Companies need to become enterprise colonies that tap, build, and release the entrepreneurial potential within their people and relevant external networks and communities. Ambitious individuals want to work with organisations rather than for them.
Have you ever thought of how your business might work with one or more larger companies as a business partner, or whether you could work more creatively with your employees and colleagues? Independent entrepreneurs, small businesses and employees have an unprecedented range of choice in relation to how, when, where, for whom and with whom to work. Corporate cultures need to become more entrepreneurial.
In future more of us will be able to live life on our own terms. Individuals will no longer approach organisations looking for work or to become dependent employees. Instead, they will treat corporations and colleagues as actual or potential business partners. There will no longer be such a stark divide between start-up enterprises and established businesses. Entrepreneurship, either alone or as an intrapreneur with corporate support, will be for the many rather than the few.
An extensive examination led by the author has identified key requirements for achieving both commercial success and personal fulfilment*. People need to consider what they would really like to do and are especially good at as well as what potential customers would most like to have. Many smart people get paid to do the things they love to do. Some turn their hobbies into moneymaking ventures.
Once a business concept and potential customers have been identified the next steps are daunting ones for many would be entrepreneurs. Securing initial funding, finding premises, recruiting staff and ‘doing the books’ can be time consuming and frustrating for those who would prefer to do other things. This is where collaboration with an established company can help.
Companies need to become incubators and enablers of new enterprises. Individuals and teams from within companies and outside will come forward with new business ideas and ask for venture capital support, access to central services, and development and marketing assistance. A growing number of internal employees will emulate potential external partners by also seeking a share of the rewards for successful intrapreneurship.
Many corporations are bureaucratic and ill equipped to handle new ventures. The emphasis is upon ‘consolidation’ and sticking to ‘core competences’. As a result, many intending entrepreneurs do not think of taking their new business ideas to an existing employer or a company operating in a related field or with complementary interests. Maybe they are worried about losing control or feel that a big corporation might not be interested in a new venture.
Attitudes towards entrepreneurship within larger organisations are changing. Restructuring, retrenchment and re-engineering have largely run their course. They were essentially negative activities, concerned with survival not growth. The mood in more boardrooms is swinging against downsizing in favour of creating greater value for customers and generating additional income streams.
People are fed up with defensive cost cutting and being asked to do more with less. Many would like to change direction, reduce their dependency upon others, and lead more balanced lives. Employees used to seek security and a regular income. They undertook repetitive tasks, implemented standard procedures and followed prescribed rules. Today they want more than material rewards. They also want to build, develop and grow.
Customers too are restless. They demand distinctive and bespoke responses that reflect their individual concerns and priorities. People in client facing roles are expected to behave more imaginatively when creating offerings to meet particular requirements.
Market leadership now goes to those who innovate or assemble a novel combination of elements that represents greater value for consumers. Rather than refer to manuals, mechanically apply a methodology or provide standard offerings, people have to make choices and take risks. They are required to consider alternatives, and manage resources and expectations. In short, they must think and act like entrepreneurs.
Many existing employees are struggling to make the transition from corporate dependent to intrapreneur and business partner. More companies are likely to recognise that they need external help and that many local independent operators of small businesses may have the attitudes, skills and experience they require. Of course ‘independents’ are used to the freedom of operating alone. A clash of cultures could but might not arise as more big company bosses come to understand the requirements for contemporary market success.
Giving individuals the discretion to do what they feel is most appropriate for each customer enables them to play a much more creative role. Their ‘solutions’ might contain unusual elements, unique features, novel approaches or new knowledge, which could be licensed to others. Opportunities abound for entrepreneurship and innovation.
The rapid adoption of e-Business is eroding barriers to entry. The imaginative can offer new ways of working, learning and earning that better match the preferences of those involved, and greatly increase the prospect of them achieving both commercial success and personal fulfilment. This desired combination is most likely where personal and corporate aspirations are explicit, aligned and focused upon winning new business, establishing partnerships and benefiting customers.
Independent entrepreneurs will choose corporate patrons, partners and sponsors with care. For example, how much of the training budget is devoted to building entrepreneurial skills and supporting business development? They will consider whether a corporate culture and working environment encourages initiative, innovation and enterprise or stifles them.
Contracts, facilities, processes and systems should allow and enable questioning, resourceful and inventive individuals and business partners to explore and create. The rewards of successful innovation and entrepreneurship should be fairly allocated in proportion to the respective contributions of those involved. Separate incorporation of new ventures allows more people to become directors.
Intending entrepreneurs should either join or work with flexible organisations that are tolerant of diversity and allow and enable people to be true to themselves and to play to their distinct strengths. Enterprise flourishes where people are enabled to work, learn and collaborate in ways that best enable them to harness their particular talents, and assemble new venture teams composed of individuals with compatible aspirations and complementary skills.
Confident people will join and ambitious smaller businesses will seek to work with organisations that promote enterprise, support intrapreneurship and collaboration, and view them as potential business partners with ideas for new and profitable ventures.
Arrangements should be in place to assess their proposals and provide concept development support and venture capital. Practical advice on securing family support; assembling a venture team and winning business should be provided; along with counselling on overcoming inhibitions, pitfalls and constraints, and getting started.
Farsighted companies will approach independent entrepreneurs when lining up the external support required by new ventures. Their internal procedures, processes and contractual arrangements will reflect the distinct and diverse needs of growing businesses. Their reward mechanisms will allow those responsible to participate in resulting financial returns.
Share-ownership, option or profit-sharing schemes may need to be established, to satisfy the increasing desire of individuals to build capital. Energetic and talented individuals who create knowledge rather than merely consume it, and who can innovate and develop tailored solutions, are seeking a greater share of the value that they create.
Investors should avoid companies that do not champion enterprise and entrepreneurship. Their most capable people and most valuable customers will simply walk, and they will not attract the external partners they will require. Companies cannot afford to be excluded from successful new ventures established by independent entrepreneurs and past employees. Could you collaborate with a former employer? Can your employees collaborate with you?
The interests of customers, independent entrepreneurs, companies and investors are rapidly converging. We are at a turning point in the relationship between people and organisations and between micro-businesses and larger companies. We have an historic opportunity to reconcile and align individual and corporate goals. Go for it.
© Colin Coulson-Thomas, 2004
Further information
*‘Individuals and Enterprise: creating entrepreneurs for the new millennium through personal transformation’ and ‘Shaping Things to Come’, can be ordered from Blackhall Publishing by Tel: 00 353 1 6773242, Fax: 00 353 1 6773243, or email: blackhall@eircom.net; or from: www.ntwkfirm.com/bookshop.
Colin Coulson-Thomas, an experienced chairman of award winning companies, has advised over 80 boards on board, enterprise and business development. He was the world’s first Professor of Corporate Transformation and has been Process Vision Holder of major transformation projects. He is the UK’s first Professor of Competitiveness and can be contacted by tel: 00 44 (0) 1733 361 149; fax: 00 44 (0) 1733 361 459; email: colinct@tiscali.co.uk and via www.ntwkfirm.com/colin.coulson-thomas.
