Tag Archives: entrepreneurship

Good Money, Bad Money

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The basic idea of good money and bad money is that the type of money a manager accepts carries specific expectations that must be met. These expectations heavily influence the types of markets and channels that a venture can and cannot target. The very process of securing funding forces many potentially disruptive ideas to get shaped instead as sustaining innovations that target large and obvious markets. Thus, the funding received can send great ideas on a march towards failure.

As emergent ideas are being nurtured during nascent years, money must be patient for growth but impatient for profits.

When winning strategies become clear and deliberate ideas need to be carried out then money should be impatient for growth but patient for profit.

  • Clayton Christensen, Disruptive Strategy, HBX
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Growth Mindset: Moving Towards Drucker’s Entrepreneurial Society

Entrepreneurship in the Spanish language is most commonly translated as “emprendimiento” coming from the verb “emprender” which means to ignite or start something. For many generations, entrepreneurs in Latin America have started their own businesses for d4e051b46efa7280a957f01bfb5aeecf1.jpgiverse reasons including, as the management thinker Peter Drucker pointed out, a response to a social problem disguised as a business opportunity. A glimpse at the “Rey del Banano” (King of the Banana) rags-to-riches story in Ecuador supports Drucker’s claim; born into poverty, Luis Noboa Naranjo launched the successful Bonita Banana Company after piecing together profits made from sales of newspapers and household items. Noboa later established the Noboa business group; at one time, his business venture was credited for generating 5% of the Ecuador´s Gross Domestic Product.

Nevertheless, an entrepreneurial venture or entrepreneurial economy does not an entrepreneurial society make. It requires something more: not just “igniting” entrepreneurial fires but having the mindset to ensure that the entrepreneurial flame will not die. An entrepreneurial society requires a “growth mindset” – an idea developed over a decade ago by Stanford University psychologist Carol Dweck to explain achievement and success. Dweck compares and contrasts “fixed mindsets” and “growth mindsets”; she concludes that if we focus on learning and improvement as a consistent goal, environment, and the country we are born in, economic realities, as well as adversity or failure, can become powerful impetuses to ensure we grow and overcome pre-conceived limitations to achieving success.

Harkening to the 2016 Olympics currently underway in Rio de Janeiro, an athlete with a “growth mindset” pushes through in order to grow as an individual, an athlete and a citizen representing a nation. They see their failures as a call to further action and continuous training; in other words as a “not yet” rather than a “not ever.” There are clear parallels in athletic training to Drucker’s own words describing an entrepreneurial society where “innovation and entrepreneurship are normal, steady, and continuous.”

For an entrepreneurial society to prosper, members need growth mindsets to consistently keep the entrepreneurial flame alive and support those willing to push the limits of an “employee” society in order to find solutions to the world’s problems. Peter Drucker saw entrepreneurship and entrepreneurial culture as the lifeblood of society (Innovation and Entrepreneurship: 1985). He heralded a new era that would see a shift from an employee society towards an entrepreneurial society. In Latin America, where I live and work, “emprendedores” are igniting entrepreneurial fires with creativity, innovation and problem solving skills; yet the region – like many other major trading areas in the world – continues to call for a growth mindset from members of society that would lead us through economic and political instability and clear past the “same-old” power dynamics.

Global discussions around “entrepreneurial society” must be inclusive with ideas from developing as well as developed countries, public and private counterparts, local and international companies, thinkers and managers, students and teachers, entrepreneurs and intrapreneurs, CEOs and investors. If an entrepreneurial society is to flourish, we need a “mindset” of constant learning and growth supported by connections across real and psychological boundaries. In every corner of the globe, adopting a growth mindset together with learnings from larger discussions of entrepreneurship and transformation, will help us move to a society of creators, co-creators and organizations that respond ethically, empathetically and effectively to the societies we serve.

-EMC

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Savvy Saturday August 6th, 2016

The worst place to develop a new business model is from within your existing business model. – Clayton Christensen

www.pinterest.com

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Visual Business Inspiration

Notebook, camera and a sense of curiosity…the best tools for discovering insights for your next product, service or business endeavor. – EMC

 

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Savvy Sunday July 10, 2016

“People who don’t take risks generally make about two big mistakes a year. People who do take risks generally make about two big mistakes a year.” – Peter Drucker

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Fear, Failure and Duffers

“Better dead than duffers,” my father used to say as we set off for the latest family adventure: a two hour sail on a stormy afternoon on Canada’s West Coast of Canada or a train trip across India. The expression, an interpretation of lines from Arthur Ransome’s Swallows and Amazons, has stayed with me many years – and many miles – later.*

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Last year I studied the cult of failure as part of my consulting practice. How failure is idealized in start-up culture and how it impacts entrepreneurs and society in general. On the positive side, when there is no fear of failure, there tends to be more risk and more openness to trying something new. “Innovation” is attributed to facing failure and questioning paradigms to make something work.

What is interesting in all my research on the topic is that “innovation” happens not because there is no fear of failure but rather, innovation occurs because there is no fear. No fear. Period.

Speaking in the positive, freedom to experiment, make unexpected connections between things, take risks, spend money (or not look to make money with an invention), be bold, be courageous is what characterizes entrepreneurs. Fear is the “thing” that entrepreneurship culture (and every entrepreneur) takes on with each new venture, product, service or innovation.

So when pondering failure, it is not fear of failure that stops me from doing something but fear itself. Fear makes us “duffers” and therefore, abstractly speaking, it might be better to be dead (dead to innovation, experimentation, life, love, etc) than to live a life unlived.

Stay tuned for more info on entrepreneurship and strategy – two seemingly opposite concepts that are a powerful duo present in many high growth companies.

  • EMC

 

*The exact phrase is: “better drowned than duffers. If not duffers won’t drown.” Arthur Ransome: Swallows and Amazons.

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New Year, New Day

It’s 6:45 a.m. and I am in the office. There is a cool calm in the morning before the rush of activity. There is a peace that comes with knowing the whole day is before you and what happened yesterday, happened yesterday.

A similar feeling is enjoyed at the beginning of a new year – a sense of new beginnings, new dreams, new projects combined with the wisdom of yesteryear.

This blog – since it was conceived over 3 years ago – was a platform for my consulting business, Hipona Consulting. It has turned into a place to express business endeavors, learnings from key projects and weekly inspiration in the form of quotes and photography.

This blog will continue. It may take a new form – as a new year takes form and the morning sun burns on the horizon – but it will continue.

A wise woman – my sister Dr. Leah Clark – told me some time ago that consistency is key in blogging. I cannot agree more! Therefore, weekly posts will continue as I share the journey of Hipona Consulting and the challenges (and opportunities!) that come with doing business in Latin America, a women exploring leadership excellence (in the form of corporate governance and organizational leaders) and being an entrepreneur in an unforgiving world.

A new day. A new year. Happy 2016. May the writing and exploration begin!

EMC

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Entrepreneurship – the bug that keeps on biting

I started my own business at the tender age of 13. I hired my first employee at the age of 15. I have gone through formal and informal business training. I have taken entrepreneurship courses, spoken to entrepreneurs, competed in business plan competitions and seen all my life’s savings disappear in a matter of a few years.

Entrepreneurship is difficult. I would welcome the opportunity to speak to anyone who tells you differently. Even entrepreneurs who have endless capital to burn still face uncertainty and daily challenges. Owning your own business is an endless challenge, an endless opportunity to improve yourself as well as those around you, and an endless journey that is not guaranteed to end successfully. For entrepreneurs, business is them and they are the business.

I mention that entrepreneurship is the bug that keeps on biting. From the many articles and books on the subject one would concur that entrepreneurship is not an attractive affair. Failure rates are high. Burn out rates are too. Families are torn apart. Yet what is it about entrepreneurship that keep the entrepreneur going despite all adversity?

The answer is complex. Perhaps a common theme in entrepreneurship is the opportunity to make a difference, the opportunity to create a destiny, the opportunity to place your mark upon the world.

Entrepreneurship is a beautiful expression of what it means to be human and to be “creative”. As babies we are born wanting to create. Some people express this through art others hide their impulses in order to fit into stereotypes or expectations that people have of them around them. Entrepreneurship is creation. And I guess that is why we want the bug to keep on biting…so we can continue to have the opportunity to create and make an impact on the world!

EMC

 

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