There are several definitions to describe entrepreneurs, but in general the term is used by almost every Tom, Dick, and Harry. The Oxford Dictionary simply states that an entrepreneur is “a person who sets up a business and businesses.“ That is basically why most people call Richard Branson the proto-entrepreneur; the man personifies “the risk-taking and hard-working entrepreneur”. But that’s just what meets the eye.

In my bio is mentioned that “Neal is a pragmatic businessman, cut from entrepreneurial cloth”. Just like Richard Branson, I started out as an entrepreneur. But Branson did not remain an entrepreneur once he entered the Major League of Business. Neither did I when I entered the Big League. Of course, it is a nice marketing gimmick for the company to have Branson as the face of Virgin, and of course it is cool to have Branson portrayed as the proto-entrepreneur, but that all has to do with personal branding by Branson in order to push his company branding. The distinction between entrepreneurs and businessmen is the league they play in. Entrepreneurs can per definition set up businesses, but they are not necessarily capable to run them. Branson is a businessman, his executives and investors know that he has an amazing talent for business and execution.

In an article about entrepreneurship by The Economist (March 12th, 2009) I did not recognize myself as an entrepreneur, and that is no surprise. The descriptions set out by The Economist, however, are very correct. The Economist observed that entrepreneurs are:

1) driven by an inner force to start a business and unwilling to take “no” for an answer.
2) convinced that, against all the odds, they will be able to turn their dream into reality.
3) strongly attached to their companies. They habitually talk about “their babies”.
4) consistently bolder when making “hot” or risky decisions (compared to regular managers).

Oh, and they also 5) hate giving up control of their companies, even if they are no good at management.

Those statements are true; I was like that too. I did not and still do not take “no” for an answer, but an used-car salesman doesn’t either. I was and am also convinced that I will turn my dream into reality, but so are the athlete and the student (well, most of them). The real difference can be seen when analyzing the last three issues:

1. I used to talk about “my baby”, but I don’t anymore. Of course, I am fiercely passionate about my companies, especially iUHBA, but I don’t see it as my baby anymore since I realized that we sometimes have to amputate some parts of the body, and sometimes we have to entirely kill something off. In publishing there is a term, “kill your darlings” (derived from “murder your darlings“), which is as much oxymoronic wisdom as “don’t believe in your own bullshit”, but it is a truth. In business you will get hurt when you let your emotions play up. It can be fatal when you let your emotions take over.

2. I used to take risky decisions too. Honestly, I used to think that I made the greatest decisions possible because I was the wisest and brightest of all. But I have learned to listen to my board of advisors, board of directors, management team members and employees. Heck, I even listen to strangers. It doesn’t mean I can’t be decisive when I listen. It just makes for better informed and consensus decision-making.

3. Yes, no surprise… I hated giving up control, too. I thought nobody could run the company I founded as well and with as much dedication as I did, but the truth is different. When you reward your team with good equity stakes and a nice salary, they will be loyal and hard-working. Yes, I believe I am very capable of being the CEO, but I also known and understand that someone else, with greater years of experience, could get the same warmth for the company as I have. He (or she) doesn’t need to have that “fire in the belly”; one of us having it is enough.

At the end of the day the result is that I went broke several times and bankrupt twice… as an entrepreneur. I was this guy who gave himself huge self-importance and I saw my arrogance as self-confidence. As a businessman I will never go bankrupt again, and I see my self-confidence as an non-abstract tool to measure my behavior; it is no longer a given, it is that I first do something and then build the confidence around it, while an entrepreneur does it in the reverse way.

Author: Neal Lachman