Wednesday 3 March 2010

Independent Businesses - all so different


I got flamed recently on BusinessZone for saying that businesses go bust because either they are not able to, or they are not capable of, surviving.

I was accused of being negative, cynical, dissing the unemployed and their families and so on.

Meanwhile on my own blog I got heralded and congratulated for my honesty in the comments (www.robert-craven.blogspot.com). So what’s going on?


There seem to be two stereotypes of entrepreneur co-existing in the world (yet they are treated as one homogeneous group).


The first group is what I call the “Blameless Poor Me SME” – always using the word “they“ to describe the reasons for their difficulties: the banks, accountants, customers, staff – they are always the problem. Not that “I” am ever the problem. Curious that one!


The second group is the innovative and inspiring “can do” entrepreneurs.


The conundrum is that we talk about ‘entrepreneurs’ and choose the relevant definition to fit the circumstances.
So, the whinging helpless, complaining business people who feel that they are owed a living just because they run their own business co-exist in the Government's and the Press’s eyes with the other group who are also described as ‘entrepreneurs’.

The other group are the new wave of innovative and creative thinking who challenge the boundaries of current thinking to come up with new and different ways of satisfying customer demand.


These groups are not the same.

24 comments:

Unknown said...

Interesting Robert,
I have a new novel business process for the hospitality market that is proven to make a substantial net profit contribution in 12-18 months,but find that,alot of operators are reticent to change and worry more about the outlay instead of seeing the investment of a plan that gives them a cost benfit ratio of approximitley 1-10..

lester

Marjory D said...

Looks like a blatant ad to me.
Madge

Marjory D said...

As the great George Bush said, "The French don't have a word for 'entrepreneur'".

But seriously, there is a big difference between the self-emloyed and the true entrepreneur. Time for some definitions that everyone understands?

Madge

Unknown said...

Marjory,
Sorry if it looked like that ,which it wasnt supposed to be,i was just picking up,that 95% areof the "blameless poor me brigade",which i come across every day if the week.

Julian Summerhayes said...

As someone who traded in the late 1980s/early 1990s in a volatile service sector: recruitment and watched as the business slowly ran of working capital, the main issue was not around the business idea or concept (which wasn't by any stretch faultless) but rather the lack of passion of the owners; or to put it more colloquially they ran out of steam.

Of course the market conditions, bank squeeze and the poor cash flow didn't help but all of these were possible of or would have been surmountable (the business finally folded after 3 years) if the owners had kept their spark alive.

The current climate is just as harsh but I sense a more patient approach from the banks (only just mind you) and this might mean people being able to hold their nerve and managing to keep the internal flame alive. I know it sounds risky but I would advocate a thorough overall of the business model and if the business can withstand more than just a glossy or more like paper thin make over, then mission statements, visions and (business) goals all need to be radically challenged to see if they are genuinely fit for purpose. The bottom line though is that if the owners don't have it in them then they simply won't be prepared to exercise a sufficient degree of discretionary effort to make it work.

Marjory D said...

Lester

You are forgiven! I get cross with blatant advertising.

Madge

Andrew said...

Well said, RC. You taught me years ago about the difference between the "manager" who invariably want to build and sell sand-castles each day, and don't want anyone to spoil their time with silly realities such as avoiding thunderstorms, and those champions who epitomise the true definition of entrepreneurship.

I don't see why you think that the former deserve to have their narrow interpretation heard, when they haven't ever bothered to learn the language of the latter - the same language that you speak, having always done so.

I realise it's part of your credo to seek to enlighten all small business owners, but it's a bit like trying to communicate with Chavs in Latin, is it not? I propose that their chosen path of pain, is just that, a choice.

Better to leave the dissenters of the Business Zone to their destiny.

Peter E said...

proacative vs reactive
happy vs sad
in control vs out of control
optimistic vs pessimistic

Pete

Marjory D said...

Those poor SME don't grow because they find the tax rules so difficult.

Jeeopers Creepers - "POOR ME" or what!!!!

http://www.politics.co.uk/opinion-formers/press-releases/business-and-industry/fsb-small-businesses-fail-to-grow-because-of-complex-tax-rules-$1363051$441919.htm

Peter E said...

Marjory/Madge

This is preposterous.

If you can't figure out the tax system then go get yourself a job.

Pete

Marjory D said...

yes, preposterous
madge

Mark Humblestone said...

The two groups are not always mutually exclusive. YOu can be a memeber of both sides depending on what has just happened to you.

Mark

Simon for TQ said...

Right and you are a happy camper and the rest are poor souls.!

Tomo said...

Agreed. 2 sorts. proactive or reactive.
Most claim to be proactive but are more of the 'pity me' variety. How boring is that.

Tomo

Peter E said...

You are right. There are too few who seem to get it. Poor fools.

Craig, BL said...

This seems like another cheap jibe at the BLs and their constituent client base.

You arrogance and smugness defies belief. Your us and them approach to small businesses! How dare you categorise people thus. All businesses deserve equal benefits and opportunity or are you suggesting a form of SME fascism where different businesses are treated differently?

Try working at the SME coalface at a BL and you mught change your tune.

Jess said...

glass half full?

Craig, BL said...

You are all halfful complainers accusing the BL of being inept. Get a life.

Richard said...

Just joined. Why should we support the weak and infirm as they hurtle towards bankruptcy in their half-hearted attempts at runing a business?

Richard

Unknown said...

Because with the right coaching many of these businesses can survive,The issue is they have gone into business without the essential tools to make it happen.

Lester Pyatt said...

Because with the right coaching many of these businesses can survive,The issue is they have gone into business without the essential tools to make it happen.

Craig, BL said...

This seems like another cheap jibe at the BLs and their constituent client base.

You arrogance and smugness defies belief. Your us and them approach to small businesses! How dare you categorise people thus. All businesses deserve equal benefits and opportunity or are you suggesting a form of SME fascism where different businesses are treated differently?

Try working at the SME coalface at a BL and you mught change your tune.

Mark Humblestone said...

The two groups are not always mutually exclusive. YOu can be a memeber of both sides depending on what has just happened to you.

Mark

Lester Pyatt said...

Certainly within the pub trade some landlords have just been passed the keys by rent hungry pub operators and been left to their own devices.

Whilst a change in peoples lifestyles has accelerated the mass cull of pub establishments, many could have survived with the right training and back up support.