skill
1.2 ENTREPRENEURSHIP MAY BE
DIFFERENT FROM WHAT YOU THINK
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The first automatic
dishwasher, invented by
Josephine Cochrane
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Sam Hood via Wikimedia Commons.
entrepreneurial possibilities in the midst of
unemployment, economic recession, war, and
natural disasters, it is this sort of turbulence
that often pushes us into creating new opportunities for economic progress. History shows
us that in spite of the obstacles in their paths,
all kinds of entrepreneurs have consistently
taken action to change the world. For instance,
Benjamin Franklin successfully invented the
lightning rod (1749); George Crum created the
potato chip (1853); and Josephine Cochrane
invented the first automatic dishwasher (1893).
This text is about creating the next page of
history. It’s time to bring the voices of today’s
entrepreneurs into the conversation. It’s also
time to bring your voice into the conversation.
What kind of entrepreneur do you want to be?
>> LO 1.2 L
ist the seven lesser-known truths about entrepreneurship.
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Our belief is that by taking action and putting ideas into practice, everyone “has what it
takes” to be an entrepreneur. However, this is not necessarily the same message that is
delivered by popular media. Let’s examine some popular images of entrepreneurs. What
is the truth behind these images?
Media Images of Entrepreneurs
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The media often exaggerate the meteoric rise of “overnight global sensations” such as
Bill Gates (Microsoft), Steve Jobs (Apple), Mark Zuckerberg (Facebook), Elon Musk
(Tesla), Jack Ma (Alibaba), Oprah Winfrey (Harpo Group), and Travis Kalanick (Uber).
The likes of Bill Gates and his peers are certainly inspirational, but we would argue that
few can personally identify with the stories surrounding them, and they do little to represent the reality of entrepreneurship.
The truth is there is no such thing as an overnight success.
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Debunking the Myths of Entrepreneurship
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Rather than focusing on the myth of the overnight success story, let’s take a look at some
truths, illustrated in Table 1.1. Separating truth from fiction can be difficult, especially when
some of these truths collide with the stories we read about in the media. Let’s explore these
truths in more detail to further understand how entrepreneurship can be a path for many.
TABLE 1.1
The Truths About Entrepreneurship
Truth 1
Entrepreneurship is not reserved for startups.
Truth 2
Entrepreneurs do not have a special set of personality traits.
Truth 3
Entrepreneurship can be taught (it’s a method that requires practice).
Truth 4
Entrepreneurs are not extreme risk takers.
Truth 5
Entrepreneurs collaborate more than they compete.
Truth 6
Entrepreneurs act more than they plan.
Truth 7
Entrepreneurship is a life skill.
Copyright ©2021 by SAGE Publications, Inc.
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CHAPTER 1
Practicing Entrepreneurship 5
ENTREPRENEURSHIP IN ACTION
Juan Giraldo, Waku
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Photo Courtesy of Juan Giraldo
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outlet, which went bankrupt within 18 months. After that, he
became CEO of a small IT consulting firm before founding
Waku. The idea for Waku arose when Juan and his friend,
Nicolas Estrella, exchanged fond memories of the “wellness
tea” they used to drink in their homeland of Ecuador. After
both moved to Boston, they decided to produce their own
version of this beverage and sell it in the Boston area. The
initial production of the tea helped support the businesses
of approximately six independent Andes farmers who
grew the medicinal herbs and flowers used to produce the
product. What exactly is Waku? It is a filtered water brew
blend of 20 herbs and flowers. The name comes from the
Quechua word wanku (together), which represents the
combining of the ingredients as well as the team effort that
goes into the production of the product.
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Juan Giraldo, founder of Waku
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Juan’s first step was to travel to Ecuador to source the right
ingredients in order to test his concept. Back in the United
States, the Waku team began developing prototypes.
At the same time he was developing Waku, Juan was
also earning his MBA at Babson College. Thinking that
millennials were his target market, he felt surrounded by
his potential customers and used them as resources. Juan
would buy rival tea products and conduct countless taste
tests to compare his Waku recipes to the competition. By
developing early prototypes and conducting taste tests,
he was able to interact with potential customers and get
valuable feedback. Juan quickly learned that his target
customers were not millennials who were well educated
and well traveled, but women between the ages of 40 and
60 who wanted to live a healthier lifestyle.
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Entrepreneurs are seeing many opportunities in the
market for health drinks: no sugar, low sugar, vitamininfused waters, carbonated, not carbonated, healthy teas,
fermented teas, drinkable yogurt, cold brew coffees,
smoothies—it seems that we are all craving tasty yet
healthy replacements for soda. Dozens of new beverages
have emerged in the marketplace to satisfy the latest
health trends, serving consumers’ needs to feed mind,
body, and spirit. We are in the midst of a generational shift
that has created an industry with exponential growth. Take
kombucha tea, for instance: This fermented tea, which is
claimed to provide significant health benefits, is expected
to be a $5 billion industry by 2025.
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Juan Giraldo, an Ecuador-born entrepreneur, has been
capitalizing on these trends with his company, Waku. Waku
produces and sells wellness teas made with 20 super herbs
from the Andes Mountains. They compete directly with
kombucha-style drinks, but, Juan claims, “Waku tastes much
better.” Traditional kombucha is a lightly fermented beverage
that boasts great health benefits derived from various
probiotics. “Waku’s wellness teas are also delicious and
nutritious, but the health benefits stem from the medicinal
benefits of the herbs used in the ingredients. The drinks are
not fermented and are excellent for one’s digestive system.”
Juan has been an entrepreneur since he was 19 years old.
His first company was an advertising firm that he sold to his
business partner, and his next venture was an online fashion
The early growth of Waku created supply challenges. As the
company grew from shipping one pallet of ingredients from
Ecuador to ordering one full container (11 pallets) a month,
Waku altered its strategy for paying its suppliers. Originally,
Juan was expected to pay for all ingredients at the time
of purchase, but that required a lot of cash up front. At the
same time, Waku needed the ingredients from its suppliers
to effectively meet forecasted demand. To find a solution,
Juan traveled to Ecuador to work out a deal with the
suppliers. After building trust with his suppliers, he proposed
that they give Waku 180 days of credit to pay for ingredients.
This would allow Waku the time to get the ingredients,
produce the teas, sell the teas, and then pay its suppliers. As
Juan explains, “At first the suppliers were hesitant, but after I
showed them Waku’s plans for payment and how important
the suppliers were to the brand, they agreed.”
With $200,000 in annual revenues, Juan believes the
product has the potential to be a legitimate contender
for market share as the business grows. Although Juan is
certainly concerned with profits, that is not his only motive.
His business offers beverages that he grew up with, and
(Continued)
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6 Part I Entrepreneurship is a Life Skill
(Continued)
Critical Thinking Questions
What differentiates Waku from other health
beverages on the market today?
2.
Why was Juan able to approach his suppliers with the
request he made regarding payment?
3.
Does Waku have a responsibility to the region of the
world in which it sources its ingredients and finds its
inspiration? ●
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1.
Sources:
Juan Giraldo (interview with author, October 22, 2018).
https://www.grandviewresearch.com/press-release/global-kombucha-market
https://livewaku.com/
https://www.bostonglobe.com/lifestyle/food-dining/2018/10/15/waku-wellness-tea-with-roots-ecuador/23cPv5lwSkwLrkdhcNSrnN/story.html
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Although he has been an entrepreneur for a long time,
Juan admits that he didn’t know much about the healthy
beverage sector and needed a lot of advice. “I sent out
emails to the top competitors in the industry, simply asking
for advice. And many were more than willing to offer it!”
Juan recalled. His advice to other entrepreneurs? “Don’t be
shy to ask for help. Mentors can have huge impacts on your
performance. Reach out to the superstars in your industry.
You will be amazed how many people will want to help a
young entrepreneur who has the burning desire to succeed.”
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he truly believes in the brand because of how much it
hits home. “I want to provide opportunities for the people
back in Ecuador. Producing top-quality ingredients is
what we are known for in the rural parts of my country.”
Today, Waku has four full-time employees, an intern, and
a strategic consultant. It also provides steady, reliable
business to many farmers throughout rural Ecuador. As
Waku continues to grow, many people in Ecuador will reap
the benefits through an influx of capital and job creation.
Truth 1: Entrepreneurship Is Not Reserved for Startups
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organization in search of a
scalable business model.
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Startup: a temporary
The term startup came into vogue during the 1990s dot-com bubble, when a plethora of
web-based companies were born. The term has various meanings, but we subscribe to Steve
Blank’s definition of startup: a temporary organization in search of a scalable business
model.1 In the traditional view of startups, anyone who starts a business is called an entrepreneur. The entrepreneur creates a business based on research to assess the validity of an
idea or business model. The business may be partially funded by seed money from family
members or investors, but usually the majority is funded by the entrepreneurs themselves.
If the business is successful, the startup does not remain a startup. It can develop
into its own formal organization, be merged with another organization, or be bought by
another company. This traditional view of the startup, however, is not the only path for
entrepreneurs. The truth is that entrepreneurs are everywhere, from corporations to franchises, to for-profit and nonprofit organizations, to family enterprises. We will explore
these different types of entrepreneurs in more detail later in the chapter.
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Truth 2: Entrepreneurs Do Not Have a Special Set of Personality Traits
Effectuation theory: an
entrepreneurial approach
to taking quick action
using resources you have
available to get early
traction on new ideas.
There is no evidence to suggest that entrepreneurs have a special set of personality characteristics that distinguishes them from the rest of us.
Early research identified four main traits that are ascribed to entrepreneurs: a need for
achievement, an innate sense of having the ability to influence events, a tendency to take risks,
and a tolerance for ambiguity. Yet there is no scientific evidence to confirm whether these
traits are a result of nature or nurture or any proven patterns in the behavior of entrepreneurs
versus nonentrepreneurs.2 Academics researching traits of entrepreneurs seem to have a prevailing fascination with defining “who” the entrepreneur is, rather than what he or she does.
However, over the last couple of decades, researchers have moved away from the traits
perspective in favor of examining how entrepreneurs think and act and have discovered
that there are patterns in how entrepreneurs think. This means we can change how we
think and that all of us have the ability to act and think entrepreneurially with practice.
In particular, the work of researcher Saras Sarasvathy has added a new understanding of the
entrepreneurial mindset. Through a study involving serial entrepreneurs—entrepreneurs
who start several businesses, either simultaneously or consecutively—Sarasvathy discovered patterns of thinking and developed a theory she calls effectuation, which is the idea
that the future is unpredictable yet controllable. Entrepreneurs create and obtain control
by taking actions to learn, collecting information, and reducing risk and uncertainty, and
they are able to take action with resources that are available at a particular point in time.3
In other words, it’s about starting small with what you have, rather than what you think
Copyright ©2021 by SAGE Publications, Inc.
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CHAPTER 1
Practicing Entrepreneurship 7
you need. As the entrepreneur starts, very small actions lead to other actions and new
resources. See Research at Work for more on effectuation theory.
Sarasvathy believes that effectual entrepreneurs focus on creating a future rather than
predicting it. This means they create new opportunities, make markets rather than find them,
accept and learn from failure, and build relationships with a variety of stakeholders. Effectual
entrepreneurs use their own initiative and resources to fulfill their vision of the future.
We strongly believe that the mindset is the precursor to action. To us, it makes sense
that if entrepreneurs are in the right frame of mind, there is greater confidence, intentionality, and vision to bring ideas from the whiteboard to the real world. We are not born with
an entrepreneurial mindset; we have to work to develop it. As a result, and because it’s so
important, we devote a whole chapter to it (see Chapter 2).
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Truth 3: Entrepreneurship Can Be Taught
(It’s a Method That Requires Practice)
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Because so many people tend to believe that “entrepreneurs are born and not made,” those
same people question whether entrepreneurship can be taught. If it were true that entrepreneurs have a certain set of innate personality traits, then entrepreneurship could not
be taught. But, remember, there is no proven set of traits. What has been proven, instead,
is that entrepreneurs exhibit common patterns in how they think, and our thinking can be
changed and altered.4 As a result, entrepreneurship can be taught. Furthermore, it’s being
taught everywhere around the globe. It would be difficult to find a college or university not
offering at least one entrepreneurship course today (see Figure 1.1). Many of these courses
teach entrepreneurship as a linear process, which involves identifying an opportunity,
understanding resource requirements, acquiring resources, planning, implementing, and
harvesting (exiting a business).5 But the word process assumes known inputs and known
outputs—a process is quite predictable.
Entrepreneurship is not predictable and, therefore, cannot adequately be taught as
a process. Instead, approaching entrepreneurship as a method, as advocated in this text,
results in a body of skills that—when developed through practice over time—constitute
a toolkit for entrepreneurial action.6 The entrepreneurial method requires consistent
practice so that knowledge and expertise can be continuously developed and applied to
future endeavors. More on this a bit later in the chapter!
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Truth 4: Entrepreneurs Are Not Extreme Risk Takers
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© User: Nafije.shabani/Wikimedia Commons/CC-BY-SA 3.0/
https://creativecommons.org/licenses/by-sa/3.0/deed.en
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Contrary to the stereotype that entrepreneurs like to gamble when the stakes are high, there is
no evidence to suggest that entrepreneurs take more risks than anyone else. In fact, entrepreneurs with gambling tendencies are usually not successful, simply because they are leaving
too much to chance.7 Risk is very personal and
relative. Things always seem more risky from the
outside looking in because we really don’t know
what calculations were made to take the first step,
then the second, then the third, and so on. In fact,
most entrepreneurs are very calculated risk takers and gauge what they are willing to lose with
every step taken. They practice a cycle of actlearn-build that encourages taking small actions
in order to learn and build that learning into the
next action (see Figure 1.2).8 Entrepreneurship
should never be a zero-sum game; it’s never an
all-or-nothing decision. It’s not about ascending
the summit of Mount Everest without ropes or
oxygen. It just looks that way from the outside!
Truth 5: Entrepreneurs Collaborate
More Than They Compete
Community and networking play important roles in entrepreneurship. No entrepreneur
is an island and building strong connections with others is key to business success.
Networking is so important to entrepreneurship that we have devoted an entire chapter
Steve Jobs and Bill Gates
collaborated on the
Apple Mac despite being
fierce competitors.
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8 Part I Entrepreneurship is a Life Skill
FIGURE 1.1
Millennials—A Highly Educated and Entrepreneurial Generation
Change in the Percentage of 25- to 29-Year-Olds With
Selected Levels of Educational Attainment, 2007–2013
Entrepreneurship Courses Offered
18%
6,000
5
3%
0
High School or
Higher
3,000
2,000
1,000
Master’s or
Higher
Bachelor’s or
Higher
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5,000
5,000
250
0
Level of Education
1985
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13%
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15
Number of Courses
Percentage Changed
20
2008
Year
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45%
24%
14%
7%
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50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
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Percentage of Alumni
Business School Alumni Who Began
Businesses After Graduation
2000–2009
2010–2013
Years
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FIGURE 1.2
Before 1990 1990–1999
Act-Learn-Build
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START HERE
Act
Build
Learn
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CHAPTER 1
Practicing Entrepreneurship 9
to it (see Chapter 8). Entrepreneurs draw on shared experiences and desire to learn from
others facing similar challenges. It can be hard to know what entrepreneurship is all
about until you are actually in the throes of it, so it becomes very important to have a
support group of like-minded entrepreneurs willing to help one another out with a “pay it
forward” attitude—collaborating for the greater good.9
Not only do successful entrepreneurs collaborate with other entrepreneurs, they
also collaborate with their target customers to test new ideas, potential investors to build
trust, and family and friends for support. In fact, recent studies have shown that collaboration and information sharing are more important in entrepreneurship than skills like
determination or opportunity recognition.10
Truth 7: Entrepreneurship Is a Life Skill
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Does every entrepreneur need a business plan to succeed? Not necessarily. Research
revealed that fewer than half of Inc. 500 founders wrote formal business plans prior to
launching their companies, and nearly 30% had only basic plans.11 So, how did they do it?
They acted: They went out and talked to other people, connected with their customers,
generated buzz about their product or service, and built a strong network. With every
action, they collected real data that informed the next step. In short, they each practiced
being an entrepreneur.
Today’s investors want to know what the entrepreneur has done, milestones met,
action completed, customers sold, and overall traction. Planning and research is important but the creation of a formal business plan is not. Spending too much time writing a
business plan means you are not spending enough time taking action on your idea in
order to really learn whether it can work.
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Truth 6: Entrepreneurs Act More Than They Plan
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MINDSHIFT
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As we discussed in the introduction to this chapter, traditionally, entrepreneurship has
been associated mostly with launching new businesses. However, these days, the meaning of entrepreneurship has transcended into something more than just the ability to
begin a new business. Many individuals and institutions perceive entrepreneurship as
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Tell Me Your Story
What moments do you remember most?
Every entrepreneur has a story. What beliefs and expectations
do you have about entrepreneurs’ stories? To what extent do
you think they conform to media images of entrepreneurs? In
what ways might you expect them to be different? Here is an
activity to help you examine your beliefs and expectations.
How do you describe yourself to others?
What advice do you have for me as a student of
entrepreneurship?
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Find and introduce yourself to an entrepreneur—any type
of entrepreneur is fine. Ask for 20 minutes of his or her time,
and simply start with the opening question: Tell me the story
of how you became an entrepreneur.
Who helped you most along the way?
As the story unfolds, you may want to ask other questions,
such as
What worried you the most as you started the venture?
After having this 20-minute conversation, reflect on the
beliefs and expectations you started with and answer the
Critical Thinking Questions.
Critical Thinking Questions
1.
In what ways did your chosen entrepreneur confirm
your beliefs and expectations?
2.
In what ways did the story motivate you (or not)?
3.
What did you learn that was most unexpected? ●
What excited you most about starting the venture?
What resources did you use to start? Where did
they come from?
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10 Part I
Entrepreneurship is a Life Skill
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1.3 TYPES OF ENTREPRENEURSHIP
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a life skill that helps people to deal with an uncertain future by providing them with the
methods to think, act, identify opportunities, approach problems in a specific way, adapt
to new conditions, and take control of personal goals and ambitions. It also provides
people with a set of skills that can be applied to many other fields. Being entrepreneurial
empowers us to create opportunities and reach our goals.12 Remember the definition of
entrepreneurship: a way of thinking, acting, and being that combines the ability to find or
create new opportunities with the courage to act on them.
Now that we have separated the truths from the myths, it is time to create a new
narrative. Our economic future depends on entrepreneurs, and the traditional, narrow definition has stifled what it really means to be an entrepreneur. But to create a
new story, we need to know more about the different types of entrepreneurs in the
workplace today.
>> LO 1.3 C
ompare and contrast the different forms of entrepreneurship in
practice today.
Corporate Entrepreneurship
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© Helen H. Richardson/Contributor/Getty Images
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process of creating
new products, ventures,
processes, or renewal
within large organizations.
Corporate entrepreneurship (also known as intrapreneurship) is a process of creating
new products, ventures, processes, or renewal within large corporations.13 It is typically carried out by employees working in units separate from the mainstream areas of the corporation who create and test innovations that are then assimilated into the broader corporation.
Corporate entrepreneurs tend to explore new possibilities and seek ways in which the
organization’s current structure and process can enable innovation. Similar to external
entrepreneurs, corporate entrepreneurs identify opportunities, build teams, and create
something of value in order to enhance competitive position and organizational profitability. Deloitte-owned design consultancy Market Gravity, based in the United Kingdom,
celebrates the achievement of corporate entrepreneurs by holding an annual Corporate
Entrepreneur Awards (CAE) ceremony.14
Categories include awards for those who dare
to “throw out the rule book” to achieve their
goals; those with a proven concept who have
succeeded in making their goals a reality; and
those who have turned an idea into something
groundbreaking. Past winners for corporate
entrepreneurship have included employees
from LEGO, Reebok, and Xerox.
Corporations like Google, Apple, Virgin,
and Zappos are also known for encouraging
an entrepreneurial spirit. However, not all corporations are as enthusiastic about employees
acting entrepreneurially inside the company.
Some companies fear that if employees are
encouraged to be more entrepreneurial, they
will leave the company and start their own business. This is really an outdated view,
though. Most corporations realize that they no longer have long-term employees.
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Corporate
entrepreneurship (or
intrapreneurship): a
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Now that we have explored the truths about entrepreneurship, let’s take a look at the
types of entrepreneurship that are most commonly in practice today.
LEGO is an example of a
company that embraces
entrepreneurship.
Entrepreneurship Inside
Entrepreneurs
inside: entrepreneurs
who think and act
entrepreneurially within
organizations.
Entrepreneurs inside are employees who think and act entrepreneurially within different types of organizations. Although this sounds similar to corporate entrepreneurs (employees who work for large corporations), there is an important difference:
Entrepreneurs inside can exist and function in any type of organization, big or small,
including government agencies, nonprofits, religious entities, self-organizing entities,
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Practicing Entrepreneurship 11
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Kristoffer Tripplaar/Alamy Stock Photo
and cooperatives.15 These types of entrepreneurs often need inside support from senior
managers or other team members for their initiatives, which can be difficult if those people
tend to resist new ideas or are keen to simply
“stick to the company brief” rather than push
boundaries. Building a tribe of willing supporters is essential for getting buy-in to their
ideas and proving there is a market for them.
What inside entrepreneurs have in common with other entrepreneurs is the desire
to create something of value, be it a groundbreaking initiative or a new department, product, service, or process. When this happens,
there is very little separation between who
they are and what they do. Peter Modigliani
is a defense department acquisition analyst at
Massachusetts-based MITRE, a not-for-profit organization that provides guidance to the
federal government. He breaks the traditional boundaries set by the chain of command by
liaising with people inside and outside the organization to generate different perspectives.
He says, “The more you can regularly connect
with folks from other divisions, skillsets, and
customers, the increased chances someone can
offer you a fresh perspective or connection.”16
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CHAPTER 1
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The headquarters
of MITRE in McLean,
Virginia
Franchising
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Richard Levine/Alamy Stock Photo
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A franchise is a type of license purchased by an
individual (franchisee) from an existing business (franchisor) that allows the franchisee to
trade under the name of that business.17 In this
type of entrepreneurship, both the franchisor
(the founder of the original business) and the
franchisee are entrepreneurs. Franchising can
be a beneficial way for entrepreneurs to get a
head start in launching their own businesses,
as they do not have to spend the same amount
of time on marketing, building the brand,
developing processes, and sourcing product.
A franchise is often referred to as a “turnkey operation.” In other words, the franchisee turns the key to open the door and is ready for business. A franchisee not
only pays the franchisor a lump sum to buy the franchise but also has to pay royalties, which are calculated as a percentage of monthly sales revenue. According to
results of Entrepreneur magazine’s annual Franchise 500, announced in 2017, 7-Elev
