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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  • Why Branding is a threat to the middle class

    In theory as Globalization evolves resources will be allocated in the most efficient way possible ensuring that goods will be produced on the lowest cost basis to the benefit of all. In a perfect global system labour will shift around until the transition is complete and the rewards for labour will equalize around the global network. During the transition while wage rates in higher earning countries are frozen or rise slowly as wage rates in other areas catch up, those living in the higher wage countries will benefit from low cost goods during the transition. All of this takes place without impediments or barriers to free and open competition. Entrepreneurs will drive the progress by ferreting out opportunities across the global system.

    In practice as we continue to embrace such a global system, the rewards to labour in the low wage countries are lagging while much of the benefit of low cost goods are not reaching the consumer. Instead the rich are becoming the super rich while the middle class is facing the reality of returning to an historical norm with relative rewards well below those achieved in the west for the past sixty years during which consumerism has flourished. In an evolving era of Big Data where the status quo is becoming a moving target while character traits such as adaptability and resilience are becoming more critical, the business behemoths of the world are getting richer by controlling markets. Much of this control stems from branding and creating the allusion that branded goods are inherently superior. At the same time effective marketing has mislead us that these behemoths are so critical that they are ‘too Big to Fail’. Branding has effectively created near monopolies effectively providing barriers to entry for aspiring entrepreneurs in the process by limiting their upside and increasing their challenges

    Mammoth organizations operating on ten year plans are not appropriate for our fast paced Global economy. However control over markets allows them to achieve innovation and flexibility through outsourcing and acquisition. Oh these in themselves do create upside for entrepreneurs who can launch a startup and find an eager buyer for their initial success. However the odds against success are greater and fewer of us are likely to get there. It is certainly possible for a limited few to build new brands creating new members of the super rich club. However overall we have abandoned core economic principles such as the Law of Diminishing Returns and the Optimum Size of the firm in favour of uninformed consumerism and market control through brands owned and managed by what are effectively huge bureaucracies. Is there a tipping point ahead? Surely social media and instant communication are a threat to the dominance of brands – OR are they just additional instruments of control?

    Globalization has brought large numbers into the global work force, increasing the supply of labour. Technology through robotics and mechanization is reducing the demand for labour. Together these factors create downward pressure on wage rates. Upward mobility for the individual is in decline. Capital is securing the lion’s share of the rewards. Job stability is one of the status quos that is disappearing. For all of these reasons the individual must become his or her own brand. The most important skill you can learn today is the ability to create and manage your career.

  • Teaching Entrepreneurship

    There has been a rush to embrace entrepreneurship over the past ten years, especially since 2008. Every college, every university now offers courses in a discipline once perceived by the public as reserved for misfits, gamblers and tech high rollers. Of course that’s one of the many myths and misconceptions about entrepreneurship. Those mystical entrepreneurs so far removed from the average life have always been but a small percentage of those who take control over their lives and pursue opportunities at any level

    Another of these misconceptions is that you can only become a true entrepreneur through trial and error gaining experience along the way. You could just as well say that about any group or profession. None of us are totally happy if our lawyer is conducting his first case. How many of us would enjoy the prospect of surgery if we found out that our surgeon was a novice. Of course like any other endeavour we entrepreneurs gain insight and judgement from as Nike says just doing it. However there is something to be said for better preparation through shared experiences. We need far more mentors teaching and sharing ideas with would be entrepreneurs.

    My series The Entrepreneurial Edge is focused on doing that. You see I tell stories with characters that are making important life decisions that centre around being entrepreneurs. Would be entrepreneurs at any age and at any level of education relate well to these stories full of real life anecdotes from a forty five year career as a serial entrepreneur. Having run workshops on the book I find it works well with high school students right up to PHD graduates and from business novices up to people that have been in business for years. If you are an academic teaching or a business coach mentoring, the first book Everyday Entrepreneur will enhance your efforts.

    In a world dominated by rapid change, still dealing with economic uncertainty, where job stability has vanished in the face of multiple jobs over the course of one’s work life, entrepreneurial thinking is critical whether within your own business, working within a large organization or most critical in managing your career. In the face of government gridlock and inefficiency social entrepreneurship is becoming essential for solving societal problems My goal in writing the series is to encourage as many people as possible to consider entrepreneurship and put aside the myths and misconceptions preventing them from making the leap of faith in their ability to solve problems and make things happen. In the process I hope to better prepare them by sharing experiences and potential problems in advance. Most of all I hope to help them understand the philosophy of being an entrepreneur – success is much more about the mindset than the skillset.

    Fred Dawkins is an author and serial entrepreneur, currently writing a series on entrepreneurship for Dundurn Press. He is also a partner at the Creative Destruction Lab at the Rotman School of Management at the University of Toronto

  • 10+ Reasons Why We are on the Doorstep of “Brave New World

    In one of my favourite and most thought provoking novels, Aldous Huxley used the future (2540 AD) as the setting and  developed characters in his science fiction novel to express the fear of losing individual identity in the fast-paced world of that future. Unlike Orwell who offered a pushback to communism, Huxley focused more on technology and the ultimate impact of continuing the fast pace evolving out of the Industrial Revolution. So is that future almost upon us? Here are some of the key elements of Huxley’s Brave New World:

    Abolition of natural reproduction – Children are educated via appropriate subconscious messages to mold the child’s self-image appropriate to their caste.- Discouragement of critical thinking – Discouragement of individual action and initiative – An abundance of material goods – (presumably because of advanced technology) conditions of work are not onerous – Citizens are conditioned to promote consumption. People enjoy perfect health and youthfulness until death at age 60. The World State is a benevolent dictatorship headed by ten World Controllers which has established a stable global society where the population is permanently limited. The basis of that stability is the conditioning of citizens to accept their station in life.

    As a serial entrepreneur who values individualism driven by hope and accomplishment as essential to the human condition the weight of logic tells me that we are all too close to Huxley’s world and long before 2540. Here are more than enough reasons to be concerned. All of them relate to two dominant trends – rapid change and  globalization.

    1. The Era of Big Data is here – too much to know and digest

    2. Wealth Disparity – economic rewards are accruing to capital – real wages are stagnant or in decline

    3. Declining upward mobility – the middle class is in decline trending towards historical norms more limited chances for improvement – Huxley’s caste system?

    4. Precarious employment – job stability is simply disappearing — those that don’t take control over their careers will flounder

    5. Machine Learning- we are about to handle even more control of our research and knowledge creation to machines. Artificial Intelligence is the next big thing.

    6. Cloning – the science exists – the implications are many

    7. Stem cell development – we can already grow new organs  – test tube babies are there for the taking. The key to perfect health may well lie in stem cell research.

    8. World population is out of control –  in Huxley’s world, a problem solved by limiting life

    9. Control of knowledge – with Big Data and Machine Learning will we only know what we are told and will God simply become the internet? Look it up – it must be so?

    10. Surveillance – Snowdon  has shown that  we are being watched – this will only get worse and soon

    11. Corporatism – we don’t live under free market capitalism – large corporations control global markets and reap the profits – we can thank ourselves for embracing branding to facilitate this – Too Big to Fail puts a deadly premium on Big

    12. Multi-nationals – these same corporations driven by profit maximization are pursuing interests that eliminate national interests as they build stronger global foundations for controlling markets. All the time individuals are being encouraged to consume at record rates.

    I’m fairly sure I know what Huxley would think. How about you?

     

     

     

  • Give yourself the gift that keeps on giving

    Times are changing – in fact change is the operative word and it’s the one constant we have in every element of our lives.  Western society has been entrenched in the concept of stability since we entered the Great Depression. As businesses grew larger we embraced a culture of control and systems in order to achieve stability. We valued certainty and pensions for our retirement above self improvement and upward mobility. Oh we still strived for both but within the framework of those organizations that were stable. We came to expect easy entry into the work force and a life long job ending in the golden years of a well funded retirement. A great dream that no generation has achieved. Even the baby boomers received a setback with the recession of 2008 and reduction in their savings at a time when they needed them

    Now we live in an era where the largest organizations can and do fail or falter from GM to RIM we have learned the lesson that the status quo has become a fleeting allusion.

    It’s time to give yourself the gift of entrepreneurial thinking.

    Only you can do it. Abandon prison thinking. Ignore the reasons that prevent you from accomplishing things whether personal or professional. Approach your problems from the mindset of ‘how’ you are going to solve them not ‘if’ you’ll be  able to solve them.

    Entrepreneurial thinking can be applied to every element of your life and it leads to another gift: self-determination

    Frankly this is a must. In your business life the most important skill you can learn in the 21st century is the ability to create and manage your career. Is your personal life any different? If we don’t take control we will limit ourselves to a life of mediocrity with decreasing real wages. limited upward mobility, low satisfaction and increasing frustration

    It’s time to trade in stability for agility!

    The attributes that dictate success today are resilience and adaptability which happen to be the characteristics of entrepreneurs.

    So as you reflect on this holiday season consider giving yourself the gift of an open mind – one that is open to possibilities and determined to find solutions.

    All the best for the holiday season

    Fred Dawkins, Author of Everyday Entrepreneur and the just released Family Entrepreneur

     

     

     

     

     

     

     

     

  • A New Year: Time to Consider Entrepreneurship

    Every New Year is a time for reflection – a time to review the past and a time to predict the future – a time  for assessment and a gateway to change. For many career change is the most important possibility to consider. Job stability is evaporating before our eyes. Inequity in the distribution of wealth in the western world  is returning to historical norms after a century of a growing and healthy middle class. So maybe this really is the time to consider becoming an entrepreneur.

    Entrepreneurship has become a hot topic and it should be. Why? Well here are a few reasons to consider. Globalization is great for consumption, not so wonderful for non-competitive labour in developed countries especially North America. Technology has accelerated the rate of change inherent in globalization making change itself the one constant we can expect in our economic future. Rigidity, structure and the status quo are the antithesis of change. We must constantly engage in a process of creative destruction, tearing down the old to renew with new and different products and approaches. The lifespan of the status quo is already much shorter as the rate of change accelerates. Stability in one’s life will depend on resilience and adaptability.

    The ability to create and manage your own career will be the most important skill you can learn.

    We are well into a New Era of Entrepreneurship. Governments have recognized this and the battle for talent is underway. Universities and Colleges around the world are introducing programs searching for the best ways to define and teach entrepreneurship. Is it economics? Is it business? Is it philosophy? Can it be taught? Must it be experienced? Everyone is searching for the formula to produce disruptors. Why? We need them to help bring about change at every level: To dig into the corners and find all the advantages that exist by opening up the global economy; To dig in the corners and create jobs in the face of comparative disadvantages because they are problem solvers and will invest locally when Big Business will run away; To challenge the status quo to bring about changes in the behemoths we call international corporations and Government. Society needs disruptors so that creates opportunity.

    But that’s not the reason to become one. Here are some personal reasons to take a long hard look at entrepreneurship: Independence; Upward mobility; Redefined security; Joie de vivre; Control and Satisfaction. Let’s face it in a 24/7 global world we are all taking risks and working long hours. Technology has us by the scrotum and is already squeezing. Why not take control of your career?

    Maybe our business schools have been working from a flawed model, focused on turning out executives rather than entrepreneurs. That is changing. Too Big to Fail is really to Big to Succeed. Big Companies rely increasingly on acquisition and outsourcing for their flexibility. Will that be enough?

    So as we approach 2014 there is much to consider. Entrepreneurship does not hold all the answers but it is moving into the forefront. Entrepreneurs are problem solvers at a time when we are generating new problems faster than ever before. Entrepreneurs act as a catalyst to stimulate the economy creating jobs out of chaos at a time when leadership is wallowing in a political quagmire.

    A New Year and a New Era – Definitely much to consider – Happy 2014 to all

     

     

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