Just how crazy are entrepreneurs?

Louise Marston - 30.09.2010

The New York Times published an article recently about an entrepreneur, Seth Priebatsch, and described what it called his 'hypomanic' attributes: an elevated mood, obsession with one idea, little need for sleep, massive self-confidence.

The article implies that entrepreneurship is an inbuilt trait somewhere to the right of normal, and just on the edge of manic illnesses. It cites Steve Jobs and Henry Ford as other examples of this type.

This is a familiar argument: that entrepreneurs are born not made, and has also been applied to 'prodigies' and 'geniuses' in other spheres. But is this a fair reflection of entrepreneurs, and if so, what does it imply for schemes which aim to encourage or teach entrepreneurship?

What does an entrepreneur look like?

Imagine an entrepreneur. What do they look like? What do they sound like? Perhaps you think of one of the dragons from 'Dragons' Den', or Richard Branson. It is tempting to extrapolate from these highly visible examples, and get the same impression of entrepreneurs as a manic, bombastic group.

However, there is a selection bias at work here: not all entrepreneurs seek public attention. Those people with the job title 'entrepreneur' are those who seek publicity and attention for themselves. But thousands of businesses are started every year, and hundreds of VC bets placed, and we don't know all their names.

Meeting with a successful serial entrepreneur a couple of weeks ago, he described different motivations in his peers: for money, for the technical challenge, for the buzz.

The pitch

In order to successfully secure investment, especially venture capital, you will need to pitch the idea. Those who can sell, with confidence and self-belief are more likely to be funded. This makes logical sense: if you can't sell to the investors, how are you going to convince customers and make money? How are you going to inspire your team?

The team

But that's a 'hygiene' factor - a condition of entry. To be distinctive, you also need a great idea, and a market to match, but more than that, many venture capitalists will tell you that they back the team. One guy is not usually enough - you need a balance of skills in the team to increase the chances of success. You want people who understand the product and their customers, who can deliver to deadlines, who can take care of the money.

Rewriting the stereotype

My point is that this concept of the manic entrepreneur can be very damaging. In a recovering economy, many people would like to inspire more entrepreneurs. If the only model held up is one of bombastic arrogance, then those who don't identify themselves with this personality will be put off, and feel they can't succeed. This could be an especially harmful notion when it comes to inspiring women to start businesses.

How to pitch with confidence can be taught, and will improve with practice - as long as you are obsessed with your idea. And everyone is obsessed by something.