What does it take to be an Entrepreneur?

It has often been stated that the Hospitality Industry is the natural home of the entrepreneur.It certainly possesses more Independent businesses than any other business sector.Why?

Many reasons are put forward with the leading ones being that there are few barriers to starting up a new business and that the Industry does attract characters that are hard-working, customer focused, service orientated and ambitious.

As a result, the Industry has seen many true entrepreneurs rise from a variety of good and poor beginnings to become giants of the Industry � figures such as Lord Forte, Ken McCulloch, Bob Payton, Robin Hutson, Marc Verstringhe,Terence Conran and Simon Woodrolfe to name only a few. All have their own story to tell and all have been inspirational in their own rights.

There is a view that entreprenurialism and thriving private enterprise are the key components that drive a successful economy. If the entrepreneur is thriving, then it is likely that the economy too will be prospering. Entrepreneurialism is a subject that everyone is interested in and people are often asking how it can be fostered. It is one of the most discussed of business topics. But what is it? Do we value those who possess it highly enough? Do we understand it? There are many views that are put forward as to what are the factors and attributes that create the entrepreneur. There are many theories. There is a view that entrepreneur. There is a view that entrepreneurs are created from childhood difficulties and experiences. Similarly, it is argued that entrepreneurs are angry with the world. Others state that the infrastructures of large companies help generate entrepreneurial spirit by "boxing" those that like to be involved in more than just their brief.

To try and distil the essence ofentrepreneurialism, En Passant hosted a discussion group with a number of experienced leading Industry figures; all with different perspectives of the issue.The session was chaired by David Coubrough, Executive Chairman of Bespoke Hotels and the panel included;

Peter Lederer � Managing Director of Gleneagles and Chairman of VisitScotland.

William Baxter � Deputy Chief Executive of Baxter Storey

Robert Cook � Chief Executive of Malmaison

Malcolm Ross � Deputy Chief Executive of Macdonald Hotels

Stuart Metcalfe � Chief Executive of RealStar Investments

Sandra Thomson � Chief Executive, Smollenskys

Ian Mitchell � Director, Bartlett Mitchell

Gary Hall � Chairman, The Independent Contract Catering Company

Alex Buchanan � Editor, Catering in Scotland

Jonathan Perrin � Vantis

David McHattie � Director, People 1st

Are Entrepreneurs born or made?

Jonathan Perrin:
"Everyone sees an opportunity but only the entrepreneur will actually do something about it.This takes courage � the courage to stand up and say,"I will go out on a limb and risk the mortgage and lose the company car and perks. It may sound all very easy but actually takes a lot of inner strength. Is this something people are born with or is it developed? One can argue both ways but I do think that it needs to be there for entrepreneurialism to happen."

David McHattie:
"Environment is important to creating the vision to be an entrepreneur. I think that many people are inspired by others to have a go or can just see something that they believe is wrong and want to do it right. I think that very often Entrepreneurs are created by their value set.They see something that they just do not believe in and want to do it correctly or well.They are more driven than others because they believe in something that makes them want to excel."

Malcolm Ross:
"I remember when I was at prep school, I could now see which ones had entrepreneurial skills and those that did not.There were those who could influence others and who could not be boxed into a routine.They clearly had an entrepreneurial spirit, even in those days � even though didn't really realise it at the time."

Gary Hall:
"Many entrepreneurs become entrepreneurs due to circumstances � often by having been made redundant. One of the real traits of the entrepreneur is how they react to adversity.They have a naturally positive mindset which drives them through difficult times."

David Coubrough:
"Ian (Mitchell), you started a business at the age of 50.Do you regret not doing so earlier?"

Ian Mitchell:
"Probably. It was just the right thing to do at that moment in time. I was terrified of starting up my own business but even more terrified of spending the rest of my life doing something that I was entirely comfortable with and which I really enjoyed. Now, in retrospect, I wish I had done it twenty years earlier."

The Inner Attributes of The Entrepreneur

David Coubrough:
"What is it, though, which makes the entrepreneur different to others?"

Jonathan Perrin:
"The entrepreneur rarely accepted defeat and would learn from failure � that maybe failure was the key to their eventual success."

William Baxter:
"I am not sure of the exact figures but hasn't the majority of Richard Branson's businesses failed but we all only talk about the ones that have succeeded."

Robert Cook:
"Tubular Bells both saved and created Richard Branson."

David Coubrough:
"Branson dared to fail.Most people are terrified of failure."

Gary Hall:
"Absolutely � the key is the skill to get up after a failure and go again and again."

Stuart Metcalfe:
"I have always seen myself as an Intrepreneur.We talk about risk but we need to understand the issue and calculate the risk. In honesty, I lack the courage to bet the house.However, I am not convinced this means that I do not have the vision to see the opportunities � just that I worked within the Corporate structure to create the opportunity. I think that there is a danger of appearing to say that only entrepreneurs have vision.This is clearly not the case.The difference is that they are prepared to go alone in trying to achieve something that they believe in."

William Baxter:
"I didn't have much to lose. I was 27 and could rebuild if it had all gone wrong. But frightening at times. In retrospect, I am sure that we really understood all the risks.We just believed in something and had the mindset to go out and try and achieve something."

Gary Hall:
"Branson just goes for it.He just wakes up, has an idea and tries to do something with it.Moreover, he seems to be enjoying it. How many executives just do not seem to be enjoying the challenge of moving a business forward?"

Stuart Metcalfe:
"Failure is part of the overall educational development of any executive.There is a great story of the Coca Cola Executive who, after making a mistake that had cost the corporation $18m in losses,went to his manager to offer his resignation only to be told,�Why would I want you to resign after I spent $18m on your education?"

Jonathan Perrin:
"Isn't self belief � that inner conviction that they will succeed- important?."

Alex Buchanan:
"Absolutely. A good example is the story of the Sony executive who created the concept for play stations who did not have the conviction to go out alone but produced the concept under the Sony banner.This was to Sony's great gain and also to that Individual who gained great corporate recognition."

David Coubrough:
"Simon Woodrolfe is a good example, whose idea for Yo! Sushi was turned down by a number of VCs and investors and had to invest his own money into the concept. He had real self belief and conviction in his concept."

Malcolm Ross:
"But it is more than just self-belief � there needs to be passion too. Passion inspires others."

Peter Lederer:
"Those people that you truly respect in the Industry � either Corporate or not � are those that have a real passion for the product."

Gary Hall:
"In our Industry (Hospitality), one can only be successful if one is really passionate. It is what makes the difference between one operator and another."

David Coubrough:
"Are entrepreneurs team players?"

Gary Hall:
"The entrepreneur is, providing he is leading the team.Otherwise no.He would get bored when everyone was running smoothly."

William Baxter:
"It is not that they can't be a team player � it is just that they see the world differently and are therefore natural leaders�so they always come to the fore, whatever the situation."

David Coubrough:
"On the last day of the Ashes Test match, Michael Vaughan is reputed to have told the players not to be afraid of failure and to play their natural games. Is he entrepreneurial, therefore, or just a good manager?"

Robert Cook:
"That's just good management.He brought out the best in the players."

David McHattie:
"He appeared to be inspirational but what would have happened if we then lost?"

A Changing World

David Coubrough:
�Are we encouraging the entrepreneurs of the future?"

Peter Lederer:
"I have two sons at Business School and as a result, I have spent some time talking to them and their peers.They just don't discuss careers, in the way that we probably did when we were their age.They are also not convinced that they will get a job � so their thoughts turn to starting up their own businesses.Will this be a new trend? Are we creating a whole new generation of entrepreneurs through the fact they are not inspired by the traditional career routes or by existing employers?"

Jonathan Perrin:
"There is the recent example of the 14-year-old Japanese boy who had managed to sell a photograph to �The Sun� for a large amount of money. It is a great story � he had taken the picture, approached the newspaper, negotiated the price and sold it.That takes some real spirit."

Malcolm Ross:
"The Internet is changing learning and many children were far more knowledgeable about the world as a result.They are very intelligent and far more global in their thinking. I think that this is a very exciting age group, as they will see the world in a very different way to how we saw the world as we were growing up. I think that they will bring a whole new dimension to the way that we view the world and this could be very exciting."

David McHattie:
"Perceptions are now very different.There are far more role models than ever before.The world is far more international and far less dominated by local values.Young people are given far more access to seeing different experiences and cultures than ever before and maybe the result is that the psyche is changing and just maybe the traditional conservatism of the British is changing."

David Coubrough:
"Research has stated that 70% of today's graduates will change their career by the age of 33.This supports Peter's view that today's graduates are not inspired by the long term planning of the traditional career route � that they are looking for something more. At the same time, it raises the question of how are we going to retain real talent or will it happen naturally? How many of you around the table would have changed if you were entering the industry today?"

All declared that they would have stayed.

Peter Lederer:
"I think that they will stay if the employers inspire them in their careers and if they possess an entrepreneurial streak, they will stay as they will see clear opportunities of running their own businesses."

Ian Mitchell:
"Absolutely.They do need to be inspired by the Industry in the way that we have been in the past.This is partly our responsibility as employers."

David McHattie:
"Often people come into the Industry because it is fun and gives you freedom to manage.This won't change and therefore,we do have to trust and believe in ourselves and in the Industry. It will always attract."

Conclusion

So what is it that makes the entrepreneur?
There were a number of common traits that came through the discussion as common threads:

Visionary � the ability to see a gap within the market
Determined and resourceful
Little fear of failure
High level of self belief
Passionate and driven by their work
Able to influence others.

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