Entrepreneurs versus corporate managers - IMD

Summary:
An IMD study looks at the main differences between entrepreneurs and corporate managers. Key differences: 1) Long-term/short-term decision making. Contrary to expectations, entrepreneurs proved to be the group with the greatest focus on building a long-term business. Corporate executives operated far more from a monthly or quarterly framework. The reason behind this difference is that an entrepreneur ends up creating an end result – a product, market or firm – which looks very little like what they started out to accomplish in the first place. The big difference is in the goal of trying to create something big and enduring. 2) Marketing information. Entrepreneurs tend not see the point of such information. To them, market research lies in the principle of the proof of the pudding being in the eating. Under this line of thought, positive market feedback consists of trying to sell something and being successful – and negative feedback the opposite - being unsuccessful at selling something which therefore requires some re-thinking. 3) Money. Entrepreneurs showed themselves to be far more cost conscious than their corporate counterparts – who were much more willing to throw big budget at things with uncertain outcomes. 4) Competition. Where corporate executives were seen to be highly focused on the competition, entrepreneurs are far more concerned with whom they can establish solid partnerships - almost to the exclusion of worrying about competition. (Published: August 2008)