13 Characteristics

and Skills of
Entrepreneurs
KEY TERMS Specific Expectations
entrepreneur
dot-com company After studying this chapter, you will be able to
aptitude describe the characteristics and skills often associated with
initiative successful entrepreneurs
risk-tolerance
confidence explain how these characteristics and skills can be applied to any
creativity kind of entrepreneurial endeavour
mission statement describe the lives and accomplishments of a variety of Canadian
integrity entrepreneurs

analyze your own entrepreneurial strengths and interests

Entrepreneurs can be in their teens or in their 70s, male or female, formally educated
or self-educated. They come from many countries and backgrounds. But they have
some characteristics and skills in common. Entrepreneurs recognize business oppor-
tunities more quickly than other people. They see potential business opportunities in
problems and are not afraid to take risks, to make decisions, or to work hard. They
are problem-solvers who communicate well and who inspire others to follow their lead.
As you will see in this chapter, you too can become an entrepreneur. Many of the
skills shared by successful entrepreneurs can be learned and developed at home, at
school, at work, and in the community.
BUSINESS
PROFILE
Prokop-OBrien
Jeen OBrien, Stephan Szczesniak, Christina Prokop, and Jeff Lowe are the
partners in Prokop-OBrien. These four, all still in their 20s, are bringing
together their talents and skills to write, perform, and produce jingles for
commercials on radio and television, at Web sites, and in video games.
Jeen, who writes her own music, has been singing with a band since
Jeen OBrien
the age of 15. She has a powerful, rich voice which she has been training
for years. Jeen has appeared on television, had music CDs and videos
made, and has played in clubs wherever there was an opportunity to per-
form and have her music heard.
Stephan started playing the drums when he was 8. He too has played
in bands, and he has toured with country music artists. Stephan went to
the Etobicoke School of the Arts and then on to Humber College. He is
the music arranger. He works with a song to make it feel right, creating
bridges between the verse and the chorus, establishing the tempo and the
colour of the different instruments that will be used. Stephan Szczesniak

Christina began her business career as a model, working in different

locales around the world. By the time she was 20, she decided that her
modelling career was over. She was getting too old. So, she came back
to Canada and joined the film industry. She works with the producers of
commercials. She takes care of the details of a commercial shoot, work-
ing with clients and the creative people who are making the commercials,
coordinating the details of the project and keeping track of the financial
details so that everyone stays on budget.
Jeff has been playing the guitar since he was 10 years old. He and Christina Prokop and
Stephan have performed together with various bands over the years. Jeff Jeff Lowe

also provides music for films. He is the one of the four who most clearly F i g u r e 13-1 Jeen,
combines his artistic gifts with a sound knowledge of business and how it Stephan, Christina, and
works. He knows the people who would hire Prokop-OBrien, and he knows Jeff are launching
how to talk to those people in a convincing manner. Prokop-OBrien, a new
So, how will Prokop-OBrien solve problems for clients and differentiate entrepreneurial enter-
themselves from the competition? They will offer music that will be more prise. Their motto will
creative than the usual commercial music and that will appeal to the large be Art for the sake of
demographic group from teenagers up to 40-year-olds. They are, as they advertising.
say, real musicians, people who love music. Music isnt just a job to them.
Its their passion! Their clients will have that talent and passion working for
them in the commercials created by Prokop-OBrien.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 347

 The group knows that they have a lot to learn and will need a lot of
help as they get started. But they have some strong support systems in
place. Stephans father, Tom Szczesniak, and his partner, Ray Parker, will
help. The two men are musicians who have been writing and producing
music for 35 years for companies like Nelvana. Youve probably heard
Tom and Rays songs in Beetle Juice and Babar films. The two mentors
have the sound equipment as well as the experience, and the four young
entrepreneurs will have access to both as they start out. Stephan points
out that this is a tremendous advantage, because the equipment is far too
expensive for a new company to invest in and the experience would take
years to acquire.
Jeen, Stephan, Christina, and Jeff meet often to work out their busi-
ness plan, to select the music for their demo CD, and to make decisions
together. They are determined to keep their business grounded in the real
world. Jeen, who will be the primary writer, knows this will be a challenge
for her. She says she recognizes that she will need to write to satisfy what
the client wants, rather than "writing from the heart."
The four partners are in the process of putting together their demo
CD. Jeff and Christina have the business connections, so they will take the
demo around to prospective clients. Once they have a couple of clients
and are earning some money, then they will invest in their own equipment.
Theyll still have their mentors, Tom and Ray, to help. The young people
know that the experience of the older artists will be invaluable to them.
As you read this chapter on the roles and characteristics of entre-
preneurs, keep Prokop-OBrien in mind. How do their skills, talents, and
characteristics fit the profile of an entrepreneur? How have they used their
strengths and interests to start their new business venture?

348 MHR UNIT 4 Entrepreneurship

What Is an Entrepreneur?
Entrepreneurs have always been with us. Back when
people were hunters and gatherers, following herds
of animals for food and picking whatever plants they
found, someone thought of doing things differently.
Some ancient entrepreneur decided to plant crops
and raise domestic animals.
An entrepreneur is a person who organizes,
manages, and assumes the risks of starting and oper-
ating an enterprise. Entrepreneurs provide new goods
or services that will meet peoples needs and wants,
or solve their problems. Many entrepreneurs start
businesses to make a profit. Others are motivated by
different goals, such as helping the people in their
communities. This form of entrepreneurship might
involve starting a charitable organization like a food
bank to solve the problem of hunger.
F i g u r e 13-2 Mark
Cullen comes from a family

Why Become an Entrepreneur? of entrepreneurs. He is the

president of Weall and

Some people seem to be born with an entrepreneurial spirit. As chil- Cullen Nurseries Ltd. Marks
dren they figured out how to sell the most chocolate bars for school sister, Susan, runs Cullen
fund-raisers. In high school, they started a window-cleaning business Gardens and Miniature
and hired others to work with them. They seem to be able to solve a Village in Whitby, Ontario.
problem before other people even recognize there is one. They want
independence as they earn an income, and they arent afraid of hard
work or being different. They have the characteristics and skills to run
a successful enterprise.
Leaps in technology have made it easier for young people with talent
and skills to develop ideas and start their own businesses. Teenagers and
20-year-olds have started dot-com companies. A dot-com company
does business on the Internet or helps other companies offer products
or services over the Internet. With minimal investment and a good com-
puter, these young entrepreneurs build successful companies. Not all of
them survive in the long-term, but the trend of younger people taking on
the entrepreneurial challenge has been featured in numerous media sto-
ries in the past five years.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 349

 At the same time, technology has advanced to the point that start-
up business costs, especially those for a home office, are relatively
affordable. Many people who may not have considered starting their
own businesses now think about entrepreneurship.

New Directions
Frequently, a sudden change in circumstances motivates, or even
forces, people to start businesses in order to earn an income that will
provide for their wants and needs.
With the recession that started in 1989 and continued into the early
1990s, many people were laid off. People who thought they had job secu-
rity until retirement were suddenly out of work. Since so many companies
had cut jobs, no one was hiring. Rather than continue to job-search, some
people chose to start their own business.
Many people who have immigrated to Canadasuch as Frank
Stronach of Magna International and Peter Munk of Barrick Gold
Corp.have used their experience and skills, along with their personal
drive and ambition, to start their own very successful business ventures.
Dissatisfaction with current employment can motivate some people to
start their own businesses.
Some groups have found opportunities for
advancement in employment difficult. Women,
for example, have had difficulty in getting pro-
moted to the highest levels of corporate man-
agement, although this is less the case today.
Women still are one of the fastest growing
groups of entrepreneurs. One third of self-
employed Canadians are women.
Sometimes the opportunity to start an
entrepreneurial venture is related to geogra-
phy. For example, Patrick Akpalialuk is the
founder of Northstar Networks in Nunavut.
Northstar manufactures and services computers
F i g u r e 1 3 - 3 In 2000, Patrick Akpalialuk won the in Canadas newest territory. Patrick turned the
Young Entrepreneur Award for Nunavut from the Business challenge of being far from major computer
Development Bank of Canada. As part of his award, Patrick suppliers into a business advantage. He pro-
will have a leading senior business person from Nunavut to vides the people in his community with one-
help him with his business for a year. stop computer shopping and servicing.

350 MHR UNIT 4 Entrepreneurship

Characteristics of Successful
Entrepreneurs
Imagine an entrepreneur who didnt like to take risks. Or consider what
would happen to someone who gets terrific ideas but cant persevere.
Successful entrepreneurs need a variety of characteristics, including risk-
tolerance and perseverance.
Although not every entrepreneur has every one of the following
character traits, most entrepreneurs will have most of these characteris-
tics in common. While youre reading, think about whether you share
some of the same aptitudes and characteristics. "Entrepreneurship embod-
ies risk taking, having the
courage to change, fos-
Aptitude tering creativity and
encouraging excitement
for excellence. All of
Most people have a wide range of aptitudesnatural talents, tenden- these factors can and
cies, or capacities. Entrepreneurs apply their aptitudes to their business should be the driving
ventures. Some aptitudes that could be useful in an entrepreneurial ven- forces in every working
environment, be it govern-
ture are the following: ment, business, or wher-
ArtisticEntrepreneurs can use their artistic talents in many different ever." Catherine Swift,
ways. For example, they may be recording artists, producers of movies President, CEO and Chair,
or television shows, creators of video games, or Web designers. Canadian Federation of
Independent Business
PerceptiveSome people just seem to be more perceptive than the
rest of us when it comes to understanding other peoples intentions,
ideas, or emotions. Perceptive entrepreneurs can define the real
problem that people are having in satisfying their needs and wants.
LogicalOther people are able to apply reason quickly to solve con-
sumer and business problems.
MechanicalPeople with this aptitude can understand how machines
and mechanisms work and how they could be improved.
SpatialPeople with this aptitudefor example architects and interior
designerscan use space in an attractive or economical manner.
PhysicalGreat athletes often have superior physical abilities. They
have strength, endurance, co-ordination, and the ability to excel
at sports.
IntellectualPeople with this aptitude have a desire to seek out
knowledge, to plan ahead, and to come up with original ideas and
combinations of ideas.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 351

 What are your aptitudes and talents? Perhaps you can draw cartoons, ski
Bombardiers mission exceptionally well, or teach ballet to children. These talents just seem to
statement presents the be part of who you are. With practice, hard work, and education, you can
companys vision. take a basic talent and turn it into an entrepreneurial enterprise.
"Bombardier's mission is
to be the leader in all the
markets in which it oper-
ates. This objective will be Vision
achieved through excel-
lence in the fields of aero-
space, rail transportation
Entrepreneurs can visualize their end results or goals. They have a vision
equipment, recreational of their success, and they constantly work toward making it real. They
products, financial serv- make business decisions with this end in mind and dont get sidetracked.
ices and services related Often, they have written our their vision, either formally in a mission
to its products and core
statement, or informally, perhaps in a personal journal. A mission state-
businesses."
ment presents the aims, objectives, and general principles that a com-
pany focuses on. Entrepreneurs refer back to this statement often. The
vision can evolve as the business grows, but remains clear and attainable
to the successful entrepreneur.

R i s k To l e r a n c e
Risk tolerance is the degree to which you can comfortably accept tak-
ing chances. Entrepreneurs need to have a pretty high tolerance of
risks. This doesnt mean that they are gamblers, but they do take cal-
culated risks. For them, the oppor-
tunity of success outweighs the
possibility of failure. And even if
they do fail, entrepreneurs are
likely to try again.
For example, Heather Reisman,
the founder of Indigo Books, Music
& More, has a high risk tolerance.
F i g u r e 13-4 She heads up the merged Chapters
Entrepreneur Heather and Indigo companies in a tough
Reisman turned a small business environment and a fragile
book shop into a flourish- industry. But, then, Heather is not
ing modern bookstore with afraid of tough situations.
an online component and
later bought out Chapters,
a larger chain of stores.

352 MHR UNIT 4 Entrepreneurship

 In 1996, she left her job as president of Cott Corporation, the soft drink
manufacturer, and decided to take the risk of starting her own book-selling
company. She was warned that she couldnt compete against Chapters.
Chapters was the major bookstore in Canada at the time. The risk of taking
on this giant was considerable. However, Heather judged that consumers
wanted something different from their bookstore. And Indigo was differ-
ent, offering coffee and music as well as books in both its physical stores
and its virtual store on the Internet. Heather Reismans risk paid off.

Confidence
Those who have confidence believe in their own abilities. Because they
are sure of themselves, it is easier for others to believe in them. Even if they
fail, they know they will succeed the next time. This is a key characteristic
of entrepreneurs. Their confidence can help them work through setbacks
and sell ideas to potential customers and
investors. Sometimes this can be the con-
fidence to know when to ask for help. A
confident person can say I dont under-
stand or I need help without feeling
embarrassed.

Creativity
Creativity is the ability to create things,
usually in an imaginative way. Artists are
creative. As you saw in the Business
Profile at the start of this chapter, the four
partners of Prokop-OBrien are all cre-
ative artists in their own fields. Whether
the creativity appears as an invention, an
innovation, or as marketing or problem
solving, the successful entrepreneur is an
idea person. Entrepreneurs see oppor-
tunities everywhere. Just walking down F i g u r e 13-5 Sarah McLachlans Lilith Fair took the idea of a rock
the street, they see gaps between needs concert and merged it with a festival. In this photo, Sarah, Eden A.K.A.
and wants. Usually, they have many more and Melanie Doane (from left to right) sing together at the Toronto stop
ideas than they can ever implement. of the 1998 Lilith Fair.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 353

 Sarah McLachlan, for example, used her singing and songwriting along
with her understanding of the music industry, especially the lack of oppor-
tunities for women performers and bands. She created Lilith Fair, which
showcased talented women performers in a unique festival atmosphere.
Lilith Fair success has boosted Sarah McLachlans profile internationally and
expanded her audience.

Perseverance
Have you ever been so determined to succeed at something that you just
kept trying until you got it right? Thats a sign of perseverance.
Creating and running a business is hard work. It often means long
hours, disappointments, and setbacks. Perseverance is the determination
that pushes the entrepreneur to keep going, keep trying. This trait, which
was introduced in Chapter 4 as a key requirement of a successful business,
is necessary for a successful entrepreneur. Often, a new business can take
two or more years to become profitable. A successful entrepreneur is pre-
pared to continue selling his or her ideas through the tough times.

Initiative
When an entrepreneur sees an opportunity, he or she
takes the initiative. Initiative is the readiness and will-
ingness to start a new enterprise. Entrepreneurs are self-
motivated and quite willing to take on this leadership role
and make themselves personally responsible for the suc-
cess or failure of an operation.
For example, at the age of 17, Corey Hill was already
showing initiative. She was the only Aboriginal
personand the only womanin her welding class at the
Guelph, Ont. technical college she attended. She success-
fully learned that trade. Then, after several years as a
Figure 13-6 Miriam Goldberger of welder with the local gas company, she decided that she
Wildflower Farms, whom you met in the wanted to open the first health spa and fitness centre in
Chapter 10 Business Profile displays many of
Ohsweken, near Brantford, Ontario. Her spa, Choosing To
the characteristics of the successful entrepre-
Live Healthy, features a building of her own design which
neur. She has the initiative and perseverance
she built with the help of the local business development
office, her father, and people from her community.
to see her dream through to reality.

354 MHR UNIT 4 Entrepreneurship

 F i g u r e 13-7 Feel
Integrity Good Cars turn antique
Dauphine automobiles into
Integrity is the personal commitment to keep your promises, to do what clean-running electric cars.
you say youre going to do and when you say youre going to do it. But its their commitment to
An entrepreneur with integrity creates confidence in customers and their customers and their
investors. When someone follows through on promises, customers own integrity that makes
keep coming back, and may even tell friends about the business. them so special.
Personal integrity can help entrepreneurs maintain their commitment to
their vision. Offering customers superior workmanship on products
and providing good service may take a little longer, but the entrepre-
neur knows that his or her reputation depends on that high quality.
Entrepreneurs with integrity are likely to be more successful than those
who do not have integrity. Honest producers of goods and services tend
to foster the loyalty of both their customers and their investors.
Feel Good Cars is one example of a business with integrity. The
Canadian company converts Dauphine cars from the 1960s into com-
pletely pollution-free electric cars. In 2000, just as the cars were ready
for production, someone discovered that the batteries used to power
the vehicles were faulty. The faulty batteries could have burst in a front-
end collision, and sprayed hazardous battery acid over the driver and
passengers. Feel Good Cars quickly researched alternatives. The
replacement batteries that the company found were more expensive,
but Feel Good Cars used them because they were safer. Safety was non-
negotiable. And the company didnt even raise the price on its cars.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 355

 Passion
Entrepreneurs are passionate about their ideas, their company, and their
vision. Talk to any entrepreneur for five minutes about her company and
youll hear excitement in her voice. This passion helps entrepreneurs
overcome the long hours, the disappointments, and the various chal-
lenges they will face.
Entrepreneurs love what they do. Often, their ideas arise from within,
from something they love, like a hobby, or invention. As you saw in the
Business Profile on Prokop-OBrien, sometimes a group of people who
have the same passion can join together to form an entrepreneurial enter-
prise. Jeen, Stephan, Christina, and Jeff are using their interest and expe-
rience in their arts of music and film to seize a business opportunity.
Their enthusiasm for their idea keeps them moving forward.
What are you passionate about? A pastime, hobby, or sport? How
could you turn your hobby into a business?

Ch ec k Yo u r U n d e r s t a n d i n g

Knowledge/Understanding
1 In your own words, define entrepreneurship.
2 Create a checklist that briefly defines the characteristics of a successful
entrepreneur.

Thinking/Inquiry
Skills 3 Research a newspaper or magazine article on an entrepreneur. Identify
Appendix and record how many of the entrepreneurial characteristics, from your
researching checklist, that they have.
4 Throughout Exploring Business for the 21st Century, there are many sto-
ries, examples, and profiles of entrepreneursboth in the chapter text and
in the chapter features. Select two of these entrepreneurs and create a
comparison chart to show how they have used their aptitudes successfully
in their businesses.

Communication
Skills 5 Working in small groups, select two characteristics of entrepreneurs and
Appendix develop a brief skit demonstrating those characteristics. Ask your class-
working in groups mates to identify the characteristics that your group is acting out.

356 MHR UNIT 4 Entrepreneurship

 Application
6 Imagine yourself in the position of an entrepreneur struggling to make his
or her idea or business a success. Select a famous entrepreneur like Bill
Gates or Heather Reisman, for example. Write a page from his or her
diary describing the days problems and decisions. Be sure to demon-
strate some entrepreneurial characteristics in your diary entry.

Entrepreneurial Skills
Entrepreneurs need to have a wide variety of skills to run a successful
business, including the skills listed in the Conference Board of Canadas
Key Employability Skills (page 76-77). There are, however, some skills
that are especially important for entrepreneurs: problem-solving, com-
munication, planning, decision-making, and leadership skills.

P ro b l e m - s o l v i n g
All of us have to deal with problems and find solutions to them. The
successful entrepreneur sees opportunities in these problems where
many of the rest of us only see difficulties. Sometimes the best new
ideas come from the need to solve a problem.
Bombardier, as you saw in Chapter 4, was hit hard by the energy
crisis in the 1970s. With gas prices soaring, consumers stopped buying
the companys snowmobiles; they were just too expensive to run. So,
how did a company that built gas-consuming vehicles handle the situ-
ation? Laurent Beaudoin of Bombardier solved the problem in an inno-
vative way by diversifying the companys product line. He started the
change in the companys focus by making vehicles for mass transit.
Once that venture was successful, the company moved on to produc-
ing regional airplanes. Now, Bombardier is one of the worlds top pro-
ducers of subway cars and small and mid-sized jet airplanes.
Ted Rogers of Rogers Communication Inc. is also a problem-solver.
Since 1962, he has recognized business opportunities in the challenges of
changing communication technology. For example, when consumers
interest in the Internet grew, Rogers anticipated a decline in the popular-
ity of television. Rather than fight the new media, he decided to work

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 357

 Connecting Businesss with Cartoon
Lynn Johnston
F i g u r e 13-7 "Most
cartoonists start the way I
did: doodling on anything
as soon as I was able to
hold a pen. . . Ive always
loved to draw. I always
knew I would be a cartoon-
ist, I never expected to
make my LIVING as one!"
(Lynn Johnstone)

In 1972 when Lynn Johnston discovered that Elizabeth Andersen, Johnston's editor at
she was expecting a baby, she left her job as a Universal Press Syndicate, "is that her characters
medical artist at McMaster University. At her and readers are not spared mid-life crises, finan-
doctors request, Lynn drew 80 cartoons spoof- cial hardships or confrontations with prejudice,
ing the experience of being pregnant. The doc- child abuse and death."
tor displayed the cartoons in his office. They Lynn Johnstons For Better or for Worse comics
were a great success and were soon published now appears in over 2000 newspapers in Canada,
in her first book, David, Were Pregnant! the United States and 23 other countries. They are
With a new baby to take care of, Lynn translated into eight languages. Twenty-three
became a freelance artist, working from home. books are currently in print. Along the way, Lynn
She had trained for her career by studying art at Johnston became the first woman recipient of the
the Vancouver School of Art and at Art College, Reuben (the comics worlds Oscar), was named
before coming to live in Ontario. As a freelancer, to the Order of Canada in 1992, and landed a
she designed cereal boxes, billboards, leaflets, Gemini for one of her seven animated television
posters, flyers, and book illustrations. This was a programs.
difficult time, but very educational.
Two more well-received efforts brought
ACTIVITIES
Johnston to the attention of Universal Press
Syndicate, which wrote to her in 1978 and asked if 1 Draw a comic strip or write a short story on
she was interested in doing a daily comic strip. She turning an artistic talent into an entrepreneurial
sent off 20 examples of The Johnstonsa series business.
based on her own familyand later signed a 20- 2 Working with a partner, discuss why Lynn
year contract. Johnstons cartoons are so popular. Relate her pop-
Lynns comic strip is unique because it deals
ularity to meeting consumers needs and wants.
with everyday, down-to-earth situations. "What
sets Lynn's strip apart from the others," says

358 MHR UNIT 4 Entrepreneurship

with it and launched Rogers@Home, a high-speed
Internet provider service that operates through the cable
lines. Rogers already had experience with the method of
transmission laid because of its cable television service.

Communication
No matter how creative, talented, and confident you
are, if you cant communicate to others that your
ideas are worth their consideration, you wont be F i g u r e 13-8 The Rogers @ Home web site shows
successful. Entrepreneurs have to be able to commu- how really multi-media Ted Rogers company is.
nicate clearly with customers, suppliers, banks,
investors, and employees.
Entrepreneurs must answer e-mail, write letters and reports, and super-
vise the design of brochures or Web sites. They must read and review infor-
mation. And, perhaps most importantly, they must listen. After they have
read, observed, talked, viewed, or listened, they must analyze the infor-
mation and their reactions. for material they can apply to their business.
Even if busy entrepreneurs hire others to handle most of these tasks,
they still must communicate with the people they hire to ensure the
work is done properly.
How are your communication skills? Are you able to explain your
ideas in a way that people understand? Are you able to actively listen
to someone elses ideas, asking appropriate questions to make sure you
really know what they mean?

Writing
Writing well is critical to an entrepreneur. If, as an employee, you write
clear and polite responses to customer-complaint emails, your writing
will reflect well on your company. The customer may not remember
your name, but he or she will be impressed with your company.
But if you are an entrepreneur and you write the same kind of clear
and polite responses to complaints from customers, both you and your
company are likely to be remembered favourably. Being able to write
clearly, accurately, and persuasively can help you keep your customers.
Good writing skills will also help you write stronger proposals, more effi-
cient reports, and clearer press releases.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 359

 Web
C nect
Conn
http://www.mcgrawhill.ca/links/exploringbiz Reading
How well do you communicate? Is faulty grammar Being able to read quickly, accurately, and with a
stopping you from expressing yourself clearly? high level of recall is extremely useful in this age
There are some useful online tools to help of information. With daily newspapers, weekly and
you test both your communication monthly magazines and the Internetthe worlds
and grammar skills.
largest library right at your fingertipsyou can get buried
in information and quickly overwhelmed. In a way, an entre-
preneur must be researching every day. Good reading skills can mean the
difference between reacting in time to trends, or scrambling to catch up.

Speaking
Many people fear public speaking. Fortunately, you can learn to over-
come these fears by learning speaking skills and techniques to turn
your nervous energy into enthusiasm.
Often, potential investors, business customers, or even banks require
business owners to make a presentation on their product or service. A
presentation is a formal speech in which you sell your idea to your
audience. Slightly different than a regular speech in which you simply
share information, the presentation is designed to persuade listeners.
Using sophisticated software programs, such as Microsoft PowerPoint,
slide projectors, flip charts, or overhead projectors, the entrepreneur
will try to convince his or her audience that the product or service is
valuable and necessary. Making a compelling presentation means mak-
ing a sale or impressing banks or investors. Entrepreneurs who learn
this skill have a greater chance of success.

Listening
Good listeners have the ability to understand the intentions, ideas, or emo-
tions that others express. An entrepreneur has to be able to listen care-
fully to find out what the customer really needs and wants.
For example, as a good listener, you may be able to turn an angry
customer into one with a renewed commitment to your company.
When a customer calls to complain, a wise entrepreneur sees this as an
opportunity. Here is a real customer who took the time to provide you
with feedback. This is valuable information.
If you listen in a respectful way, customers will recognize your sin-
cere interest and willingness to correct the problem. They will end the
call with a sense of accomplishment and a belief in your companys
integrity. You will keep your customer and gather valuable insights.

360 MHR UNIT 4 Entrepreneurship

Viewing and Representing
Entrepreneurs today also have to have sound viewing and representing
skills. In a world that is full of media imageson television, on the Internet,
on billboards, in newspapers and magazinesbusiness people have to
understand the impact such images have on consumers. In order to appre-
ciate the effect that their own marketing and advertising campaigns will
have on potential customers, entrepreneurs have to be able to analyse their
own and their competitors media images.
They also need to know how to make their own visual and media
texts convincing for their target audience. While entrepreneurs may not
actually be the ones who create the advertisement or the pack-
aging, they do have to know what purpose the advertise-
ment or package is to serve and how best to achieve Web
C nect
Conn
that purpose. They have to be able to visualize the
end result and identify the steps needed to http://www.mcgrawhill.ca/links/exploringbiz
Media awareness covers a wide range of topics
achieve that result. They have to be able to
that are important to the entrepreneur, for example,
keep their focus on that purpose and audience news reporting, advertising, the protection of personal
as they go through the brainstorming, plan- privacy, and online marketing directed at children.
ning, and drafting stages of media works. Learn more about these topics at the Media
Awareness Web site.

Planning
Having a great idea is only the first step to becoming an entrepreneur.
The difference between success and failure can be your ability to plan.
The advantages of planning are twofold. Planning allows you to
prepare for the future. If you know you will need to replace expensive
equipment in three years, you can begin saving now, rather than going
into debt to purchase the replacement, or having the equipment break
down because it has worn out.
Planning also means you are planning for growth. Thinking ahead
about the changes your company needs to make to continue growing
means it will grow with fewer surprises. Massive unexpected growth
can leave entrepreneurs scrambling for equipment, staff, and time.
Sometimes companies that grow rapidly without planning, collapse
soon afterwards. They couldnt sustain the growth. We will have more
to say about business and financial planning in Chapter 14.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 361

 Decision-making
Decision-making is another essential skill for the entrepreneur.
Entrepreneurs who put things off can miss opportunities, wasting time
and money. An entrepreneur must
look carefully at the advantages and disadvantages of each possible
decision, weighing the short- and long-term risks
consider a broad range of ideas from different sources, gathering and
analysing information
survey the market and talk to customers
The need to be right keeps some people
from making a decision. Despite the possibility
of making a mistake, the decision has to be
made. If it turns out to have been a poor deci-
sion, a wise entrepreneur will learn from the
mistake and move forward.

Leadership
Leadership is the ability to lead others. Leaders
inspire others to follow their example. They
dont have to do everything, or know every-
thing, but they have to know what they want
and who they themselves are.
Good leaders set an example by having supe-
rior work habits and acting with integrity. People
are more likely to follow someone they respect.
Asking people for advice, praising ideas,
and encouraging contributions are excellent
leadership tactics. The more others feel they are
valued, the more they seek ways to help and the
more ideas they will contribute to the company.
When things go wrong, strong leaders take full
responsibility, but when they go well, attribute
successes to the efforts of their team.
F i g u r e 13-9 Leadership leads to success in all walks
of life. Hockey great Wayne Gretzky shows leadership on
and off the ice.

362 MHR UNIT 4 Entrepreneurship

C he c k Yo u r U n d er s t a n d i n g

Knowledge/Understanding
1 Create a checklist that briefly defines the skills of a successful entrepreneur
2 With a partner, brainstorm some of the situations you have been in where
you displayed some of the entrepreneurial skills described in this chapter.

Thinking/Inquiry
3 Identify someone whom you think has strong leadership skills. What makes
them a good leader?
4 In a small group, discuss the characteristics and skills that are common to
Skills
all successful business people. What is different about the entrepreneur? Appendix
Work together to reach a consensus on this question and then present critical thinking
your conclusion to the rest of the groups in your class.

Communication
5 Lets test your communication and listening skills. Three students from
your class will be seated in a triangular position so that they cannot see
one another. Each student has an identical set of twenty pieces of
coloured paper of various shapes and sizes. The team leader has to Skills
describe to the other two people how to build the structure that he or she Appendix
is creating out of the pieces of paper. The two people who are building writing reports
may not speak at all, nor can they turn and look at the speaker. They must
listen to every instruction and interpret it as best as they can. The rest of
the class observes and records what they are learning about listening and
communication skills.

Application
6 Identify a short or long term goal that you would like to accomplish. It
might be to enter into a career, excel at a competition, or find a specific
part-time job. Write a brief report explaining how you can use each of the
entrepreneurial skills to reach your goal.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 363

 Who Wants to Be an Entrepreneur?
Do you think operating your own business sounds
great, but are wondering where to start? You have
many choices. You may already have an idea, but
just dont realize it!
As we discussed earlier, entrepreneurs are pas-
sionate about their businesses. So what are you pas-
sionate about? Do you love animals? Are you good
at fixing computers? Maybe you can play the guitar.
Starting off with something you already love to do
and are pretty good at is often the best way to find
the inspiration for your business idea.
Think about your hobbies and then look for a
unique way you can use that as a business idea.
Remember, it has to be something that people will
need and/or want, or you wont be running a busi-
ness; it will still be a hobby. Lets say you love ani-
mals, especially dogs. You have a dog and so do
many of the people on your street. A dog-walking
service might be something people need, especially
in nasty weather.
Lynn Young had always loved dogs. She took
great pride in obedience training her dog, Becky.
F i g u r e 13-10 Lynn
As a new mom, Lynn was looking for a way to spend more time at
Young also uses her entre-
home. She put together her knowledge of dog-training and new par-
preneurial skills to con-
enting skills to create Dogma, an obedience training program for dogs
tribute to her community.
with a specialty in preparing the family dog for a new baby.
She volunteers her time to
Jot down a few of your hobbies and talents, or things you just like
handle publicity for
doing. Then, watch for opportunities and inspiration around your com-
Friends of Abandoned munity. Youll be surprised what ideas will come to you.
Pets in the Ottawa region
of Ontario.
Self-assessment
Do you have what it takes to be an entrepreneur? How about to be a
successful entrepreneur?
Before you launch yourself as an entrepreneur, you need to be able
to assess your skills and characteristics honestly to see which areas you
need to work on. For example,

364 MHR UNIT 4 Entrepreneurship

 Would you be prepared to take the risks needed to start a new busi-
ness? Do you like to take the initiative? Could you handle the stress
involved in starting up a new venture?
Are you confident about your own abilities and skills? Do you know
which skills youd need to work on or get help with? Have you
started building up those skills?
Can you identify the root causes of problems? Do you enjoy solving
problems? Do you consider most problems to be an opportunity?
Can you evaluate new opportunities coolly and calmly without let-
ting your enthusiasm run away with you?
Can you make decisions, even if there is a risk of failure?
Do you usually stay committed to a project even when you run
into difficulties?
Are you willing to work long hours for little reward, at least at the
start of your venture?
Can you plan ahead? Do you get things done on time? Do you usu-
ally finish what you start?
Do you have the knowledge you needabout the market, competi-
tors, production and other processes? Are you willing to continue
learning as long as you live?
Can you lead other people? Can you take responsibility? Can people
trust what you say?

H o w C a n Yo u G e t t h e S k i l l s Yo u N e e d ?
Now that youve assessed some of the characteristics and skills you have
and those you might need to work on, how do you get the training you
need? There are many ways to find out the things you need to know.

Ta k i n g C o u r s e s
Even if you dont know exactly what business you want to start, or whether
entrepreneurship will work for you, taking some courses related to this
field will help you, no matter what career path you choose.
For example, accounting courses are a good choice. No matter what
business is right for you, there will be money involved. Knowing how
to manage finances will help you realize your dreams. Getting the
know-how early means getting there even faster. If you decide to let
someone else handle your bookkeeping, youre still ultimately respon-
sible. A basic understanding of accounting principles, lets you ask the
right questions and understand the answers.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 365

 Web Going to college or university or apprenticing
C nect
Conn to learn more about your business idea, or just
http://www.mcgrawhill.ca/links/exploringbiz to learn about the world and train your mind
More and more schools and organizations are offering to think analytically and creatively, is a great
courses online. Write a list of some skills you want start. Knowledge, even when it seems totally
to develop or improve, and then investigate unrelated, is never wasted. Martha Stewart who
some of these online resources. produces the popular television show Martha
Stewart Live worked in the financial industry before
becoming a caterer. Now, she runs a vast multimedia empire.
She tapped into all her past experience to create her business and make
it successful.
Courses may also be available through Human Resources Canada,
your local library, or Parks and Recreation services. Many organizations,
such as The Conference Board of Canada and Planet
Entrepreneur, offer conferences and seminars on a
wide range of business-related topics. Many are specif-
ically targeted to younger entrepreneurs.

Researching and Reading

A vast network of information on how to start a busi-
ness and how to keep it running smoothly is also avail-
able. It can be found on the Internet and in various
media. Many daily newspapers have business sections.
Newspapers, like The Globe and Mails Report on
Business section, magazines, such as Profit and Realm,
and television programs, such as Venture, provide in-
depth coverage. They discuss trends and government
decisions that could affect businesses.

O rg a n i z a t i o n s a n d P ro g r a m s
Learning from others with the same interests is a
rewarding way to gain the experience needed to suc-
ceed as an entrepreneur.
Many organizations are devoted to developing
small business skills through workshops, seminars,
F i g u r e 13-11 informal discussions, and mentoring programs. You may be paired
CanadaOne is an example of with a peer or adult with more experience whom you can call on for
an online magazine specifi- support and counsel. You might ask the person to let you intern as a
cally for entrepreneurs. volunteer so you gain real-world experience.

366 MHR UNIT 4 Entrepreneurship

 A mentor is someone who has business knowledge and experience
and who offers support and practical help. Mentoring is so important to
new entrepreneurs that the Business Development Bank of Canada
(BDC) offers it as a prize for their Young Entrepreneurs Awards com-
petition. BDC provides small businesses in Canada with information,
financial and management services, and business loans.
The 4-H Club of Canada offers leadership training, and Toastmasters
International offers great tips and seminars on public speaking.
The Canadian Youth Business Foundation offers an online mentoring
program. According to their Web site, you can either learn from your own
experience, or from someone elses. You can do it yourself, but learning
from someone whos been there makes it easier to avoid the pitfalls.
Other organizations are also offering advice, training, awards, financ-
ing, and other services helpful to the budding entrepreneur.
The Association of Collegiate Entrepreneurs (ACE) is a national not-
for-profit organization dedicated to helping young entrepreneurial
Canadians succeed in the new economy.
Junior Achievement is an international nonprofit organization dedi-
cated to educating and inspiring young people about business. It helps
people discover leadership and entrepreneurial skills so they can
achieve their highest potential as citizens in the global community.

C he c k Yo u r U n d er s t a n d i n g

Knowledge/Understanding
1 How could taking courses help prepare you to become an entrepreneur?
2 What are some of the organizations and programs that are available to
young entrepreneurs?

Thinking/Inquiry
3 Investigate some of the business courses and programs that are available
Skills
for new business ventures in your community. Research one of these Appendix
courses or programs further, and prepare the script for a brief television researching
news clip on how it could be useful to young entrepreneurs.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 367

 Communication
4 To assess your risk tolerance, create a chart listing five circumstances in
Skills which you decided to take a risk. For each circumstance, state the out-
Appendix come of your decision. What was the worst thing that could have hap-
decision-making pened? What was the best thing that could have happened? What were the
consequences of your decision?

Application
5 Use the self-assessment list on page 364 to assess your entrepreneurial
strengths. First work with a partner to answer the questions. Offer exam-
ples of times when you showed these characteristics in your daily life at
home, at school, at work, and in your community. Then write a plan
describing how you could further develop one of your entrepreneurial
characteristics or skills.

368 MHR UNIT 4 Entrepreneurship

 Social Responsibility

Packing Goodwill

In August, 2000, Mara Cole had an avalanche in Some kids dont. Our goal is to get 1000 special
her front rooma fitting climax to a summer spent backpacks for kids, filled with things they need to
helping her kids build a mountain of goodwill for be happy when they go back to school . . .we
other people. need your help . . ."
She and her three sonsEvan, 9, Darren, 6, They got it. Wal-Mart donated backpacks and
and Griffen, 3were waving good-bye yesterday to other companies gave the stuff to go in them. Each
the last of 1000 back-to-school "kidpacks" theyd is worth about $60.
put together for the Daily Bread Food Bank to dis- "I had no concept of what we were getting
tribute to needy children. into until 86 big boxes of Pokmon pencil tines
"Im tired. Itll be great to have my house showed up," Cole said. "They just filled the place."
back," said Mara Cole. Handing out backpacks isnt something the
The backpacks, filled with everything from Daily Bread usually does, said Jim Russell, who
socks and toothbrushes to school supplies and heads the food banks community relations pro-
snacks, were Evans and Darrens idea after their gram. "This is different, for sure, but theres such
mom challenged them to come up with an idea to pressure on poor families at the start of the school
help other people. year. What these kids have done is pretty amazing.
"They thought about it and they said, We Im impressed."
wanna help kids. Kids need tonnes of stuff. I said, Mara Cole hopes to get more kids involved
How many backpacks do you want to do?" They next year and register the scheme as a charity.
said 1000 and I laughed. But not for long." "Then we can issue tax receipts. Some companies
The boys wrote a letter to companies such as have a policy that they dont give to non-registered
Wal-mart and Nike, and in their letter they said, groups. Most of them gave anyway but not nearly
"We think we are very lucky because we have as much as if we were a charity."
a lot of nice things and we never have to worry Source: Adapted from "Packing Goodwill," by Bill Taylor, The Toronto Star,
about things . . . We really like going back to August 9, 2000, page B1.
school because we get all kinds of new stuff.

ACTIVITIES
1 What problem did the three Cole brothers identify in 3 In groups, brainstorm some of the needs in your
their community? What steps did they take to solve own community. First work together to identify
that problem and respond to the needs of their the problems. Then suggest some possible practi-
community? cal solutions to those problems. After your brain-
2 Which of the characteristics of entrepreneurs do storming session, work with your group to list the
the Cole brothers have? steps that you could take to implement one of
your solutions.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 369

 Chapter Review

Points to Remember
Entrepreneurs sometimes have natural talents or aptititudes that they are able
to use to their advantage in their entrepreneurial venture.

Some of the characteristics usually associated with entrepreneurs include

vision, risk-tolerance, confidence, creativity, and integrity.

Entrepreneurial skills include problem-solving, communication, planning, and

leadership skills.

Self-assessment is a good beginning step for a potential entrepreneur to take.

There are many ways to get the skills you need, by taking courses, research-
ing, and joining organizations.

Activities
Knowledge/Understanding
1 List two things that you have done that displayed entrepreneurial char-
acteristics and skills. Describe the incident and list the characteristics
and skills.
2 Select three entrepreneurial characteristics and or skills that you possess
and explain how you might use them in a present or future entrepre-
neurial endeavour.

Thinking/Inquiry
1 Write a brief explanation on what entrepreneurs can learn from set-
backs or failures. How do you think failure helps entrepreneurs?
2 Identify two entrepreneurial skills that you would like to improve or
work on. Conduct research to discover what opportunities are available
in your community to help you improve these skills.
3 Do this activity in small groups. Your goal will be get a piece of paper
in or as close to a basket as possible. The objective of the game is to
gather as many points as possible for your team. The closest point to
the basket is a one-point wager, the next closest point is two-point
wager and the farthest point is a threepoint wager. Each member of

370 MHR UNIT 4 Entrepreneurship

 your team will get a chance to participate. Each team member must
decide on how many points to wager prior to tossing the paper
towards the basket. If a team member misses the basket the amount of
the wager is deducted from the teams score. After the game brainstorm
as a class. Think about how your individual and group experiences in
this activity relates to the skills and characteristics of Entrepreneurs.

Communication
1 Interview an entrepreneur and use the checklists you developed to
identify which of the entrepreneurial characteristics and skills that they
possess.
2 Examine the definition of an entrepreneur. Think of people who you
admire who fit this definition. Prepare an interview script in which you
inquire how they became successful and the role that their entrepre-
neurial skills and characteristics played in their success.

Application
1 With a partner identify an entrepreneurial idea that would benefit your
school or community. Write a business letter to your school principal or
relevant community organization describing the idea. You must ensure
the letter is professionally written and convincing.

CHAPTER 13 Characteristics and Skills of Entrepreneurs MHR 371