An artisan entrepreneur’s approach to business decision making is often characterized by the following features:
They are paternalistic—they guide their businesses much as they might guide their own families.
They are reluctant to delegate authority.
They use few (usually only one or two) capital sources to create their firms.
They define marketing strategy in terms of the traditional components of price, quality, and company reputation.
Their sales efforts are primarily personal.
Their time orientation is short, with little planning for future growth or change.
A mechanic who starts an independent garage, a beautician who operates a beauty shop, or a painter who opens a studio are examples of artisan entrepreneurs.
In contrast to the artisan entrepreneur, an opportunistic entrepreneur is one who has supplemented his or her technical education with the study of such nontechnical subjects as economics, law, or history. Opportunistic entrepreneurs generally avoid paternalism, delegate authority as necessary for growth, employ various marketing strategies and types of sales efforts, obtain original financing from more than two sources, and plan for future growth. An example of an opportunistic entrepreneur is a small building contractor and developer who adopts a relatively sophisticated approach to management, including detailed accounting and budgeting, precise bidding, and systematic marketing research.
You should understand that our descriptions of these two entrepreneurial styles represent extremes: At one end is a crafts person, and at the other end is a knowledgeable and experienced manager. The former frequently “flies by the seat of the pants,” and the latter uses systematic management procedures and something resembling a “scientific” approach. In practice, of course, entrepreneurial styles are far less polarized, with entrepreneurs scattered along a continuum of managerial sophistication. This book is intended to help you move toward the opportunistic end of the continuum and away from the artisan end.
ENTREPRENEURIAL TEAMS
Our discussion thus far has focused on entrepreneurs who function as individuals, each with his or her own firm. And this is frequently the case. However, entrepreneurial teams are becoming increasingly common, particularly in ventures of any substantial size. An entrepreneurial team consists of two or more individuals who combine their efforts to function in the capacity of entrepreneurs. In this way, the talents, skills, and resources of two or more entrepreneurs can be concentrated on one endeavor. This very important form of entrepreneurship is discussed at greater length in Chapter 8