Do I have what it takes to be an entrepreneur?

While almost never asked explicitly in SCORE counseling sessions, Bill Litchman, SCORE counselor, explains in his following article an underlying concern of each of our clients, “Do I have what it takes to be a successful entrepreneur or small business owner?” First, we need to understand the differences between the two. While there are many similarities, there are a few notable divergences.

True entrepreneurship entails substantial innovation providing the venture with a unique competitive edge leading, if successful, to significant wealth creation over a relatively short period of time and, therefore necessitating significant financial risk to both the entrepreneur and other investors. The entrepreneur is a leader with an enthusiastic vision and the ability to drive the enterprise intellectually and convince outside investors and potential employees of the value and uniqueness of the idea. The entrepreneur does not need to be “chief cook and bottle washer” of the enterprise but needs to recognize her/his weaknesses and compensate with outside talent.

The Small Business Owner also needs perseverance and drive; and every start-up necessitates financial risk and anticipates financial rewards. However, the small business owner is chief cook and bottle washer and needs to understand, with some degree of detail every aspect of her/his business including leadership, sales & marketing, how to read financial statements, potential legal ramifications and, as appropriate purchasing, inventory control, web site development and on and on. Usually, the small business owner is seeking to realize her/his dream with contained financial risks while earning a steady and growing income. The entrepreneur bets the farm, the small business start-up does not; but both need that all important business plan.

For both the entrepreneur and small business owner, the words of Frank Lloyd Wright apply: “I know the price of success: dedication, hard work and an unremitting devotion to the things you want to see happen.” And, both need to understand fully the concept behind the words of Arie de Geus: “Your ability to learn faster than your competition is your only competitive advantage.”


Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties