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In the mid-nineties, a former investment banker declared that he was going to become the world’s biggest online retailer.
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A university dropout tells us that he will show the consumers which products they want and then step by step revolutionizes the markets for personal computers, music and cell phones.
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And this student digs, a young man designs a comparison portal for female students, which is now the biggest communication platform in the world, connecting millions of people.
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And an author, who, by his own account, is hindered by dyslexia, becomes a pioneer of commercial space travel.
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Are Amazon’s Jeff Bezos, Apple’s Steve Jobs, Facebook’s Mark Zuckerberg and Virgin Galactic’s Richard Branson extraordinary people?
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Are they Soldiers of fortune? Magicians? Rare super-entrepreneurs who change our lives dramatically?
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The purpose of research around entrepreneurship is to get to the bottom of this mystery and to explore the seemingly magical about successful entrepreneurs.
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Successful entrepreneurs are not necessarily male dropouts and secret geniuses. No!
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The potential for entrepreneurship is in each of us.
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The entrepreneur we want to send on a journey into an uncertain future is female and neither a visionary nor a dropout.
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She doesn’t have much money either and no sudden brilliant idea that she puts into action purposefully.
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And still, she masters the uncertainty like our super-entrepreneurs.
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Because she also uses the entrepreneurial method, consciously or unconsciously.
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The entrepreneurial method? What’s that?
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If Alice were a manager she would ask herself: what are my goals and which means do I need to reach them?
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By contrast, the entrepreneurial method begins with the unique means a person already has.
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These consist of their identity, competences, and contacts.
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Beginning with these means, one imagines several possible goals to solve specific problems.
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It’s like cooking without a recipe. The super-entrepreneur doesn’t choose a specific recipe and buys the necessary ingredients.
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No, instead, she could look what she can find the fridge and then makes up various kinds of possible creations!
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With entrepreneurship, it’s not the goals we focus on in the beginning but the means.
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By acting without a single, fixed goal, a Richard Branson is able to imagine a whole portfolio of goals and possible ventures.
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After all, he founded Virgin Records and Virgin Airlines before Virgin Galactic.
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What’s also important: Business ideas don’t originate in the shower, but develop in multiple numbers when applying the entrepreneurial method.
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The idea is the easiest part in the founding process.
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And waiting for the “right idea” can lead to waiting forever.
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Our entrepreneur is already equipped with everything she needs for founding a business.
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She just has to get going and design the future. But there’s a lack of money!
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Not if Alice acts according to the successful method of the super-entrepreneurs.
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Even Jeff Bezos started on a shoestring and funded Amazon with his parents’ guarantees, supplier loans and overdrawn credit cards.
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In other words, with his available means. Instead of trying to define the expected return like a manager, our entrepreneur defines her affordable loss.
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Affordable in a financial, psychological, and social respect.
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Instead of going on vacation, she starts a venture. In small, explorative steps she employs the available means – her money, her time and other people’s trust.
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If she fails, she fails at an early stage and at acceptable costs for her.
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With her stock of means, her subsequently conceivable portfolio of goals and her affordable loss, Alice has all the prerequisites to embark on her entrepreneurial journey.
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But wait! There are other people who are interested in Alice and her venture.
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Surely they want to steal her idea, so Alice shouldn’t talk about her goals under any circumstances! Wrong!
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What is she going to protect if she, herself, doesn’t know exactly what it’s going to look like?
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She has to talk about her venture to extend her stock of means and her portfolio of goals.
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Unlike in management, entrepreneurship is not about a win-lose situation along the lines of “Who gets the largest piece of cake”.
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Neither is it about a win-win situation: “Let’s make the cake bigger together!”
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In the entrepreneurial present with an uncertain future, the cake has not even been baked yet.
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Those who want to join become partners, bring in their means and decide together which cake to bake, the common shared goal.
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They negotiate the future together and co-create the products.
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By the way, don’t we need a business plan with a clear understanding of where the journey is headed?
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An itinerary like that can be helpful, yes, but sometimes it prevents the journey to India from ending up in America, the promised land.
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So I’m sailing aimlessly in one direction or the other, depending on the wind?
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But entrepreneurship is a crapshoot! Granted, luck is one element in the formula of success.
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But if I act according to the entrepreneurial method, I improve my odds.
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It’s about a learnable routine in dealing with the unexpected. Learnable? But aren’t you born to be an entrepreneur?
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After all, entrepreneurial success is rooted in the genes!
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Wrong! The entrepreneurial method of our super-entrepreneurs can be applied by any of us. Everyone has a unique stock of means.
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It’s what we make of it that determines the success; entrepreneurs are made, not born.
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Even Richard Branson has had more failures than successes in his ventures.
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Success was only possible by learning from his failures, which prepared him for the uncertainty that awaits him on his journey in his space ship.
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Maybe Alice from the entrepreneurial wonderland will be among his first partners.
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Not as a passenger, but as a collaborator in creating the future of the world we live in.
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Entrepreneurs aren’t prophets. They don’t have to predict the future. They create it.
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Ready for your own entrepreneurial journey? Here’s a short summary:
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First, entrepreneurship is not an extraordinary phenomenon, but lies dormant in each of us as an entrepreneurial potential to act.
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Second, according to the entrepreneurial method, I start with the available means – who I am, what do I know, whom do I know – not with mystical goals or fictitious ideas.
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So, there’s no reason to wait!
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Third, as an entrepreneur, I don’t submit my actions under one great idea.
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No! on the basis of my stock of means I constantly develop my imagination about various possible goals for the solution of specific problems.
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Fourth, instead of an expected return, what do I want to earn, the “upside potential”,
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I define an affordable loss, the “downside potential” and ask: how much is it worth to me, how much can I afford to lose?
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Fifth, I don’t keep my ideas secret, but exchange my goals on the basis of my means with others.
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The business idea is the cheapest (there are so many ideas!); my stock of means is the most valuable thing in the entrepreneurial process.
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So, sixth, “co-creation” develops with the additional means and the new goals of the partners.
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Seventh, business plans most likely do not reduce uncertainty, but surely prevent reaching unplanned, yet desirable goals.
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Eighth, luck is a part of entrepreneurial success.
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But with the entrepreneurial method I turn the wheel of fortune more often.
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Ninth, we’re not born as entrepreneurs but can learn to deal with uncertainty.
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Tenth, if you co-create the future as an entrepreneur you don’t have to predict it.
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Science has many parallels to entrepreneurship. Scientists also experiment to get to the bottom of something new or to create something new.
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Our entrepreneur “Alice” is called Saras Sarasvathy in entrepreneurship research.
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She is the discoverer of the entrepreneurial method.
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Other researchers contribute their means and goals to comprehend the phenomenon of entrepreneurship, where new things develop under great uncertainty.
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What will the entrepreneurial society of the future look like? Don’t wait for it - co-create it!