Introduction
The dynamic nature of the business environment as well as increased competition has necessitated innovations and inventions from different people, especially those who have the ability to combine different factors of production and make huge returns from it. To do this, one requires to posses the necessary entrepreneurial knowledge, experience and skills as this will determine whether or not one will succeed in his business venture as well as the level of success.
Having the right business idea, capital and other factors of production is by itself not enough and therefore additional entrepreneurial characteristics and business acumen play a major role in determining the future of the business venture one seeks to engage in (Riyanti, 2004, p. 18). Personal characteristics have also been said to matter for entrepreneurs as they influence the way they do business and deal with people who facilitate the performance of their organisations.
According to Adam (1989, p. 203-204), an entrepreneur is someone who is capable of organising different factors of production such as labour, capital and land in order to meet anticipated demand by consumers, with the main goal being making profits from the venture. An entrepreneur has also been defined as the owner, organiser and manager of finances for industrial or commercial ventures in order to make a profit.
An entrepreneur is also said to be someone who acts in a way that makes him be seen as a leader as far as economic gains are concerned, as his actions result into beneficial industrial and technical growth (Fayolle, 2007, p. 14). These definitions focus not only on the person’s abilities to generate profits, but also on the bigger picture which is the economic implications of the entrepreneur’s actions.
Apparently there are six schools of thoughts that have been advanced and are used to form concepts mostly on entrepreneurs and in event have a bearing on entrepreneurship (Cunningham and Lischeron, 1991, p. 45-59). These schools of thought are the classical, great person, intrapreneurship, psychological, management and leadership schools.
The classical school suggests that a person’s entrepreneurial skills are based on his level of innovation and creativity, the great person school suggests that entrepreneurs are born, the psychological school suggests that entrepreneurial behaviour and skills are developed over a certain period of time, the intrapreneurship school is of the view that these skills stem from encouragement to perform in a particular line of work, the management school contends that entrepreneurship skills are developed via classroom training while the leadership school suggests that entrepreneurship involves attracting people towards supporting a particular vision and transforming the vision to reality.
Borrowing from these schools of thought, and more so the psychological characteristics school, Cunningham and Lischeron concluded that entrepreneurship involves the need to achieve on the part of the entrepreneur, the desire to have personal control over matters, seeking opportunities, innovation and taking calculated risks in order to achieve the desired goals (Cunningham and Lischeron, 1991, p. 57).
According to Carsrud & Brannback (2007, p. 5) the importance attached to entrepreneurship is as a result of the impact it has on the economic prosperity of people at an individual, regional and national level (Kumar, 2003, p. 8).
This paper seeks to compare and contrast two successful entrepreneurs and analyse the characteristics they posses as individuals that have enabled them to succeed in the business world. Their personal backgrounds, level of education achieved, knowledge and experience acquired and the wealth they possess, among other characteristics will form part of the analysis. The entrepreneurs in this case are Donald Trump of the Trump Organisation and Richard Branson founder of the Virgin Group of businesses.
Donald Trump
Born in 1946, Donald Trump has grown to become one of the most successful entrepreneurs in the United States. He is the current Chief Executive Officer and Chairman of Trump Organisation which is a successful real estate development company in the United States. Donald Trump is also actively involved in the hotel industry whereby he manages various Casinos and hotels in various major cities across the world.
Donald Trump’s graduated in 1968 from the University of Pennsylvania after which he went to work in his father’s company where he started his career as a real estate developer and later diversified into other fields such as the airline and entertainment industries, casino and hotel business. Trump is a passionate person and from his passion, he creates businesses which in turn generate profits for him. For example, as a result of his passion for playing golf, Trump came up with the business idea of building and running golf courses, the result being Trump Golf, which has been a major success in terms of the revenues it earns for him (Trump & McIver, 2007. p. 3).
He is a major believer in doing what he likes and therefore encourages people to find ways of generating income from what they like doing best, other than being stuck doing what they hate. Other personal traits that have helped Donald Trump get to where he is include determination, persistence, innovation, creativity, commitment, versatility, foresight and aggressiveness (Trump & McIver, 2007. p. 3). Donald Trump has managed to stamp his authority as an astute entrepreneur worth of emulation.
Richard Branson
Known for his Virgin Brand which is composed of a number of different companies such as the Virgin Atlantic Airways, Virgin Records, Virgin Fuels, Virgin Healthcare, Virgin Mobile and Virgin Trains among others, Richard Branson has established himself as a successful British industrialist and entrepreneur. He was born in 1950 to Edward and Eve Branson in South London. Other than his accomplishments as an entrepreneur, Richard Branson is also known for his charitable nature and humanitarian initiatives.
Even though he is not known to have been a top academic performer, his entrepreneurial skills and business acumen position him at the top with the rest of the world’s most successful entrepreneurs. Even though Richard Branson has experienced his share of setbacks, his optimistic personality drives him towards overcoming these setbacks (Dearlove, 2006, p. ix). Branson’s entrepreneurial recognition stems from the fact that he has been able to sell Virgin as a brand and has come out successful while doing it.
Dick Hubbard
The name Hubbard is synonymous with Hubbard Foods Ltd which later changed its name to Hubbard Foods. The company is run by board of directors. The company engages the services of more than 100 people. The company manufactures cereals and boasts a turn over of more than 27 million New Zealand dollars. Dick Hubbard has been engaged in series of corporate social undertakings which has made him a darling of many. He represents his company at the New Zealand Business for social responsibility and the council for sustainable development.
Jeff Griffiths
He is man behind Lumber Liquidators Holdings which is a well known home improvement store. Griffiths has previously headed Electronic Boutique Holdings (EB) a retailer in video game equipment. At EB he was the vice president in charge of merchandising, marketing and distribution. He also served as the director of EB. He holds a bachelors degree in history and an MBA from Temple University. In addition to these he also serves in the boards of Philadelphia academies, Albright College and THQ, as a director.
Comparison and Contrast between Donald Trump and Richard Branson
In order to better understand the entrepreneurial abilities of Donald trump and Richard Branson and how they compare to each other, they will be evaluated using the following attributes as listed in the table below.
Behaviour
Both Donald and Richard have strong personalities which have helped them succeed in their different ventures. Their sense of innovation and ability to bring together the different factors of production at their disposal together to generate revenues and profits is in most cases unmatched.
As an entrepreneur, Donald Trump’s behaviour follows the conventional ways of doing business meaning that everything has to be verified and planned in such a way that will ensure the business being engaged in is implemented according to well laid out plans and procedures. Even though Donald Trump was influenced by his father’s entrepreneurial skills at a young age, his education plays a major role in the way he conducts business as he believes it is a pre requisite to acquiring the necessary knowledge and skills to succeed in the business world. Richard Branson on the other hand is an unconventional entrepreneur that involves trying out new things as long as the idea sounds viable and has a promise for success.
Even though his entrepreneurial abilities are not largely influenced by education, his experience enables him to succeed in the business industry. Branson’s casual approach of doing business has earned him recognition as a “corporate rock star” as he hails from the new crop of entrepreneurs (Dearlove, 2006, p. 5). Despite of their different approaches to entrepreneurship, they are both determined and focused in their jobs and as such this persistence has enabled them to succeed as entrepreneurs and overcome the setbacks that are mostly associated with running businesses.
Motivation
Both entrepreneurs are motivated by their need to succeed in their areas of operation and to create wealth in the process. This brings out their entrepreneurial nature as for most entrepreneurs, the need for success and generating profits plays a major role in the decisions they take. Both entrepreneurs are also motivated by their passion of what they are doing. Donald Trump is passionate about his real estate business as he seeks to provide the best to the people in terms of entertainment and places where they can go and enjoy themselves such as hotels, and casinos. Most of his business ideas have also been driven by his passion for doing certain things and this is a good thing because he generates income in the process. For example, as a result of his passion for playing golf, Trump came up with the business idea of building and running golf courses, the result being Trump Golf, which has been a major success in terms of the revenues it earns for him (Trump & McIver, 2007. p. 3).
Just like Branson, he is a major believer in doing what he likes and therefore encourages people to find ways of generating income from what they like doing best. Branson is also motivated by his desire to become the best in different fields as he believes in all areas, he can find a way of doing things better and therefore engages in business ventures that will bring something new and better to the people.
Decision Processes
Both Trump and Branson have found ways of engaging in Business activities that enable them to better the industries in which they operate. While Trump’s main focus is the real estate industry, he comes up with establishments that will earn him recognition while putting his business high above those operating in the same industry. Branson does the same but exploits opportunities in different industries that have the potential of bringing him major returns.
Both entrepreneurs are risk takers but do so in a calculated manner only taking chances in ventures that have potential for better returns. They also have an eye for opportunities and therefore take advantage of building businesses in areas where the business world presents them with viable opportunities (Kuratko, 2008, p. 30-31). Their leadership and charisma works for them as it influences those working with them in enabling them fulfil the goals and objectives associated with their business ideas (Dearlove, 2006, p. 13).
Entrepreneurial Essence
In terms of the two business men’s entrepreneurial essence, Donald Trump comes out as a strategist meaning that he plans for all his moves. On the other hand, Branson is an opportunist. Once a venture shows the ability for growth and huge returns, he seizes the opportunity and takes the risk to invest immediately, before the window of opportunity closes (Bridgewater & Doyle, 1998, p. x).However the two entrepreneurs are steered by independence, goals and possession of consummate skills in doing things in their pursuit of entrepreneurial autonomy.
Their mastery of operations in the fields in which they conduct business enables them to come up with ventures that will provide people with solutions to their product and services needs. Their autonomy enables them to choose the conditions in which to carry out their businesses such as the people they work with, where they work and how they run the operations of their businesses. Their purpose if known to them and to the people they work with meaning that their operations are cantered upon achieving the bigger picture with regards to their business ventures.
Comparison and contrast between Jeff W. Griffiths and Dick Hubbard
Behaviour
Griffiths has a knack for expanding his business empire as witnessed when he took over the management of EB. This was seen from the way he managed to open 200 new stores as a result of doing away with the sports and kids division of EB.He was driven by a conviction that the sale of the chains will save the company the distraction which he thinks interferes with the way business should be done. He is an entrepreneur who believes in discipline and focus. He thrives in competitive environments and would consider merging with rival companies as seen with Gamestop Company. Hubbard on the other hand believes that an entrepreneur should be a role model by engaging in corporate social responsibility and by doing activities that are geared towards sustainable development in the society.
Motivation
Dick Hubbard believes that businesses must venture in corporate social responsibility and companies must carter for the interest of the stakeholders. Jeff Griffiths is a person who is driven by desire to expand his business empire as seen in a case where he decided to close 22 stores to focus on extension of the EB chain of stores.
Decision processes
Jeff W. Griffiths is an individual who takes moderate risks. This is seen when he decided to close down the sports and the kids division of the EB to enable him open other chains of stores. This was meant to eliminate any form of distraction. This he did with a conviction that the new 200 stores would give output more than that what was got from kids division. Dick Hubbard’s decision making prowess can be witnessed when he decided to become a project manager of a fruit manufacturing company at the expense of a lecturing job. He later abandoned a well paying job to start a food processing company.
Entrepreneurial essence
Griffith is shown as somebody who likes taking risks. This is seen when he decides to close down some stores owned by EB to allow him room for expansion into other markets. When competition heats up between EB and Gamestop he decides to merge with Gamestop. Dick has also diversified markets for his products to include Europe and Kenya among other countries. But Dick likes the use of corporate social responsibility in the running of business.
Conclusion
Entrepreneurship cannot be limited to specific traits and no two successful entrepreneurs portray this better than Trump and Branson as one follows the conventional way of doing business and the other a more modern, casual approach. Despite their obvious differences, they have both been able to achieve great success as entrepreneurs and in their own way earned respect in the entrepreneurial sector. The fact that they have achieved this great level of success while doing what they are passionate about should be a lesson to up coming entrepreneurs that one can do what they like doing and generate income from it (O’Bryan, 2007, p. 167).
Recommendations
- Commitment, Determination and Perseverance: Trump, Hubbard, Griffiths and Branson have shown a great deal of commitment to their business ventures and have not let set backs prevent them from accomplishing what they have set out to accomplish (Payment, 2008, 6-7). Non entrepreneurs should thus learn that these traits are important if one wishes to make it in the business world especially since challenges and set backs are inevitable.
- Goal Orientation and Opportunity: The two Richard Branson and Donald Trump have succeeded as a result of their ability to identify and take advantage of new opportunities that have been presented by the business environment and the ever changing needs of consumers. Non entrepreneurs should thus seek to hone their skills with regard to having an eye for ventures that promise to bring them success.
- Calculated Risk Taking: It is necessary for entrepreneurs to determine the level of risk associated with the businesses they wish to venture into and determine whether the risk is worth taking. This does not however mean that they should avoid ventures that hold considerable levels of risk as in the same way; these ventures have the ability of providing higher returns compared to low risk ventures. Branson is a good example in this case.
- Flexibility and Planning: The four entrepreneurs have shown flexibility in the way they run their businesses which has helped them to adapt in different situations which require flexibility on their part. Flexibility is a major requirement when it comes to decision making as it gives one the opportunity of changing previous decisions to suit the prevailing business environment. In their business operations, the entrepreneurs have portrayed excellent planning skills by coming up with workable business plans and following through with them in line with their set goals and time limits. Up coming entrepreneurs should thus learn that open mindedness is part of what makes businesses successful as things do not always work as planned and as such maintaining a status quo is not beneficial.
- Self Confidence and Motivational Abilities: Self confidence is key when it comes to entrepreneurship as it is hard for one to succeed if he does not believe in his plans and the success of his business ideas. An entrepreneur should also be able to motivate those who are working under him to help him achieve his ambitions. An entrepreneur who is able to motivate his staff members achieves more as he is able to make them follow his line of thinking and act accordingly when it comes to implementing his business ideas and plans. This goes hand in hand with leadership and as such all entrepreneurs should adopt leadership skills that allow flexibility on the part of their workers such as democratic and charismatic leadership qualities/skills.
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