Your Entrepreneurial Score and What the Different Elements Mean
An inclination towards entrepreneurship is a critical requirement for success in starting up a business of your own. Below is some information to help you to better understand the concept. Take a few minutes to go through it and reflect on your own thinking. You may find that the content will prompt you to consider some areas that you could look at to improve your score.
According to Merriam-Webster dictionary an entrepreneur is defined as “a person who starts a business and is willing to risk loss in order to make money.” An Entrepreneur refers to a person who organises, manages and operates one or multiple businesses with different goals and is focused on doing business to make a profit. Entrepreneurs are able to create jobs and thereby improve the world around them, playing a very important role in the world today. They are often innovators improving our world and the lives of others. Our philosophy is that entrepreneurs are born, but that enterprising people can be trained, provided that they have the correct amounts of entrepreneurial inclination and/or gifting and/or personality and/or inner make up. We are of the opinion that people are born with certain talents and gifts. To illustrate the point a simple Google search will reveal people with all sorts of extraordinary talent, for example a 7 years old child who plays Mozart and Beethoven with a philharmonic orchestra, and a 4 year old that can tell you what the square root is of 4780 in under 10 seconds. Just like these children are born with a precious gift, some people are born to do business. This entrepreneurial identification screening tool has been designed to help you to identify whether you are “wired” for business and whether you have the inner qualities to give you the best probability of success. From our research we have developed the following graphic:
This entrepreneurial assessment has been implemented since 1998. It has been refined over time to reflect the realities and opportunities of running a real business. Approximately 10,000 people have taken this assessment in one form or another. This process has given rise to our current 4-element, online entrepreneurial screening tool that you have just taken. There are certain characteristics that an entrepreneurial and/or enterprising person needs to have. These are:
- The ability to take risk
- An ability to solve problems
- The ability to spot opportunities and to take them: they have the ability to identify potential customer’s needs, discover wants and solve their problems.
- They think in a certain way and their default is to find a way to make money.
- They are tenacious and have the ability to keep going when the going gets tough and to work on their own.
- They have a certain outlook of the world around them and are not affected too much by fate and can rise above challenges and move around obstacles.
- They are go-getters and have a desire to turn dreams into reality.
- They are not afraid of hard work and working long hours.
- They are masters of their own destiny and do not want to work within the confines of a 9-to-5 job and are not satisfied with a limiting salary.
- They have self belief, are often visionary, have an ability to bounce back from failure and have an ability to sell themselves and their business.
- They have the ability to manage time, manage themselves and their business and are 100% committed to improve themselves, learn and to innovate.
Having said all this let us dive into your entrepreneurial score and what the 4 elements mean:
Element # 1: Your previous experience and where you are headed in the future.
Your past actions are often an indicator of future behaviour. For instance if you have at some time in your life sold something or offered a service for money, thus having some experience of making money for yourself, the chances are that you will want to do this again in the future. There are 2 factors that determine success as an entrepreneur; the pull factor and the push factor. You operate from the “Pull factor” when you are self-driven and you have an INTERNAL desire to do something from deep within yourself. You operate from a “Push factor” if life and EXTERNAL situations or people push you into doing something. We would like to suggest that if you are looking to get into business because you have an internal desire, which often manifests in you having tried some kind of business activity in the past, and a genuine inner desire to break free from the confines of a job, then you are operating from the “Pull factor” point of view. If however you are being “Pushed” into starting your own business by, for instance, losing your job and cannot find another, or you are unemployed and think it might be a good idea to start your own business, or a family member or friend is pushing you to do something to improve your circumstances, then these are all “Push factors”. Stated plainly, people with “Pull factors” have a much better chance of success than those who operate from the “Push factor” perspective. Also, in this section, you you became aware of whether it is a good idea to get training before venturing out on your own into business.
- If you scored between 0% and 40% it is more likely that you are operating from “Push factors”, you have no or very little business experience, probably do not see training as important and/or do not see a way to start off a business with little capital.
- If you scored between 41% and 59% it is still more likely that you are operating from “Push factors”, you may have little business experience, do not see training as that important and/or do not see a way to start off a business with little capital and may not start up a second business if you are not successful the first time.
- If you scored between 60% and 70% it is more likely that you are operating from “Pull factors”, you have some business experience, probably see training as important and do see a way to start off a business with little capital. You could even possibly start up a second business if you are unsuccessful the first time.
- If you score was between 71% and 100% you are definitely operating from “Pull factors”, you probably have a lot of business experience, see training as important and could see a way to start off a business with little capital. There is a very high likelihood that you will start up a second business if you are unsuccessful the first time.
For more information on this subject, please speak to your sponsor or email firstname.lastname@example.org
Element #2: Your problem solving ability.
New business owners and entrepreneurs will face many challenges along the way. This is even more acute, if one starts a business in an area where you do not have a lot of expertise. Problem solving is a very big part of running a business of your own. It is not a case of WHETHER or not you will face problems, it is a case of WHEN. In order to be successful, entrepreneurs must be able to overcome problems and challenges. In order to do this, they must be able to assess the problems they face, think carefully through them and then make important decisions. Hence your ability to solve problems efficiently and effectively will be one of the main contributing factors that make the difference between an average entrepreneur and an excellent one. Linked closely to this is your ability to think our of the box and to “See” unusual solutions to problems.There were 2 parts that were explored when you took this problem-solving element; what your general feeling towards solving problems is: i.e. whether you see problems as a menace and an inconvenience, or you welcome problems and see them as a place where you can grow and develop. This second element consisted of 6 common problems that you could face as a business owner and/or that life could throw at you and how you react to them.
- If you scored between 0% and 40% there is a high probability that you see problems as a hindrance in your life and probably would prefer not to face them. You would also most probably only see a couple of obvious solutions to problems.
- If you scored between 41% and 59% it is more likely that you do not relish the thought of having to deal with problems, or that you can only identify a few solutions to common problems.
- If you scored between 60% and 70% you are probably quite comfortable with problems and may even see solving problems as a chance to grow and develop. You are most probably quite good at solving problems, but probably are not that much of an out-of-the-box thinker.
- If you score was between 71% and 100% you will be very comfortable with solving problems and definitely see problems as a chance to grow, to innovate and to create better efficiencies. Your problem solving ability is probably quite advanced and the closer you get to 90% to 100% the more of an out-of-the box thinker you are.
NOTE: The good news is that you can LEARN to be a better problem solver, so if you scored low in this element, we would suggest that you enroll in some kind of course that will teach you, or lead you through a process of becoming a better problem solver. For more information on this subject, please speak to your sponsor or email email@example.com
Element #3: Your propensity or appetite to take risk.
Taking a risk to achieve a goal requires courage to face the fear of uncertainty. No matter the outcome. Either way we grow through the process and become more resilient and confident. Better yet, building those skills helps in taking more risks and improves the chances of achieving future goals. The ability to deal with risk helps to distinguish between leaders and followers. Generally speaking, entrepreneurs take risks as it allows them to distinguish themselves from their competitors. In the competitive business environment that exists today, those who are willing to risk effectively position themselves as leaders, while others get left behind. For entrepreneurs, taking risks and business growth go hand in hand. Entrepreneurs take risks on a regular basis, they need to be calculated risks though. This is not to say that entrepreneurs take risks just for the sake of it. Successful risks are calculated and based on an underlying motivator. The very nature of starting up a business of your own means taking risk. There is no certainty that things will work out and that you will make a success. ABSA bank recently quoted a statistic that 63% of all new businesses will fail within the first 2 years of opening their doors. Simply put YOUR OWN BUSINESS = RISK. You need to have the appetite for risk. If you have a very low propensity to take risk, then you will always be operating out of a “what-if-it-does-not-work” framework of thinking, so you will tend to be too cautions and this will mean that you will be less likely to react to opportunities that come your way fast. You will tend to procrastinate decisions and be super wary. If on the other hand your appetite for risk is too high, you could be too much of a gambler, and to quick to venture into things, which could end disastrously. You need to have the type of personality that can handle a fairly high degree of risk, but not have too much of a risk appetite and you need to be able to take calculated risks.
- If you scored between 0% and 40% you are probably too risk averse to go into a business of your own, as you will most probably be too scared to lose money, or to risk your reputation or it could cause just too much stress in your life, living with uncertainty.
- If you scored between 41% and 59% you have some ability to handle risk, but not a lot. You probably have a very cautious approach to life and so may take a long time to make decisions. This is a challenge for for an entrepreneur, because he/she may have to take decisions fast with fairly little information and so you may not be able to take the risk and could, therefore miss out on some opportunities.
- If you scored between 60% and 70% you are probably quite comfortable with taking a fair amount of risk, but may still be a bit on the cautious side. So relatively high-risk ventures could scare you. You will most probably be more comfortable once thorough research work has been done. E.g. Buying into a franchise where the risks are lower may be a good way for you to go.
- If you score was between 71% and 90% you have a very good risk profile and taking calculated risks would not bother you. You would tend to be able to make decisions where quite a lot of risk is involved very easily and in general things work out well for you.
- We have found that people who score between 90% to 100% have such a high propensity to take risk that they may not “look before they leap” so to speak and could fall into the trap of not being as calculated as they should be. If you are in this category PLEASE BE CAREFUL as you could get involved in some very high risk ventures and not properly consider all the consequences as thoroughly as you should!
Having said all this, we are of the opinion that, like problem solving, one can learn to take greater risks. So if you scored fairly low, and are risk averse, there are various programmes that you can enroll on to help you to stretch your comfort zone, and therefore improve your risk-taking ability. It is worth mentioning, that learning to take risk is harder to train than learning to solve problems, because you have to be willing to let yourself be stretched and to overcome some of your fears. Some people my not be able or willing to do this. For more information on this subject, please speak to your sponsor or email firstname.lastname@example.org
Element # 4: Your entrepreneurial inclination.
This part of the assessment tests how a person thinks, their entrepreneurial reasoning & general flair for business and whether their thought processes and inner make up revolves around business. This was the longest section of the assessment process, consisting of 80 questions. In it we measured areas like your belief in self & levels of confidence, how tenacious you are, how driven you are and whether you like challenges. We also looked at how prepared you are to work hard, your levels of innovation, belief in fate and your need for security. Belief in self & self confidence – A person lacking in self-confidence must develop the skills and behavior to be an entrepreneur or leader. One of the most important characteristics of an entrepreneur, is self-confidence which links with other crucial traits: motivation, negotiation, focus, risk-taking, decision-making. Self belief and belief in your product and/or service will bring in sales and without it, selling: which is the life blood of any business – can be very difficult for you. Tenacity and being prepared to work hard: Another way to express this word “tenacity” is dogged determination and it is your ability to keep on going when the going gets tough, to keep forging ahead when it seems like everything is collapsing around you. Good entrepreneurs have a high level of tenacity and are prepared to do whatever it takes to succeed, often working much harder than others. Driven & likes challenges: In business you are the one that is going to have to make things happen and you are going to have to overcome many obstacles and challenges. If you are more of a passive person, chances are that success could be limited. Most often it is up to you to scale the highest peaks and tramp through the lowest valleys and you need to have enough drive and self motivation to make it through. Innovative: Being innovative is thinking of different things and ways to overcome obstacles, or to get a job or task done, or to show yourself as being different to your competitors. It is the ability to “see” what is not there and to bring it into reality, whether it be a product, service, or just a new way of doing things or tackling a problem. Belief in Fate: This is how much you let others, the world around you, circumstances, luck or the government or the system dictate to you whether you will succeed or not. Entrepreneurs believe in hard work and making sure that they are in the right place at the right time to make things happen. They dictate and will not be dictated to by situations or circumstances. Need for security – This is how dependent you are on things being totally predictable, certain and working out. The more you need predictability and certainty, the higher your need for security. Entrepreneurs in general have a low need for security and they are driven to accomplish what they set out to do and they tend to be able to live with a lot of insecurity in their lives.
- If you scored between 0% and 40% it is highly likely that you have a very low belief in yourself & your levels of confidence are low, you are not necessarily tenacious, nor driven and you do not like new challenges. You are also probably not innovative in your thinking and have a high belief in fate and a high need for security.
- If you scored between 41% and 59% it is likely that you have a fairly low belief in self & low levels of confidence, you have some tenacity but not a lot, likewise you are probably not that driven and do not particularly like new challenges. You are also probably not that innovative and have a relatively high belief in fate and have quite a high need for security.
- If you scored between 60% and 70% you probably have quite a high belief in self & high levels of confidence, you are fairly tenacious and driven and probably do like new challenges. You are likely to be innovative and do not believe in fate, nor have a high need for security.
- If you score was between 71% and 100% you will be most likely have a very high belief in self & very high levels of confidence. Your levels of tenacity will be very high and you are highly likely to be driven and really like new challenges. You are probably highly innovative and have almost no belief in fate and your need for security will be very low.
If you scored low in this section, you may need to go on some courses to help you develop some of the skills where you are weak. For more information on this subject, please speak to your sponsor or email email@example.com Just a passing shot. Please do not venture into a business of your own without getting the necessary business start up training. Starting a small business that sustains is complicated and is often filled with many mine fields and you need to know how to negotiate these. Getting trained will help you to know and recognize these pitfalls BEFORE you fall into them and will help you to avoid some of the most common mistakes that cause businesses to fail.