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Sunday, June 23, 2013

Baby Boomer Can Your Mindset Beat 'Infant Entrepreneur Mortality'?

How to Reduce 'Infant Entrepreneur Mortality' - Sramana Mitra - Harvard Business Review:

Baby Boomer Can Your Mindset Beat "Infant Entrepreneur Mortality"?

Can the middle of society be taught the entrepreneurial mindset?

Most of the entrepreneurship that we hear about in the media is about companies being formed with massive growth rates through the assistance of "VCs", venture capital companies. This actually accounts for about 1% of start-up businesses. The other 99% do not meet the requirements of the 300 percent annual growth that is the target of these high flying business financing companies.

The high growth companies have access to some of the best of the consulting and coaching that comes with high growth business incubation support. Can this same knowledge be shared with the aspiring entrepreneurs who are not trying to build billion dollar companies? Can this knowledge be shared with entrepreneurs who can't afford to pay what the highest tier business developers must pay?

We need to use the fundamental principle of capitalism — the creation of value that people are willing to pay for — and apply it to the middle of the pyramid on a global scale. In other words, we need large numbers of entrepreneurs who are willing and able to build products and offer services that address demand from certain specific segments of customers. We need to teach them how to build businesses that can become sustainable — profitable — and create jobs. We need to also teach them to grow by applying the same kinds of methodology and discipline that, traditionally, a venture-funded company may use. -- Says Sramana Mitra in her Harvard Business Review blog post: How To Reduce 'Infant Entrepreneur Mortality'

What needs to be done?

The role of small businesses in creating jobs and growing economies is constantly discussed. What is not so commonly discussed is that 600,000 small businesses die each year in the U.S. alone. Mitra contends that the owners of these businesses can be taught to have their businesses become sustainable -- Profitable -- and to create jobs. She contends that it is a lack of understanding of the task that makes such tragic losses.

It is developing the entrepreneurial mindset that I call this training. For us aspiring baby boomer entrepreneurs, seeking to find our encore careers, we must have effective ways to develop that knowledge at a reasonable price.

The plus for us is that we live in the best of all times for learning at a low cost. As far as business is concerned, we can learn and be incubated over the internet. We can do research and build a brand over the internet. We can learn, as Mitra says, "...we digitally teach and incubate millions of online businesses over the next few decades". We baby boomer entrepreneurs can be the front line in this new battle.

Where do you begin?

Develop your entrepreneurial mindset. Mitra says start with the fundamentals, like:

Entrepreneurship = Customers + Revenue
Financing is optional
Exit is optional

If you would like more hints on developing your entrepreneurial mindset, join our free mailing list. Go to My Baby Boomer Business Dream


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 ~ The Business Dream Weaver


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