Startups are sexy but unicorns are rare — How to spot an entrepreneur?
In this age of startups disrupting the status quo, the entrepreneur is universally admired and enjoys rock-star status. will.i.am, nowadays a self-proclaimed entrepreneur, recently conceded that our younger generation should strive to be the next “bill i am,” in an obvious reference to Bill Gates.
We have seen a wave of wannabe entrepreneurs in recent years, but only a handful who today set out to start businesses will actually rise to stardom and start meaningful and scalable businesses that will be deemed both a commercial and social success. That’s the reality.
How do you recognise a future entrepreneur?
An open question with endless possible answers that requires you to separate the wheat from the chaff.
Spotting a successful entrepreneur is easy, they exude a certain air of confidence and numbers simply don’t lie. However, spotting a future entrepreneur and how successful she or he will be, is a whole different ball game.
After five years of searching for promising entrepreneurial talent here at the New Entrepreneurs Foundation, we’ve learned that entrepreneurs come in different shapes and sizes; some are born entrepreneurs whilst others have the right skillsets and some innate ingredients, but need help to turn their ideas into entrepreneurial substance.
So, what are some of the signs of a great entrepreneur in the making?
1. The entrepreneurial cocktail
Entrepreneurs are driven, resilient and ambitious. They are not averse to taking risks. They have relentless energy and enthusiasm, bounce back from failure and they persevere. They are not thrown off balance easily and they don’t seem to mind uncertainty and seem to thrive in chaotic scenarios. These are the characteristics often displayed by the protagonists of heroic epics and extroverted text-book hustlers, and are certainly some of the signs prevalent in many budding entrepreneurs.
But there is so much more to look out for: the key is to pay attention to the nuances and subtleties that are essential for the perfect entrepreneurial cocktail.
2. The Childhood Entrepreneur
Some of us were born an entrepreneur. Looking for early signs of entrepreneurship can be pretty revealing. You have excelled at selling lemonade in your pre-teen years and actively sought out opportunities to make some extra cash on the side (mostly by selling junk/overcharging grown-ups), enjoyed leading teams and were always keen on exploring the world beyond the confinements of your home. What’s more leading a team of youngsters, motivating them and earning their respect coupled with a love for creating things, may indeed be early signs of innate qualities of entrepreneurship.
(I used to colour and sell stones, apples and cherries from our garden to country walkers; I charged the same walkers for parking their cars down the road before they set off on their hike — I wish I could now say of myself that I’ve become an entrepreneur…I’m still “becoming”)
3. A love for learning
A job and a salary alone will never satisfy an entrepreneur. They’ll always want more. Inquisitive by nature, entrepreneurs will never fail to ask questions listening carefully in the process. In their world “smart” knowledge equals opportunity, which will benefit their own development and broaden their horizon of possibility.
Entrepreneurs learn from their mistakes and draw some of the most important conclusions from their personal and professional failures. Yes, they are determined, but humble enough to accept when they are wrong. They learn quickly and move on. A certain degree of humility really helps and will allow them to pivot when necessary.
Entrepreneurs’ love for learning never ceases, but the key point here is that their curiosity triggers proactivity.
4. They are ok with… being different
Who cares what everyone else thinks? A lot of people do. But entrepreneurs are ok with being different (but may have struggled with it to begin with). Whilst so many others want to be part of the group, entrepreneurs sometimes choose to swim against the current. They don’t mind rejection. If anything, it makes them more resilient and it helps them build perseverance. The Airbnb cofounders were repeatedly rejected by potential investors in Silicon Valley in 2008. They saw repeated rejection as a source of motivation. There are countless similar examples. But remember, this isn’t about adopting an irrationally stubborn mindset. No one likes a pig-headed “entrepreneur”.
5. Passion and ideas underpinned by productivity
Yes, entrepreneurs are ideas people and discuss and share them. But many people do that. Everyone’s got ideas. I think I have great ideas. But I’m not an entrepreneur (yet). The difference is, an entrepreneur will do something about them. And if they fail? So what. Next idea please! They are truly passionate about starting businesses (without passion you’ve already lost). But the old adage, “actions speak louder than words,” could not be truer for the emerging entrepreneur. Their compelling story of entrepreneurialism needs to be underpinned by hard evidence. You really want to hear when and how they got their hands dirty in the past.
6. Taking risks and showing “true grit”
Being a risk-taker is certainly not an indicator of future entrepreneurial success. The real entrepreneur understands and takes calculated risks. Dropping out of university or leaving a safe job to follow your dreams may be one of many calculated risks an entrepreneur is willing to take, but it certainly won’t be the last. They take risks to drive growth, to take on incumbents and through attempting to shift behaviours. These are all great risks in their own right, but if carefully calculated the entrepreneur is willing not shy away from them.
7. Solutions-driven creativity
Entrepreneurs are often very creative. They see the big-picture and through creative thinking find simple but practical solutions to real problems. If you are constantly trying to find ways to improve processes, to make things easier and you use frustration to fuel innovation, then you are probably a closet-entrepreneur.
Could you be a “closet-entrepreneur”? I encourage those in denial to lean in, to have a bit of fun and to take calculated risks.
8. Are entrepreneurs personable?
Of course not all of them are extroverted, personable and hungry for the limelight. But more often than not, they enjoy surrounding themselves with people and will openly share their stories. They know how to lead effectively and find delight in leading and inspiring people. Often entrepreneurs are charismatic connectors who will cast their net wide to help them broaden their network, but they equally revel in making introductions. But once again, it’s key to look out for the introverted entrepreneurs. Those who shout the loudest are not necessarily always the ones who execute when things get real.
There are endless revealing sings displayed by someone who may be destined to start scalable businesses in the future. But if you are searching for great talent, staring at a cover-letter, and CV scrutiny alone will certainly not provide enough flavour to spot a great entrepreneur in the making. You need to read between the lines, look out for unusual, surprising and unconventional hints that may suggest great talent in addition to the more obvious pointers.
If you think you are or know of an emerging-entrepreneur (or an entrepreneur in denial), NEF can help you unleash your inner potential! http://getstarted.newentrepreneursfoundation.com/
