Here’s a quiz that everyone needs to take.

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.

Most of what the average person reads about entrepreneurship sustains the mystique. We revere the outstanding successes achieved by extreme entrepreneurs — everyone from Edison to Jobs. Yet, reading about these giants colors our perception of entrepreneurship. We admire their achievements but consider them beyond reach. Their stories often sustain misleading myths about entrepreneurship that keep capable people from embracing an entrepreneurial career. People begin to believe that to travel down the entrepreneurial path, a person must be born with a particular mindset, take reckless risks to achieve high rewards, work all day, everyday and must fail to succeed. Don’t let these misconceptions scare you off.

Entrepreneurship can be taught, it should be taught and it is being taught.

After 50 years of a flawed model focused on churning out executives for large corporations, colleges and universities have turned their attention to promoting and encouraging entrepreneurship. These schools are focusing on teaching the entrepreneurial lifestyle; one focused on both the mindset and the skillset required to become an entrepreneur.

Entrepreneurship is not about the risk you take, but the results that you achieve

It’s a startling paradox. Too many good opportunities die prematurely because so many potential entrepreneurs are risk averse. At the same time businesses are failing because of absurd risks fostered by the idea that being an entrepreneur is nothing more than a gamble. Entrepreneurs succeed through determination not by taking unwarranted risk. Managing risk as you embrace it is critical. Not all ideas are opportunities and every opportunity is not viable. Managed risk is inherent in the lean startup focused on getting valuable feedback from potential end users before jumping into full scale operation.

Entrepreneurs need to find work/life balance and will have regrets if they don’t.

Having a strong work ethic and being willing to put in extended days when required is critical. During your startup phase and later when you encounter bumps in the road you will work long hours with great satisfaction. But as things progress you need to find balance by building your team, easing control and empowering your staff. You must recharge your batteries. Never forget: You are your most valuable human resource. Without balance your performance will suffer, your business will be restrained and your personal life will be sacrificed unnecessarily.

Failure is not essential. Entrepreneurs manage their risk and avoid failure.

Describing failure as an essential part of success is rationalization but many entrepreneurs are motivated by the fear of failure more than the rewards of success. Failure only happens when we either quit or are forced to give up. Mistakes are part of the learning curve. We do learn from them because we take the time to analyze them. Success is elating and it masks our faults. Continually improve by understanding what you do right and correcting what you do wrong in good times and in bad. If you do experience failure you can and will bounce back, many have.

Being an entrepreneur is within your reach.

You can become a problem solver who is determined to find a way to make things happen? Understand: we can’t all be innovators but for every innovation there will be thousands of entrepreneurs finding applications that solve everyday problems producing jobs and independence. Being first is over rated. Doing things better and different often brings greater opportunity

Believe in your own ability.

You can establish the mindset of an entrepreneur by eliminating the word ‘can’t’ from your vocabulary. You can approach problems by skipping right over the question “if” it can be solved and skip directly to the question “how” it will be solved. You can find opportunity and you can analyze to make sure that opportunity is viable. All of this can be done within the context of the traditional economy and you don’t have to be a tech genius to do it. Technology is not a threat but offers a great tool for you to use. We are entering a new era of entrepreneurship, which means it is an option for almost anyone. If you can’t carry the full weight of your own business bring entrepreneurial thinking to managing your career and performing your role as an employee. You won’t regret it.

The most important skill you can learn today is the ability to create and manage your own career. We live in a world where globalization and technology combine to guarantee that the one constant we face is rapid change. There is no room for prison thinking as the status quo must constantly be challenged to ensure that we stay competitive. The most important characteristics for individuals, organizations and countries alike are resilience and adaptability. These are the key characteristics of entrepreneurs.
Unfortunately the prevailing stereotypes of entrepreneurs discourage many people from embracing the idea. Most of our perceptions about entrepreneurship stem from two specific types:
First are the misfits; those who either can’t fit in or don’t choose to embrace the norm. These are the rebels characterized as risk takers or gamblers. They convey the image of success achieved through reckless risk, initial failures and inherent natural instincts that allow them to succeed in areas that most won’t try.
The second high profile type is the tech entrepreneur immersed in the world of venture capital, an area typified by high risk, a high rate of failure and exceptional rewards for success. This is sphere that gives us most of the buzz words attributed to entrepreneurship such as accelerators, incubators and burn rate. The latter tells you when you will run out of funds so identifies the point at which you need and hope to have an investor. It’s a little like bungee jumping, hoping that someone will come along and tie your rope securely before you hit the ground but you leap anyway.
Together these two stereotypes re-enforce the perception that above all else entrepreneurs are risk takers whose success is tempered by failure. As a result of such typecasting many good projects never see the light of day while others fail by taking risks that can’t be justified.
These are but two forms of a wide range of entrepreneurial types but unfortunately they get most of the attention. Regardless they are far removed from the everyday entrepreneurs who provide the engine that drives the economy and the stimulus that creates jobs locally when big business is preoccupied chasing profits around the globe. In the broader circle the critical terms are practical; words like bootstrapping and the lean startup. Words grounded in reality and pragmatism. Hope is not the prevailing sentiment. Being proactive is critical. These mainstream entrepreneurs certainly take risks. The risk and reward dichotomy are joined at the hip. No doubt the greater the risk the greater the reward and the higher the chance of failure. Most successful entrepreneurs know how to manage their risk. Failure is far from a prerequisite. Learn from it if you must but avoid it if you can through anticipation, resilience and adaptability. Entrepreneurs are not defined by the risk that they take but rather by the results that they achieve. They are problem solvers who make things happen.
So what does it take to become an everyday entrepreneur? Is this a skill that can be learned or does it just come naturally? Do you have to work 24/7 and sacrifice your personal life to be successful? Is it all about the mystique or is there a formula to follow? Since this is a lifestyle about embracing change and becoming adaptable a formula is hardly appropriate. The key starting point is the philosophy. Becoming an entrepreneur is far more about the mindset than the skillset. Entrepreneurship is entirely about finding a way not knowing the way. In a modern world where new data is being generated at an alarming rate how much of what we know do we actually understand? Entrepreneurs never become preoccupied with whether they can accomplish something but spend their time and effort looking for solutions. The question ‘if’ doesn’t come up. Instead they ignore it moving immediately to ‘how’. They don’t have all the answers but they are dogged in their determination to solve the issue at hand. This is certainly a belief and an approach that can be taught and quite effectively. Entrepreneurship can be taught, it should be taught and it is starting to be taught. Colleges and Universities across the country are rushing to find the best ways to spread the word.
Does this mentality mean a 24/7 workaholic lifestyle? That’s a very personal choice but a bad one if you choose it. You may well work long hours during your startup phase when you are the generalist wearing every possible hat and passing through a learning curve that will prepare you for the next phase. You will also work those same long hours when you hit a bump in the road, a major threat and/or opportunity that needs your full attention. However, if you continue to do this as your regular routine, once you complete the startup stage, you are making mistakes that will limit both your life and your business. Either you are not building your team properly or you have become a control freak unable to delegate. In either case you and your business will suffer. In the end you will have regrets. Finding balance, admittedly a subjective decision is critical. Remember the most important human resource in your company is you. So find ways to take vacation; pay yourself fairly, attend courses and travel. Don’t let your business outgrow you.
In addition to determination the other essential ingredient for everyday entrepreneurs is opportunity. All ideas are not opportunities and every opportunity is not viable. Having ideas makes you a dreamer; converting them into reality makes you into an entrepreneur. This does not mean you have to be an innovator. For every innovation there are thousands of entrepreneurs who find applications in the process solving a wide range of problems in the business world. Experience helps you identify opportunity. Empathy can help because it makes you sensitive to problems that exist for others. Most opportunities do start with problems; the bigger the problem the higher the reward for solving it. That’s another aspect of the entrepreneurial mindset – every problem is an opportunity. You do have to be vigilant. All opportunities are not created equally but you have to make the best of what is available. Waiting for just the right one is like waiting for the winning lottery ticket. Often people just don’t see the possibilities but they are always some there if you are looking.
There are many other elements of being an everyday entrepreneur but determination and opportunity constitute the foundation. Most important don’t undervalue what you do. We need to value entrepreneurship at all levels, not just the superheroes like Steve Jobs. If running a business is not for you, work on that entrepreneurial mindset. Job stability is fleeting so manage the business of your career by making good decisions and taking jobs that build your personal brand. Every business today is placing new value on disruptors. These are people who challenge the status quo. Be entrepreneurial in your thinking, you won’t be sorry

One of the premises in the introduction of my new book Everyday Entrepreneur is that I wrote it to encourage entrepreneurs of every stripe across the spectrum. Since the high tech entrepreneurs have been getting the lion’s share of the attention and encouragement from the public and investors alike, they were far from my target market. Tech innovation was the creator of venture capital, setting a precedent for high rates of return that can’t be sustained in other areas. Virtually all other types of entrepreneurs have to struggle for funding because they simply don’t meet the criteria for venture capital. Those that have attracted VC funds often flounder to the detriment of the entrepreneur because the VC gets an agreed upon return which can sap a moderately successful business.

The Creative Destructive Lab at the Rotman School of Management at the University of Toronto (my alma mater) is focused on extreme success with a strong emphasis on taking tech developments from gestation to dynamic success on the international stage. On the surface this seems to be exactly the area that I previously suggested didn’t need my help or encouragement as people are lined up to help in almost every area to develop these type of businesses. So why did I choose to support these high achievers by becoming a partner of the CD Lab? Well here are my reasons:

1. I strongly support that we need to keep our brightest and best talent here in Canada – we are in the midst of a world wide competition to attract talent – success starts with keeping our own
2. Success at this level sets a terrific example for anyone in this country that wants to become an entrepreneur and start a business at any level
3. Both of these factors are critical for us to build a culture of entrepreneurial success to maintain a strong economy and bring in the new talent that every country is striving to attract.
4. If in the process I can influence some of the brilliant MBAs we are graduating to circumvent the conventional and lucrative path to becoming a business executive in favour of applying their abilities to becoming entrepreneurs who solve problems, make things happen, create jobs and provide the drive that leads to success, then my time and effort will have been well spent.
5. The very talented people who apply to the Lab are brilliant in their innovation but still need nurturing on the personal issues involved in becoming an entrepreneur, the fundamental business issues they will encounter and the overall philosophy inherent in being an entrepreneur.

My book will out at the end of November. In the meantime I am enjoying my involvement with the Lab targeting success in a global economy which I firmly believe will centre upon a New Age of 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

Our economy can best be characterized as fast and furious. The combination of globalization and the technological revolution ensure that the one constant in our economic lives is change. This is an environment
well suited for entrepreneurs who by definition are flexible, adaptable and resilient, unlike big business which has become entrenched and slow to adapt. Big entities grow through acquisition increasingly depending on entrepreneurial enterprise to produce start-ups with potential to feed their growth needs.

Small business entrepreneurs need to get in on the action. Most think that global trade opportunities accrue to the large corporations that can deal in the volumes required by manufacturing giants like China. However there are large numbers of likeminded entrepreneurs in countries like India, Malaysia and Viet Nam that want to network and connect with entrepreneurs here in North America. Entrepreneurship starts with opportunity and there are many around the world that big business will miss or ignore. Oh they will capitalize on the obvious ones like cheap labour in certain countries but it will take energy and determination common to entrepreneurs who disrupt and challenge the status quo to find the myriad of less obvious opportunities.

‘Everyday Entrepreneur’ encourages entrepreneurs to strike out and look for these relationships. They are there to be had. Anecdotes outline experiences in dealing off shore and give insight into different economies and some of the advantages on which entrepreneurs can capitalize.

Praise for Everyday Entrepreneur:
“I just finished reading [this] book and enjoyed it immensely. [Fred has] pulled together a wealth of knowledge and advice crucial to the successful entrepreneur in a highly readable fashion. It is a
must-read for aspiring and seasoned entrepreneurs who are facing today’s complex, volatile, and uncertain world. I especially appreciate the emphasis on thinking globally and adapting proactively.
We have seen too many examples of yesterday’s winner relying on old models to their detriment. It isn’t easy … but it is exciting and gratifying to create your own business and work to see it flourish. The summary at the end of the book should be bookmarked on every entrepreneur’s computer.”
— Dr. Sherry Cooper, former executive VP and chief economist for BMO
and author of three books, including The New Retirement: How it Will Change Our Future.