Becoming an Entrepreneur
Becoming an entrepreneur takes more than an MBA. The other night I watched a TV show, where Chef Gordon Ramsey went into a financially troubled restaurant to teach the owner how to turn it around. This has been a popular show for a while and Ramsey did his usual “shtick.” But what captured my interest was the owner/entrepreneur, who was allowing her business to fail, and what becoming an entrepreneur meant to her.
In this case, the owner had an MBA from a prestigious business school, and while in school had specialized in entrepreneurship…she was a well-trained entrepreneur—or was she?
Here were the business problems that surfaced during the course of the show:
- This entrepreneur had no previous“experience” running a business. This was her first business.
- She had no “core knowledge” for running a restaurant.
- There was a distinct lack of passion for her chosen business. She said she wanted an existing business so she would not have to “start from scratch,” and this opportunity just showed up.
- She exhibited no leadership, nor control, over her staff. The cooks did whatever they felt like doing, and the owner was mostly unaware.
- This business owner spent little time on the “front line” with her people—she was oblivious to what actually went on in the kitchen. The “front line” was in disarray and she didn’t know it.
- She could not test the products she was serving customers, because she was a vegetarian, and this was not a vegetarian restaurant.
- She was also dating one of her employees, which, in a small business, totally precludes any sense of leadership within the business.
- This entrepreneur was totally out of touch with her customers. The food was poor, and she responded to their immediate complaints with apologies, but never tried to fix the long-term problem.
- No improvements were ever made to the customer’s “experience” during the five years this person owned the business. The menu stayed the same, as did the décor, and dishes.
- The computer system for transmitting food orders to the kitchen was antiquated and worn out.
It was obvious that during her MBA studies, this person was not taught much about becoming an entrepreneur and actually operating a Business. Of course, Gordon Ramsey “fixed” everything and turned the business around—but for how long? It would be interesting to see a follow-up show to see just how much this person learned from Ramsey about becoming an entrepreneur.
Watch for my next post where I will give some tips on how to become an entrepreneur.
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Small Business for Real
If you want to see small business at its finest—check out this video.
(email subscribers, view on my blog)
Notice the passions this business owner has—he loves his business, he loves his customers, he supports other small businesses, he tries to stay away from unhealthy products, he rejects unhealthy packaging, he is passionate about the environment (and points out the hypocrisy of governmental environmental rules)…and on and on. This entrepreneur could be the poster boy for small business.
How well do you fit this standard?
U.S. Falling Behind in Innovation–Part I
It was bad enough that the U.S. traded its manufacturing might for quick profits by outsourcing outside the country, but now it looks like our knowledge-based economy is faltering under global competition as well.
A report just released by the nonprofit, nonpartisan, public think tank, Information Technology and Innovation Foundation (ITIF) indicates that innovation in the U.S. is rapidly falling behind the rest of the world. The study currently places the U.S. in sixth place in the world, and running at a pace that will place it even lower over the next decade.
There have been many studies made over time, as well as more recently, that place the U.S. as the world leader in innovation. However, those studies have been based on opinions, interviews, and surveys. This report by the ITIF is the first to approach innovation from a scientific perspective, using 16 indicators to study innovation and competitiveness. These indicators fall into six broad categories:
- Human capital
- Innovation capacity
- Entrepreneurship
- IT infrastructure
- Economic policy
- Economic performance
Not only did the ITIF study place the U.S. in sixth place in the world for innovation and competitiveness, but the study also determined that all of the other 39 nations/regions studied have made faster progress toward the new knowledge-based innovation economy in recent years than did the U.S. The study shows that the U.S. has made the least progress of the 40 nations/regions in improvement in international competitiveness and innovation over the last decade. The U.S. is dead last in this category.
This should come as no surprise, since the National Academies published their landmark study, “Rising Above the Gathering Storm,” back in 2005. It warned then that America’s lead in science and technology was “…eroding at a time when many other nations are gathering strength.” It appears their warning has come to pass.
What is happening to the greatest industrial nation in the world? Have we allowed greed and avarice to cloud our minds, so we can’t see beyond the next payday? Are IPO’s more important than innovation? Is shareholder value more important than spending profits and dividends on R&D and innovation? Are our industrial leaders so intent on filling their pockets, they have lost their way? Has our government (under the guise of public interest) regulated the heart out of those companies that could best put the U.S. back in the role of world leader?
The ITIF study presents six things that need to be done by the U.S. (or any nation/region) to improve their innovation and competitiveness. I will present these six things as part II in my next post. Watch for it.
My Book
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