Everyone Needs to Think Like an Entrepreneur!

The more I write and speak about entrepreneurship the more I realize how mainstream the topic has become. Whether you know it or not you and everyone else has to become more entrepreneurial in their thinking. We live in a fast paced global society that requires all of us to be resilient and adaptable. Those are the critical attributes that make us entrepreneurial. Entrepreneurship applies to far more than business and business issues. We are talking about a mindset not a skillset. A mindset focused on solving problems. A mindset grounded in determination to make things happen. It’s about being proactive not reactive. Most important it is about self-determination!

In an extremely competitive global world, in the era of Big Data, we can never know enough and we will never understand much of what we know. We cannot have the answers but the answers will always be there for us to find. There is no time for prison thinking. If you think like an entrepreneur you will find the way and that’s just as true about your personal life as it is about your career. As for that part of your life, in the face of declining job stability and the entrenchment of wealth disparity, the most important skill you can learn today is the ability to create and manage your career. There is a very good reason that every college, every university and now even secondary schools are offering courses in entrepreneurship.

When I wrote my first book Everyday Entrepreneur I had the ambitious goal of doing for entrepreneurship what David Chilton did for financial planning with The Wealthy Barber – to write a book that applied to all of us in a form that everyone could read understand and enjoy. The jury is still out but the endorsements received are encouraging that I have come close. The second book in my entrepreneurial series Family Entrepreneur comes out later this month. Dealing with the dichotomy of family and business brings entrepreneurial thinking into both settings. Remember family was the first “crowd” and still offers funding and nurturing for many entrepreneurs in a startup situation.

I am extremely grateful for the opportunity to mentor and encourage would be entrepreneurs both in their business and private lives. It is really all about taking charge of your life in the midst of a roller coaster world. You have to learn to capitalize and enjoy the highs while defending against the lows. Entrepreneurial thinking is the tool to do it.

Fred Dawkins is a serial entrepreneur who is best known as one of the co-founders of the olde Hide House in Acton Ontario to which “it’s worth the drive”. He is a partner in The Creative Destruction Lab at the Rotman School of Management at the University of Toronto and is currently writing a series of books entitled The Entrepreneurial Edge published by Dundurn Press, which focuses on encouraging and preparing would be entrepreneurs for challenges in their careers and in their private lives.

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  • Entrepreneurship: Disruption in the face of the “Era of Big”

    We are entering an increasing – no pun intended- age where size is dominant. Big Business, Big Government, Big Unions, Big Data and most damning of all “Too Big To Fail”. We have sacrificed the principles of micro economics such as the optimum size of the firm and the law of diminishing returns to build dominant global enterprises- behemoths more closely related to their bureaucratic enemy, government, than they will ever admit. These entities lumber around the world chasing low costs and cheap labour in the name of maximizing profits. If they fail they plead their case in a public forum that they are too significant to let die. They are pyramids paying outrageous rewards to those that scale to the top.

    What are the implications for individualism. Job stability no longer exists. Big data is generating information far beyond are ability to comprehend. The rate of change is staggering. 24/7 hyper-connectivity has us all chasing our tails, Are we headed for Big Brother? Globalization is both an opportunity and a threat. Small business is vulnerable to competitors around the world but at a time when things are moving at lightening speed entrepreneurs are flexible and adaptable giving them the opportunity to find a niche and move into it before others. The most important skill to learn in this new era is the ability to create your own job. Without it the threat is the loss of upward mobility for many and perhaps economic independence for most. The divergence of wealth between the rich and the poor and the eroding middle class are forewarnings. Entrepreneurship is critical for the individual.

    But it is also critical for these huge entities. Without the impact of disruption based on challenges to the status quo , sometimes referred to as ‘intrapreneurship’, governments and huge businesses will never come close to producing optimum results and solutions. The current conundrum in Washington shows a government that is not only dysfunctional but is mired in a malaise of mediocrity. There are no disruptors coming forward to challenge the party lines and find compromise. Optimum decisions are a pipedream in this environment.

    Entrepreneurs make things happen. They are problem solvers. The greater the problem the greater the reward. Regardless we need them at all levels. It is a skill that some are born with but many can learn. We are headed for a tsunami of Big Data that can swamp us. Machines will literally know more than any individual. It’s a scenario that science fiction writers have been portraying for generations. Individual success will be tied to entrepreneurial skills and attitude. Entrepreneurship has never been more important. We live in interesting times.

  • Entrepreneurship: The Catalyst that puts all other resources to work

    We have been in uncharted economic territory since well before we hit the wall in 2008. While we’re treading water reasonably well we are not finding the corrections that must follow every major downturn. Maybe it would help if we moved passed the Keynes vs. Friedman debate that still dominates economic theory.

    Keynes died in 1946. We are starving for new economic thought to act as the driving force for new and appropriate economic policy. What other discipline has produced such a lack of innovation in the past seventy years? The question begs asking: with the onset of econometrics in the 60s and 70s did we confine our economists to conduct statistical analysis and prepare projections? Even In those areas, economics is a behavioural science so negative projections are almost always softened so as not to become self fulfilling.

    Regardless in today’s fast paced global economy we need new theory and very different action plans. We need to revamp our organizational structures to incorporate greater resilience and adaptability. There is a pressing need to redefine capitalism or at least to reel it in so that the strong trend to increase the rewards for capital while reducing the rewards to labour don’t wreak social disaster . Frankly too Big to Fail is simply Too Big! Large corporations are truly multinational and chase profits above all else. Just look at the reward systems of the largest corporations. These same corporations are hoarding cash because they cannot move fast enough to build from the bottom up. The have to grow through acquisition buying up successful startups. In that sense entrepreneurs offer a lifeline for Big Business which also gains much needed flexibility by contracting out to independents. We have abandoned fundamental microeconomic theories like the Law of Diminishing Returns and the Optimum Size of the Firm, lost in a culture of control enhanced by market dominance founded upon effective branding.

    All of this points to a much greater emphasis on entrepreneurial thinking and entrepreneurs as our economic saviours. It will be entrepreneurs who invest locally who will solve many structural issues. Entrepreneurship has become the economic wonder drug of the 21st century. For individuals this is the key to their economic well being and any hope of upward mobility. In our modern world dominated by globalization, technology and inherent rapid change enhanced by Big Data, we do need to establish new sound economic principles rather than continuing to make it up as we go.

  • Book Launch for Everyday Entrepreneur – Saturday December 20th

     

     

    Evite pngI’m having a book launch this Saturday December 20th at The Book Shelf on Quebec Street in Guelph. Hope to see you and offer you a piece of cake in celebration.

    The books are full of common sense self help information and make great gifts for anyone from teenagers to tech innovators to seniors who are reluctantly continuing their careers.

    Entrepreneurial thinking is a valuable life tool not just a means to a business

  • What aspiring entrepreneurs can learn from the Alberta election

    Yesterday’s Alberta election produced a dramatic change but more than anything else it resulted from change and the inability of the PC party in Alberta to manage change.  One of the reasons so many experts maintain that failure is an integral part of succeeding as an entrepreneur is because we do learn from failure. We have to learn in order to recover so we take the time to analyze what we did wrong in order to avoid repeating the same mistake. Success masks our faults. It is rare for most of us to understand our weaknesses when we are getting results. Unfortunately for the electorate for a political party getting results means maintaining power as opposed to effective performance. When things are going well as they did for Alberta under the boom of the oil industry it was easy for politicians to look good and to develop some bad management practices. When a serious problem developed with falling oil revenues there was a huge need to adjust. We will never know whether the proposed budget was appropriate or not but remember when you have to provide customers, suppliers or employees with a bitter pill for the longer run good don’t turn around and immediately give them control to vote the new policy in or not.

    My mantra for the individual in today’s dynamic world is that the number one skill you can learn is the ability to create and manage your own career, with managing being the key to sustain meaningful success. We face an unprecedented rate of change. Every one of us must have the ability to recreate ourselves in the face of this one certainty: change is a constant, by definition the only thing we can count on besides death and taxes. Despite the perception of many that entrepreneurship requires risk this need not mean reckless risk but instead should refer to managed risk. The PCs had the time and needed it to prove that their budget could work in an economy under duress rather than risking a quick election on the outside chance they would get another majority giving them even more time. So among the small business lessons from yesterday’s election results are the following:

    1. Nothing lasts forever including good times in the oil industry

    2. Sustained success requires a relentless commitment to adapt even after a long track record of doing so.

    3. Managed risk produces results while reckless risk invites failure

    4. Knowing your weaknesses in good times and bad will sustain your success

    5. A change in leadership does not guarantee renewal of an organization

    I’ m sure there are more.

    Fred Dawkins is a serial entrepreneur and the author of a series entitled The Entrepreneurial Edge. The third book in that series Ageless Entrepreneur is available from booksellers across North America on May 9th 2015

     

     

     

     

  • Why Entrepreneurship is critical on a microeconomic level

    Not long ago countries like Japan and Korea focused on a corporate policy based on loyalty. The concept was that employees stayed with a company for their working life. Companies nurtured this loyalty as a solid foundation to build on. North American companies flirted with this concept looking for ways to understand and replicate the quality assurance programs coming out of their Asian competitors. Enter globalization, the technology revolution and a rate of change that may be unsustainable for humans. In a blink job stability vanished.

    Large companies by nature are slower to react than their smaller compatriots but large scale permanent lay-offs have become a fixture of the corporate world. International companies are making record profits pursuing low labour costs around the world while paying those at the top record bonuses. Add the increasing wealth gap and a shrinking middle class in the developed world to the equation and you reveal a growing underpaid work force plagued by uncertainty.

    The result is that the most important skill you can develop today is the ability to create and manage your own career. The key to upward mobility is becoming entrepreneurial at any level. Technology is the greatest ally of the would be entrepreneur. It is less expensive to start a business today. Social networking provides an instant support group. Crowdfunding offers a potential source of funds. New careers are being created every year while traditional roles disappear. Entrepreneurs are the problem solvers that create these new opportunities.

    The best news: after you’ve done this once; after you made the initial leap of faith and become an entrepreneur, you can and will repeat the process again and again. Change is the one constant we can expect in our lives going forward. Change is the antithesis of stability. Seniors are doing startups out of necessity. Youth are doing startups to get into the work force. Mompreneurs are dealing with the difficulty of re-entering the workforce by creating new careers that encompass their lifestyle needs.Every startup has a multiplier effect through job creation. So the answer for a secure future no longer lies with embracing a career with one strong entity. A secure future can best be secured through the ability to adapt and recreate yourself according to new circumstances. The essence of entrepreneurship is adaptability and resilience – the ability and determination to face new circumstances. We are entering a new era of entrepreneurship.

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