What makes you good at what you do?
Do entrepreneurs have a unique DNA profile - and if so, what characteristics does it comprise? Modwenna Rees-Mogg asks a selection of our NESTA Investments portfolio companies: What makes you good at what you do?
The entrepreneurship hierarchy
The debate about entrepreneurship is becoming more heated as the enterprise economy booms. Being an entrepreneur is "cool" and in the hierarchy of entrepreneurship, being a serial entrepreneur is better than being a plain vanilla entrepreneur. And you have really made it if you can are an "ultrapreneur" (i.e. you have rapidly built more than one multimillion pound business).
Does this mean there is a DNA profile for entrepreneurship? Possibly. If you mix with entrepreneurs you will see that they are a breed apart. Many are dyslexic - literally having a differently wired brain; all are energised, slightly obsessive, flexible and with strong interpersonal skills.
The very best entrepreneurs stand out because they have "flair" or "talent" and they are innovators: visionary and ahead of their time. But they also recognise that implementation is as important as innovation. There are also different types of entrepreneur within the genus.
For several years now NESTA has stood at the vanguard of where investors meet and engage with entrepreneurs. This engagement has typically taken place at the start of an entrepreneur's path to growth, not half way along when pain has been alleviated and risk disseminated.
As a result, it has the evidence upon which to identify the characteristics behind entrepreneurship and innovation and to answer the question, "What makes you good at what you do?"
What makes you good at what you do?
A recent survey of NESTA's entrepreneurs revealed much about the DNA in successful hi-tech entrepreneurs. These are a specialist group of people, overcoming far greater obstacles than normal because their technological solutions are truly avant garde. On the risk/reward scale, these businesses are off the scale.
NESTA's entrepreneurs do seem to be differently wired to the stereotypical entrepreneur. They are forensic in their approach. These are not the people who sold sweeties in the playground, but, through expertise and thorough analysis, identified an opportunity and chased it. They planned and prepared before launch. Overwhelmingly they are optimistic realists, motivated by foresight, not greed or fear.
Collaboration a common goal
The faith NESTA entrepreneurs place in their teams is noticeable. The populist image of the egotist attention-seeker does not wash. Repeatedly, we found that team building is what the NESTA entrepreneurs do so well. This does not mean that they are backward in recognising their own skills.
Determination and persistence got them to where they are today and, along with persuasion, these were the skills they also looked for in entrepreneurs generally. They rated risk-taking significantly lower than "execution skills," for example, salesmanship/marketing expertise. No one believed that you should tell a new entrepreneur that they should take the risk because the rewards would be worth it.
The advisory community will be delighted that NESTA entrepreneurs rated the need to have legal, financial or even general business acumen within their own DNA as far less important, than these other skills. Perhaps this explains why NESTA entrepreneurs place such emphasis on building a team around them. The role of the adviser is, therefore, never more important than when around a NESTA start-up.
Healthy competition
The attitude towards the competitive environment was also revealing. Without fail, every entrepreneur interviewed believed that he or she could learn from and improve on the competition.
Keen to exploit an opportunity, 83% of the entrepreneurs thought they could leverage off the success of the competition and 67% believed that having competition meant there were customers out there for themselves.
NESTA entrepreneurs are positive people - they do not seek success at the expense of their competitors' defeat, but they will leverage the opportunity created by weak flanks identified.
Focussing on the end goal
Like so many of their ilk, NESTA entrepreneurs typically live and breathe work, and focus hard on cash. As one entrepreneur put it "It's hard to plan big if you haven't eaten for days."
Sheer hard work and recognising the need for, finding and then accepting help from others, is the job that needs to be done. Overall though, it is the need to strive ahead, which is the DNA marker for NESTA entrepreneurs.
Perhaps a quote from one of the entrepreneurs sums it all up. He said: "Never give up once you have set your course."
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Comments on this article
Added: 17/03/2008 3:24pm
Dr Vanessa Hill, Royal Holloway, University of London
The characteristics described here are very similar to those criteria listed in the (see NAGC sites: http://www.nagc.org/) recognition of the gifted child. However, unfortunately due to the prevalence of dyslexia and dispraxia within these children, many suffer bad experiences within the education system and many become delinquents as a consequence of the loss of self esteem and our great national resource is lost.
Added: 17/03/2008 3:25pm
Francis Muronda
This is an interesting debate. As a student I've the insight of the entre-DNA. I shall continue visiting your website.