Had an interesting discussion on entrepreneurship with my friend Janani who has recently started out on her own. In fact, she and her hubby (& my classmate) Marlee gave up fundoo MBA careers (bank/consult) to start an interesting concept in the education space. We were chatting about start-ups, and what helps/impedes their growth.
An important element of entrepreneurship, in my opinion, is the ability of the visionaries/owners to attract professional managers into what might seem like a 'family' concern. A successful start-up has to eventually morph into a large business/organization - that requires building a good management team. Can the entrepreneur attract, encourage and retain high quality managers who can help scale up the business? Can you share control with other qualified professionals and let them handle key elements of growing the business?
This can become a critical issue if the business requires external funding to scale. Venture capitalists back entrepreneurs and concepts; private equity investors, on the other hand, back business models and management teams. The most successful Indian start-up (in my view), Infosys, made the transition from being an entrepreneurs-led start-up to a professional organization early in its journey. The founders behaved, through the company's history, as "managers" and not "owners". In fact, two of them have even "retired" from the company and let others take on leadership roles. At the same time, they created a company where many of the employees work in an entrepreneurial manner.
How can that happen in large organizations? How can thousands of employees/managers develop the same passion and innovation that entrepreneurs bring to a business? We need leaders/entrepreneurs/investors to create an environment where every manager believes he/she has an equal stake in the success of the venture. And this goes beyond stock options/profit sharing. It is to do with trust, delegation and respect. You have to make each employee feel that they have a say, the right to determine the future of the business as well as a duty to.
I have often been asked by friends, why don't you do something on your own? Perhaps it is a risk thing, but also, maybe because I feel that my "job" lets me do my own thing. Lets me dream big and go after it. How many entrepreneurs let their "employees" determine the direction and pace?
What do you think?
Note: I have no experience of being an "entrepreneur" though I have watched / heard from others. I have advised entrepreneurs and (through my company) invested in entrepreneurial ventures. I would like to hear other perspectives / alternative views.