In this topic, we will explore the concept of the typical entrepreneur. Is there such a thing as a typical entrepreneur? You may have preconceived ideas about what the typical entrepreneur would be like; maybe you envisage a young, charismatic, man who has dropped out of university, ready to take the world by storm. A young version of Bill Gates or Steve Jobs may come to mind. We will explore statistics to test this theory of the typical entrepreneur. We will look at trends that will soon disrupt this idea and examples, which illustrate that in fact, there is an incredible amount of diversity and there is no typical entrepreneur. Perhaps what entrepreneurs do share are certain entrepreneurial qualities.
Welcome to Topic 5: Is there a 'Typical Entrepreneur?' In this topic, you will learn about:
- The typical entrepreneur, according to statistics
- What a typical entrepreneur is not like
- Entrepreneurial qualities.
These relate to the Subject Learning Outcome:
- Identify generally shared traits of entrepreneurs, although there is no single set of entrepreneurial traits.
Welcome to your pre-seminar learning tasks for this week. Please ensure you complete these prior to attending your scheduled seminar with your lecturer.
Click on each of the following headings to read more about what is required for each of your pre-seminar learning tasks.
Before we look at any of the content or other self-directed learning materials for this topic:
Task: Open your reflective journal and note down what a typical entrepreneur looks like. Try to describe personality traits you think they may possess and describe their character. You may include any examples of actual entrepreneurs if they happen to come to mind.
Remember there is no right or wrong answer we are merely exploring the preconceived ideas we may have.
You can access the reflective journal by clicking on ‘Journal’ in the navigation bar for this subject.
For this task, imagine that you are a journalist. Your editor has asked you to write a short investigative article exploring the question, ‘Is there a typical entrepreneur?’. In order to write the article, you have been asked to interview a selection of entrepreneurs. You need to develop three questions that you will ask these entrepreneurs to explore whether there is or is not a typical entrepreneur.
Task: Develop these three (3) questions and note them down in your reflective journal.
The following video features different entrepreneurs who talk about their personality traits, experiences and failures. Pay attention to the challenges, the trade-offs that entrepreneurs missed out on, or were impacted by their decision to focus as heavily on their ventures as they did.
McComb, D 2009, SHINE: The entrepreneur’s journey, streaming video, Vimeo.
Task:
- Watch the video.
- In your reflective journal:
- Write down what differentiates these entrepreneurs.
- Write down what similarities you observe in these entrepreneurs.
- Jot down the negative impacts mentioned in the video – this links to the dark side of entrepreneurship.
The following article looks at five (5) myths that surround entrepreneurship. The many examples that are provided in the article, provide insight into the fact that there may not be a typical entrepreneur.
Wooldridge, A 2009, ‘Global heroes’, The Economist.
Task: Read the article and develop three (3) statements based on the examples set out in the article, which support the notion that the typical entrepreneur does not exist. You can post your statement into your reflective journal.
Identify a successful entrepreneurial venture in your local community and briefly describe the venture Topic 5: Forum activity 1. You can also navigate to the forum by clicking on 'ENT100 Subject Forum' in the navigation bar for this subject.This information will enable you to participate effectively during the seminar.
It is important to know what is true or not true about entrepreneurship. The following video debunks some of the widely held beliefs about entrepreneurship: Watch Isenberg, D 2013, ‘Debunking three entrepreneurship myths,’ Harvard Business Review.
Read through the topic content and action the learning tasks within it.
Based on the task we brainstormed as part of the previous topic, you will be provided with an investment amount this week. Work on your investment opportunity as a group. Remember that we will continue to work on this across four (4) weeks, so this is week 3 of 4. The aim is to create the biggest increase in your initial investment.
The typical entrepreneur – statistically speaking
So, what does the average entrepreneur look like, at least statistically speaking?
It is most common for entrepreneurs to be male (Global Entrepreneurship Monitor 2021). For example, in the United States, only 40 per cent of new entrepreneurs are female. However, the trends show that female entrepreneurship is increasing (Global Entrepreneurship Monitor 2021). Globally, female entrepreneurship grew by an average of 10 per cent compared to a five per cent growth when it comes to male entrepreneurs (Entrepreneur 2018).
It is most common for entrepreneurs to be white (Entrepreneur 2018). However, in 2020 in the United States, more than 25 per cent of new entrepreneurs were born abroad (Kauffman Foundation 2021). Since 1996, the growing trend in foreign-born entrepreneurs in the United States has more than doubled (Kauffman Foundation 2021).
It is most common for entrepreneurs to be 35 to 54 years old (Global Entrepreneurship Monitor 2021). The global entrepreneurship monitor (2021) shows the most common entrepreneurs in the 35 to 44 year and 45 to 54 year age brackets. While entrepreneurial activity has tended to drop off beyond the age of 55 in the past, a recent trend shows that seniorpreneurs or third age-entrepreneurs are increasingly more common in particular countries, such as Sweden and Japan.
It is most common for entrepreneurs to come from a wealthy family (Groth 2015). The global entrepreneurship monitor (2021) shows that more than 80 per cent of funding for new start-ups comes from personal savings, friends, and family connections. Groth (2015) notes that while a lot of hard work is required in building a new venture, we cannot ignore the privilege involved.
It is most common for entrepreneurs to have completed a higher education degree (Kauffmann Foundation 2021). While it is sometimes assumed that the typical entrepreneur has dropped out of their education, according to the Kauffmann foundation (2021), 95 per cent of entrepreneurs hold a bachelor's degree or higher.
Sometimes what we see or hear reinforces the preconceived notion of the typical entrepreneur. Take this quote from Richard Branson, the founder of Virgin Group, for example:
“My biggest motivation? Just to keep challenging myself. I see life almost like one long university education that I never had — every day, I'm learning something new.”
We might focus on the fact that he did not have a university education – “the university education that I never had” – and think this is a typical characteristic (which is, in fact, not the case for most entrepreneurs). However, we could focus on the trait of continual learning instead – “every day I am learning something new.” Based on this, we could consider whether, while there may, in fact, be a lot of different entrepreneurs, they may share some entrepreneurial qualities.
The typical entrepreneur is not any of these things
We will look at some examples of entrepreneurs that are not considered ‘typical.’ Click on each of the following headings. As you read the following examples and watch the videos, see whether they share any entrepreneurial qualities.
False!
The following video, Light by the liter, highlights Illac Diaz, an entrepreneur challenging the idea that entrepreneurial ventures need to focus on the developed world. Instead, his work is focused on low tech, high impact solutions to extremely poor areas. As a social entrepreneur focused on low-cost solutions that address poverty and climate change issues, Liter of Light is a values-led entrepreneurial NGO.
Research into low-tech entrepreneurship shows that ventures in this space are often underestimated (Reboud & Mazzarol 2017). However, some of the biggest challenges may require solutions that do not have any technological components to them.
False!
The following video, Meet Alice-entrepreneur, job-creator, refugee, tells the story of Alice, who is a Sudanese refugee living in Uganda. She started a nut roasting business and now employs and inspires Ugandan women in her local community. She started without any possessions in a new country and worked creatively with the limited resources available to her. Her venture has enabled her to fund her son’s education and create new meaning in her new environment.
In Australia, refugees are twice as likely to be entrepreneurs (Legrain & Burridge 2019). In fact, research has shown, that refugees are often excluded from regular employment and that this is where entrepreneurship offers opportunities (Dean et al. 2020) even though refugees are faced with additional barriers associated with legal status, local knowledge, language barriers and limited entrepreneurial skills compared to their local counterparts (the Human Safety Net 2021).
False!
The following video, How I became an entrepreneur at 66 Paul Tasner, features Paul Tasner, who started his entrepreneurial journey at age 66. He is one of many entrepreneurs who started his venture later in his life. We are seeing this as a growing trend in various countries around the world.
Globally there are 34 million seniors who want to start a business, which has doubled since 2008 (Global Entrepreneurship Monitor 2021). According to Kautonen (2013), senior entrepreneurs may, in fact, have the following advantages compared to younger entrepreneurs:
- More developed networks
- More work and industry experience
- A higher technical and managerial skill level.
- A stronger financial position.
Entrepreneurial qualities
So, while there is no such thing as the typical entrepreneur, we can look at entrepreneurial cognition and how entrepreneurs operate risk and identify opportunities. The qualities associated with this tend to manifest as the following individual or entrepreneurial group attributes (Frederick et al. 2018):
- Confidence
- Independence
- Creative cognitive ability
- Optimism
- Energy and determination
- The ability to try again in the face of failure.
Entrepreneurs must be able to tolerate such risks; in fact, many seem to enjoy risk-seeking behaviour. They pursue the opportunity in part for the challenge of high stakes. Entrepreneurship, for them, has a thrill-seeking quality.
Saras Sarasvathy, of the University of Virginia, conducted research with highly successful entrepreneurs and found that they share thought patterns, which she calls "effectuation" (Sarasvathy, 2001). In simple terms, effectuation involves working forward from a given scenario, collaborating and using the available resources, only investing what the entrepreneur can afford to lose (Read et al., 2017).
The successful entrepreneur becomes familiar (and even comfortable) in dealing with uncertainty, decision-making, and taking action in complex and unfamiliar situations.
Knowledge check
Complete the following two (2) tasks. Click the arrows to navigate between the tasks.
Key takeouts
Congratulations, we made it to the end of the topic! Some key takeouts from Topic 5:
- There is, in fact, no such thing as a typical entrepreneur.
- Even when we look at the statistics, preconceived notions of a typical entrepreneur are debunked, and in addition to that, growing trends show further diversification.
- Older entrepreneurs, refugees and low-tech ventures provide examples of diverse entrepreneurial ventures and creators.
- While there is no such thing as the typical entrepreneur, we can look at entrepreneurial cognition and how entrepreneurs operate risk and identify opportunities.
- Effectuation is a common trait shared by entrepreneurs where they become familiar with dealing with uncertainty and taking action in complex situations.
Welcome to your seminar for this topic. Your lecturer will start a video stream during your scheduled class time. You can access your scheduled class by clicking on ‘Live Sessions’ found within your navigation bar and locating the relevant day/class or by clicking on the following link and then clicking 'Join' to enter the class.
Click here to access your seminar.
The following learning tasks will be completed during the seminar with your lecturer. Should you be unable to attend, you will be able to watch the recording, which can be found via the following link or by navigating to the class through ‘Live Sessions’ via your navigation bar.
Click here to access the recording. (Please note: this will be available shortly after the live session has ended.)
In-seminar learning tasks
The in-seminar learning tasks identified below will be completed during the scheduled seminar. Your lecturer will guide you through these tasks. Click on each of the following headings to read more about the requirements for each of your in-seminar learning tasks.
Your lecturer will facilitate a class discussion, which explores the fact that there is no typical entrepreneur. Be prepared to share your thoughts in response to the self-directed study tasks.
In your breakout teams, you will share examples of local entrepreneurs. Compare and contrast your findings.
In your breakout teams you will discuss whether you feel you could have an entrepreneurial future or not. Draw on your research and examples so far – what makes you say you do or do not see yourself as an entrepreneur? Are there certain ventures or entrepreneurs that you relate to in particular?
Welcome to your post-seminar learning tasks for this week. Please ensure you complete these after attending your scheduled seminar with your lecturer. Your lecturer will advise you if any of these are to be completed during your consultation session. Click on each of the following headings to read more about the requirements for each of your post-seminar learning tasks.
Reflect on your learnings from this topic and contact your lecturer if you have any questions.
Assessment 2 – work on the research for your case study analysis. Find and collate sources you feel are useful and summarise how these relate. Remember to be critical and find resources that add depth to your analysis. Collate a list of references in your reflective journal.
Each week you will have a consultation session, which will be facilitated by your lecturer. You can join in and work with your peers on activities relating to this subject. These session times and activities will be communicated to you by your lecturer each week. Your lecturer will start a video stream during your scheduled class time. You can access your scheduled class by clicking on ‘Live Sessions’ found within your navigation bar and locating the relevant day/class or by clicking on the following link and then clicking 'Join' to enter the class.
Click here to access your consultation session.
Should you be unable to attend, you will be able to watch the recording, which can be found via the following link or by navigating to the class through ‘Live Sessions’ via your navigation bar.
Click here to access the recording. (Please note: this will be available shortly after the live session has ended.)
The following additional resources can be used to extend your understanding of this topic:
- AutoAnubis 2016, Jiro dreams of sushi HD streaming video, YouTube.
- Roche, B 2018, The Power of an entrepreneurial mindset, streaming video, TEDxLangleyED.
- Pontikes, EG & Barnett, WP 2017, ‘The Non-consensus entrepreneur: Organizational responses to vital events’ , Administrative Science Quarterly, 62(1):140-178.
References
- Entrepreneur 2018, Statistically, what does the average entrepreneur look like?, Entrepreneur Media, https://www.entrepreneur.com/article/312943
- Frederick, H, O’Connor, A & Kuratko, DF 2018, Entrepreneurship, 5th edn., Cengage.
- Groth, A 2015, Entrepreneurs don’t have a special gene for risk—they come from families with money, Quartz, https://qz.com/455109/entrepreneurs-dont-have-a-special-gene-for-risk-they-come-from-families-with-money/
- Global Entrepreneurship Monitor 2021, 2020/2021 Global report, Global Entrepreneurship Monitor, https://www.gemconsortium.org/report/gem-20202021-global-report
- Human Safety Net 2021, Mapping refugee and migrant entrepreneurship ecosystems in Europe, Fondazione Generali The Human Safety Net ONLUS, https://issuu.com/impacthubamsterdam/docs/mapping_refugee___migrant_entrepreneurship_in_euro
- Isenberg, D 2013, ‘Debunking three entrepreneurship myths’, Harvard Business Review, https://hbr.org/2013/07/debunking-three-entrepreneursh
- Kautonen, T 2013, Senior Entrepreneurship, OECD, https://www.oecd.org/cfe/leed/senior_bp_final.pdf
- Kauffman Foundation 2021, Who is the entrepreneur? The changing diversity of new entrepreneurs in the United States, 1996-2020, Ewing Marion Kauffman Foundation, https://www.kauffman.org/wp-content/uploads/2021/04/Kauffman_Trends-in-Entrepreneurship-Who-Is-The-Entrepreneur-2020-Update_April2021.pdf
- Legrain, P & Burridge, A 2019, Seven steps to success: Enabling refugee entrepreneurs to flourish, Centre for Policy Development, https://cpd.org.au/2019/04/seven-steps-to-success-report/
- McComb, D 2009, SHINE: The entrepreneur’s journey, streaming video, Vimeo, https://vimeo.com/19986675
- Richey, M 2020, 'The asylum process broke my dream...now I have a new one.' The refugee entrepreneurs, The Conversation, https://theconversation.com/the-asylum-process-broke-my-dream-now-i-have-a-new-one-the-refugee-entrepreneurs-146234
- Reboud, S & Mazzarol, T 2017, 'Low-tech entrepreneurship' in Encyclopedia of creativity, invention, innovation and entrepreneurship, https://link.springer.com/referenceworkentry/10.1007%2F978-1-4614-3858-8_495
- Sarasvathy, SD 2001, 'Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency', The Academy of Management Review, 26(2):243-263.
- Shepherd DA, Saade, FP & Wincent, J 2020, 'How to circumvent adversity? Refugee-entrepreneurs' resilience in the face of substantial and persistent adversity', Journal of Business Venturing, 35(4):105940.
- Swanson, LA 2017, Entrepreneurship and innovation toolkit, Openpress, https://open.umn.edu/opentextbooks/textbooks/entrepreneurship-and-innovation-toolkit
- Wooldridge, A 2009, ‘Global heroes’, The Economist, https://www.economist.com/special-report/2009/03/14/global-heroes
