A very well-known and perhaps most accurate definition of entrepreneurship, was formulated by Professor Howard Stevenson at Harvard Business School. According to him, ‘entrepreneurship is the pursuit of opportunity beyond resources controlled’.
This definition was on full display at a recent Start-up Fund Fest, where I had the privilege of playing jury member and moderated some of the sessions. It was impressive to see the variety of ideas that entrepreneurs are pursuing.
Normally, as I share with my co-founder, these start-up events are depressing for both of us because we’re reminded by all the twenty-somethings, that we come from the old-age home of entrepreneurship. Thankfully, at this event, there was consolation in seeing entrepreneurs from all age groups, right from their twenties to their sixties.
As I listened to the entrepreneurs make their pitch, I found a few lessons that we can take back as leaders. How can we reflect that same start-up spirit?
Confidence and humility
Almost every entrepreneur exuded confidence that sprang from their conviction. This was reflected in the funding they asking for, in their ambition to grow dramatically and quickly, their willingness to invest in a new idea for a still emerging market, and in their conviction in investing a significant part of their time and money.
One entrepreneur was asked, “Aren’t you afraid that competition will soon replicate your idea?”. His response was, “It will take them 18 months to get the technology and execution right; by then, I will be the king.” Another set of co-founders, who pitched two ideas, were asked, “Don’t you think you should be focusing on one business instead of spreading yourselves thin over two?” Their confident reply was, “We’ve already started on both, we’re delivering results on both, and if Richard Branson could run over a hundred businesses, why can’t we do two?”
Clearly, without such confidence, no start-up can get off the ground.
Open to being challenged
At the same time, several of the entrepreneurs also displayed humility. They were willing to be challenged. They were willing to see their ideas, and often their own egos, being dissected in public. They were willing to listen. They took on board suggestions to modify their ideas, and improve on them. Some of those who had not been short-listed, chose to travel and still attend the final event, just for the learning!
The start-up spirit needs this combination of conviction and openness. Sometimes, they appear conflicting but in reality, these qualities often complement each other and the leader, her idea and her team, emerge stronger and with better outcomes.
Idea and action
The start-up spirit can often convey an illusion that it is all about having a revolutionary and never-thought-of-before idea. But any entrepreneur will tell you that the idea is often just 10 or 20 per cent of the start-up journey. Execution is what makes the difference. Sometimes, entrepreneurs are very passionate about their idea, but equally naïve about the execution.
One young entrepreneur at the event, who brandished the solution of a ‘20-page-intensively drafted MOU’ to the challenge of an enduring relationship with franchise partners, was reminded by another participant about a rude reality — that an MOU often means nothing — building trust counts, finding the right partners counts, crafting win-win relationships counts. As I’ve mentioned in this column before, one of the most critical combinations a leader needs, is pessimism of the intellect and optimism of the will.
Start-up leaders can often get this in reverse and the consequences can be disastrous. But if they temper their passion for the idea with the hard-nosed reality of execution, then they set up a good platform for success.
Listening process
It was also a great learning experience to see ideas being triggered by real life problems. Solutions for today’s challenges and today’s customers. It was clear that the entrepreneurs had asked the questions customers ask. “Where can I leave my dog so he’s safe and well taken care of when I travel?”, “I hear so much about electro-magnetic-radiation from all the different devices we use. What can I do to protect my family?”, “How can my children fall in love with learning Math?”, “How do I find a doctor I can trust?”
This process of listening is the best seeding ground for ideas that will work. It was also great to see that almost all the entrepreneurs pitching at the event, had done something about acting on their ideas — a prototype, a pilot, a test customer, a beta website. Many of them had even started to build a track record of customers and actual revenue. For the start-up leader, this combination is important — to have great ideas and then get their hands dirty executing them.
Money and meaning
After the event, I had a chance to catch up with an old friend and former colleague who is now an extremely successful entrepreneur. We discussed what motivated entrepreneurs. He shared: “The money success is good, but that’s not what motivates me. It’s the kick of building a great organisation, of solving a big problem, of making a big difference.”
It reminded me of what Brad Bird of Pixar said — that money is just fuel to power the rocket, not the destination. This orientation often differentiates the really successful start-ups from the also-rans. They chase meaning, not the money. When the passion and the meaning is centre-stage, the money often follows.
The closing remarks from the organiser of the Fund Fest made this clear. “Don’t chase the funding; it’s like your shadow. The more you chase it, the more it will run away from you. Chase the difference you want to make, demonstrate that you believe in it and why you and your team can convert it to reality, and then you will find the funding automatically.”
It was refreshing to see several of the start-ups chase meaning through their ideas, their shot at making a difference. From helping poor farmers cultivate a unique variety of chicken as the path out of poverty and changing the quality of the water we drink so it makes a difference to our health, to getting money into the hands of industrial labour so they can aspire to own gadgets and appliances normally outside their reach — it was inspiring.
It was a delight to see the start-up spirit in action — the pursuit of opportunity without regard for current resources. This is the spirit the start-up leader needs to imbibe — to imagine possibilities and then have the courage and resolve to make those possibilities real.