Factors Paper by IV LPC Reg

The Ateneo Graduate School of Business Advantage


Introduction

I am currently a College Professor teaching business subjects. I thought I knew everything I need to know with regards to running a business and of course, teaching these to my precious students. When I entered the Entrepreneurship class of Professor Jorge Saguinsin, I was very excited. "Wow! This is my specialty- my favorite", I exclaimed to myself. After some time, I realized that I was wrong. I need to learn much and much more. I am pretty sure of one thing- I am definitely in the right place and in the right time- to develop my entrepreneurial mind.

My parents were once employed abroad, like any other stories, they went back here in the Philippines for us- their children. My father is really into business. He was once a seller of toys, he even entered a networking business, and attended several seminars in putting up a pawnshop. He failed in continuing any of these ventures until he decided to take the risk and put up a retail business of motorcycle parts and accessories which happened to be my very first training ground.

The question I will never forget that Prof Jorge asked us was "If you own a small business, are you considered an Entrepreneur? I was stunned for a moment. It really made me think. My parents own several businesses, does it mean they are already entrepreneurs? Yes, I own and manage a small business but am I already considered an entrepreneur? Or if I am not yet considered as an entrepreneur, can I be one someday?

The Entrepreneur Test

To be able to assess myself if I have what it takes to be an entrepreneur, I took several tests online and answered each question carefully and honestly. Among these tests, I found Carol Roth's (a Chicago-area business strategist, deal maker and author of the New York Times bestselling book, The Entrepreneur Equation) the most helpful one. She said that there is an enormous difference between wanting to do something and being able to make a living at doing that something.

No.	Statement	TRUE	FALSE	Carol Roth's Explanation
1	Unexpected surprises irritate me.			The only thing you can expect in business may be the unexpected. If you are agitated by the unknown, you might have a difficult time owning a business.
2	I am uncomfortable when there is drama in my workplace.			Entrepreneurship can be a veritable roller coaster, with high "highs" and low "lows." If you need a calmer environment to thrive, you will find owning a business challenging and mentally exhausting.
3	I am good at adapting to changing circumstances.			New businesses evolve rapidly and you can never fully prepare for each new circumstance. If you can bob, weave and roll with the punches and are a modern-day "MacGyver," then you are acting like an entrepreneur.
4	I've been known to stress-out easily.			Business success often requires a stoic disposition in the face of stress and uncertainty. If you are prone to stress, you may make emotional decisions which are rarely good for business.
5	I get bored very easily.			While owning a business sounds exciting, the day-to-day operations can be repetitive. It also requires persistence and a laser-focus on the end-goal. If you get distracted by the next new thing, you might have a hard time making your business successful.
6	I hate doing the same thing repeatedly.			While it can be more fun to come up with ideas and innovation, most businesses are grown on the execution. It isn't always sexy, but it works. An aversion to doing the same task consistently can put your business in jeopardy.
7	I am comfortable making long-term commitments.			If you are at ease with making commitments, you also might have the tenacity to get through tough times in business. If not, you may find yourself in a struggle.
8	I have been known to not keep promises.			A history of broken promises can indicate that you may have great ideas, but not necessarily have the disposition to execute the business in a way that would be required to be successful.
9	I am comfortable with taking risks.			Businesses require some level of educated risk taking. Being comfortable with taking on these risks in a measured manner can give you a leg up on success.
10	I expect to maintain the same lifestyle and level of spending after I start my business.			A new business requires capital to start the business, to operate it while a foundation is built and to grow it. As an entrepreneur, you also need money to live on in the meantime, because you aren't likely to be pulling a paycheck immediately -- and even more unlikely, one commensurate with your previous pay.
11	I prefer to be given specific instructions rather than an ambiguous assignment.			There's no road map to becoming an entrepreneur. It requires vision and the ability to "take the ball and run with it." Those that operate better with specific guidelines might be more suited to work for someone else.
12	If something isn't working, then I will give up and move on to a new project.			While there is something to be said about failing fast, to be successful in business it is even more critical to be persistent in finding solutions to problems and roadblocks. A history of giving up may indicate that lack of problem solving ability that's critical for entrepreneurs.
13	I am very frugal with every last dollar.			Businesses require investment and re-investment to grow. If you are too much of a spend-thrift, you probably won't be willing to make critical investments that can produce a return for the business, which limits the ability to be successful as an entrepreneur.
14	If I don't make a salary for a year or so, I can live comfortably.			It usually takes longer than expected for new businesses to solidify a foundation, often a year or two. If you are in a position where you have to make a decision about investing in your business or paying your rent or mortgage, you will be in a lose-lose situation.
15	I prefer to lead in group projects.			Entrepreneurship requires a take-charge attitude. Think of an entrepreneur as Santa and employees as the elves at Christmas. Those who have a history of taking charge or a leadership position are usually better suited for running a business.
16	I started at least one business before I was 18.			Many of the most successful entrepreneurs showed an interest in business as a child. If you were one of those, you may have cultivated an aptitude for owning a business.
17	I am comfortable with overseeing a variety of tasks and people.			Running a business means overseeing marketing, accounting, customer service and more. If you love wearing a variety of hats, you're more likely to be comfortable in the entrepreneur role.
18	I have enough money or a source of money to start the business.			Even though technology has made it cheaper than ever to start a business, there are still costs required. Having no money can make it difficult to sustain a business.
19	I have enough money or a source of money to operate and run the business for two years.			Undercapitalization is a leading cause of business failure. This means having access to capital to keep the business going through about the first two years.
20	I am known for taking the ball and running with it -- I love to take initiative.			Entrepreneurship means being proactive. Those who see an opportunity and seize it without waiting for direction often have a disposition consistent with what is required to be a successful business owner.
21	I have enough money or a source of money to live on for two years while the business gets its legs underneath it.			Entrepreneurs don't always get to take a salary (or a full salary) in the early years. Remember, you still need to be able to pay the bills.

The Result

I got 15 points in this test and the interpretation is:

14-16: Entrepreneurship might be risky. You exhibit enough traits to think twice -- or three times -- before starting something.

Proceed with extreme caution. Some of your personality traits can make running your own business a tough path to success. Talk to other business owners about what it means to be an entrepreneur. Ask trusted friends and advisors to help you think through your strengths and weaknesses. Do they match up with what's required for an entrepreneur to be successful? Be honest with yourself on whether this path is the right one for you.

The Conclusion

This has been an eye-opener for me. Based on the result, I therefore conclude that:

1. I am a business owner, not yet an entrepreneur,
2. I know the WHATs in business but I still need to learn more on the HOWs,
3. I am definitely in the right path to Entrepreneurship- through AGSB! This is where I meet business owners who are also entrepreneurs and where I meet the gurus and masters in Entrepreneurship just like Professor Jorge Saguinsin.

I am 24 years old. I know I have what it takes to be an entrepreneur, maybe not now, but I am sure, someday. My advantages over other aspiring entrepreneurs of my age- I love LEARNING and I never get contented with what I know and have. Not just for myself but most especially, for my students who think I am the best. 3